Are you tired of constantly running out of hot water or dealing with a noisy and inefficient hot water system […]
If you’re looking to replace your water heater, it’s important to understand the potential cost. Learn about the factors that can affect water heater replacement cost and get a better idea of what you can expect to pay. From the type of unit you choose to installation fees and more, we’ve got you covered with everything you need to know about water heater replacement cost.
Cost of Replacing a Water Heater (hot water system price)
Replacing a water heater can be a significant expense, although it may be necessary due to age, wear and tear, or functional damage. The cost of replacing a water heater can vary based on several factors including the type of heater, the size of the unit, and the complexity of the installation process.
In Australia, the hot water system price typically ranges between $800 to $3000, with an average cost around $1500. This cost includes the purchase and installation of a new water heater, in addition to any necessary modifications to the plumbing or electrical networks.
The cost can also vary depending on the location and accessibility of the installation site, including site-specific additional features or upgrades that may be required. This guide will explore the different types of water heaters available in Australia and their associated costs.
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There are several factors that can alter the cost of a water heater replacement. Let’s discuss each one in more detail:
A. Type of water heater:
The type of water heater you choose can have a big impact on the cost of replacement. Tankless water heaters typically have a higher upfront cost, however since they are more energy-efficient, they allow for larger financial savings in the long run. Water heaters with storage tanks are generally less expensive upfront, but they are less energy efficient and can lead to higher energy costs over time.
>> Similar Reading: Seven Smart Tech Innovations That Are Changing The Energy Efficiency Game
B. Size of the water heater:
The size of the water heater you need will depend on your household’s hot water requirements. Larger water heaters will cost more than smaller ones, and it’s important to select a size that can meet your household’s needs to avoid running out of hot water.
>> Similar Reading: iStore Heat Pump Hot Water System In Australia In 2023
C. Efficiency of the water heater:
The efficiency of the water heater is measured by its energy factor (EF). Higher EF ratings mean that the water heater is more efficient and will allow you to save more money on energy bills. However, more efficient models may have a higher upfront cost.
>> Similar Reading: 7 Ways to Make Your Home Energy Efficient
D. Installation location:
The location of the water heater can also impact the cost of replacement. If the water heater is in a hard-to-reach area or if significant modifications are required to accommodate and fit the new unit, the installation cost can be higher.
E. Labor costs:
The cost of labor required for installation can vary depending on the complexity of the job, on the contractor’s experience, and on local labor rates.
Types of Water Heaters and their Associated Costs
Tankless Water Heaters
Tankless water heaters heat water on demand using a heat exchanger. When hot water is needed, cold water enters the unit and is heated by the heat exchanger before flowing out to the faucet or shower. This process eliminates the need for a storage tank and allows a continuous and limitless supply of hot water.
Pros of Tankless Water Heaters
➜ Energy efficiency:
Tankless water heaters only heat water when needed, resulting in significant energy savings.
➜ Space-saving:
Tankless water heaters are small and can be installed on walls, freeing up valuable floor space.
➜ Endless hot water supply:
Since the heater doesn’t have a storage tank, tankless water heaters can provide hot water indefinitely as long as there is enough energy to power the unit.
➜ Longer lifespan:
Tankless water heaters can last up to 20 years, which is longer than the lifespan of traditional water heaters with storage tanks.
➜ Reduced risk of water damage:
Since there is no storage tank, the risks of leakage and water related damage and floods is eliminated.
Cons of Tankless Water Heaters:
➜ Higher upfront cost:
Tankless water heaters are more expensive to purchase and install compared to traditional storage tank water heaters.
➜ Limited flow rate:
Tankless water heaters can only provide a limited amount of hot water at a given time, which may not be sufficient for households with high hot water demands.
➜ High installation costs:
Tankless water heaters require professional installation, which can add a markup on the overall cost.
➜ Complex installation:
The installation process may require additional venting, gas lines, or electrical work depending on the unit type.
➜ Required maintenance:
Tankless water heaters require regular maintenance to ensure optimal performance.
The cost of tankless water heaters can vary widely based on the unit’s size, type, features, and installation process. On average, the purchase and installation costs of tankless water heaters can range between $500 to $4,000.
Storage Tank Water Heaters
Storage tank water heaters heat and store a large volume of water in a tank until it is needed. The heated water is then delivered to the faucet or shower when needed.
Pros of Storage Tank Water Heaters:
➜ Lower upfront cost:
Storage tank water heaters are less expensive to purchase and install when compared to tankless water heaters.
