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Replacing a Hot Water System in Australia: How Much Does it Cost?

Hot water systems are a vital part of Australian households. They provide essential comfort and convenience for daily activities such as bathing, cooking, and cleaning.

Needing to replace a hot water system can catch you off guard. The expense may be significant if you don’t know the costs and aren’t prepared.

This article answers how much replacing a hot water system costs in Australia and covers the following:

  • Factors affecting the cost
  • Cost of installation and materials
  • Potential additional costs and considerations
  • Comparing quotes and choosing the right service provider

Understanding these factors helps you make informed decisions about replacing your hot water system. You can ensure optimal performance, energy efficiency, and cost-effectiveness for your home.

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Cost of Replacing a Hot Water System

Replacing a hot water system can be a significant expense. But sometimes, you just need to bite the bullet due to:

  • System age
  • Wear and tear
  • Functional damage

The cost of replacing a water heater can vary based on several factors. These include the type of heater, the size of the unit, and the complexity of the installation process.

Typically, the cost of replacing a hot water system in Australia ranges between $1600 to $3500.

This cost includes the purchase and installation of a new water heater. Adding any necessary modifications to the plumbing or electrical networks increases the price. This can vary depending on the changes needed.

The cost can also vary depending on the location and accessibility of the installation site. This may include site-specific additional features or upgrades.

Factors Affecting the Replacement Cost

Replacing a hot water system involves several factors that can influence the overall cost. Understanding these factors is essential for homeowners to make informed decisions and budget effectively for the replacement project. Here’s an overview of the key factors that affect the cost of replacing a hot water system:

1. Type of System

The type of hot water system you choose significantly impacts the cost of replacement. Electric, gas, solar, and heat pump systems vary in terms of upfront cost, ongoing energy expenses, and installation requirements.

Electric hot water systems have the lowest upfront costs. Technological improvements in energy efficiency also mean the ongoing costs are now lower than before. You may also take advantage of solar to reduce running costs.

2. Size and Capacity

The size and capacity of the hot water system you need affect the cost of replacement. Larger systems with higher capacities generally have higher upfront costs. But they offer a greater hot water supply and accommodate larger households.

3. Installation Complexity

The complexity of the installation process can affect the overall cost of replacement. Factors such as the condition of existing plumbing and electrical systems, accessibility of the installation location, and any necessary modifications or upgrades can influence overall costs.

4. Energy Efficiency

Energy factor (EF) measures the efficiency of your hot water system. A higher EF rating means your water heater is more efficient. This will likely increase your upfront costs, although it can save you money on bills in the long run.

5. Additional Features

You may choose to include additional features or upgrades in your hot water system replacement project. Temperature control systems, water-saving features, and advanced monitoring technologies are some options. These additions can increase the upfront cost but may provide long-term benefits in terms of efficiency and performance.

Assessing your needs and preferences when considering a hot water system replacement helps you settle on the best cost option for you. Don’t be afraid to get multiple quotes from reputable installers to compare costs and services. This ensures the best deal for you.

Cost Considerations: Installation and Materials

Replacing a hot water system involves various costs associated with both installation and materials. Understanding the breakdown of these costs can help you budget effectively for the replacement project.

Here are some costs to consider when replacing a hot water system:

1. Labour

Labour costs typically represent a significant portion of the overall expense for replacing a hot water system – aside from the price of the system itself. These costs include the time and expertise of professional installers who handle everything for you. Labour rates can vary depending on factors like the complexity of the installation and geographic location.

2. Materials

The cost of materials for replacing a hot water system includes the price of the new system itself, as well as any additional components or parts required for installation. This may include the hot water tank or unit, piping, fittings, valves, insulation, and any necessary accessories or upgrades.

3. Permits and Inspections

A permit can be required to install a new hot water system in some cases – although this may be unlikely for you. Permits can cost between $50 to $200, depending on the location. You may need an additional inspection in this instance, which can cost around $200.

4. Disposal

Disposing of the old hot water system may incur additional fees, especially if it contains hazardous materials or requires special disposal methods. These disposal fees should be factored into the overall cost of the replacement project.

5. Additional Expenses

Other expenses may arise during the hot water system replacement process. For instance, a gas hot water system might need a new gas line. This can significantly impact the overall cost of replacing your hot water system. 

Potential Additional Costs and Considerations

The core costs of replacing a hot water system primarily revolve around installation and materials. But you should also be aware of potential additional expenses and considerations that may impact the total cost of replacement.

1. Site Preparation

Depending on the condition of the installation site, additional site preparation may be necessary before installing the new hot water system. This could include clearing space, removing obstacles, or making structural modifications to accommodate the new system.

2. Plumbing Modifications

Replacing a hot water system may require modifications to the existing plumbing infrastructure in some cases. This could involve rerouting pipes, installing new connections, or upgrading plumbing fixtures to ensure compatibility with the new system.

3. Electrical Work

For electric hot water systems, electrical work may be required to connect the new system to the home’s electrical supply. This could involve installing new wiring, circuit breakers, or outlets to accommodate the electrical requirements of the new system.

4. Piping Upgrades

Upgrading or replacing old or deteriorated piping may be necessary to ensure your new hot water system functions properly. This might include replacing corroded or leaky pipes, installing additional piping for new connections, or upgrading to more durable materials.

Budget for contingencies and discuss potential additional expenses with your installer upfront. Reputable companies like Hewitt Trade Services will always assess the installation site and existing infrastructure, and discuss any potential upgrades or modifications before proceeding with work.

We know getting hit with hidden costs is like a kick in the guts. Keeping it transparent lets you make informed decisions about your hot water system replacement project.

Comparing Quotes and Choosing a Provider

Comparing quotes from different providers is essential when replacing a hot water system. You want to select a reputable installer and ensure a smooth and satisfactory experience.

