How to Calculate the Cost of a Hot Water System

When you are shopping around for a hot water system for your home or business, cost is likely to be one of your primary concerns. There is more that goes into your cost than just the price of the water heater itself, though. There are several other factors that influence how much you have to pay as well. Read on for the top seven factors you’ll need to take into consideration.

The Size and Style of the System

The first factor to consider is the size and style of your new hot water system.

The size you need will be based on the size of your household and your water usage.

The style will be based on the types of energy available to you – electric, gas or solar.

Electric Water Heaters

Electric hot water systems utilise electric power to heat up the water, and tanks typically hold between 24 and 400 litres of water. These types of systems usually range between $450 and 1,800, with larger tanks fetching higher prices.

Electric water heaters also come in tankless varieties. These versions heat the water instantaneously as you need it so you never run out of hot water. For these types of systems, you’ll typically pay between $660 and $1,300, but you’ll save a lot of money on your electricity bills over time since you won’t need to constantly keep the water hot.

Gas Hot Water Systems

Like electric water heaters, gas-powered systems also come in both tank and tankless varieties. Instead of using electricity to heat the water, though, these water heaters burn natural gas for energy. Gas water heaters with storage tanks usually range from $850 to $1,500 according to Oneflare, again with larger tanks costing more. Tanks usually fall between 135 and 360 litres in size.

Tankless gas systems usually range between $750 and $1,600. Again, though, you’ll save money on your ongoing gas bills due to lower overall usage throughout the day.

Solar Water Heaters

The popularity of solar hot water systems has been on the rise as more consumers express concern for our environment. These types of systems are especially common in areas that get a lot of sun throughout the year. Solar water heaters do tend to be more expensive than other styles, so you should expect to pay at least $3,600 for the system. You’ll make that money back over time as you won’t have to use traditional energy sources to heat your water.

If your area doesn’t get enough sun to make full use of solar power, you can still use solar water heaters but you’ll need a backup power source that uses gas or electricity so you don’t run out of hot water when you need it most. Electric split systems typically cost $3,900 or more, and gas models range between $4,900 and $6,500.

Heat Pumps

Water heaters with heat pumps operate much like heating systems of the same style, extracting heat from the ambient air to warm the water in the tank. Although energy-efficiency makes these water heaters affordable to operate, they also tend to be especially noisy. This type of system will typically run between $3,300 and $4,000. As with the other styles, larger tanks come with higher prices.

Delivery Expenses

In addition to the cost of the water heater itself, you’ll also typically have to pay to have the system delivered to your home. Sometimes water heater vendors will cover this cost for you, but this isn’t always the case, so you should be prepared to pay for delivery if needed. The cost is usually based on the size and weight of the system, combined with the total travel distance.

Costs for Installation

Once your new water heater arrives at your property, you’ll need to have it properly installed, and the labour required to do this will add to your costs. The main factor in determining installation cost for your hot water system is the complexity of the job. If you are replacing a water heater with a new one of the same type, your installation costs will be minimal, typically running between $220 and $660.

If you wish to switch to a different style, on the other hand, you may need new pipes and fittings, which will increase your costs. You may also need new power cables or gas lines installed to accommodate your new system, which may require bringing in additional tradespeople to complete the job. For these complex types of jobs, you can expect to pay between $1,500 and $3,000, depending on your specific needs. Moving your water heater will increase your costs as well, typically adding $1,000 to $2,000.

Accessibility Issues

Depending on the layout and location of your property, you may need to add to the labour charges for any accessibility complications. If your home or business does not have easy access, like if it is located on the fifth floor of a building with no lifts, you’ll likely incur additional charges. On the other hand, if the technicians can easily get your water heater into its new location, you probably won’t have to pay extra.

Government Rebates

In some cases, the Australian government offers incentives for those who buy and install energy-efficient systems. Depending on the system you selected, you could be eligible to receive up to $1,200 in rebates and incentives, so be sure to check with your local council to find out if you qualify. Then, you can look for systems that will help you achieve those incentives.

Disposal of Your Old System

If you are replacing an existing hot water system, you’ll need to get rid of your old one safely. In some cases, you’ll have to pay for this service, while some companies will include this service with your purchase. In general, removal and disposal will cost you about $60, but there is some variation between providers. As with many of the other criteria in this list, shop around to find the best prices.

Ongoing Operation

While not included directly in the cost of your system, your ongoing operating costs can seriously add up over time. Be sure to include the running costs in your evaluation of various water heaters. This table will give you a general sense of what to expect:

Type of System	Typical Annual Operating Cost
Electric	$700 – $925
Gas	$295 – $665
Solar	$65 – $365
Heat Pump	$160 – $385

Source: Canstar

Your specific costs will vary based on your actual usage, but these guidelines will give you a basic idea.

Affordable Hot Water Systems for Your Home or Business

Here at Precise Plumbing & Electrical, we work with residential and commercial clients in Adelaide, assisting them with all their hot water system needs. We can answer all of your questions to help you decide on the best water heater to meet your needs. Once you have made your selection, we’ll get everything installed and ensure it is working properly. Our plumbers, gas fitters and electricians are ready to install your new hot water system now.