How much does a new hot water system cost?
A like-for-like hot water replacement in Australia usually runs about $1,200–$2,500 installed, while heat pump and solar systems cost more upfront ($2,800–$7,000+) but qualify for rebates and far lower running costs. Use the calculator below for an indicative installed range for your situation, then get free quotes from verified local plumbers to confirm.
Common questions
How much does it cost to replace a hot water system in Australia?+
A like-for-like gas or electric replacement is typically $1,200–$2,500 installed. Continuous-flow gas runs a little higher, and heat pump or solar systems cost more upfront ($2,800–$7,000+) but qualify for rebates and are much cheaper to run. Household size, switching system type and any relocation all move the price.
Heat pump vs gas hot water — which is better?+
Gas or electric is cheaper to buy and install; a heat pump costs more upfront but uses around 65–75% less energy than electric, so it's usually far cheaper to run — and after federal STCs plus state rebates the installed price often lands near a premium gas unit. Heat pumps suit most climates, though very cold zones earn fewer rebate certificates.
Are there rebates for hot water systems in Australia?+
Yes — for heat pump and solar systems. Federal STCs (~$800–$1,200) plus state programs (Victoria's VEU, NSW HEER, South Australia) can take $1,000–$3,000+ off, applied as a point-of-sale discount in your quote, so there's usually no form to fill in. Standard gas/electric swaps don't attract rebates.
What size hot water system do I need for a family of 4?+
Roughly a 250–315 L electric storage tank, 135–170 L gas storage, a continuous-flow gas unit, or about a 270 L heat pump. Larger households (5+) need more capacity, which is why the estimate scales with household size.