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Hot Water Cost

What a new hot water system really costs

Installed prices, the rebates in your state and the rules your plumber has to follow, so you know what a fair quote looks like before anyone comes out.

Work out my cost Rebates by state

What your state takes off the price

Your cost after rebates

Three choices. The estimate updates as you go.

Where is the home?
What are you replacing?
What would you install?

Estimated out of pocket

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Installed price
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Rebates and discounts
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    An estimate from industry-reported 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

    Got a quote, or about to? Check what it should include

    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
    Installed price of hot water systems in Australia, 2026, before rebates
    SystemInstalledSuits
    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

    And one change on the way in Victoria: from 1 March 2027, a gas hot water system that reaches end of life has to be replaced with an efficient electric one. What that means for you

    1. 01

      Stored above 60 °C

      Water in the tank must stay above 60 °C to stop Legionella bacteria growing. A heat pump set too low is a problem, not a saving.

    2. 02

      No hotter than 50 °C at the shower

      A tempering valve mixes stored water down to 50 °C or less before it reaches a bathroom tap. How the rule works

    3. 03

      No hot water in a rental is urgent

      Victorian law defines it as an urgent repair, and NSW rules say the same: an urgent repair. Landlords can't leave you waiting for a routine booking. What renters can do

    Before you ask for a real price

    Estimates only go so far. Get at least two written quotes, and compare them line by line.

    Check each quote says whether the STC discount and your state rebate are already taken off. How to read a hot water quote

    Quote requests

    Not open yet

    There's no request form on this site yet, so nothing you type here would reach a plumber. Until it opens, these will get you closer to a fair price:

    How quote requests will work