Hot Water System Prices: What to Expect in 2025

Here’s a quick look at average hot water system costs by type:

• Gas hot water systems: $785 to $1,625

• Electric hot water systems (storage): $525 to $2,000

• Electric instant hot water systems: $750 to $1,500

• Solar hot water systems: $3,650 to $6,560+

We’ll walk you through what impacts hot water system pricing, including:

• What impacts hot water system cost

• Tank vs. continuous flow (instant) systems

• How much to expect to pay for supply and installation

• Leading hot water system brands in Australia

• Tips for choosing the best unit for your home

• How to compare plumber quotes and find the best deal, and more.

Want to find hot water systems in Sydney, Melbourne, Brisbane, Perth or Adelaide?

Hot Water System Cost Guide: What You Can Expect to Pay

Hot water system prices in Australia can range from as low as $300 to over $7,000, depending on the type of system, unit size, energy source, and installation requirements. Whether you’re considering gas, electric, solar, or heat pump systems, it’s important to choose one that suits your household size, budget, and energy usage.

Let’s break down the typical hot water system costs based on system type.

Hot Water System Prices in Australia (2025)

Solar Hot Water System Prices

How much does a solar hot water system cost? In Australia, prices typically range from $3,000 to over $7,000 before installation. While solar systems have a higher upfront cost, they’re energy-efficient and can offer long-term savings—especially with available government rebates and incentives.

Here’s a breakdown of solar hot water system price estimates:

• Roof-mounted solar with electric booster: $3,650 to $5,050+

• Split system solar with gas booster: $4,950 to $6,560+

Keep in mind that solar hot water system costs will vary based on your home’s energy needs, how many solar panels are required, and whether you’re using electric or gas boosting (natural gas or LPG). The lower running costs can make solar systems a cost-effective choice in the long run.

Tip: For the best deal, get a few quotes from licensed hot water system installers in your area.

Gas Hot Water System Prices

Gas hot water systems are popular for their quick heat-up times and relatively low running costs—especially if you’re connected to natural gas. They’re available in storage or instantaneous (continuous flow) models.

Average gas hot water system price ranges:

• Storage tank gas systems: $880 to $1,525

• Continuous flow gas systems: $785 to $1,625

Installation is generally fast and straightforward, and a licensed plumber can usually complete it in a few hours.

Electric Hot Water System Prices

Electric hot water systems are one of the most affordable options upfront. They come in two main types: storage tanks and instantaneous units.

Typical electric hot water system costs:

• Storage tank electric systems: $525 to $2,000

• Instant (continuous flow) electric systems: $750 to $1,500

Electric units are easy to install indoors or outdoors, but make sure your plumber has a restricted electrical license if required.

Heat Pump Hot Water System Costs

A heat pump hot water system is a highly efficient electric system that uses ambient air to heat water — similar to how a fridge works in reverse. It’s ideal for homes with solar panels, as it can run using your own electricity.

There are two main types of heat pumps:

• Integrated systems (tank and compressor combined)

• Split systems (separate tank and compressor)

Most systems need to be installed outside in a well-ventilated area. While the compressor can be noisy, newer models have quieter options and can work well in cooler climates thanks to built-in booster elements.

Heat pump hot water system prices generally fall between $3,000 and $4,000, not including installation. However, rebates can significantly reduce your out-of-pocket cost.

Want to find a hot water system in Sydney, Melbourne, Brisbane, Perth or Adelaide?

Hot Water System Installation Cost in Australia

Hot water system installation costs can vary significantly depending on the type of system, whether it’s a replacement or a brand-new install, the size of the unit, your household water usage, and installation complexity. Labour, materials, and location can also impact the total cost.

Here’s a general guide to average installation price ranges for different types of hot water systems in Australia:

Average Hot Water System Installation Costs

Keep in mind, government rebates and warranties for solar and heat pump systems typically require installation by a Clean Energy Council-accredited installer.

When replacing an existing unit with a similar type and size, the process is usually simpler and cheaper. However, switching to a different system—like going from electric to solar—can involve more labour and upgrades to plumbing or electrical work, which increases the cost.

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Factors That Affect Hot Water System Prices

Several key factors influence hot water system prices and installation costs. Understanding these can help you make a more informed decision and avoid unexpected expenses.

• System type: The type of system you choose—electric, gas, solar, or heat pump—has a major impact on both upfront and long-term costs. For instance, solar systems have higher installation costs but lower running costs over time.

• Unit size: Larger households with higher water usage will need bigger systems, which generally cost more to purchase and install.

