How Much Does It Cost To Replace A Hot Water System? What Affects Your Project Cost

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The average cost of installing a new hot water system in Australia is between $200 and $600.

However, this is only the case if you’re replacing an existing hot water system with one of the exact same type, and this does not factor the cost of the water heater unit itself into account.

In reality, the cost of hot water installations can vary quite a bit. Wondering what factors may affect your job, and how much you can expect to pay to have a new hot water system installed? Find out below, and see the biggest factors that affect the cost of hot water installations in Sydney.

1. The Size Of Water Heater You Need In Your Home

First, you will need to consider the size of the water heater you need in your home. Water heaters with a higher tank capacity or heating capacity will always be more expensive than smaller units. This is true whether you choose an electric system like a heat pump water heater, a solar water heater, or a water heater powered by natural gas.

So we highly recommend consulting with an experienced plumber and discussing how much hot water your home needs. Tanks can vary in size from 25L all the way up to 400L, and tankless, on-demand heaters vary greatly in capacity, too. Choosing the right size will help you save money when installing and operating your water heater.

2. The Make, Model, & Type Of Water Heater You Choose

There are a wide variety of water heater types out there, including:

  • Gas water heaters – Gas hot water systems use natural gas to heat your water. They are available in both tank-based models and on-demand models. Tank-based water heaters are typically cheaper up-front, but are not as efficient as on-demand models.
  • Electric water heaters – Electric hot water systems use electrically-powered heating elements, and they are available in both tank-based and tankless, instant models. They are usually about the same cost as gas models, but tend to cost a little bit more to operate due to the low price of natural gas.
  • Heat pump water heaters – Heat pump water heaters are very expensive, but are highly efficient. They sort of function as a refrigerator in reverse, drawing in heat from the ambient air and using it to heat water.
  • Solar water heaters – Solar hot water systems absorb heat from the sun and use it to heat your water. They require little-to-no power to operate, but can be pricey to install, since they often must be mounted on your roof.
    All of these types of systems cost different amounts – and further still, different manufacturers charge different prices for similar units. You’ll need to do a bit of research to figure out which type, make, and model of water heater is right for you.

3. Switching The Type Of Water Heater In Your Home

If you replace an electric tank-based heater with a similar unit, you’ll pay very little to install your new water heater. Your plumbers can simply swap out the old unit, place the new one, and attach it to your plumbing system right away.

However, if you’re making a bigger change – like replacing an electric tank-based heater with a gas-powered, on-demand tankless heater – you’ll pay more. You’ll need to hire gas fitters and plumbers to install new gas lines, and your plumbing system may also need to be reconfigured. Be prepared to pay a higher overall cost if you decide to switch the type of unit you’re using.

4. Delivery Costs For Your Water Heater

Some water tanks can be extremely bulky and unwieldy, and weigh as much as 150 kilograms, requiring multiple people and specialised equipment to be delivered to your home. Make sure to factor this cost into the overall cost of replacing your hot water heater in Sydney.

In addition, you may be charged a higher rate for delivery and installation if there are complications related to moving the water heater into position – such as narrow and steep stairs that will make the delivery more complicated or require special tools.

5. Installation Costs

You’ll need to hire a licensed plumber to install your hot water heater. The cost of installing a new water heater can vary widely depending on the type of water heater you choose, whether or not you need plumbing or electrical system upgrades, and a variety of other factors.

For example, tempering valves are required in all hot water heaters that use storage tanks, as of a 2012 law in Australia. This valve is an anti-scald device that keeps your water below 60° C, and having one installed can cost you upward of $200, so keep this in mind. Your plumber will help explain any additional costs and requirements you must meet while installing your new unit.

The time it takes to install the unit also affects the costs of a hot water tank installation. A simple job may take 1-2 hours, but a more complex installation can take 4 hours or longer. Most plumbers charge hourly, so this will result in higher installation costs

6. Disposal Of Your Old Water Heater

Most plumbers won’t haul your old water heater away for free. You may have to pay them to take it away for you. This is not typically a very large fee, but it’s still something to keep in mind when you’re considering the total cost of replacing your hot water system.

How Can I Figure Out What My Project Will Cost? Call Wilco Plumbing!

As you can see, there are a lot of factors that affect the cost of installing a new hot water system. So how can you know how much your project will cost? The best way to find out is to call Wilco Plumbing for a free, no-commitment quote.

Just tell us about your current heater, your desired hot water system, and all of the other details about your home and your project – and we can provide you with an informed estimate of your project’s cost. Don’t wait. Call us at 02 9186 3371 to speak to one of the experienced plumbers in Sydney now, or contact us online for more information.

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