How Much Does a Solar Hot Water System Cost? [2024]

23 Sep, 2024 / Hot Water System Services / Written by ServiceTasker Team / 134 Views / Last Updated 23 Sep, 2024

Solar hot water systems have gained popularity among Australian homes in recent years due to the increased interest in sustainable living and reduced utility bills. You can invest in this environmentally beneficial technology, as there are several government incentives and rebates available in Australia for solar systems.


If you are planning to introduce a renewable energy source to your home, you can go with a solar hot water system. It will increase your energy independence, reduce your carbon footprint, and provide long-term savings on electricity or gas bills. Concerned about the cost of a solar hot water system? Check this to know about the cost of solar hot water systems and the factors that affect them.


Comparing Hot Water System Running Costs Based on Household Size


Here's a breakdown of hot water system costs based on the number of people in your household:


For 1 Person:


Electric Systems: Approximately $525 per year


Electric-Boosted Solar Systems: About $125 per year


For 2 People:


Electric Systems: Around $795 per year


Off-Peak Electric Systems: $595 per year


Electric-Boosted Solar Systems: Roughly $230 per year


For 3 People:


Electric Systems: About $970 per year


LPG Gas Systems: Approximately $970 per year


Electric-Boosted Solar Systems: Approximately $230 per year


For 4 People:


Electric Systems: $795 per year


Off-Peak Electric Systems: $595 per year


LPG Gas Systems: Approximately $970 per year


Heat Pump Systems: About $250 per year


Electric-Boosted Solar Systems: Around $345 per year


Solar Hot Water System Installation Cost in Australia


Depending on what type and size of system you select, the cost of a solar hot water system installation can vary in Australia. The majority of providers will provide quotes that already account for Small-scale Technology Certificate (STC) deductions, which are government-issued incentives designed to promote the use of renewable energy.


After the STC value is deducted, the following are some ballpark costs for various solar hot water system types:


Rooftop Systems:


$2,350 for a 181-litre system


$2,800 for a frost-protected 181-litre system


$3,575 for a 300-litre system


Split Systems:


$2,625 for a 270-litre capacity system


$4,300 for a 410-litre capacity system


Gas-Boosted System (for cool climates): $5,125


Heat Pump Systems: Generally range from $3,000 to $4,000


While STC values can vary, on average, you can save anywhere from $500 for smaller systems to $1,000 for bigger systems. Most providers include these discounts in their quoted rates.


Types of Solar Hot Water System Available


Rooftop Systems: These systems, which range in capacity from 181 litres to 300 litres, are mounted on the roof. Some rooftop systems are perfect for colder areas since they are frost-protected by design.


Split Systems: There are split system components installed at the ground level as well as on the roof. They come in a range of capacities to meet varying hot water needs and household sizes.


Gas-Boosted System: With the help of a gas booster, this cooler-climate-adapted technology makes sure that hot water is always available.


Heat Pump Systems: Heat pump systems are efficient even in the winter when they extract solar heat from the air rather than from the sun. They utilize approximately 75% less energy than traditional electric water heaters by transferring this heat into your water through the use of electricity.


Factors Affecting Solar Hot Water System Cost


System Type and Size: The size (capacity) and type of solar hot water system (rooftop, split, or heat pump) that you select will have a significant impact on the final cost. More complicated designs or larger systems could have higher upfront costs.


Quality and Brand: Reputable brands' higher-quality systems may cost more upfront, but they may save you money in the long run because of their improved longevity, efficiency, and dependability.


Government Incentives and Rebates: The cost of installing a solar hot water system can be remarkably decreased when government incentives are available. Depending on the system type and region, these incentives fluctuate.


Installation Needs: Installation costs may fluctuate depending on the level of intricacy (such as roof type, accessibility, and plumbing requirements). More complex installations could require more labour and materials.


Location and Climate: Some system types may be more beneficial in those areas that have more sunlight than others, which might affect total cost and performance. The location and climate have a big impact on the solar hot water system.


Australian Government STCs for Renewable Energy Systems


The Australian government offered Small-scale Technology Certificates (STCs) to encourage the use of renewable energy sources and household sustainability.


Eligible Systems:



  • Solar voltaic panels (for electricity)



  • Wind turbines



  • Hydro systems



  • Solar water heaters



  • Heat pumps




STC Eligibility Criteria:



  1. Register your system on the Solar Water Heater Register.



  2. Make sure it adheres to New Zealand and Australian safety standards.



  3. Use a certified installer from the Clean Energy Council.



  4. Install within a year from the date of certificate creation.



  5. STCs are intended for small-scale residential systems; larger-scale programs are offered for commercial installations and companies.




Frequently Asked Questions


What is the lifespan of solar hot water systems?


Solar hot water systems typically have a lifespan of 15 to 20 years. Regular maintenance can extend their efficiency and longevity.


How long does water stay hot in a solar water heater?


The water in a solar water heater can stay hot for up to 2-3 days, depending on the system design, insulation, and weather conditions. Some systems may use a backup heating element to ensure hot water availability.


How long does it take to install a solar hot water system?


Installation of a solar hot water system usually takes 1 to 3 days, depending on the complexity of the system and the conditions at the installation site.


Does solar hot water work in winter?


Solar hot water systems can work in winter, but their efficiency may be reduced due to shorter daylight hours and lower sun angles. Many systems are designed with backup heating elements to ensure hot water is available year-round.


What is the best place to keep a solar water heater?


The best place to install a solar water heater is on a roof or another area that receives ample sunlight throughout the day. It should be positioned to maximise exposure to the sun and minimise shading.


How much money do solar hot water systems save?


Solar hot water systems can save homeowners up to 50-80% on their water heating bills, depending on the system size, location, and energy costs. The savings can lead to a return on investment within 5 to 10 years.


Conclusion


With the proper knowledge of the cost, you can choose the system (type and size) that fits your needs within your budget. Hiring a professional for your installation provides you peace of mind throughout the process because professional installers are experts in the ins and outs of solar hot water systems. We recommend you invest in a solar hot water system for your home in Australia. You can achieve long-term savings.

Costs of various services and materials in this cost guide should be taken as estimates. These depend on location, preference and demands in the market.

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