Skip to content
Plumbing

How much does a hot water system cost?

A like-for-like electric storage replacement usually costs about $1,400 to $2,800 supplied and installed, and gas storage about $1,800 to $3,000. A heat pump runs about $3,800 to $5,700 and solar hot water about $3,300 to $6,700 before any rebate.

Electric storage tank, like-for-like replacement:$1,400–$2,800 per job

Updated 19 October 2026 · 2 min read · GST basis not confirmed by sources. Check GST on every quote.

Find a provider
On this page
  1. How a hot water installer works out the price
  2. What it costs, by scenario
  3. What changes the price
  4. What's usually included, and what isn't
  5. Metro and regional differences
  6. Licensing and compliance
  7. Rebates and incentives
  8. Before you accept a quote, check
  9. Frequently asked questions
  10. Sources and method

How a hot water installer works out the price

A hot water installer usually quotes one fixed price for the new unit, the installation and removal of the old unit. The type of system sets most of the price: electric storage is cheapest to buy, gas costs more, and heat pump and solar cost most up front but less to run. Labour covers disconnecting the old unit, fitting the new one, valves and pipe connections, testing and paperwork. The Fair Work Plumbing and Fire Sprinklers Award sets a minimum of $29.45 an hour for a plumbing and mechanical services level 1 trade classification from 1 July 2026, and the charge-out rate also has to cover vehicle, tools, insurance and licence.

  1. Check what you have now: system type, size in litres, position and access
  2. Supply of the new unit, chosen for your household size and energy source
  3. Installation labour, pipe connections and a tempering valve where required
  4. Gas, electrical or both: a gas fitter or electrician connects their part of the system
  5. Removal and disposal of the old unit, if not already in the package price
  6. Compliance paperwork the state requires, and any rebate paperwork
  7. GST on the total

Worked example: Like-for-like 250 L electric storage replacement, easy access, old unit removed (illustrative, not a quote)

250 L electric storage unit
$1,100
Installation labour, pipe connections and fittings
$450
Tempering valve (one supplier lists $205 as an extra)
$205
Removal and disposal of the old unit
$150
Total
$1,905 total (illustrative)

What it costs, by scenario

Low, typical and high prices. Built on 19 October 2026 from five suppliers' published cost pages and price lists, one compiled Sydney guide, one marketplace task-price chart, the Fair Work plumbing award and state regulator pages. Each range stays inside figures that at least two sources share; the removal figure and the solar range lean on fewer sources. Some sources state GST and most do not, so GST basis is not confirmed.

  • Electric storage tank, like-for-like replacement (per job)

    Unit and installation. Supplier and compiled guides sit between about $1,200 and $3,000, with $1,400 to $2,800 the part that two sources share. Larger tanks cost more. Moving the unit or changing energy type adds to the price.

    Low
    $1,400
    Typical
    $1,700
    High
    $2,800

  • Gas storage tank, like-for-like replacement (per job)

    Unit and installation by a plumber and gas fitter. Three sources overlap at $1,800 to $3,000.

    Low
    $1,800
    Typical
    $2,100
    High
    $3,000

  • Gas continuous flow (instantaneous), like-for-like (per job)

    Unit and installation. One supplier gives $1,900 to $3,800 and a compiled Sydney guide gives $1,425 to $3,325; we keep to where they overlap. A broad range from another guide runs from $500 to $4,000.

    Low
    $1,900
    Typical
    $2,100
    High
    $3,325

  • Heat pump hot water system, before rebates (per job)

    Unit and installation, before any rebate. Sources run from $2,850 to $6,500, and the part they share is $3,800 to $5,700. Bigger tanks cost more. See the rebates note.

    Low
    $3,800
    Typical
    $4,200
    High
    $5,700

  • Solar hot water system, before rebates (per job)

    Installed estimates before the federal discount. Three sources overlap at about $3,300 to $6,700; larger tanks and evacuated tube panels sit near the top. One supplier's range already has the federal discount taken off, so we did not use it.

    Low
    $3,325
    Typical
    $4,750
    High
    $6,650

  • Removal and disposal of the old unit, if quoted separately (per job)

    A compiled Sydney guide gives $86 to $230 with $150 typical, and an electrical contractor's guide gives $50 to $200. Some package prices already include removal.

    Low
    $86
    Typical
    $150
    High
    $200

  • Installer task price, labour only (marketplace chart) (per job)

    Airtasker's chart for hot water system installers on 17 October 2026. It does not say what the jobs include, and it sits far below full replacement prices. It is a guide to labour-only or repair tasks, not a replacement price.

