top of page

Hot Water System Installation Cost in Melbourne: A Comprehensive Guide

Installing a hot water system in Melbourne requires one to consider the various factors that influence the overall cost. Among these, the type of hot water system chosen, the capacity required, and the installation process play a significant role. The article aims to provide a comprehensive understanding of the costs involved in hot water system installation in Melbourne and how to choose the right option for your needs.

Hot water systems are essential in every household for comfort and daily activities, such as cooking, cleaning, and bathing. In Melbourne, there are several types of systems available, including gas, electric, solar, and heat pump varieties. Each of these options differs in terms of cost, efficiency, and environmental impact. Therefore, it’s crucial to be well-informed before making a decision regarding the most suitable hot water system for your property.

hot water system installation cost in melbourne

Key Takeaways

  • Selection of hot water system type and capacity impacts the installation cost

  • Different hot water system options in Melbourne have varying efficiency and environmental consequences

  • Considering long-term benefits and investment returns is essential while choosing a hot water system

Understanding Hot Water Systems

Types of Hot Water Systems

There are several types of hot water systems, each with their pros and cons. The main types include:

  • Storage tanks: These systems store heated water in a tank, ready for use. They can be powered by electricity, gas, or solar energy. They are cost-effective and straightforward but may have higher energy consumption due to heat loss from the tank.

  • Continuous flow: Also known as tankless or instant systems, they heat water on demand as it flows through the unit. These systems are energy-efficient, require less space, and can be powered by gas or electricity. However, they may have a higher initial cost and limited flow rates.

  • Heat pump: These systems use ambient air to heat a refrigerant, which in turn heats the water. They are energy-efficient and environmentally friendly but can be more expensive upfront and may be less effective in colder climates.

  • Solar water heaters: These systems use solar panels to heat the water, which is then stored in a tank. They are highly energy-efficient and eco-friendly but can be expensive to install and may require a backup electric or gas system for cloudy days.

Choosing a Suitable Hot Water System

When selecting a hot water system, several factors should be considered:

  • Size and capacity: Consider the size of your household and the amount of hot water you typically use. A larger family, for example, may require a larger storage tank or a continuous flow system with a higher flow rate.

  • Energy efficiency: Look for a system with a high energy-efficiency rating to reduce your utility bills and environmental impact. Solar and heat pump systems are particularly efficient but may have higher upfront costs.

  • Initial cost and installation: Compare the initial cost of various systems, as well as installation fees. Ensure to factor in potential government rebates or incentives for energy-efficient systems.

  • Maintenance and lifespan: Consider the expected lifespan and maintenance requirements of each system. A well-maintained hot water system can last for many years, but some types may have more frequent or costly maintenance needs.

By considering these factors and consulting with a professional installer, you can make an informed decision on the most suitable hot water system for your Melbourne home.

Cost Factors of Hot Water System Installation

Type of Hot Water System

There are several types of hot water systems available in the market, and each one has its specific installation cost. Mainly, systems can be classified into electric, gas, solar, and heat pumps. Electric systems are often the least expensive to purchase and install, while solar and heat pump systems might have a higher upfront cost. However, they generally offer long-term savings due to their energy efficiency. Gas systems can strike a balance between cost and efficiency.

Labour and Installation Charges

Labour costs for hot water system installation in Melbourne will vary based on the complexity of the project. Expect to pay more if the installation requires extensive plumbing work, electrical rewiring, or if you're upgrading to a larger-capacity hot water system. A straightforward replacement job with minimal changes will usually cost less. Keep in mind that labour rates can also vary among different providers, so it's essential to collect several quotes to compare and find the best deal.

Additional Materials and Equipment

Besides the cost of the hot water system itself and labour charges, extra materials and equipment may be necessary for a successful installation. These can include:

  • Valves and fittings: Pipes, shut-off valves, and connectors may be needed to link the hot water system to your plumbing.

  • Electrical upgrades: If you're upgrading your hot water system or switching to a different type, you may require electrical upgrades to accommodate the new system safely.

  • Mounting equipment: Solar and heat pump systems may need additional mounting equipment, such as brackets and supports for the collectors.

Keep in mind that these factors will vary depending on your specific installation needs. It's essential to discuss your requirements with a knowledgeable and experienced professional who can provide an accurate estimate for your hot water system installation cost.

Hot Water System Providers in Melbourne

Melbourne is home to various hot water system providers, some of which have unique offerings to help residents improve their energy efficiency while saving money on their bills. One notable local provider is Heatweb Melbourne, which specialises in the iStore Hot Water System. This section will examine Heatweb Melbourne and the unique features they offer with the iStore Hot Water System.

Heatweb Melbourne

Heatweb Melbourne is the authorised reseller and installer of the iStore Hot Water System in the Melbourne area. They are experienced in providing residents with a cost-effective and energy-efficient solution to their hot water needs. Their team is committed to enhancing the energy efficiency rating of homes while also helping homeowners reduce water heating costs by up to 70%.

iStore Hot Water System

The iStore Hot Water System is a reputable product that offers a range of unique selling points. It allows homeowners to increase the value of their property while also taking advantage of various federal and state government incentives. Additionally, the system features four economical operating modes, ensuring the best choice for different situations, including hybrid and vacation modes.

