How Much Does A Hot Water System Cost?
Let’s delve into the costs of a hot water system here on the Gold Coast.
Costs—as with everything else in the marketplace—go up and down. But we’ll do our best, as always, to provide helpful advice to help you choose.
A hot water system for a new build will be guided by your needs and your budget and, sometimes by your concerns for the environment.
When replacing an existing unit, many people simply keep to the same power set-up and swap new for old. The replacement might even come with improved technology.
It’s an opportunity, however, to consider replacing your old HWS, moving from say electric to gas, or to a solar-assisted unit.
Which Hot Water Unit Is Best?
Electric hot water systems are the most straightforward to install. Costs start at around $1350 for a newly installed unit—as they do with gas systems.
An electric HWS with a tank capacity over 300 litres, wired to the T33 electricity tariff, can be fairly economical to run.
Energy consumption of a smaller HWS on the T31 tariff would not be so economical. The downside with smaller units is that the tank’s hot water is likely to be emptied more often. More hot water will then take 20 to 30 minutes of heating.
Gas hot water units are more economical to run.
Connecting gas HWS units to the natural gas supply requires the services of a licensed gas fitter. But for many homes on the Gold Coast, this type of HWS is not an option because natural gas is not piped to all areas.
Instantaneous Gas Hot Water does what it says on the tin—they heat water in an instant, on-demand. You’ll get hot water for as long as you run water through it.
LPG instantaneous hot water is an option where natural gas is not available. Bottled (LPG) gas, however, comes with strict regulations as to how and where such HWS can be installed. Safety is a big concern. For example, water under low pressure would not be heated safely. Your home would need good water pressure.
LPG systems are also less economical.
Heat pump hot water systems use surrounding air to heat water and around a quarter of the power used by a regular electric HWS. Like a refrigerator in reverse, the refrigerant in a heat pump turns from liquid to gas, which is then compressed to produce heat.
The downside with a heat pump is its initial cost (upwards of $3,000), as well as higher maintenance costs. Add to that, the unit’s shorter lifespan and a heat pump system soon looks less attractive.
A roof-mounted solar HWS, with electricity for the booster set to the T33 tariff, is the most economical, long-term. For this option, you’d need to afford the initial outlay and your plan should be to stay in your home for at least 7 years.
Initial outlay of around $3,000–$5,000 aside, the downside with this set-up would only become apparent when the hot water is used up and there’s insufficient sun for re-heating. It could be next morning before more hot water is available, after the booster has kicked in overnight.
What is the cost of a new hot water system?
With a new hot water system, you can expect to pay around $1000 to $5000, depending on the type of hot water system you need.
At DCM Plumbing, we’ve been installing hot water systems for years. We can recommend Aquamax vitreous enamel electric hot water units, with their 10 year cylinder warranty. However, we can install Rheem, Dux and Vulcan—any brand HWS you prefer.
Don’t hesitate to call us for further information and advice.
Here’s another article you might enjoy, comparing Gas and Electric hot water systems.