Hot water systems: a guide to running costs
By Fluid Plumbing|November 28, 2022
Hot water systems are essential when it comes to providing your home with a year-round supply of hot water. If you’re considering investing in a new one - perhaps your old one is experiencing faults or breakdowns or you’re simply looking for something more efficient and cost-effective - you should look into how much does the hot water system you’re considering will cost you in the grand scheme of things. Here’s a complete guide to hot water system running costs to help you on your journey!
System Size and Style
If you’re considering a different size or style of a hot water system to your current system, you need to remember that this can come hand in hand with renovation costs. You may need to carry out renovations to the house or fit the system in a different area of your home or expand the space your current system is stored in.
System Type
The biggest decision you’re likely to make when choosing a hot water system is the type. People tend to choose an electric, gas, solar, or heat pump system. Electric systems can have a tank (costing roughly $450 to $1800) or be tankless (ranging between $660 and $1300). Gas systems can also have a tank or be tankless. Gas tank systems cost roughly $850 to $1500, while tankless systems range between $750 and $1600. Solar systems are environmentally friendly and sustainable and come with a price tag of $3600 on average. Heat pump systems will set you back between $3300 and $4000.
Quality
Quality systems tend to cost more than bottom-of-the-range systems. While all systems will be safe and perform as advertised, you can find that better quality systems pay for themselves in the long run, as they’re less likely to require repairs or short-term replacement.
Delivery and installation costs
You’re also going to need to factor delivery and installation costs into your budget. It’s all good and well buying a quality hot water system, but you need it to get to you and be professionally installed if you want to use it. Some suppliers cover delivery costs, while some may charge a fee. Installation costs are non-negotiable, as you may need to call a hot water specialist to install the system effectively and safely.
Disposal of the old system
When calculating how much it’s going to cost you to install a new system, there’s a small fee that you need to be aware of and include in your list of outgoings. This is a disposal fee to remove your old system from your home and dispose of it in a responsible and legal manner.
Rebates and Incentives
Did you know that there are a number of rebates and incentives that you can claim when investing in a new hot water system. These are available on a national and a state level, so you’ll need to do some research to find which are available to you. You could claim up to $1200!
Running Costs
Now, onto the actual running costs of the different types of systems outlined above. There are various factors that can impact the running cost of a system, from system type to its energy star rating. Here are some examples of running costs based on 1 person using 50 litres of heated water a day.
ELECTRIC
Water Heater Type: Peak Tariff - Storage
Energy Star Rating: N/A
Annual Energy Cost: $340
10-Year Greenhouse Gas Emissions: 8.6
Water Heater Type: Peak Tariff - Instant
Energy Star Rating: N/A
Annual Energy Cost: $265
10-Year Greenhouse Gas Emissions:6.6
Water Heater Type: Off Peak Tariff - Storage
Energy Star Rating: N/A
Annual Energy Cost: $290
10-Year Greenhouse Gas Emissions:10.1
GAS
Water Heater Type: Natural Gas - Storage
Energy Star Rating: 5
Annual Energy Cost: $250
10-Year Greenhouse Gas Emissions: 5.4
Water Heater Type: Natural Gas - Storage
Energy Star Rating: 4
Annual Energy Cost: $290
10-Year Greenhouse Gas Emissions: 6.2
Water Heater Type: Natural Gas - Instant
Energy Star Rating: 7
Annual Energy Cost: $125
10-Year Greenhouse Gas Emissions: 2.6
Water Heater Type: Natural Gas - Instant
Energy Star Rating: 6
Annual Energy Cost: $135
10-Year Greenhouse Gas Emissions: 2.9
Water Heater Type: LPG - Storage
Energy Star Rating: 5
Annual Energy Cost: $535
10-Year Greenhouse Gas Emissions: 6.2
Water Heater Type: LPG - Storage
Energy Star Rating: 4
Annual Energy Cost: $615
10-Year Greenhouse Gas Emissions: 7.1
Water Heater Type: LPG - Instant
Energy Star Rating: 7
Annual Energy Cost: $250
10-Year Greenhouse Gas Emissions: 3.0
Water Heater Type: LPG - Instant
Energy Star Rating: 6
