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Hot Water System Replacement: Your Essential Guide

Hot Water System Replacement: Your Essential Guide

Hot water systems have become a necessity in modern days, where they serve several domestic needs like bathing, dishwashing and laundry. 

Unfortunately, the variety of hot water systems in the Australian market makes it hard for homeowners to pick the best one. To overcome this challenge, we have compiled this post to help every Australian homeowner upgrade to the best hot water system. 

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Understanding Hot Water Systems

Hot water systems are units or devices that provide you with hot water for daily usage in the bathroom, kitchen, dispensers, etc. There are different types of hot water systems each using different technology to operate.

Types of Hot Water Systems

In the Australian market, you can find four main types of hot water systems.

1. Electric Hot Water Systems

As you can tell by their name, these systems use electrical energy to heat water through resistance heating elements.

They are widely used in Australia, where they cover around 50% of water heating needs in the country. They are available either as part of a storage system where hot water is stored in tanks or as instantaneous units where hot water is available on demand.

2. Gas Hot Water Systems

These are water heating systems that burn natural gas or LPG to heat water. In Australia, 40% of households use such systems. They also come either as storage or instantaneous systems. Although better than their electric counterparts, their downside is their fossil fuel emissions into the atmosphere.

3. Solar Hot Water Systems

Solar hot water heaters are systems that capture energy from sunlight and use it to generate heat that is transferred to the water. Their advantages are that they’re usually environmentally friendly and can pay back the initial investment in a short time.

4. Heat Pump Hot Water Systems

Heat pumps are the latest water heating systems that extract heat from the air, or the ground, and use it to heat water. They are highly efficient, especially in moderate climates where they can cut energy consumption by more than 75%. Energy savings can even reach 90% if they’re combined with solar panels. 

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Signs You Need to Replace Your Hot Water System

Knowing the correct time to replace your hot water system can save you unnecessary inconveniences and costs.

Lack of Hot Water

If you find that your hot water is running out far too quickly or the water heating is becoming unsatisfactory, that should be an early signal for inefficiency or possible failure.

Rusty Water

When the hot water from your tap looks rusty or any other colour rather than clear, it could indicate that your tank’s interior is rusting, which could lead to leaks.

Unusual Noise

Knocking, popping, or hissing sounds are evident signs of the collection of sediments or other agitations in the internal parts of the system that likely need to be replaced or changed.

Frequent Repairs

Frequent repairs signify an underlying problem. If they persist, consider upgrading. 

Age of the System

According to experts, any type of hot water system typically lasts for 10 to 15 years. So, replacing any system past this age is a wise move. 

Choosing the Right System to Meet Your Needs


Choosing the right hot water system requires you to consider your unique needs. You will need to think of things like:

Energy Efficiency Considerations

  • Energy Star Ratings 

A higher energy star rating indicates that the system will save more power, so such systems are recommended.

  • Long-term Cost Savings

Before settling on a cheap water heater, think about what it will do to your utility bills over time. A higher-quality system will be costly upfront but cheaper on the long-term.

Capacity and Size Requirements

  • Household Size 

Is your family large or small? Larger families need more water so should opt for larger systems and vice versa.

  • Water Usage Patterns

Understand how your family uses hot water. For instance, if there are peak times in the day where several showers or appliances may run simultaneously, you may require a system that is able to cater to this demand.

Environmental Impact

  • Carbon Footprint

Consider the environmental impact of your hot water choice. Fuel-dependent systems will tend to have a heavier carbon footprint compared to renewable alternatives

  • Renewable Energy Options

Be environmentally conscious and look for systems using renewable energy. For example, heat pumps and solar-powered systems will lower your emissions and may qualify you for government rebates.

Costs Involved

Knowing how much it will cost to replace your hot water system will allow you to budget accordingly.

Initial Purchase and Installation 

When budgeting, remember to factor in the installation costs in order to avoid unexpected surprises.

Price Range for Different Systems

Electric Systems: The budget should range from $300 for low-end systems to $1,500 for high-end models.

Gas Systems: You’ll spend from $700 to $2,500 on these systems.

Solar Systems: You should budget anywhere between $3,000 and $7,000. 

