Hot Water System Cost Calculator
Replacing a hot water system is about running cost as much as install cost. This calculator estimates the install price and a 5-year cost including running, so you can compare system types.
Heat pump and solar cost more to install but far less to run.
Heat pumps cost more upfront but use a third of the energy, they usually pay back within a few years, especially with rebates.
- Hot water unit$1,600
- Plumbing & install labour$650
- Electrical / gas connection$300
💰 Ways to save
- Heat pump and solar attract rebates that close much of the upfront gap.
- Replace before it fails so you can choose the efficient option, not the emergency one.
How we estimate this
Hot water system replacement in Australia in 2026 typically costs $1,000–$2,000 for electric or gas, $3,000–$5,000 for a heat pump, and $3,500–$6,500 for solar, before any rebates.
Pricing reviewed: June 2026.
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Understanding hot water system costs in Australia
Hot water system replacement in Australia in 2026 typically costs $1,000–$2,000 for electric or gas, $3,000–$5,000 for a heat pump, and $3,500–$6,500 for solar, before any rebates.
Heat pumps and solar cost more upfront but use far less energy, so over five years they’re often cheaper overall. Government rebates can significantly reduce heat pump and solar prices.
Frequently asked questions
How much does a hot water system cost in Australia?
In 2026, electric or gas systems cost $1,000–$2,000 installed, heat pumps $3,000–$5,000, and solar $3,500–$6,500 before rebates.
Is a heat pump hot water system worth it?
Heat pumps cost more upfront but use roughly a third of the energy of electric storage, so they usually pay back within a few years, especially with rebates.
What’s the cheapest hot water system to run?
Solar is cheapest to run, followed by heat pumps. Electric storage is usually the most expensive to run.
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