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Hot Water System Costs in Australia
Key Takeaways
Hot water systems come in a large diversity in type and cost:
- Main types: Storage systems, continuous flow-instantaneous systems
- Power sources: Gas, electricity, solar energy, heat pump technology
Systems can cost anywhere from $300 for a basic electric system up to $7000 for high-end solar systems.
The operating costs of different system types vary greatly:
- Electric systems are the most expensive to run, with an approximate yearly cost of about $1442
- Solar systems are the cheapest, with an approximate annual operational cost of about $502
- Gas and instantaneous systems fall in the middle of the range, at $920 and $803 per year, respectively. In contrast, electric continuous flow systems are the least expensive, falling well below the average at $592 annually.
Less energy-efficient systems are cheaper upfront, but their energy bills can increase over time. So, regarding energy efficiency, the consumer should check the Energy Efficiency rating of the system they choose.
Government Rebates Make Them Cheaper. Rebates can dramatically decrease the overall cost of buying and installing a system. Installation costs and size affect overall system costs:
- Costs of installation vary per type of system being installed due to the complexity of the installation itself
- System size and storage capacity determine the initial price
Take advantage of massive subsidies and get a high-performance heat pump hot water system supplied and installed at a fraction of the cost. Government rebates available! Contact Now.
Hot Water systems are getting more popular in Australia as a result of evolving lifestyles and the need to provision optimal supply of hot water for domestic and commercial needs.
Today, it’s not only Australian households that are purchasing hot water systems but corporate setups, businesses and industries as well. Hence, hot water system costs have become a common topic of concern for Australians.
Hot Water System Types
Hot Water Systems are available in a variety of types, so you can choose the right one for your needs. The cost of hot water systems varies significantly based on the type of system.
There are two basic types of hot water systems:
1. Storage Systems
2. Continuous Flow (Instantaneous) Systems
The costs of Hot Water Systems also vary based on their power source. You can get systems that are powered either by Gas, Electricity, Solar Energy or Heat Pump technology.
The chart below displays a general comparison of the running costs of different types of hot water systems over time.
Comparing Hot Water System Operational and Purchasing Costs
Below is a concise comparison of the operational and purchasing costs of various types of hot water systems. It can give you a brief overview of the difference in costs of various hot water systems.
A brief analysis of this table explains that the purchasing and running costs of hot water systems vary significantly depending on the type of system. Hence, choosing the right system for your needs is crucial to ensure you’ve made an optimal purchase.
Electric Hot Water System:
Electric hot water systems are used by around 50% of Australians. Electric hot water systems may cost around $300 – $1500 with an operational cost of around $1442 per year. This is because they consume a lot of electricity for operation and can drastically increase your energy bills.
Gas Hot Water System:
Gas powered hot water systems come with an upfront cost of around $900 – $2000 along with an operational cost of around $920 per year.
Gas is usually cheaper than electricity in Australia which makes the operational cost of running these systems significantly lower than that of electric systems.
Instantaneous Hot Water System:
Instantaneous hot water systems are widely utilized in many Australian households and are available in a price range of $600 – $2000. Their running cost per year is $803, as they only work to heat water when it is actually needed.
Heat Pump Hot Water System:
Heat pump hot water systems have become a product of choice for Australians in recent years.
They are available within a price range of around $2500- $4000. However, their yearly operational costs fall around $674 as they come with advanced heat pump technology.
Solar Hot Water System:
Solar hot water systems are an incredible option with their low operational costs. They may cost around $2000 – $7000 depending upon the product. However, you can get further discounts based on available Governmental Rebates.
As solar hot water systems rely on solar energy, they tend to be highly economical in their operations. Their operational costs fall around $502 per year which helps you get significant discounts on your energy bills.
Factors Affecting Costs of Hot Water Systems
When it comes to upfront and running costs of hot water systems, there are several factors that play a role. Depending upon these various factors, up-front and operational costs of hot water systems vary significantly.
Here are some of the major factors affecting the overall variations in costs of hot water systems in Australia:
1. System Size
Hot water systems are available in a variety of sizes with varying storage capacity. The cost of your hot water system highly depends upon the size of your system and its storage capacity.
The bigger the system and its water storage capacity, the higher the upfront price. Depending on your hot water requirements, you should opt for a product that optimally aligns with your budget while fulfilling your hot water needs.
2. Energy Efficiency
Energy Efficiency is a crucial factor that determines the overall performance of your hot water system. Energy efficiency basically tells us how effectively a water system performs while utilizing a particular amount of power.
Almost all hot water systems come with an Energy Efficiency rating, and this is a crucial factor to consider before making a purchase. Higher energy efficiency means your system’s performance will be better.
Products with higher energy efficiency usually come with higher upfront costs compared to other systems. However, these systems tend to provide significant reduction in your energy bills, being more energy efficient and consuming less power with better output.
3. Government Rebates
The Australian Government provides rebates on various water heating systems depending upon their type. These Government rebates are mainly provided to consumers utilizing solar hot water systems to encourage the utilization of renewable energy sources.
The costs of hot water systems can be significantly lowered with the help of such Governmental rebates and incentives that enable you to get your product for less.
4. Installation Costs
The complexity of installation depends mainly on the type of system being installed. Many of the hot water system products come with a seamless installation experience making them quite easy to install; however, some products demand a complex installation procedure.
Installation costs may add to the overall cost of your hot water system. Hence, you must carefully examine the services included with your purchased product.
Most suppliers offer free of cost or cheap installation services with the purchase of a hot water system, however, some installation companies may charge for installation. Hence, choosing the right supplier and installer is crucial to ensure your purchase is budget- friendly.
Hot water costs- Conclusion
Hot Water Systems are an essential part of every Australian household and commercial business these days. The costs of these hot water systems in Australia can vary significantly depending on the type of system as well as other side factors mentioned above.
Before purchasing a hot water system, it’s crucial to conduct a careful analysis of available products and compare their upfront and operational costs. This article has offered a quick comparison of the costs of different hot water systems which will help you opt for the right product with the right features.
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