Heat Pump Systems: Usually priced between $1,500 and $5,000, but incentives can offset part of the price.

Cost of Professional Installation

Budget for about $500 to $1,500 to the total cost. This will depend on the system type and work needed.

Ongoing Maintenance Costs

Regular Servicing: You should set aside at least an annual maintenance fee of between $100 and $300.

Potential Repair Costs

Create a budget against unexpected repairs. Cost estimates could be very subjective based on the nature of the problem at hand, but having a backup plan saves you from too much unexpected stress.

Government Rebates and Incentives

Government rebates and incentives can help offset the hot water system cost partially.

Available Rebates

Most states and territories across Australia offer rebates when upgrading to more energy-efficient systems, particularly solar and heat pump systems. These include nation STCs, NSW ESS and Vic Solar Home Program.

How to Apply for Incentives

The procedure may differ between states. Check your local government’s website for information about the available rebates and how to apply for them. Some programs might ask for specific documentation or proof of installation.

Installation Process

The installation process can be complex, so it’s important to understand your options to ensure a smooth transition.

Professional vs. DIY Installation

Here, you have the option to hire a professional or to install it yourself. 

Benefits of Hiring a Professional

A professional licensed plumber or technician is well-groomed and is going to ensure that the installation is done safely and is compliant with local regulations. They can also offer you warranties and long-term services.

Risks of DIY Installation

Installing the hot water system by yourself may lead to mistakes, present safety issues, and risk warranty disqualification; leave it to the experts unless you have plumbing experience.

Steps Involved in Installation

Follow the procedure below accurately.

Removing the Old System

Disconnect the old unit from the water and power source. You may need to drain the water tank of a storage system.

Installing the New System

Install the new system as per the manufacturer’s installation instructions. This will often include connecting the water supply, power source, and possible ventilation in the case of gas systems.

Testing and Adjustments 

Upon completing the installation, the system should be tested to make sure it works correctly. Some possible tests include adjusting the thermostat and making sure that there are no leakages.

Maintaining Your Hot Water System

You want your hot water system to last longer? The only surefire way is regular maintenance. But how do you do that?

Flushing the System

Sediments can build up over time, reducing efficiency and causing damage. Flushing the system annually helps remove this buildup and maintain performance.

Checking the Pressure Relief Valve

This is a valve installed for safety purposes, to prevent excessive pressure. It should be tested from time to time to ensure that it is working effectively.

Inspecting for Leaks

Always check proactively for leaks, around the tank and any pipes. Early diagnosis can save you from incurring plumbing costs.

Troubleshooting Common Issues

What to Do If the Water Is Too Hot or Cold

When water temperature fluctuates continually, the thermostat settings could be wrong. Otherwise, it could be a bad heating element or thermostat, so check both. 

Handling Leaks and Water Pressure Problems

For leaks, turn off the water supply immediately and contact a plumber. For pressure issues, check the pressure relief valve and consult a professional if problems continue.

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FAQs About Hot Water System Replacement


How long does a hot water system typically last?

Between 10-15 years. Taking out regular maintenance can prolong this period.

What are the benefits of upgrading to a more modern system?

It helps you take advantage of more energy-saving capabilities, thus saving costs while getting hot water much faster.

Can I replace my hot water system myself?

Although you can replace it yourself, it is not advisable to do so unless you are an experienced plumber. Professional installation will ensure you meet both the safety standards and the regulations.

What is the most suitable type of hot water system for a family of four?

The suitable type of hot water system for a family of four depends on factors like water usage habits, energy efficiency preferences, and budget. To make the best choice, contact our hot water expert for personalized advice based on your household’s needs.

How can I improve the energy efficiency of my current system?

Regular maintenance and insulating pipes may help increase energy levels, but if this is not sufficient, you should also consider replacement by a more efficient model.

Conclusion

So, there you have everything you need to know when planning to upgrade your hot water system. With this information, make the most rewarding decision to spare not only your wallet but also the environment. Remember, if you’re not sure about something, our professionals are just a step away and ready to help you as needed. 

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Hot Water Hub

Hot Water Hub is your number one source for hot water systems in Australia. With best products, pricing, and customer service, we aim is to offer you the most reliable hot water services for your home and business.

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