How Much Does Hot Water System Installation Cost in 2023?

Overview of Hot Water System Installation Costs

The cost of installing a hot water system in an Australian home ranges from $1,200 to $5,000, depending on the system’s type, size, installation location, and the intricacies involved. Factors such as fuel type, choosing tank versus tankless systems, household size, the removal of old units, and obtaining the required permits all contribute to the final cost. This article offers homeowners clear guidelines on the cost of water system installation, simplifying the process of budgeting for a new system.

As a leading plumbing company in Sydney, Cherrybrook Plumbing has extensive experience understanding existing hot water systems can vastly improve a household’s comfort and efficiency. The price of hot water systems is heavily influenced by the unit’s design, which must efficiently meet the water needs of your household. Understanding the various hot water system options aids homeowners in making informed decisions about replacements best suited for their home and budget.

Factors Influencing Installation Costs

When installing a new water heater, several key factors affect the final cost:

• Type of system - Electric gas hot water storage tanks are among the most cost-effective options, starting around $1,500. For example, gas hot water storage models are typically priced at about $2,000. Natural gas hot water systems with continuous flow, which can also include advanced features, have an average installation cost ranging from $2,500 to $3,000. Integrated electric systems with heat pump hot water options come with the highest expense, where you can expect to pay between $4,000 to $5,000.
• Size - The number of bathrooms and household water usage habits determine the size of the system required. Larger homes need bigger systems, Choosing electric hot water systems for homes with multiple bathrooms might necessitate multiple units, increasing the overall costs.
• Location complexity - Ease of access to install the unit and connecting plumbing influences cost. Tight roof spaces or restricted under house access adds labour time.
• Removal fees - Taking away an old existing tank or system can cost $500 to $1,000 if drainage, restoration, and waste removal is complex.
• Permits - Some council regulations for approvals and paperwork can range from $150 to $300 per job.

Cherrybrook Plumbing understands the unique geographic factors that impact the cost of hot water system installations in Sydney’s Hills District. Our team has been transparent and professional in outlining the system installation cost and considerations for each customer’s home.

System Size

Selecting the ideal type hot water system size for your household is essential to ensure you enjoy instant hot water with solar heat efficiency without incurring excessive energy costs. Here are common system sizes as a basic reference:

• Small 2-3 bedroom home - an electric hot water system with a 50-gallon storage tank or 16-20 litre per minute continuous flow
• Large 4-5 bedroom home - 60-80 gallon storage tank or 20-25 litre per minute continuous flow
• Households with numerous occupants or high water usage may need to explore different systems, such as split units or larger tanks exceeding 100 gallons

- and determine what your hot water system should ideally be to provide the optimal system capacity.

When upgrading hot water systems, opting for a solar hot water heater installation replacement over traditional electric storage might cost more initially but offer significant long-term savings.

Location and Site Accessibility

Ease of installation access is critical for successful water heater setup. Our team excels at accounting for how system accessibility influences the time and complexity of the installation.

• Under house tanks require clearing a path to run pipes and fit the unit. Obstructions like ductwork or low clearance increase labour.
• Heater installations on external walls above ground level may require scaffolding or elevated work platforms, with costs starting at $200, billed hourly or daily.
• Tight roof spaces with minimal openings run the risk of $150 per sheet for roofing removal and replacement.
• Multi-story buildings require planning and safety precautions to move equipment between floors which adds expenses.

Cherrybrook Plumbing specialises in non-electric water solutions, serving the older properties in the area effectively. We clearly indicate how much any accessibility challenges and related costs might be so customers can make informed decisions about their hot water system investment.

Comparing Gas, Electric, Solar and Heat Pump Systems

Comparing initial purchase and installation costs, long-term energy efficiency, operating costs, and environmental impact is vital when looking at water system replacement.

• Gas Storage - Upfront cost of pump water storage systems is $2,000 to $2,500 installed. Lower running expenses than electric models. Produce carbon emissions.
• Electric Storage - Cheapest installation of pump hot water systems around $1,500. Yearly operating expenses are significant, contributing about $300+ to the overall costs. Higher carbon footprint.
• Gas Continuous Flow - Installation of $2,500 to $3,500. Saves energy by employing technology designed to heat water instantly. Still emits greenhouse gases.
• Heat Pump Systems - Installation expense of $4,000 to $6,000. Provides the greatest energy savings of 65-70% on water heating and uses renewable solar power. Rebates available.

Each hot water system, notably solar systems, has different initial costs but boasts better efficiency and lower carbon emissions than gas and electric options.

Using heat pump technology can yield significant annual energy bill savings of up to $400. As energy prices continue rising, the long-term benefits will only increase so the higher initial investment pays future dividends.

Installation Process

Installing a new hot water heater requires coordination of qualified trades for a seamless process. The basic steps to install new hot water heaters include:

1. Site inspection - Plumbers assess the heater site for accessibility, potential safety issues such as asbestos, and any complexities with installation and removal of old units. This provides insight for labour time and allows me to recommend an accurate quote.
2. Permits - Depending on council regulations, development applications or approvals may be required before work can proceed. We can help by managing all the necessary paperwork to ensure compliance with regulations.
3. System purchase - Once quotes are approved and paperwork finalised, we order the appropriately sized hot water unit based on your household needs.
4. Removal of your existing hot water system - If replacing an existing tank, Our team came out and ensures the space is cleaned up following installation; we drain the system, disconnect infrastructure, extract it responsibly, and mend any damage.
5. New installation - The new system is positioned, mounted, and connected to plumbing, gas, electricity and/or solar panels as applicable, in line with manufacturer specifications.
6. Commissioning and testing - Final checks confirm proper operation, energy efficiency, safety cut-offs, and adjustments are made to meet optimal standards.

