How Much Does It Cost to Install a Hot Water System?

How Much Does It Cost to Install a Hot Water System?


Let’s face it, hot water systems cost a lot. This includes everything from actual purchasing, installation fees, and running costs. The expenses are a real headache. It is a good thing a hot bath makes all the outlay worth it. If you have no idea about this and are planning to install a hot water system for your home, we’ll help you with this guide on the exact figures it takes to install it.

All The Costs to Prepare For

First, let’s run through what expenses you will spend. Here is everything to consider:

  • Price of the water system
  • Costs of installation
  • Energy bills upon use
  • Costs of maintenance

Price of the Water System

For the water system, the exact price varies on what kind and your chosen service provider. To give you a little insight, the rough estimates per kind are:

  • Electric hot water systems (cheapest) – Costs typically around $300.00 – $1,500.00
  • Gas hot water systems (moderate pricing) – Ranges from $900.00 to $2,000.00
  • Heat pump hot water systems (slightly expensive) – Generally is priced between $2,500.00 to $4,000.00
  • Solar water heaters (most expensive) – Cost between $2,000.00 – $7,000.00 depending on energy usage, household size, etc.

Costs of Installation

Costs of installation can be cheaper or super expensive depending on the job’s complexity and your licensed plumber’s rate. If you only want a replacement for your old hot water system, this cost is relatively low and can range from $260 to $690. Especially if you’re replacing the same system with the same type. If additional valves are required, they can be more on the higher price from $190 to $250.

Costs Upon Use

The energy used by your heater will show on your energy bill. However, your cost can also vary depending on the type of hot water system you have. Electric systems cost the most, while solar-powered water systems cost less. So, if you want to save a lot on your power bill, it’s best to go solar.

Maintenance Costs

Just like most appliances, there are times when your heater won’t work like it used to.  You mustn’t get to the point that your heater is so damaged you can’t turn it on.


That is why prioritising maintenance is a necessity because a maintenance visit could lengthen the life of your hot water system.  The cost of getting a maintenance visit depends on the work you need. It won’t cost as much if it’s just a regular check-up. However, if there’s a real problem, it might cost you around $75 to $300 and above. If you choose an annual maintenance plan, it could cost you a lot more.


The type of plumber also plays a factor because high-quality plumbers may have higher rates.


Now that you know about the costs of hot water installations, you should prepare a budget of about $820 and $3,500. This is inclusive of the labour and the type of unit.