How Much Does A Hot Water System Cost?

Are you thinking of upgrading your hot water system or are you looking into switching to a more eco-friendly system? Then you have come to the right place.

Here at MPM Plumbing, we understand that choosing a hot water system for your Melbourne home isn’t a one-size-fits-all decision. With over a decade of industry experience, our dedicated plumbers take the time to thoroughly assess your hot water needs, preferences and budget.

But how much does your hot water system cost to run?

Choosing the Right Hot Water System For You

Before investing in a new hot water system, there are several factors that many homeowners overlook, including the installation costs, running costs and any potential ongoing maintenance.

There are four main types of hot water systems to choose from, including:

If, after researching the different types of hot water systems, you are still unsure about which one to pick, don’t worry. Our team of experienced hot water specialists is here to provide you with personalised guidance, advice and information about Victorian rebates and local government schemes.

Call us today on 1300 405 703 or fill out our online booking form.

How Much Does It Cost To Install Your Hot Water System?

When budgeting for a new hot water system, it’s important to consider the ongoing costs beyond the price of the unit itself. Several factors are often overlooked, from delivery to the installation cost, can significantly impact your budget.

Delivery and Accessibility

Delivery costs are a key consideration that can vary from company to company. While some suppliers include shipping in the overall price, others may charge extra based on your hot water system’s size, travel distance and any challenges accessing your property.

Keep in mind how accessible your home is when installing your hot water system. Difficulty access points like stairs and narrow paths can increase both delivery fees and installation charges.

Installation Duration and Labour Costs

While installing a hot water system may look straightforward, it can become complicated rather quickly, affecting both your time and wallet.

Standard Replacements: For a simple replacement or installation of electric, gas, heat pump or solar hot water units, our plumbers can get it done within 2 to 3 hours. These range from approximately $200 - $600.

Complex Installations and Energy Style Changes: For more complicated systems, such as solar hot water systems, more time and work are required. It could take a couple of days due to planning, roof access and complicated pipework. Switching energy sources like electric to solar, can save you a significant amount of money on your energy bills.

How Much Does It Cost To Run Your Hot Water System?

Your water heating energy costs will depend on the following:

How many people are in your household
How much hot water do you use for everyday activities like showering, washing clothes and dishes
Energy Tariffs
The efficiency of your hot water system
The length and insulation of the connecting pipes
Flow Rates

Government Rebates for Victorian Heat Pump Rebate 2025

If you own a home in Victoria, you may be eligible for the Solar Homes Hot Water Rebate. This government incentive covers up to $1000 of the initial price of solar hot water and heat pump hot water systems.

To be eligible for this incentive, you must meet the following criteria:

You are the owner-occupier of an existing property, not a new build
Your household taxable income for all the owners is less than $210,000
Your property’s total value is under $3 million
The property address hasn’t already received a hot water or solar battery rebate under the Solar Homes Program
Your hot water system is at least 3 years old and is ready to be upgraded or replaced
You have received a Solar Homes rebate and/or loan but you have moved house. You will have to apply for another incentive at your new address.

Here at MPM Plumbing, our hot water specialists are fully authorised and qualified to install solar and heat pump systems from a wide range of different makes, models and brands.

How Long Do Hot Water Systems Last?

The average life expectancy of a hot water system typically ranges from anywhere between 8 and 20 years. General guidelines are as follows:

Gas Hot Water System: 8 - 12 years
Electric Hot Water Systems: 10 - 15 years
Solar Hot Water Systems: 10 years
Heat Pump Systems: 15 years
Continuous Flow or Instantaneous Flow Systems: 20 years

If your hot water system is approaching or has exceeded its expected lifespan, even if it seems to be working normally, it’s time to start planning and budgeting for a replacement. Proactive action prevents unexpected breakdowns and expensive repairs in the future.

Comprehensive Hot Water System Installations, Maintenance and Repair Solutions Throughout Melbourne

For professional advice and guidance, contact one of our friendly plumbers on 1300 405 703 or complete our online booking form today.

References

Solar Victoria, Hot water Rebate 2025: https://www.solar.vic.gov.au/hot-water-rebate

Canstar, Hot Water System Installation Guide: https://www.canstarblue.com.au/appliances/hot-water-system-installation-cost/

Energy Victoria, Hot Water System Discounts: https://www.energy.vic.gov.au/victorian-energy-upgrades/products/hot-water-system-discounts