As experienced installers, Cherrybrook Plumbing ensures your new hot water system installation meets your needs seamlessly, from the initial inspection to commissioning. Our skilled team offers a complimentary quote detailing the specifics for your Cherrybrook residence.

Energy Efficiency and Operating Costs

Energy efficiency is key to reducing the lifetime operating costs of a hot water system. Storage tanks and system gas continuous flow units must adhere to Australian hot water MEPS minimum energy star rating standards, typically having a 2.5-star rating. High-efficiency systems, such as heat pumps, can attain 5 to 5.5-star ratings and utilise 60-70% less energy.

A 350-litre electric storage tank running 18 hours per day can use over 4,100 kWh per year, costing about $820 at 20 cents per kWh. Hence, investing more initially in 4-5 star systems for their superior efficiency makes economic sense long-term.

An equivalently sized heat pump would consume around 1,300 kWh p.a., saving $490. With electricity prices rising, the savings grow exponentially.

Storage Tank Size and Flow Rate

Selecting the appropriate storage tank size and flow rate is vital to cost efficiency when evaluating hot water systems. Choosing the right size is critical to ensure you never run out of hot water, correlating directly with system types suitable for your water demands.

Storage tank systems are measured by capacity, typically ranging from 50L for smaller units to 400L for larger households. Alternatively, instantaneous hot water heater options may cost more upfront, but without the need for heating elements to maintain a stored supply, they tend to be more economical to operate over time.

Tankless systems are measured by their maximum flow rate in litres per minute (LPM). Higher LPM units support greater simultaneous hot water usage, and the cost hot water system installation might be offset by their efficiency.

Choosing a system with the right LPM can save money for homes from those with a single bathroom to those with multiple ones. Despite higher initial costs, the efficiency and adjustable flow rates of tankless systems make them more cost-effective in the long run.

As your local Cherrybrook plumbing experts, we are mindful of your costs as we do a fantastic job of assessing your household’s daily peak and average hot water needs prior to suggesting the perfect storage tank size or tankless flow rate. Correct sizing guarantees you’ll receive ample hot water without superfluous operating costs over the system’s lifetime.

Cost Saving Tips

There are several ways homeowners can reduce expenses when investing in a new hot water system installation.

• Consider solar or heat pump systems to leverage long-term savings from energy efficiency and government rebates.
• Costs can be reduced by installing smaller units near water usage points rather than operating larger central systems with elaborate pipework.
• Improve existing insulation around pipes and install low-flow shower heads for less waste.
• Scheduling installations in winter can be cost-effective as tradespeople may offer competitive rates during this lower demand season.
• Replace units proactively before failures to avoid emergency callouts and get quotes rather than standard rates.

For preventative maintenance such as annual flushing that improves efficiency and extends system lifespan, potentially saving thousands over time, call us at Cherrybrook Plumbing. For tailored options to minimise your hot water system expenses, call us and speak to our Cherrybrook plumbers.

Rebates and Incentives

There are several rebates and incentives available to Cherrybrook residents installing certain energy efficient hot water systems, making these options more affordable.

• The NSW government offers up to $1,000 rebates for solar hot water or heat pump systems under its Empowering Homes programme.
• Low income households may qualify for additional rebates and concessions through Service NSW.
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• The Small-scale Renewable Energy Scheme (SRES) offers discounts that substantially reduce the cost of solar hot water systems, offering significant savings through approved providers.

I would recommend homeowners claim all relevant rebates and tax deductions to enable Cherrybrook households to recover 25-30% of the total installed price over time. This greatly improves the return on investment for long-term energy savings from efficient systems. We manage all paperwork and process rebates for you, simplifying the way to access these savings.

When to Repair vs. Replace

As hot water systems age and accumulate wear and tear, homeowners face the decision of whether to repair or replace their unit. There are several telltale signs indicating replacement is the better option:

• Frequent breakdowns and rising repair bills exceeding $500 annually often make replacement more cost-effective.
• Corrosion or deterioration that has manifested around the tank indicates irreparable damage and signifies youll need a new system installation.
• Noisy rumbling, banging pipes or sediment build up reduces efficiency and available hot water requiring replacement.
• Outdated electric storage tanks over 15 years old with high energy bills should upgrade to modern energy-efficient systems to save operating expenses.

Minor repairs, such as to heating elements, pressure relief valves, or thermostats, typically cost under $300 and can extend the system’s lifespan. Our experienced Cherrybrook plumbers would highly recommend the best solution, either replacement or repairs, after inspecting your hot water system to diagnose issues.

Ultimately, the system’s age, efficiency rating, average repair expenses and your household’s hot water requirements guide whether replacement systems like heat pumps and solar hot water provide better long term value. We help Cherrybrook homeowners make informed decisions on when to repair or upgrade hot water systems.