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Cost of hot water system installation

Last updated: 8th Jun 2019

Installing a hot water system in your home will cost you about $80/hr. However, if the job turns out to be quite simple, your hot water system installer can charge as low as $70/hr for their service. On the other hand, if there are obstructions or complications during the installation process, the price can shoot up to $88/hr.

Where do these prices come from?

All prices stated in this article are based on FY 2016 pricing data compiled by The figures resulted from a comprehensive analysis of quotes submitted by Hot Water System Installers on the site from July 2015 to July 2016.
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Jon wanted to replace the old hot water system in his home in Western Australia. He spent $1,050 for a new hot water system, and the price covered the supply and installation of the unit. It included all pipe work and valves too.

Project cost

The actual hot water system unit costs around a thousand dollars, but if you already have one and you only need a professional to set it up, you can expect to pay approximately $181.29 for the labour. Installation cost can still go higher, though, especially if additional piping is needed.

Price-control factors to keep budgets out of hot water

It’s easy to see the benefits that you can get from hot water systems. However, before purchasing your own unit, make sure that you have the budget for installation costs as well. Suppliers typically charge a separate fee for this service, so it would be best to know the factors that are considered when estimating prices.

Type of hot water system

Gas and electric hot water systems have almost the same average installation cost. However, if you have a solar hot water system, you can expect to pay your installer a bigger amount. Solar panels are typically installed on the roof, and this makes the job tougher as the installer would have to use other equipment to access the area.

Size of hot water system

The size of the hot water system to be installed is often determined by the number of bathrooms or by the number of people in a household. It’s also recommended to consider scenarios wherein there will be higher consumption than the usual. Of course, if you need a larger hot water system unit or if there are multiple bathrooms in your home, you should prepare for bigger expenses.

Level of difficulty

Replacing an old unit is typically easier than installing a new one, which means you’ll be paying less for the former. New installations typically involve additional pipings, and that makes the job a bit more expensive. Meanwhile, in installing solar hot water systems, your installer would have to go up to your roof where the solar panels will be placed. This definitely raises the level of difficulty of the task. | Photo By: Bruce Damonte | Photo By: Bruce Damonte

Installation price differences per state

Cost of hot water system installation

Click the infographic image to expand.

At approximately $70/hr, South Australia has the most affordable price for hot water system installation. Meanwhile, the average costs of the same type of service are only slightly different in Queensland and Victoria. Queenslanders are paying an average rate of $78.50/hr, while residents in Victoria shell out around $77.50/hr. Hot water system installers in New South Wales charge about $80/hr for a standard job.

Getting the help of professional hot water system installers is a must. This is to ensure that your unit will be functioning properly for years to come. has an array of hot water system businesses that could get the job done in no time.

Pricing information correct as at August 2016.

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