Solar Hot Water System Prices in Australia

Looking for a solar hot water system price list for your hot water needs? In Australia, the cost of a solar hot water system — including installation — typically ranges from $3,000 to $8,000 or more, depending on factors like system type, tank size, brand, and your home’s specific installation requirements.

In this comprehensive guide to solar hot water system prices, we’ll cover:

• How solar hot water systems work

• Key benefits of using solar hot water

• A breakdown of solar hot water system price ranges

• Available government rebates and incentives

• Installation and maintenance considerations

• Tips for getting accurate quotes in your area, and more.

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

How Much Does a Solar Hot Water System Cost?

Wondering how much a solar hot water system costs in Australia? On average, solar hot water system prices range from $3,000 to $8,000, including installation. The final cost depends on several key factors, such as:

• System size and capacity

• Type of solar hot water system (roof-mounted, split system, or heat pump)

• Number of solar collectors or panels

• Complexity of installation and roof accessibility

• Your location and climate

• The installation company you hire

Let’s break down typical solar hot water system price ranges by type.

Solar Hot Water System Price List (Including Installation)

Here’s a general guide to solar hot water system prices across different types:

Heat Pumps as a Solar Hot Water Alternative

Heat pumps are an excellent option for homes with limited roof space or shading issues. These systems use ambient air to heat water, allowing them to operate effectively day and night — even without direct sunlight. While not technically solar, they offer similar energy savings and government incentives.

Heat pumps are especially efficient in warmer climates, and although they may generate some noise, their lower running costs and reliability make them a popular alternative to traditional solar systems.

You might like: How much does a hot water system cost?

Solar Hot Water Rebates and Incentives in Australia (2025)

In Australia, solar and heat pump hot water systems are eligible for financial incentives at both federal and state levels. These incentives can help reduce the solar hot water system price and improve overall return on investment.

The main nationwide incentive is the Small-scale Renewable Energy Scheme (SRES), administered by the federal government. Under this scheme, eligible systems earn Small-scale Technology Certificates (STCs), commonly referred to as the “solar rebate.” The number of STCs a system receives depends on its efficiency, installation location, and the current year. In 2025, systems qualify for a 6-year deeming period (down from previous years), which may slightly reduce the total rebate compared to prior installations.

STCs generally trade for $30 to $40 each. For example, a system eligible for 30 STCs at $35 per certificate would reduce your upfront cost by $1,050. Most suppliers include this discount in their quotes, but always confirm it’s clearly itemised.

While you can trade STCs yourself, most homeowners assign them to the installer for convenience. Keep in mind that values vary slightly between providers.

Rebate programs may change, so it’s a good idea to check the federal government’s energy website or contact your local energy authority for the most up-to-date information. Some manufacturers and suppliers also offer online rebate calculators for quick estimates.

Running Costs of Solar Hot Water Systems

While the solar hot water system price may be higher upfront, ongoing running costs are much lower compared to traditional electric systems. Over time, this can lead to substantial savings—often reducing your water heating bills by up to 75%, depending on your climate, energy rates, and household usage.

Here’s a comparison of average annual running costs for a four-person household:

• Solar hot water system: $305 – $450 per year

• Electric hot water system: $1,015 – $1,442 per year

Switching to a solar hot water system can save you over $1,000 each year on energy bills, making it a cost-effective and environmentally friendly choice in the long term.

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

How Does a Solar Hot Water System Work?

A solar hot water system uses energy from the sun to heat water for use in your home or business. It’s an energy-efficient alternative to traditional electric or gas hot water systems and can significantly reduce your energy bills over time.

Here’s a simple breakdown of how a solar hot water system works:

1. Solar Collectors (Panels or Tubes)
   Mounted on the roof, these collectors absorb sunlight and convert it into heat. They contain a special fluid (often a water-antifreeze mix) that heats up as it passes through the panels.

2. Heat Transfer System
   The heated fluid is circulated through insulated pipes to a heat exchanger, where it transfers its heat to the water stored in a tank.

3. Hot Water Storage Tank
   The heated water is stored in a well-insulated tank, ready for use when you need it — for showers, dishwashing, and laundry.

4. Pump and Controller
   A small pump circulates the fluid between the collectors and the tank, while a controller monitors temperatures to optimise performance and prevent overheating or freezing.

5. Backup Heating (Optional)
   When sunlight isn’t sufficient — such as on cloudy days or during peak demand — an electric or gas booster can automatically heat the water to ensure a consistent supply.

By relying on solar energy, these systems reduce greenhouse gas emissions and energy consumption. Their efficiency depends on local sunlight levels, correct system sizing, and proper installation and maintenance.

