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What are the running costs of a hot water system?

  • Written by NewsServices.com

Hot water systems are essential for maintaining a good quality of life. This domestic water heating appliance allows for warm or hot water, as and when you require it. Whether that’s for showering, bathing, washing the dishes or anything else. Chances are, you’re going to find yourself putting yours to good use multiple times a day, every day. Of course, different systems cost different sums of money to run, so before you invest, it’s important to determine the costs each is going to entail. This will help you to make an informed decision, choosing the most sustainable and economic option. Here’s some guidance that will help you on this journey!

System Size and Style

The size of the system you need to install will depend on its location in your home, as well as potential additional renovation costs. This differs from one property to another.

System Type

As well as different sizes and styles, you’ll find that there are completely different types of hot water systems. The four most common are electric, gas, solar or heat pumps. Let’s take a moment to look at each in a little more detail.

Electric

Electric hot water systems use electricity to heat their contents. On average, their tanks can hold and heat between 24 and 400 litres of water. In terms of initial cost, you should expect to fork out between $450 and $1,800, though you may find that larger tanks come with a higher price tag. If you’re looking at tankless electric water heaters, you will pay more - roughly $660 to $1,300 - however, the initial outlay is justified through reduced electricity bills over time.

Gas

Gas water heaters burn natural gas to heat your water. Options that use storage tanks (usually ranging between 135 and 360 litre capacities) are likely to cost between $850 to $1,500. Tankless gas systems will cost between $750 and $1,600, but again, the initial outlay can be justified through reduced energy bills over time.

Solar

Solar hot water systems are an environmentally friendly option, allowing you to heat your water with sustainable energy. They are ideal for use in sunny locations. They cost more than electric and gas heaters at roughly $3,600 for the system, however, you won’t have to pay for anything beyond installation, so they could prove to be a lower cost, long term investment.

Heat pump

Heat pump water heaters take heat from the ambient air to warm the water in the tank. They are another energy-efficient option, but unlike solar systems, tend to make a lot of noise. This system will cost between $3,300 and $4,000.

Quality

As with everything in life, higher quality systems come with higher price tags. Of course, quality can reduce expenses for repairs and replacements in the long run, so better quality is almost always worth the investment. Get the right advice when replacing your hot water system.

Delivery and installation costs

Delivery costs are usually dependent on the size and weight of the system you’ve ordered. They can also increase if you live off-grid and they have to be delivered further or to a more remote location. Installation by a reliable plumber will also come with a fee.

Disposal of old system

A fee that many people forget when calculating the cost of fitting a new water system is the fee that will be charged for disposing of your old system. This cost will vary depending on where you’re based and how far someone will have to travel to dispose of your system, so check in advance.

Rebates and incentives

The government is offering a range of incentives and rebates in a bid to encourage people to switch to more sustainable energy systems. These differ based on the heater you’re fitting and where you’re based. The maximum incentive is $1200, so it’s worth checking what you’re entitled to.

Running costs

The running costs outlined below are based on 1 person using 50 litres of heated water a day.

Electric

Water Heater Type

Energy Star Rating

Annual Energy Cost

10-Year Greenhouse Gas Emissions

Peak Tariff - Storage

N / A

$340

8.6

Peak Tariff - Instant

N / A

$265

6.6

Off Peak Tariff - Storage

N / A

$290

10.1

Gas

Water Heater Type

Energy Star Rating

Annual Energy Cost

10-Year Greenhouse Gas Emissions

Natural Gas - Storage

5

$250

5.4

Natural Gas - Storage

4

$290

6.2

Natural Gas - Instant

7

$125

2.6

Natural Gas - Instant

6

$135

2.9

LPG - Storage

5

$535

6.2

LPG - Storage

4

$615

7.1

LPG - Instant

7

$250

3.0

LPG - Instant

6

$280

3.3

Solar

Water Heater Type

Energy Star Rating

Annual Energy Cost

10-Year Greenhouse Gas Emissions

Natural gas boosted

High Efficiency

$50

1.1

Natural gas boosted

Standard

$60

1.3

Electric boosted – peak tariff

High Efficiency

$60

1.5

Electric boosted – peak tariff

Standard

$110

2.7

Electric boosted – off-peak tariff

High Efficiency

$55

1.7

Electric boosted – off-peak tariff

Standard

$90

3.1

LPG boosted

High Efficiency

$65

1.1

LPG boosted

Standard

$90

1.4

Heat Pump

Water Heater Type

Energy Star Rating

Annual Energy Cost

10-Year Greenhouse Gas Emissions

Peak tariff

High Efficiency

$90

2.3

Peak tariff

Standard

$125

3.1

Off-peak tariff

High Efficiency

$70

2.3

Off-peak tariff

Standard

$90

3.1

As you can see, a number of factors impact the costs of installing and running a hot water system. Hopefully, some of the guidance above should help you to find the right system for you!

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