How Much Does a Hot Water System Cost to Install in Australia? (2026 Prices)

A new hot water system in Australia costs between about $800 and $7,000 installed. Where you land in that range mostly comes down to the type of system. A like-for-like electric tank swap sits at the bottom. A heat pump or solar system sits at the top, though rebates take a real chunk off both.

TL;DR

• Electric storage: $800 to $3,000 installed, about $1,800 typical.
• Gas storage: $1,200 to $3,500, about $2,200 typical.
• Gas continuous flow: $1,500 to $3,500, about $2,200 typical.
• Heat pump: $3,000 to $6,000 before rebates, about $3,600 typical after them.
• Solar: $3,500 to $7,000.
• Removal of the old unit adds $75 to $200 if it's charged separately. Get a written quote that lists every extra.

Installed prices by system type

These are supply and install prices, so the unit, labour and standard fittings are all in. They come from What's The Damage, an Australian cost guide that says it cross-checks more than 90 trade pricing sources and last verified these figures in October 2026. Each line shows low, typical and high.

• Electric storage: $800, $1,800, $3,000
• Gas storage: $1,200, $2,200, $3,500
• Gas continuous flow (instantaneous): $1,500, $2,200, $3,500
• Heat pump, before rebates: $3,000, $4,200, $6,000
• Heat pump, after rebates: $2,500, $3,600, $5,300
• Solar with electric boost: $3,500, $5,000, $7,000

Tank size moves the price as well. The same guide puts a 250 to 270 litre heat pump at $3,000 to $6,000 and a 300 to 315 litre one at $3,400 to $7,000, both before rebates.

Your city matters too. The site's Sydney guide has an installed electric tank at $920 to $2,875, while its Adelaide guide comes in at $735 to $2,300.

What pushes a quote up

The unit is only part of the bill. These are the lines that can turn an $1,800 job into a $3,000 one.

• Taking away the old system costs $75 to $200 when it's listed separately. Plenty of plumbers include it, so ask.
• A tempering valve runs $150 to $400. It caps the temperature at bathroom taps so nobody gets scalded, and new installs usually need one.
• Switching from gas to electric, or the other way, can mean a new circuit from the switchboard or new gas pipe. Ask for that work as its own line.
• Putting the new unit somewhere other than where the old one sat adds plumbing, and sometimes electrical work.
• A same-day replacement after a burst tank runs $1,300 to $4,000 supplied and installed, since there's little time to shop around.

Rebates for heat pumps and solar

Heat pumps and solar systems cost more up front, but they're the systems the rebates below are aimed at.

Federal certificates (everywhere)

Eligible heat pump and solar hot water systems create small-scale technology certificates (STCs). Your installer normally takes their value off the price when you buy, so there's nothing for you to claim. The amount depends on your postcode, the model and the certificate price on the day, so ask each installer to show it as a line on the quote.

Victoria

Solar Victoria offers up to $1,000 off an eligible heat pump or solar hot water system, or up to $1,400 for an eligible locally made one. You have to be the owner-occupier, the owners' combined income has to be under $150,000 a year, the property has to be worth under $3 million, and the system you're replacing has to be at least three years old. Solar Victoria also says that from 1 March 2027, existing homes have to replace a gas hot water system at the end of its life with an efficient electric one.

New South Wales

Under the Energy Savings Scheme, accredited installers take a discount off the price when you upgrade to a heat pump. The NSW Government calls the amounts indicative and says they vary by installer, location and model, so compare quotes from more than one accredited provider.

Other states

Programs change often. Check your state energy department's website and energy.gov.au before you sign anything.

Which system makes sense for you

• If your tank has just died and you need hot water tonight, a like-for-like replacement is the fastest and cheapest fix.
• If you have rooftop solar, a heat pump or an electric tank on a timer can run on your own daytime power.
• If you're in Victoria with an old gas unit, price up a heat pump now, given the rebate and the 2027 rule.
• If it's a small household or a unit, a smaller electric tank or a continuous flow unit usually costs less to buy.

How to get an accurate quote

1. Take a photo of the compliance plate on your current system. It shows the type, size and age, and a plumber can often price the job from it over the phone.
2. Get at least two written quotes from licensed plumbers.
3. Check each quote names the unit model and lists removal of the old system, the tempering valve, any electrical or gas work, and any rebate or certificate discount.
4. Confirm the plumber's licence in your state before work starts. Our guide on how to choose a plumber shows how to check it.

Compare plumbers in your city

Compare local plumbers, with contact details and opening hours, on The Local List: plumbers in Sydney, Melbourne, Brisbane, Perth and the Gold Coast.

The prices in this guide are typical ranges as of October 2026, not quotes. What you pay depends on your home, your city and the system you choose.