Annual Energy Cost: $280
10-Year Greenhouse Gas Emissions: 3.3
SOLAR
Water Heater Type: Natural gas boosted
Energy Star Rating: High Efficiency
Annual Energy Cost: $50
10-Year Greenhouse Gas Emissions: 1.1
Water Heater Type: Natural gas boosted
Energy Star Rating: Standard
Annual Energy Cost: $60
10-Year Greenhouse Gas Emissions: 1.3
Water Heater Type: Electric boosted – peak tariff
Energy Star Rating: High Efficiency
Annual Energy Cost: $60
10-Year Greenhouse Gas Emissions: 1.5
Water Heater Type: Electric boosted – peak tariff
Energy Star Rating: Standard
Annual Energy Cost: $110
10-Year Greenhouse Gas Emissions: 2.7
Water Heater Type: Electric boosted – off-peak tariff
Energy Star Rating: High Efficiency
Annual Energy Cost: $55
10-Year Greenhouse Gas Emissions: 1.7
Water Heater Type: Electric boosted – off-peak tariff
Energy Star Rating: Standard
Annual Energy Cost: $90
10-Year Greenhouse Gas Emissions: 3.1
Water Heater Type: LPG boosted
Energy Star Rating: High Efficiency
Annual Energy Cost: $65
10-Year Greenhouse Gas Emissions: 1.1
Water Heater Type: LPG boosted
Energy Star Rating: Standard
Annual Energy Cost: $90
10-Year Greenhouse Gas Emissions: 1.4
HEAT PUMP
Water Heater Type: Peak tariff
Energy Star Rating: High Efficiency
Annual Energy Cost: $90
10-Year Greenhouse Gas Emissions: 2.3
Water Heater Type: Peak tariff
Energy Star Rating: Standard
Annual Energy Cost: $125
10-Year Greenhouse Gas Emissions: 3.1
Water Heater Type: Off-peak tariff
Energy Star Rating: High Efficiency
Annual Energy Cost: $70
10-Year Greenhouse Gas Emissions: 2.3
Water Heater Type: Off-peak tariff
Energy Star Rating: Standard
Annual Energy Cost: $90
10-Year Greenhouse Gas Emissions: 3.1
Investing in a new hot water system is a great idea for you, the environment and your finances. Hopefully, the insight shared above should help you to find the right system to meet your needs.
System Size and Style
If you’re considering a different size or style of a hot water system to your current system, you need to remember that this can come hand in hand with renovation costs. You may need to carry out renovations to the house or fit the system in a different area of your home or expand the space your current system is stored in.
System Type
The biggest decision you’re likely to make when choosing a hot water system is the type. People tend to choose an electric, gas, solar, or heat pump system. Electric systems can have a tank (costing roughly $450 to $1800) or be tankless (ranging between $660 and $1300). Gas systems can also have a tank or be tankless. Gas tank systems cost roughly $850 to $1500, while tankless systems range between $750 and $1600. Solar systems are environmentally friendly and sustainable and come with a price tag of $3600 on average. Heat pump systems will set you back between $3300 and $4000.
Quality
Quality systems tend to cost more than bottom-of-the-range systems. While all systems will be safe and perform as advertised, you can find that better quality systems pay for themselves in the long run, as they’re less likely to require repairs or short-term replacement.
Delivery and installation costs
You’re also going to need to factor delivery and installation costs into your budget. It’s all good and well buying a quality hot water system, but you need it to get to you and be professionally installed if you want to use it. Some suppliers cover delivery costs, while some may charge a fee. Installation costs are non-negotiable, as you may need to call a hot water specialist to install the system effectively and safely.
Disposal of the old system
When calculating how much it’s going to cost you to install a new system, there’s a small fee that you need to be aware of and include in your list of outgoings. This is a disposal fee to remove your old system from your home and dispose of it in a responsible and legal manner.
Rebates and Incentives
Did you know that there are a number of rebates and incentives that you can claim when investing in a new hot water system. These are available on a national and a state level, so you’ll need to do some research to find which are available to you. You could claim up to $1200!
Running Costs
Now, onto the actual running costs of the different types of systems outlined above. There are various factors that can impact the running cost of a system, from system type to its energy star rating. Here are some examples of running costs based on 1 person using 50 litres of heated water a day.
