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How Much Does a New Hot Water System Cost?

How Much Does a New Hot Water System Cost?

Hot water systems play a crucial role in homes and businesses. The continuous and reliable supply of hot water ensures you have access to a steady flow of hot water on demand. If you’re thinking about buying this system, you might be curious about how much it costs, both in the short and long term.

Australia, with its changing landscapes and climates, offers unique challenges and choices when it comes to heating water. The cost of a new hot water system depends on many factors, ranging from the type of system you choose to the installation. 

Keep reading to discover the upfront and running costs of a new hot water system. 

Types of Hot Water Systems in Australia

Australia offers a diverse range of hot water systems to cater to varying business preferences and needs. Understanding the different types is essential when considering the cost of a new system.

Electric Hot Water Systems

Electric hot water systems are machines that use electricity to heat water for various purposes, such as cleaning and space heating. These systems have a tank or a tankless unit, a heating element, and controls to regulate the water temperature. 


  • Lower upfront cost 
  • Relatively easy to install 
  • Clean and safe operation 


  • Higher ongoing energy costs 
  • Electric systems are generally less energy-efficient than alternatives
  • Longer recovery times 

Gas Hot Water Systems

Gas hot water systems are a type of water heating system that uses natural gas or liquefied petroleum gas (LPG) to heat water. These systems have relatively lower operational costs compared to electric systems. 


  • Gas is often cheaper than electricity
  • Quicker heating time 


  • The initial investment for gas systems is usually higher
  • Installation can be complex 
  • Less efficient heating of water 
  • Shorter lifespan compared to electric 

Solar Hot Water Systems


Solar hot water systems are environmentally friendly and energy-efficient systems that use sunlight to heat water. These systems have solar collectors mounted on rooftops to absorb sunlight and convert it into heat.


  • Solar systems harness energy from the sun, reducing environmental impact
  • Low maintenance 
  • Long-term cost savings 
  • Reduces your carbon footprint 


  • These systems are dependent on the weather
  • The initial cost may be a deterrent 

Heat Pump Hot Water Systems

Heat pump hot water systems are a type of water heater that extracts heat from the air or ground to heat water. These hot water systems work on the same principle as a refrigerator but in reverse.



  • Requires more space for installation 

Average Price of Hot Water Systems

On average, the cost of a new hot water system in Australia can range from $800 to $5000 or more. This estimation reflects the diversity of available systems, each with its own set of features and advantages. 

When it comes to investing in a new hot water system in Australia, understanding the average cost range is essential for budget planning. Remember that these figures are general estimates and can change based on specific factors. 

Solar and heat pump systems are known for their energy efficiency. This means they have higher initial costs ranging from $2000 to $5000. 

Factors Affecting Hot Water System Prices

You must consider various factors when determining the cost of a new hot water system in Australia. Understanding these factors can help you make a decision based on your budget and business requirements.

Type of System

The type of hot water system you choose significantly impacts the overall cost. For example, electric systems have a lower upfront cost, while solar and heat pump systems require a larger initial investment. 

Installation Requirements

Installation costs can vary depending on how complex the job is. Factors such as the system’s location, installation process and modifications can contribute to the cost.

Size of the System

The number of people in your business and your hot water usage patterns should determine the size of the hot water system. Larger systems usually cost more than smaller ones, so it’s essential to choose a size that meets your needs.  


Understanding what hot water systems are available and their advantages can help you make a well-informed decision. Even though heat pumps cost more, they are better for the environment and reduce your carbon footprint. 

Contact Ecosaver today to get an estimated price on heat pump hot water systems and how they make your business more environmentally friendly.

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