What a new hot water system really costs
Installed prices, the rebates in your state and the rules your plumber must follow, every figure sourced and dated.
What your state takes off the price
- Victoria up to $1,000 Solar Victoria rebate, plus a Victorian Energy Upgrades discount on top
- New South Wales up to $640 Energy Savings Scheme discount when you replace an electric system
- South Australia no fixed amount Energy retailers set their own REPS offers
- Queensland closed The state appliance rebate ended in December 2023
Your cost after rebates
Three choices. The estimate updates as you go.
Estimated out of pocket
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- Installed price
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- Rebates and discounts
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An estimate from published 2026 price ranges, not a quote. Your installer's quoted price already includes the federal STC discount. Eligibility for each rebate is set by the program. Check your state's rules
Installed prices, before rebates
A like-for-like swap takes a plumber a few hours. The price moves most with the type of system, whether you switch from gas to electric, and how easy the old unit is to reach.
Full price guide| System | Installed | Suits |
|---|---|---|
| Electric storage | $800–$2,500↗ | Lowest upfront cost |
| Gas storage | $1,200–$3,000↗ | Homes already on gas |
| Gas continuous flow | $1,500–$3,000↗ | Never runs out mid-shower |
| Heat pump | $3,000–$5,200↗ | Where rebates apply |
| Solar | $3,000–$7,000+↗ | Sunny roofs, long payback |
Three rules before anyone touches your hot water
- 01
Stored at 60 °C↗ or hotter
Water in the tank must stay hot enough to stop Legionella bacteria growing. A heat pump set too low is a problem, not a saving.
- 02
No hotter than 50 °C↗ at the shower
A tempering valve mixes that stored water down before it reaches a bathroom tap. How the rule works
- 03
No hot water in a rental is an urgent repair↗
Landlords cannot leave a tenant waiting for a routine appointment. What renters can do
Ready for a real price?
Estimates only go so far. Ask for quotes and your request goes to licensed plumbers who cover your postcode.
Check any quote says whether the STC discount and your state rebate are already taken off.