Hot Water System Installation Costs
A new hot water system is quoted supplied and installed, so the unit and the plumber’s time arrive as one figure. What’s The Damage’s November 2026 re-verification across 90+ sources puts an installed electric storage system at $800–$3,000 nationally, gas storage at $1,200–$3,500, a heat pump at $3,000–$6,000 before rebates and solar at $3,500–$7,000. Here is what each type costs to put in, what the extras add, and what a full replacement comes to.
Hot water system installation cost by type
Every row is a national supplied-and-installed price, GST included. Where a job lands in its range depends on the size of the unit and on how easy the install is.
| Job | Low | Typical | High |
|---|---|---|---|
| Electric storage, supplied and installed | $800 | $1,800 | $3,000 |
| Gas storage, supplied and installed | $1,200 | $2,200 | $3,500 |
| Continuous flow gas, installed | $1,500 | $2,200 | $3,500 |
| Heat pump, supplied and installed (before rebates) | $3,000 | $4,200 | $6,000 |
| Heat pump 250–270 L, 1–3 people (before rebates) | $3,000 | $3,800 | $6,000 |
| Heat pump 300–315 L, 3–5 people (before rebates) | $3,400 | $4,500 | $7,000 |
| Heat pump, after rebates | $2,500 | $3,600 | $5,300 |
| Solar hot water, installed | $3,500 | $5,000 | $7,000 |
| Same-day replacement, like-for-like (supplied and installed) | $1,300 | $2,300 | $4,000 |
National prices, November 2026. City prices differ: tap your city below for the local guide.
Extras on an installation quote
Removing and disposing of the old unit is $75–$200, $130 typical. Some installers fold it into the install price and some list it on its own line, so ask which. A tempering valve, which blends cold water into the hot line before it reaches the taps, is $150–$400, $250 typical, when it is fitted as a separate job. A storage tank bought on its own, without installation, is $900–$2,200.
| Job | Low | Typical | High |
|---|---|---|---|
| Old system removal and disposal (per job) | $75 | $130 | $200 |
| Tempering valve install (per job) | $150 | $250 | $400 |
| Storage tank, supply only (electric 160–400 L or gas 135–170 L) | $900 | $1,400 | $2,200 |
Hot water system replacement cost, all in
A replacement is the new unit installed plus the old one taken away. Each total below adds up the national rows above; the second electric row also adds a tempering valve fitted as a separate job.
| Job | Low | Typical | High |
|---|---|---|---|
| Electric storage + old unit removal | $875 | $1,930 | $3,200 |
| Electric storage + removal + tempering valve | $1,025 | $2,180 | $3,600 |
| Gas storage + old unit removal | $1,275 | $2,330 | $3,700 |
| Continuous flow gas + old unit removal | $1,575 | $2,330 | $3,700 |
| Heat pump (before rebates) + old unit removal | $3,075 | $4,330 | $6,200 |
| Heat pump (after rebates) + old unit removal | $2,575 | $3,730 | $5,500 |
| Solar hot water + old unit removal | $3,575 | $5,130 | $7,200 |
These are plain sums of the national rows above. A quote that already includes removal can come in under the summed figure.
Same-day hot water replacement
When the old unit has failed and the house has no hot water, a like-for-like replacement supplied and installed on the day is $1,300–$4,000, $2,300 typical, nationally. Like-for-like means the same fuel and a similar size. Ask whether taking the old unit away is in the price.
Which system type to install
The cheapest system to put in is not always the cheapest to own. Electric storage has the lowest installed price at $800–$3,000, while a heat pump is $3,000–$6,000 before rebates and solar $3,500–$7,000; what each costs to run is worked through in our heat pump vs gas hot water comparison.
Heat pumps are priced by tank size: a 250–270 L unit for one to three people is $3,000–$6,000 and a 300–315 L unit for three to five people is $3,400–$7,000, both before rebates. With rebates applied the national installed range is $2,500–$5,300; the rebate depends on your state, and the hot water system cost guide lists the schemes by state.
What moves an installation quote
Five things set where a job lands in the range: the system type, the tank size, where the unit sits (an outside wall with clear access is the easy case; a cupboard, roof space or tight side path takes longer), whether removing the old unit is in the price, and whether the job changes fuel type, which can add gas or electrical work to the quote.
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Hot Water System cost in your city
Verified November 2026 ranges — tap your city for the full local guide.
Frequently asked questions
How much does it cost to install a hot water system in Australia?
Nationally, supplied and installed: electric storage $800–$3,000 ($1,800 typical), gas storage $1,200–$3,500, continuous flow gas $1,500–$3,500, a heat pump $3,000–$6,000 before rebates and solar hot water $3,500–$7,000. Removing the old unit is $75–$200 on top when it is listed separately.
How much does hot water system replacement cost?
A like-for-like replacement supplied and installed on the day is $1,300–$4,000, $2,300 typical. For a planned swap, the new unit plus removal of the old one comes to $875–$3,200 for electric storage and $1,275–$3,700 for gas storage, as plain sums of the national rows.
Is removing the old hot water system included in the price?
Sometimes. Removal and disposal is $75–$200, $130 typical, when it is listed on its own line, so check whether an installation quote includes it.
How much does a tempering valve cost to install?
A tempering valve fitted as a separate job is $150–$400, $250 typical, nationally.
How much is a heat pump hot water system installed?
$3,000–$6,000 before rebates, $4,200 typical. By size, a 250–270 L unit is $3,000–$6,000 and a 300–315 L unit $3,400–$7,000. After rebates the national installed range is $2,500–$5,300.
Can a hot water system be replaced on the same day?
A like-for-like swap supplied and installed on the day is priced at $1,300–$4,000 nationally. Ask whether removal of the old unit is included.
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