➜ Simpler installation:
The installation process is generally easier and requires a simpler procedure.
➜ Familiar technology:
Since they have been around much longer, most people are familiar with storage tank water heaters and their operation.
➜ Wide availability:
Storage tank water heaters are widely available, and replacement parts are easy to find.
➜ Adequate hot water supply:
Storage tank water heaters can provide hot water to multiple appliances or fixtures simultaneously.
Cons of Storage Tank Water Heaters:
➜ Energy waste:
Storage tank water heaters continuously heat water, even when it is not needed, resulting in a significant energy waste and higher utility bills.
➜ Limited hot water supply:
Once the storage tank’s hot water supply is depleted, reheating the water to fill the tank can take a while.
➜ Bulky size:
Depending on the need, storage tank water heaters can be large in size and take up valuable floor space.
➜ Shorter lifespan:
Storage tank water heaters typically last between 10-15 years, which is shorter than the lifespan of tankless water heaters.
➜ Risk of water damage:
The storage tank can deteriorate over time, and can develop leaks, which can result in water damage.
The cost of storage tank water heaters can vary based on the size and features of the unit, as well as on the installation process. On average, storage tank water heaters can cost anywhere from $300 to $1,500 to purchase and install.
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Upgrade Your Water Heating: Rebates Await!
HEAT PUMP HOT WATER SUPPLY & INSTALLATION
From
$1,299*
Energy Saver is an initiative proudly funded by the NSW Government Other Costs Associated with Water Heater Replacement
Removal of the old water heater:
The cost of removing an old water heater can vary depending on the location, the accessibility of the unit and on how complicated the process is.
In some cases, the installer may charge a flat fee for removal, while in other cases, they may charge by the hour. The cost of removing an old water heater can range between $50 to $200.
Installation of a new water heater:
The cost of installing a new water heater depends on the type of water heater being installed and the complexity of the installation. For example, a standard gas or electric tank water heater can be installed for as little as $500, while a tankless water heater installation can cost more than $3,000.
The cost of installation also includes the labor involved in connecting the water heater to the gas and electrical networks, as well as to the water supply and drainage systems.
Permits and inspections:
In many areas, a permit is required to install a new water heater, which can cost between $50 to $200, depending on the location. An inspection may also be required, and the cost of the inspection will depend on the location and on the inspector. An inspection can cost anywhere from $50 to $200.
Additional components and materials:
Depending on the type of water heater being installed, additional components and materials may be required. For example, a gas water heater may require a new gas line, and a tankless water heater may require a new venting system. The cost of these additional components and materials will vary depending on several factors, including the type and size of the water heater, as well as the location of the installation.
Hot Water System Prices in Different Regions
The cost of water heater replacement can vary significantly depending on the region. There are several factors that can contribute to regional cost differences, including cost of living, availability of skilled labor, local regulations, and market competition.
For example, areas with a higher cost of living generally have higher labor costs, which can drive up the overall cost of the water heater replacement. Additionally, areas with strict regulations or limited market competition may also have higher prices.
Comparison of water heater replacement cost in different regions in Australia:
Below is a regional comparison of the approximate cost of water heater replacement for the different regions in Australia:
| Sydney | $1,200 – $2,500 |
| Melbourne | $1,200 – $2,500 |
| Brisbane | $1,000 – $2,000 |
| Perth | $1,000 – $2,000 |
| Adelaide | $1,000 – $2,000 |
| Canberra | $1,200 – $2,500 |
| Darwin | $1,500 – $3,000 |
| Hobart | $1,200 – $2,500 |
Factors that influence regional cost differences:
There are several factors that can influence regional cost differences in water heater replacement, including:
1. Cost of living:
Areas with a higher cost of living generally have higher labor costs, which can drive up the overall cost of water heater replacement.
2. Availability of skilled labor:
Regions with a shortage of skilled labor have more restrictive and higher labor costs, which can drive up the cost of water heater replacement.
3. Local regulations:
Areas with strict regulations usually suffer from higher purchase and installation costs due to requirements to comply with codes, apply for and get permits and satisfy inspection needs.
4. Competition in the market:
Areas with limited market competition have fewer product and installer options, which can lead to higher prices.
5. Transportation costs:
Regions that are far away from manufacturing centers or distribution hubs suffer from higher transportation costs, which can drive up the overall cost of water heater replacement.
