Cost is the number one factor when looking for a hot water system. However, many more variables determine your replacement or upgrade cost.
Let’s look at what you should expect to pay for a new hot water system today.
Three Factors Affecting Hot Water System Costs
1. Types of Hot Water Systems Available
Your main choices are electric, gas, solar, and heat pumps.
- Electric hot water systems range between $450 and $1,900, depending on the water tank capacity (up to 400 litres). A tankless electric water system costs less to install and maintain.
- Gas hot water systems also have tank and tankless designs, ranging from $850 to $1,800 for up to 360 litres.
- A solar hot water system is the eco-friendliest choice despite the higher upfront cost, starting at about $3,600. You may also need a backup electric or gas system if you don’t get sunshine year-round, which can add $1,000 to $2,000 to your costs.
- A heat pump is more affordable if you want to save on water heating and don’t mind the noise. It costs between $3,300 to $4,600 to install, reducing your energy bill in the long run.
2. Delivery and Accessibility
Depending on your hot water tank size and vendor choice, you may need to pay extra for delivery. In addition, your home’s layout may require additional fees if the installation crew needs a crane to hoist the system to your roof or if your home has no elevator.
Hot water installation companies can dispose of your old system on your behalf at a fee, typically around $60 to $77. Some providers include the disposal fee in their quote but always check for the removal and disposal costs as you choose your vendor.
Approximate Installation Costs
Choosing a hot water system is the first step; installing it in your home is another. Labour costs vary by vendor, but here are some common factors that affect your installation fees:
- Complexity: Replacing an old hot water system with the same brand and type of system typically costs less than changing systems, e.g., from gas to solar. This straightforward installation may cost between $260 and $660.
- Fittings: Whether you’re switching systems or not, you may find that your home needs new pipes, power cables, or gas lines to work efficiently. This can drive up your installation costs to $3,000, depending on how many technicians you need.
- Relocation: You may also want to install your new hot water system in a new position, e.g., from indoors to outdoors or from one side of the home to another because of noise. Moving a water heating system can add between $1,000 and $2,000 to your costs.
These ballpark figures can help you budget for your home’s new hot water system. Remember your operation costs too, and choose the right water heater that matches your daily household use: the more people using hot water in your home, the bigger the water tank, and the higher the system costs. Only a licensed plumber can give you an accurate assessment and quote. Use the information above to prepare for your new hot water system.