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You can replace some water heaters for $800 to $1200 but some require $5,000 to $6,000. The cost depends on your choice, location and more.
Your hot water system has a major home maintenance task that affects your daily quality of life and utility expenditure. Has your water stopped heating? This is usually a clear indication of something wrong with your water heater. Hot water is necessary, so repairing or replacing your water heater must happen sooner rather than later. Deciding to repair or install a new water heater for your home means evaluating the ventilation type, energy efficiency, installation cost, etc. You can choose from several options based on the fuel source and system: gas or electric water heater, storage tank, or tankless water heater.
There is no general amount for the water heater replacement cost. Many factors determine water heater replacement cost. Considering all the factors, replacing a water heater can cost between $2,500 and $3,000 for a new tank unit and around $6,500 and $7,500 for a new tankless unit. Plumbing costs and tank disposal can be additional costs to the final total. Let us explore the details and help you replace your old unit with a more efficient water heater.
Replacement and installation of a hot water system have variations on the type of systems plus price range and benefits. Check different options and determine which system is right for your application and budget. These are the main types of hot water systems, broken down by cost in Australia:
Electric hot water systems (sometimes called tank systems) heat and store the water in a major container sized specifically for your use.
Price: $800 to $1,500 with installation
Details: It is priced differently for 125L, 250L and star-rating of the tank. The larger tanks or the most energy-efficient models will cost more.
Gas systems are like electric, but rather than electricity using gas (either Natural Gas or LPG) to heat the water. They tend to be more energy-saving than electric versions.
Price: $1,200-$2,500 including installation
Details: Price is always based on tank size and brand of water geyser within an energy-efficient run. Gas-powered systems can recover faster than electric systems and are commonly more cost-effective.
Tankless or instantaneous systems which, as the name suggests, heat water on demand and do not use a storage tank. They provide an endless flow of hot water and are generally more energy efficient.
Electric Instantaneous:
Price: Installation Included $1,200-$2,500
Details: For small to medium households, electric tankless systems are lightweight and occupy less space, but they need a lot of electricity which may mean big wiring upgrades are required at home.
Gas Instantaneous:
Price: $1,500-$3,500 Including installation
Details: Gas models are common, they deliver high flow rates and have lower operating costs in the long run.
Solar panels and photovoltaic cells convert sunlight into electricity. This can heat the water. They are eco-friendly and can save you a lot on your energy bill.
Flat Plate Systems:
Price: $3,000 to 5,500 entire system including installation
Details: These systems are suitable for most Australian climates. This supports flat plate collectors.
Evacuated Tube Systems:
Price: $4,000–$6,500 including installation
Details: Though evacuated tube systems are a bit more expensive, they are known for being effective and efficient in cooler climates. It may offer the best results in less sunny regions.
Heat pump systems move heat from the air or ground to heat water using electricity. They are also very efficient and will work well for locations with modest temperatures.
Price: $3,000-$6,000 with installation
Details: Depending on the size, efficiency, and brand, heat pump systems can often be pricier to fit. They have a lower running cost in the long term.
The kind of hot water system you go for plays a huge part in the total output and cost. Storage tanks are typically cheaper than tankless or solar systems, but high-efficiency and solar options generally cost more.
The cost of high-volume or large systems will be higher. Make sure to choose a system that can provide hot water for your household without overspending on the power you don't need.
Installation cost is also determined by the location of installation, if it requires extra plumbing or electrical work and then sort of changes are required in the place at which you install. If it requires a complex installation or the removal of an old system, you can expect the costs to go up.
Depending on whether the system uses gas or heat pump/solar technology it could have different installation and operating charges. Solar and heat pump systems are costlier initially, but they will surely show savings in the long run against fuel bills.
Labour costs will vary depending on the rates available in your region. Urban zones may have more expensive labour compared to the rural atmosphere. Besides, getting the permits and following local laws also impact its overall cost.
If you are switching to a natural gas water heater from an electric system, you will need to install new gas lines, which can add to the installation cost.
Similarly, if your plumbing or electrical system needs modification, this can also increase the overall cost of the installation.
Get quotes from several contractors to ensure that you are getting the best prices and services. It is clear with the upfront pricing and you get a chance to choose from the list of competent installers.
While the immediate cost may be intimidating, remember that energy-efficient systems almost always pay for themselves over time. Energy bills can sometimes be lowered over time through systems like solar and heat pumps.
Check for rebates, incentives and government programs that may provide relief toward the purchase of a new hot water system. Programs differ by location and some can yield significant savings.
Evaluate how much hot water you consume in your home, and choose a system that is right for you so it will not be too big or even large. Sizing your configuration properly will help keep you from overpaying for unneeded features.
Scheduled servicing of your hot water system will extend its life and optimise operation. If you are in it for the long haul, maybe spend some time and money on regular check-ups that can prevent surprise repairs from ever happening.
Investing in a hot water system is much like any other household decision, it comes down to your needs, budget and the benefits over a longer period. There are electric and gas storage systems, instantaneous models, solar variations or even the increasingly popular heat pump each coming with its own set of benefits that may impact your choice. This knowledge should hopefully help you make a more educated decision that is right for your lifestyle and financial objectives.
Evaluating the systems available will help you find just what your home needs whether it be in a fiscally sane, or green upgrade. Having a new hot water system installed provides you with constant, reliable access to hot water as well as savings and improved energy efficiency in the long term. By taking into account the install difficulty, energy source and system size you will be able to choose one that provides comfort as well as financial returns.
In the end, finding a hot water system that can provide you with all these benefits without putting too much financial strain on you is what will bring long-term savings to your pocket.
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.
As regards the average cost to replace an electric storage hot water system in Australia, it normally falls within $800-1,500 (with installation). To sum up, the final price is subject to either both tank size and efficiency of energy along with the type you have selected.
A basic gas instantaneous hot water system installation will cost between $1500 and $3500. The price difference is depending on the brand, size and features.
While they can be expensive, worth such an investment to achieve the long-term savings and environmental benefits intended through using solar hot water systems at $3,000 – $6,500. They are more expensive to start up but save on energy costs and help the environment over time.
Variations in the price to replace a hot water system depend on factors such as piping layout, type and size of unit (electric, gas or solar), access requirements, and your location. There may be additional costs if alterations are required for installation or upgrades of exposed plumbing and electrical circuits.
The installation of a heat pump hot water system costs around $3,000 and$6,000. Although upfront costs may be higher than electric or gas storage systems, they are usually much more energy efficient and can result in lower running costs. Heat pumps are generally cheaper than solar systems upfront, though payback on energy savings may vary depending on your local climate and the price you're paying for power.
The installation time for a new hot water system typically ranges from 2 to 4 hours, depending on the complexity of the installation and whether any additional work, such as piping or electrical adjustments, is needed.
Electric and gas storage hot water systems usually last around 8 to 12 years, while gas instantaneous systems can last up to 20 years. Solar and heat pump systems typically have a lifespan of 15 to 20 years, with regular maintenance extending their life.
Common signs include inconsistent water temperature, reduced hot water supply, strange noises from the unit, discoloured water, and visible rust or leaks. If your system is over 10 years old, it may be time to consider a replacement.