6. Weather conditions:
Areas with extreme weather conditions may require specialized equipment, labor and materials, which can drive up the cost of the water heater replacement.
7. Taxes and fees:
Different regions may have different tax rates and fees that can influence the overall cost of water heater replacement.
8. Cost of materials:
The cost of materials, including the type and size of the water heater, can also impact the overall cost of replacement. Some regions may have higher material costs due to supply and demand factors.
9. Cost of energy:
The cost of energy in a region can also impact the overall cost of water heater replacement. It may be wiser to install more energy efficient water heaters in regions with higher energy costs, which may be more expensive.
10. Level of demand:
Regions with a higher demand for water heater replacement services may have higher prices due to factors of supply and demand.
11. Type of water heater:
Different types of water heaters, such as tankless or solar water heaters, may have different installation costs in different regions.
12. Age of the home:
Older homes may require additional and more intricate work to complete the installation of a new water heater, which can increase the overall cost.
13. Access to the water heater:
The location and accessibility of the water heater can impact the cost of replacement. For example, if the water heater is in a hard-to-reach location, additional labor may be required, increasing the overall cost.
14. Warranty and guarantees:
Different service providers may offer different warranties and work guarantees, which can alter the overall cost.
15. Size of the water heater:
Larger water heaters require more labor and more materials, increasing the overall cost of replacement.
16. Seasonal factors:
The time of year can also impact the cost of water heater replacement, with prices potentially higher during peak demand seasons.
Tips for Reducing Hot Water System Price
Regular maintenance:
One of the best ways to reduce water heater replacement costs is by ensuring that your current water heater is regularly maintained.
Some of the measures include flushing the tank to remove sediment buildup, checking the anode rod for signs of corrosion, and inspecting the heating element or burner. Regular maintenance can extend the lifespan of your water heater and prevent expensive future repairs and replacements.
Upgrading to a more efficient water heater:
Upgrading to a more energy-efficient water heater can also reduce replacement costs in the long term. A more efficient water heater can help you save money on your energy bills, and may also qualify for tax credits or other incentives that can partially offset the cost of replacement. More efficient water heaters include tankless, heat pump, and solar water heaters.
Shopping around for the best deal:
When it comes to water heater replacement costs, it is worth the effort to consider different options and to compare prices. You may be able to land a better deal by receiving quotes from multiple contractors or retailers.
Keep in mind that the lowest price may not always be the best value, as you should consider other factors like installation quality and warranty coverage when making a decision.
Proper installation:
Finally, ensuring that your water heater is properly installed is essential to prevent future problems and to reduce replacement costs.
Poor installation can often lead to leaks, floods, space damage and safety hazards. Make sure you choose a licensed and experienced contractor who will thoroughly follow local building codes and manufacturer guidelines for installation.
Hot Water System Prices in Australia – The Conclusion
This article highlights the key points related to the cost of water heater replacement. It addresses the factors that impact the cost of a new water heater, including the type of heater, its size, and the installation costs.
In addition, the article mentions ways to save money when replacing a water heater, such as by using a tankless option or by taking advantage of rebates and incentives.
>> Similar Reading: Do Solar Panels Save Money?
Given the cost of a water heater replacement, it’s important to remember that investing in a high-quality water heater can ultimately save money in the long run. Although the upfront cost may be higher, a more efficient and durable unit will require less maintenance and use less energy, resulting in lower utility bills.
Additionally, a malfunctioning or outdated water heater can become a safety risk, forcing owners to take swift and rapid decisions. .
It’s important to ensure that your water heater is functioning properly. Regular maintenance and inspection can help prevent operational problems and can extend the lifespan of your unit.
If you notice any signs of trouble, such as leaks, strange noises, or inconsistent water temperature, it’s important to contact a professional who can properly assess the problem and determine if replacement is necessary or not.
Don’t wait until it’s too late – taking proactive steps to maintain your water heater can save you time, money, and hassle in the long run.
GOVERNMENT REBATED SMART HEAT PUMP HOT WATER SYSTEM
Efficiency, Savings, Sustainability: Your Rebate-Ready Heat Pump.
Get a heavily subsidised energy saving heat pump through the NSW Energy Savings Scheme. Combat the rising electricity prices today!
Upgrade Your Water Heating: Rebates Await!
HEAT PUMP HOT WATER SUPPLY & INSTALLATION
From
$1,299*
Energy Saver is an initiative proudly funded by the NSW Government 