ELECTRIC
Water Heater Type: Peak Tariff - Storage
Energy Star Rating: N/A
Annual Energy Cost: $340
10-Year Greenhouse Gas Emissions: 8.6
Water Heater Type: Peak Tariff - Instant
Energy Star Rating: N/A
Annual Energy Cost: $265
10-Year Greenhouse Gas Emissions:6.6
Water Heater Type: Off Peak Tariff - Storage
Energy Star Rating: N/A
Annual Energy Cost: $290
10-Year Greenhouse Gas Emissions:10.1
GAS
Water Heater Type: Natural Gas - Storage
Energy Star Rating: 5
Annual Energy Cost: $250
10-Year Greenhouse Gas Emissions: 5.4
Water Heater Type: Natural Gas - Storage
Energy Star Rating: 4
Annual Energy Cost: $290
10-Year Greenhouse Gas Emissions: 6.2
Water Heater Type: Natural Gas - Instant
Energy Star Rating: 7
Annual Energy Cost: $125
10-Year Greenhouse Gas Emissions: 2.6
Water Heater Type: Natural Gas - Instant
Energy Star Rating: 6
Annual Energy Cost: $135
10-Year Greenhouse Gas Emissions: 2.9
Water Heater Type: LPG - Storage
Energy Star Rating: 5
Annual Energy Cost: $535
10-Year Greenhouse Gas Emissions: 6.2
Water Heater Type: LPG - Storage
Energy Star Rating: 4
Annual Energy Cost: $615
10-Year Greenhouse Gas Emissions: 7.1
Water Heater Type: LPG - Instant
Energy Star Rating: 7
Annual Energy Cost: $250
10-Year Greenhouse Gas Emissions: 3.0
Water Heater Type: LPG - Instant
Energy Star Rating: 6
Annual Energy Cost: $280
10-Year Greenhouse Gas Emissions: 3.3
SOLAR
Water Heater Type: Natural gas boosted
Energy Star Rating: High Efficiency
Annual Energy Cost: $50
10-Year Greenhouse Gas Emissions: 1.1
Water Heater Type: Natural gas boosted
Energy Star Rating: Standard
Annual Energy Cost: $60
10-Year Greenhouse Gas Emissions: 1.3
Water Heater Type: Electric boosted – peak tariff
Energy Star Rating: High Efficiency
Annual Energy Cost: $60
10-Year Greenhouse Gas Emissions: 1.5
Water Heater Type: Electric boosted – peak tariff
Energy Star Rating: Standard
Annual Energy Cost: $110
10-Year Greenhouse Gas Emissions: 2.7
Water Heater Type: Electric boosted – off-peak tariff
Energy Star Rating: High Efficiency
Annual Energy Cost: $55
10-Year Greenhouse Gas Emissions: 1.7
Water Heater Type: Electric boosted – off-peak tariff
Energy Star Rating: Standard
Annual Energy Cost: $90
10-Year Greenhouse Gas Emissions: 3.1
Water Heater Type: LPG boosted
Energy Star Rating: High Efficiency
Annual Energy Cost: $65
10-Year Greenhouse Gas Emissions: 1.1
Water Heater Type: LPG boosted
Energy Star Rating: Standard
Annual Energy Cost: $90
10-Year Greenhouse Gas Emissions: 1.4
HEAT PUMP
Water Heater Type: Peak tariff
Energy Star Rating: High Efficiency
Annual Energy Cost: $90
10-Year Greenhouse Gas Emissions: 2.3
Water Heater Type: Peak tariff
Energy Star Rating: Standard
Annual Energy Cost: $125
10-Year Greenhouse Gas Emissions: 3.1
Water Heater Type: Off-peak tariff
Energy Star Rating: High Efficiency
Annual Energy Cost: $70
10-Year Greenhouse Gas Emissions: 2.3
Water Heater Type: Off-peak tariff
Energy Star Rating: Standard
Annual Energy Cost: $90
10-Year Greenhouse Gas Emissions: 3.1
Investing in a new hot water system is a great idea for you, the environment and your finances. Hopefully, the insight shared above should help you to find the right system to meet your needs.