    Low
    $120
    Typical
    $180
    High
    $285
Low, typical and high prices by scenario
ScenarioLowTypicalHigh
Electric storage tank, like-for-like replacement (per job)Unit and installation. Supplier and compiled guides sit between about $1,200 and $3,000, with $1,400 to $2,800 the part that two sources share. Larger tanks cost more. Moving the unit or changing energy type adds to the price.$1,400$1,700$2,800
Gas storage tank, like-for-like replacement (per job)Unit and installation by a plumber and gas fitter. Three sources overlap at $1,800 to $3,000.$1,800$2,100$3,000
Gas continuous flow (instantaneous), like-for-like (per job)Unit and installation. One supplier gives $1,900 to $3,800 and a compiled Sydney guide gives $1,425 to $3,325; we keep to where they overlap. A broad range from another guide runs from $500 to $4,000.$1,900$2,100$3,325
Heat pump hot water system, before rebates (per job)Unit and installation, before any rebate. Sources run from $2,850 to $6,500, and the part they share is $3,800 to $5,700. Bigger tanks cost more. See the rebates note.$3,800$4,200$5,700
Solar hot water system, before rebates (per job)Installed estimates before the federal discount. Three sources overlap at about $3,300 to $6,700; larger tanks and evacuated tube panels sit near the top. One supplier's range already has the federal discount taken off, so we did not use it.$3,325$4,750$6,650
Removal and disposal of the old unit, if quoted separately (per job)A compiled Sydney guide gives $86 to $230 with $150 typical, and an electrical contractor's guide gives $50 to $200. Some package prices already include removal.$86$150$200
Installer task price, labour only (marketplace chart) (per job)Airtasker's chart for hot water system installers on 17 October 2026. It does not say what the jobs include, and it sits far below full replacement prices. It is a guide to labour-only or repair tasks, not a replacement price.$120$180$285

Want to compare providers?

Tell us the job and we'll bring the right providers together.

Find a provider

What changes the price

  • System type. Electric storage is the cheapest to buy. Gas, heat pump and solar cost more up front. Running costs run the other way, so compare the lifetime cost and not just the price today.
  • Size in litres. A larger tank costs more to buy and sometimes more to fit. One supplier's table runs from $3,000 for a 160 L solar system to $7,200 for a 400 L.
  • Changing energy type. Switching from electric to gas, or gas to electric, means new gas or electrical work. One supplier puts a fuel switch at $1,500 to $3,000 for installation alone.
  • Position and access. Fitting in the same spot is cheapest. Moving the unit, working in a roof space or lifting onto a platform adds labour, and the same supplier puts relocation at another $1,000 to $2,000.
  • Extras. A tempering valve, pressure limit valve, concrete slab or levelling for the tank are often extra. One supplier lists a tempering valve at $205 and a pressure limit valve at $125.
  • Rebates. A heat pump or solar system may qualify for a rebate, which lowers what you pay. See the rebates note, and ask for the price before and after.
  • Location. Wages, travel time and demand differ across cities and regions. See the metro and regional note below.

What's usually included, and what isn't

Usually included

  • The new hot water unit, if the quote says it is supplied
  • Installation labour and connections to existing pipes
  • Testing the system before the installer leaves
  • Removal and disposal of the old unit, where the package price says so
  • The compliance paperwork your state requires for the plumbing, gas or electrical work

Often extra

  • A tempering valve, pressure limit valve or isolation valve, unless listed
  • A concrete slab, levelling, carpentry or lifting labour for hard-to-reach positions
  • Moving the unit to a new position, or changing from gas to electric or the reverse
  • Removal of the old unit, unless the quote says it is included
  • Rebate paperwork or council permits, unless the quote says who handles them

Metro and regional differences

Metro: Capital cities have more installers and more competition for standard replacements, but higher wages and travel and parking time keep labour rates up. One guide puts a Sydney, Melbourne, Canberra or Hobart replacement at $1,200 to $2,500 and Brisbane, Perth or Adelaide at $1,000 to $2,000.

Regional: Our sources do not give separate regional figures, so treat the ranges as a national guide. Outside the cities, a longer drive can add to the price, and fewer installers means fewer quotes to compare. Units sometimes come from a distance, which can add time. The same guide puts Darwin at $1,500 to $3,000.

