A replacement hot water system costs $800–$2,500↗ installed for electric storage and $3,000–$5,200↗ for a heat pump, before rebates. State rebates can take a large share off a heat pump, which is why the gap is smaller than it looks.
Installed prices by system type
| System | Installed price | Worth knowing |
|---|---|---|
| Electric storage | $800–$2,500↗ | Cheapest to buy, most expensive to run. |
| Gas storage | $1,200–$3,000↗ | Common where the home is already on gas. |
| Gas continuous flow | $1,500–$3,000↗ | Heats on demand, so it does not run out. |
| Heat pump | $3,000–$5,200↗ | Most rebates target this type. |
| Solar | $3,000–$7,000+↗ | Highest upfront cost, depends on roof and sun. |
Installer-reported ranges for Australia in 2026. Solar has no upper bound in the source, so its bar fades out.
Show these figures as a table
| Item | From | To |
|---|---|---|
| Electric storage | $800 | $2,500 |
| Gas storage | $1,200 | $3,000 |
| Gas continuous flow | $1,500 | $3,000 |
| Heat pump | $3,000 | $5,200 |
| Solar | $3,000 | $7,000+ |
Your installer's quoted price already includes the federal STC discount↗. The prices above are for supply and installation together.
Supply-only prices are not what you pay
Some guides quote the unit on its own. A heat pump unit alone runs $2,800–$5,200↗ and an electric unit $550–$2,100↗. Installation comes on top, so compare installed prices when you compare quotes.
What changes the price
- Labour. Plumbers typically charge $80–$120 per hour↗, and a like-for-like swap takes 2–4 hours↗.
- Switching fuel. Going from gas to a heat pump can need a new electrical circuit, which adds an electrician.
- Access. A unit in a roof space, under a house or up a narrow side path takes longer to remove and install.
- A tempering valve. New installations must deliver no more than 50 °C to bathroom taps. Why
- Disposal. Removing and disposing of the old tank is usually quoted as part of the job. Check it is included.
Then take off your state's rebate
The rebate you can get depends on where you live and what you are replacing. The calculator works it out, and the state guides explain who qualifies.