Not only does the iStore Hot Water System offer energy savings, but it also comes with optimised design and external wrap-around heating coil for maximum thermal energy transfer. This makes it easy and quick to install, reducing the overall hassle for homeowners.

Moreover, the system's low consumption levels (only 3-4 kWh per cycle) and 400% green energy conversion (storing 4 kW of heat energy for every 1 kW of power consumed) lead to significant savings on electricity bills and CO₂ emissions. As a result, homeowners can enjoy a more environmentally friendly lifestyle while reducing their water consumption by two-thirds and saving money in the process.

When deciding on the right hot water system provider in Melbourne, residents should weigh their options based on product offerings and unique features to ensure that their choice meets their specific needs and preferences. Accessing reliable hot water system providers like Heatweb Melbourne and availing of their iStore Hot Water System can make a significant difference in energy efficiency and water usage savings for Melbourne homeowners.

iStore air to energy hot water heating system

Investment Returns and Benefits

Investing in a hot water system installation in Melbourne offers numerous financial and environmental benefits. With the right choice of system and professional installation, homeowners can expect significant returns on investment.

One of the primary benefits of a hot water system is the energy savings. By choosing energy-efficient systems, such as solar or heat pump options, homeowners can significantly reduce their energy consumption and utility bills. According to the Clean Energy Council, solar hot water systems can save up to 75% of water heating energy consumption, while heat pumps can save up to 60%.

Another financial benefit is the potential increase in property value. A well-maintained, energy-efficient hot water system can add considerable value to a home. Prospective buyers may find the prospect of reduced energy bills and lower environmental impact attractive, leading to higher market demand.

In addition to financial returns, investing in a hot water system installation has environmental benefits. Efficient systems can contribute to lower greenhouse gas emissions, helping to decrease the household's carbon footprint.

Furthermore, the use of renewable energy sources, such as solar power, promotes sustainable living and supports Australia's clean energy initiatives.

Access to government incentives and rebates can further enhance the benefits of hot water system installations. The Victorian Energy Upgrades program, for example, offers financial incentives to individuals who install energy-efficient hot water systems in their homes. The incentives can cover a considerable portion of the installation cost, making the investment more affordable.

In summary, hot water system installation in Melbourne provides homeowners with considerable financial and environmental benefits. Energy-efficient systems can result in lower utility bills, increased property values, reduced carbon footprint, and access to government incentives. Ultimately, investing in a hot water system installation is a smart decision for homeowners seeking long-term cost savings and improved sustainability.


In Melbourne, the cost of installing a hot water system varies depending on factors such as the system type, installation difficulty, and location. Generally, electric, gas, and heat pump systems are the most common choices for hot water systems in the city.

Electric hot water systems are known for their affordability and ease of installation. They typically cost between $300 and $1,500 for the unit, with installation fees ranging from $300 to $500. Gas systems, on the other hand, provide faster heating and lower running costs. The cost of a gas hot water system ranges from $900 to $2,000, and installation fees are between $800 and $1,500.

Heat pump systems, considered the most energy-efficient option, utilise the surrounding air to heat water. Though more expensive upfront, with prices ranging from $2,500 to $4,000, these systems result in significant energy savings over time. Installation costs for heat pump systems may vary from $1,000 to $3,000, depending on the complexity of the required setup.

It's essential for homeowners to thoroughly assess their hot water needs, budget, and energy efficiency goals before deciding on the most suitable hot water system. Additionally, hiring a reputable and experienced installer is crucial to ensuring a properly functioning and long-lasting hot water system.

Frequently Asked Questions

How much does replacing an electric hot water system cost?

Replacing an electric hot water system in Melbourne typically costs between $1,000 and $2,500, including installation. The price depends on the capacity of the system, the brand, and the complexity of the installation process. Keep in mind that the cost may vary depending on whether you are upgrading to a larger unit or replacing an existing one.

What is the average cost of installing an instant gas hot water system?

The average cost of installing an instant gas hot water system in Melbourne ranges from $2,000 to $3,500. The price can vary depending on factors such as the size of the system, the type of gas – natural or LPG, and the difficulty of installation. Some additional expenses may include gas meter upgrades or running new gas lines if necessary.

What influences the cost of hot water heat pump installation?

Several factors influence the cost of hot water heat pump installation. These factors include the size and type of heat pump, ease of installation, location of the outdoor unit, and whether any additional plumbing or electrical work is required. Prices for hot water heat pump systems can range between $4,000 and $6,000, excluding government rebates.

Do electric hot water systems have a different price range than gas systems?

Yes, electric hot water systems typically have a lower upfront cost compared to gas systems. However, they generally have higher operating costs because electricity rates are higher than gas rates. Gas systems may also provide quicker heating, making them more efficient in some cases.

How much would it cost to switch from a gas to an electric hot water system?

Switching from a gas to an electric hot water system typically costs between $1,500 and $3,500. This range depends on various factors, including the capacity of the new electric system, the difficulty of the conversion process, and potential need for upgrading the electrical circuits.

What factors affect the total cost of a solar hot water system installation?

The total cost of a solar hot water system installation includes the system itself, installation costs, and any necessary plumbing and electrical work. Factors that influence pricing include the type of system (flat plate or evacuated tube), the size and capacity of the storage tank, the location of the solar panels, and available government rebates. Prices generally range between $4,000 and $8,000 in Melbourne.

14 views0 comments


bottom of page