• Brand and quality: Premium brands may come at a higher price but often offer better energy efficiency, longer warranties, and greater reliability.

• Installation complexity: Replacing a like-for-like system is usually cheaper than installing a completely new system that requires additional plumbing or electrical work.

• Government rebates and incentives: Rebates can significantly reduce the upfront cost, especially for solar and heat pump systems that meet energy efficiency standards.

It’s essential to weigh all of these factors when choosing a hot water system to ensure it fits your household needs, budget, and long-term energy goals.

Want to find a hot water system in Sydney, Melbourne, Brisbane, Perth or Adelaide?

Storage vs Continuous Flow Hot Water Systems

When choosing a hot water unit, one of the first decisions is whether to go with a storage system or a continuous flow system (also known as instantaneous, tankless, or on-demand). Each has its pros and cons depending on your household size, water usage, and energy goals.

• Storage systems heat and store water in an insulated tank, keeping it ready for use throughout the day. They’re ideal for larger households or homes with higher hot water demands.

• Continuous flow systems heat water only when you need it, by running cold water through heated copper piping. These units are compact, energy-efficient, and ideal for small to medium-sized homes with moderate water usage.

Benefits of a Continuous Flow Hot Water System:

• Higher energy efficiency (no standby heat loss)

• Longer lifespan (can last up to 20 years)

• Lower maintenance requirements

• Consistent water quality (no water sitting in a tank)

• May be eligible for government rebates

• Space-saving design – often wall-mounted and about the size of a suitcase

While continuous flow systems can be more efficient, they may struggle to meet the needs of larger households where multiple taps are used simultaneously. Storage systems, on the other hand, can deliver a high volume of hot water at once but tend to have higher running costs due to heat loss over time.

Best Hot Water System Brands in Australia

Choosing the right hot water system isn’t just about price or type—it’s also about reliability and performance. Whether you’re looking for the best electric hot water system, a high-efficiency gas unit, or a solar or heat pump model, it’s worth considering reputable brands known for quality, durability, and strong warranty support.

Some of the top hot water system brands in Australia include:

• Rinnai – Known for energy-efficient gas and continuous flow systems.

• Rheem – Offers a wide range of electric, gas, solar, and heat pump systems.

• Bosch – Renowned for reliable and compact instantaneous hot water units.

• Dux – A trusted Australian brand with models across all system types.

• Thermann – Offers great value with efficient, well-designed systems.

These manufacturers offer options for all household sizes and budgets, with many models eligible for government rebates and energy efficiency incentives.

Want to find a plumber in Sydney, Melbourne, Brisbane, Adelaide or Perth?

Which Hot Water System Is Best for My Household?

The best hot water system for your home depends on your household size, hot water usage, budget, and access to energy sources like natural gas or solar. While a solar hot water system is generally the most energy-efficient and cost-effective long-term option, it’s not always practical for every home due to roof space, upfront cost, or lack of sunlight.

Here’s a breakdown of which systems suit different household sizes:

Small households (1–2 people):

• Best options: Continuous flow (instantaneous) gas or electric systems, or a small gas storage unit.
• Why: Compact, energy-efficient, and provide hot water on demand with low running costs.

Medium households (3–4 people):

• Best options: Gas storage system, continuous flow gas unit, or a heat pump hot water system.
• Why: These systems offer a good balance between capacity and efficiency.

Large households (5+ people):

• Best options: Large gas storage units or high-capacity heat pump systems.
• Why: These systems can handle higher demand and reduce the need for multiple units.

It’s important to also consider your local energy rates, available rebates, and installation requirements before making a final decision. Consulting a licensed plumber or hot water specialist can help tailor a system to your specific needs.

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Getting Quotes for Hot Water System Installation

To get accurate quotes for hot water system prices and installation, it’s important to know the type of system you need—electric, gas, solar, or heat pump—and your household’s hot water usage.

Find local plumbers through online directories like Yellow Pages, or ask for recommendations from friends or family. When contacting installers, provide key details such as:

• System type and size

• Number of household members

• Budget and any brand preferences

Request a detailed, itemised quote that includes:

• Cost of the unit

• Installation and labour

• Any additional fees (e.g. system removal or plumbing upgrades)

Compare at least three quotes and consider factors like the plumber’s experience, warranties, after-sales service, and overall value—not just price. Doing your homework can help you choose the right system and installer for your needs.

Want to find a plumber in Sydney, Melbourne, Brisbane, Adelaide or Perth?

*All costs and prices quoted were sourced at the time this cost guide was written and should only be used as an estimate.