You don't have to wait for your hot water system to break down. Reviewing how your current system serves your household suits your budget: you can reduce your overall hot water use and save money at your own pace to fund a sustainable upgrade. Read this guide if you're wondering how much a hot water system costs to install and maintain.

Cost Before Installation

The type of hot water system determines its price tag. For example, an electric system with a 450-litre tank is cheaper than a gas or solar system of the same capacity. Also, tankless (instantaneous or continuous flow) water heaters are often cheaper to install and maintain. Use the table below as a guideline:

Type		Lowest	Highest
Electric	Tank	$450	$1,900
	No tank	$660	$1,400
Gas	Tank	$850	$1,700
	No tank	$750	$1,800
Solar	Electric backup	$3,600	$4,800
	Gas backup	$4,900	$6,800
Heat pump	Tank	$3,300	$4,600

Of course, these prices also depend on the manufacturer or brand, tank capacity, household size, and actual use. On average, one person uses about 50 litres of water daily, which may be higher if you take long hot showers or use hot water in your washing machine and dishwasher. This means you can save money with a smaller system and adjust your use habits accordingly.

Cost of Installation

A straight replacement is often cheaper than upgrading a system or moving the heater to another position in the home. The replacement will use the same plumbing and electrical fittings, and the process happens much faster, in two or three hours. Your installation costs will increase in the following scenarios:

• Switching systems, e.g., from gas to electric, heat pump to solar, etc.

• Additional labour: You'll need experts to handle the complex job of upgrading your water heating system.

• Fittings and wiring: You may need new gas lines, power cables, and water pipes to match the new system.

• Moving the tank: Relocating your hot water system from one part of the home to another adds complexity to the project, increasing costs.

• Home accessibility: Your costs increase if the installation crew must travel a long distance to deliver the hot water system, carry it upstairs instead of using a lift, or require a crane to install it on your roof.

For instance, replacing your old hot water system with a new but exact make and model can cost as low as $220. However, labour and materials can add $2,000 or $3,000 to your budget.

Note: Find out about disposal costs as you compare service providers. Some include safe water tank disposal in their fees, while others charge between $60 and $80 for this service.

There are numerous ways to save on replacing your hot water system. Look into government rebates and incentives to switch to solar and heat pump systems, and adopt more sustainable habits like taking shorter hot showers and using cold water cycles on your appliances.

Once you're ready for replacement, you’ll need a licensed plumber to help install your new hot water system and advise about rebates applicable in your area. Start cutting down your energy bills today.