Benefits of a Solar Hot Water System

Installing a solar hot water system offers numerous advantages for homeowners, including energy savings, environmental benefits, and long-term durability. Here are the key benefits of making the switch to solar hot water:

1. Renewable Energy Source
   Solar energy is a clean, renewable resource. By using a solar hot water system, you reduce your reliance on fossil fuels and contribute to a more sustainable, environmentally friendly future.

2. Significant Long-Term Savings
   While the upfront cost of solar hot water systems can be higher than traditional systems, the long-term savings are considerable. Solar water heaters typically have much lower running costs, leading to substantial energy bill reductions over time.

3. High Energy Efficiency
   Solar hot water systems are highly energy-efficient. They convert a larger portion of sunlight into usable heat compared to conventional water heaters, reducing energy consumption and minimising waste.

4. Reduced Carbon Footprint
   By switching to solar, you reduce your carbon footprint and help fight climate change. Solar hot water systems produce fewer greenhouse gas emissions compared to traditional electric or gas-powered water heaters.

5. Government Incentives and Rebates
   There are various government incentives available to support the installation of solar hot water systems, such as rebates, grants, and tax credits. These can significantly lower the initial investment, making solar more affordable.

6. Increased Property Value
   A solar hot water system can add value to your property. As more buyers seek energy-efficient homes, having a solar water heater can be an attractive selling point, especially in the growing green energy market.

7. Reliability and Durability
   Solar hot water systems are built to last. With regular maintenance, these systems can provide reliable hot water for many years, making them a durable investment for your home.

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

Installation and Maintenance Tips for Solar Hot Water Systems

Proper installation and regular maintenance are key to ensuring your solar hot water system operates efficiently and lasts for years. Here’s what you need to know:

Installation Tips for Solar Hot Water Systems

• Professional Installation: While heat pump systems are easier to install, solar thermal systems (such as roof-mounted collectors) require more careful planning. A professional installer should assess your roof space, system size, and your climate before making recommendations.

• Optimal Roof Placement: For maximum sun exposure, the solar panels should be positioned on a roof that receives direct sunlight for most of the day. Ensure there’s no shading from trees, chimneys, or other structures.

• Reinforcement for Thermosiphon Systems: If you’re installing a thermosiphon system (a gravity-driven system), your roof may need reinforcement to support the weight of the storage tank.

• Roof Access and Complexity: If your roof is difficult to access or steep, installation costs may rise due to added labour and equipment. It’s also important to factor in local council regulations regarding system placement and permits.

Maintenance Tips for Solar Hot Water Systems

• Regular Inspections: Keep an eye on the panels for signs of damage or dirt build-up, as debris can reduce efficiency. Check for plumbing leaks that might affect the system’s performance.

• Professional Servicing: To ensure long-term efficiency, schedule a professional service at least once every 5 years. A full maintenance check usually costs between $300 and $500.

• System Efficiency: Monitoring your system’s performance is important. If your water temperature or pressure fluctuates, it could indicate a maintenance issue that needs attention.

By following these installation and maintenance tips, you can maximize the lifespan and efficiency of your solar hot water system, saving both energy and money over time.

You might like: How much does a plumber cost?

How to Get Quotes for Solar Hot Water Systems

When seeking solar hot water quotes, the first step is to assess your specific needs. Understanding your household’s hot water usage, preferred system type, and available space will help you choose the right system for your home.

Here’s how to get accurate quotes for your solar hot water system installation:

1. Understand Your Requirements
   Consider factors like the number of people in your household, your local climate, and whether you want a roof-mounted system or a heat pump. This will help narrow down your options and provide a more accurate quote.

2. Research Local Suppliers
   Start by researching reputable solar hot water suppliers in your area. Many installers offer free quotes based on your requirements and location. You can use directories like Yellow Pages or check online reviews to find trusted professionals.

3. Request Multiple Quotes
   Reach out to several suppliers to get multiple free quotes. Ensure that the quotes cover the full cost of the system, installation, and any potential additional charges (such as for system sizing or roof reinforcement).

4. Assess Warranties and System Quality
   When comparing quotes, consider the warranties offered, the quality of the system, and any ongoing maintenance support. A lower price might not always be the best deal if it doesn’t come with sufficient support or a reliable warranty.

5. Check Reviews and References
   Look up customer reviews and ask for references to ensure the installer has a good track record for reliability, professionalism, and quality work. It’s important to choose a company with a reputation for high-quality service.

By following these steps, you can confidently get competitive quotes and choose the best solar hot water system and installer for your home.

Want to find a solar hot water installer 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.