Licensing and compliance

Hot water work often involves up to three trades: a plumber for the water connections, a gas fitter for gas units, and an electrician for the power supply to electric storage and heat pump units.

New South Wales: the Building Commission NSW page says you need the right licence or certificate to do plumbing, draining or gasfitting work, and plumbers may need to give a Notice of Work or Certificate of Compliance.

Queensland: the QBCC lists installing or replacing water heaters, whether electric, gas, solar or heat pump, as notifiable plumbing work, and the plumber registers a Form 4 within 10 business days of invoicing and gives you a copy.

Western Australia: only people holding a plumber's licence from the Plumbers Licensing Board may do plumbing work, and Building and Energy runs the notice system, with a certificate of compliance within five working days for major work.

The ACT: Access Canberra publishes plumber notes under the Water and Sewerage Act 2000; we did not find a hot water rule on that page.

Victoria: Energy Safe Victoria says an electrician must issue a Certificate of Electrical Safety for electrical installation work, which for hot water is non-prescribed work with a copy to you, with 30 days allowed.

For Victoria, South Australia, Tasmania and the Northern Territory we could not open a plumbing or gas regulator page for this guide, so check the plumber's and gas fitter's licence on the state register; see our plumber cost guide for the regulators we checked there.

Electrical connections need a licensed electrician in every state we checked; see our EV charger guide for the electrical regulators.

Rebates and incentives

Federal: the Clean Energy Regulator page says only models on its register of solar water heaters and air source heat pumps can create small-scale technology certificates (STCs), and an air source heat pump must have a storage capacity of 425 L or less. The discount is usually applied to the price by the installer, and the amount depends on the system and your postcode zone. One supplier page, dated 24 February 2026, gives an example of about $532 on a 302 L solar system in Zone 3. Victoria: the Solar Victoria page, updated 21 September 2026, says the rebate takes $1,000 off installing a heat pump hot water system; check income and eligibility rules on Solar Victoria before you book. We could not confirm current New South Wales or other state amounts from a primary page, so ask your installer for the price before and after any discount.

Before you accept a quote, check

  • Is the price for the unit and installation together, and which model, size and warranty are quoted?
  • Is removal and disposal of the old unit included?
  • Are the tempering valve, pressure limit valve and any slab or platform included?
  • Which trades are involved, and will you receive the plumbing, gas and electrical certificates your state requires?
  • For a heat pump or solar system, what is the price before and after rebates, and who handles the paperwork?
  • Does the quote say whether GST is included?

Frequently asked questions

How much does it cost to replace a hot water system?

For a like-for-like swap, electric storage is about $1,400 to $2,800 and gas storage about $1,800 to $3,000, including installation. Heat pumps and solar cost more up front.

Is a heat pump hot water system worth the extra cost?

It costs more to buy, about $3,800 to $5,700 before rebates in our sources. A rebate can narrow the gap, and running costs differ by system, so ask installers to quote the running cost as well as the price. We did not check running costs against a primary source.

Does the price include removing my old hot water system?

Sometimes. One supplier's package price includes removal and disposal, and another guide lists removal at $50 to $200 as a separate charge. Ask before you accept the quote.

Do I need a plumber, a gas fitter and an electrician?

You need a plumber for the water connections, a gas fitter if the unit runs on gas, and an electrician for the power to electric storage and heat pump units. Ask who will do each part and who will give you each certificate.

Can I get a rebate on a hot water system?

Heat pump and solar systems on the Clean Energy Regulator's register can earn federal certificates, and Victoria's Solar Victoria page lists $1,000 off a heat pump. Rules and amounts change, so check the regulator's page and ask for the price before and after.

What changes the price most?

System type, tank size and whether you change energy type. A fuel switch or a move to a new position adds plumbing, gas or electrical work, and one supplier puts a fuel switch at $1,500 to $3,000 for installation alone.

Sources and method

Built on 19 October 2026 from five suppliers' published cost pages and price lists, one compiled Sydney guide, one marketplace task-price chart, the Fair Work plumbing award and state regulator pages. Each range stays inside figures that at least two sources share; the removal figure and the solar range lean on fewer sources. Some sources state GST and most do not, so GST basis is not confirmed. How we calculate our guides.

Compare quotes like for like.

Tell us the job and suburb. We'll bring the right hot water installers together. Free for customers.

Find a hot water installer

Keep reading

Find a local provider

Step 1 of 3

What do you need done, and where?

Reading