Always evaluate quotes on multiple factors when choosing a hot water system installation company.

When deciding on a provider, consider more than just the price. Competitive pricing is important, but also look for companies delivering high-quality products and services.

We recommend you consider the following:

1. Price

Compare quotes to ensure they include all necessary costs and are competitive with market rates. Beware of quotes that seem too good to be true, as they may include only some required services or may indicate lower-quality materials or workmanship.

2. Reputation and Experience

Choose a provider with a solid reputation and extensive experience in installing hot water systems. Research providers online, read customer reviews and testimonials, and ask for references from past customers. A provider with a proven track record of quality workmanship and customer satisfaction is more likely to deliver a positive experience.

3. Warranties and Guarantees

Inquire about the warranties and guarantees each provider offers. A reputable installer should offer warranties on both parts and labour, providing peace of mind and protection against potential issues or defects. Compare warranty terms and coverage to ensure you understand what is included and how long the coverage lasts.

4. Customer Reviews and Testimonials

Check customer reviews and testimonials when comparing quotes. Positive reviews from satisfied customers are a good indicator of a provider’s reliability and professionalism. The overall rating from customer reviews shows a clear picture of their reputation.

5. Special deals and offers

Some companies have special deals and offers. This is smart to consider when comparing quotes and choosing a provider. For instance, we’re offering a special deal now on Rinnai Electric Hot Water System packages – 60 months, no deposit, 0% interest-free finance.

Types of Hot Water Systems
  1. Hot water systems come in various types, each offering unique advantages and considerations. Understanding the differences is crucial for homeowners looking to replace their hot water systems.
    1. Electric hot water systems
    2. Gas hot water systems
    3. Solar hot water systems
    4. Heat pump hot water systems

    1. Electric Hot Water Systems

    • Electric hot water systems heat water using electric resistance elements located within the tank.
    • They’re easy to install, suitable for households without access to gas, and have relatively low upfront costs.
    • May have higher ongoing energy costs compared to gas and solar systems.

    Rinnai, Rheem, AquaMax and Thermann are popular electric hot water system brands in Australia.

    2. Gas Hot Water Systems

    • Gas hot water systems heat water using either natural gas or LPG (liquefied petroleum gas) as the fuel source.
    • They have an efficient and cost-effective operation, faster heating and recovery times compared to electric systems, and lower greenhouse gas emissions.
    • Have higher upfront costs than electric systems, require access to a gas supply, and may incur additional installation costs for ventilation.

    3. Solar Hot Water Systems

    • Solar hot water systems use solar collectors to absorb sunlight and heat water stored in the tank.
    • They’re environmentally friendly and energy-efficient, reduce reliance on electricity or gas, and offer the potential for significant long-term savings on energy bills.
    • Higher upfront costs and longer payback periods compared to electric and gas systems, and may require a backup heating source for periods of low sunlight.

    4. Heat Pump Hot Water Systems

    • Heat pump hot water systems extract heat from the surrounding air and transfer it to the water in the tank.
    • They have an energy-efficient operation, lower energy consumption compared to electric systems, and are suitable for areas with limited space for solar panels.
    • Have higher upfront costs than electric systems, may have longer heating times in cold climates, and require adequate ventilation for optimal performance.

    Considerations for choosing the right type of hot water system include:

    • Availability of energy sources (e.g., gas supply, sunlight)
    • Budget constraints and upfront cost
    • Energy efficiency and long-term savings
    • Space availability for installation
    • Climate and weather conditions in the area
Conclusion

Calculating the cost of replacing a hot water system in Australia involves various factors. These include the type of system you choose, additional expenses and financial incentives.

Always carefully consider all factors before making a decision. Here’s a quick recap of the key points:

  1. Hot water system replacement cost: Typically, the cost of replacing a hot water system in Australia ranges between $1600 to $3500.
  2. Factors affecting the replacement cost: The type of system, the size, installation complexity, energy efficiency and additional features impact the replacement cost.
  3. Cost considerations: Labour, materials, permits and inspections, disposal, and additional expenses like infrastructure upgrades also affect the cost.
  4. Potential additional costs: Site preparation, plumbing modifications, electrical work and piping upgrades can potentially add more costs.

Replacing Your Hot Water System With Hewitt Trade Services

Hewitt Trade Services is the best in the hot water system business in the Brisbane area. We have installed, repaired and serviced thousands of units during 21+ years of business.

Our years of experience give us a laser focus on the most common hot water system challenges in the Brisbane community. We are highly trained, reliable, professional, efficient and fast – with a 4.8-star rating from over 330 reviews on Google to prove it.

We can help you assess your needs, get a quote, and make informed decisions about replacing your hot water system. Using a reputable company like Hewitt Trade Services ensures a smooth and satisfactory experience. You can enjoy the benefits of a reliable and efficient hot water supply for years to come.

Request a quote today!

We service the following areas in Brisbane:

Hot Water AlbionHot Water AscotHot Water AspleyHot Water BoondallHot Water Bowen HillsHot Water Bracken RidgeHot Water Bridgeman DownsHot Water Brookside CentreHot Water CarseldineHot Water ChermsideHot Water ClayfieldHot Water EnoggeraHot Water Everton ParkHot Water GaythorneHot Water GeebungHot Water Gordon ParkHot Water HamiltonHot Water HendraHot Water KedronHot Water LutwycheHot Water MitcheltonHot Water NewmarketHot Water NewsteadHot Water NorthgateHot Water NudgeeHot Water NundahHot Water StaffordHot Water Stafford HeightsHot Water ToombulHot Water VirginiaHot Water Wavell HeightsHot Water WilstonHot Water Windsor