Hot water system installation costs

Hot water system installation

Are you planning on buying a new hot water system and wondering just how much it will cost you to install it? Then you’re in the right place! There are always certain hidden usage costs involved in the installation of a new hot water heater. It’s really important to consider these costs when calculating the total cost of installing a new hot water system.

In addition, various factors determine the cost of purchasing and installing hot water systems. You need to be aware of these factors if your ultimate goal is to save money. This article will detail the different factors that affect the cost of new hot water system installation. But first, let’s look at what exactly happens during a hot water system installation.

Hot water system installation process

Step one: Procure retention straps

The installation process begins with retention straps.

Step two: Turn off the mains

Next, the plumber turns off the main valves connecting the water supply to the necessary unit.

Step three: Connect the water lines

The water lines are then connected to the home piping.

Step four: Install the flue pipe and vent hood

This stage involves the installation of a flue pipe and vent hood on the hot water heater.

Step five: Attach gas supply to water heater

The gas supply is attached to the gas hot water heater.

Step six: Connect the pressure valve

The plumber connects the pressure valve to the drain pipe.

Step seven: Test for leaks

The plumber proceeds to turn on the water to test if there are any leaks.

Step eight: Turn on the gas

The last step is to turn on the gas to test the connections and check for any gas leaks.

Determinants of hot water system installation costs

Additional fittings

Extra piping and fittings determine the total amount of installation costs you will pay. If you require a plumber to assist you with additional piping or fittings, you should know that you will pay a bit more. The installation costs thus depend on the type and number of extra fittings that you need.

Complexity of the installation process

The general cost of a hot water system installation largely depends on the complexity of the installation process. A like-for-like replacement of a hot water system is generally cheaper and could cost as low as $250.

Under normal complexity circumstances, it costs about $700 to install an electric hot water system. However, when you are moving from an electric hot water system to a gas hot water system, the installation cost rises, and you would have to make an extra payment of about $1000 depending on the plumber.

Type of replacement installation

You would pay as low as $250 for a hot water replacement of an old hot water system with a new one of the same type in the same place. However, installing a gas hot water heater in a different location would cost you about $1000 to $2500.

For a replacement installation involving a shift from an electric hot water heater to a gas hot water heater, the installation process would cost about $1200 to $3000. This price depends on the distance between the existing hot water system installation, the new installation spot, and the electrical work involved.

Installation of a tempering valve

Australian Government regulations require a mandatory tempering valve installation during a hot water system install to prevent accidents and scaling. An experienced and licensed plumber at your service would be able to regulate your water heater not to exceed the 50°C limits. In order for a plumber to install a tempering valve to your hot water system, you will be required to pay more or less an extra $300.

Actual cost of hot water system installation

The primary factor that affects having a hot water system installed is the complexity of the process. The costs of installing either a gas hot water system or an electric hot water system are generally the same. However, you should be prepared to pay extra installation costs if you need additional piping for your hot water system.

Below are the average install costs for various hot water systems:

• Gas Hot Water System (with a storage tank): $880 to $1525
• Instantaneous Gas Hot Water System: $785 to $1625
• Instantaneous Electric Hot Water System: $750 to $1500
• Electric Hot Water System (including storage tank): $525 to $2000
• Solar Hot Water System (with gas support): $4950 to over $6550
• Solar Hot Water System (with electric support): $3650 to over $5050
• Heat Pump System: $3350 to $4050

Water heaters installation and replacement costs

Gas hot water system

Generally, it costs between $250 to $700 to install a gas hot water system. Typically, if you are replacing an old hot water heater installation unit with a similar hot water heater installation unit in the same place. These costs depend on the distance from the gas and water supply.

However, when shifting from an electric hot water heater to an LPG hot water heater, installing the gas hot water heater would cost you between $1200 to $3000. On the other hand, installing LPG gas, including installing a gas bottle, costs around $250 to $500. However, this price is variable depending on how long the required pipes are. Furthermore, for an LPG gas installation, the gas cylinder installation regulations provide that there must be a gas filter installation as well.

Tankless gas hot water heater

The cost of tankless gas hot water heaters ranges from $250 to $700 to replace a tankless gas hot water system with a similar type in the same place. However, moving from an electric hot water heater system to a tankless gas hot water heater system would cost you between $1200 to $3000.

The installation of tankless gas hot water heater systems does not require the installation of a tempering valve. Therefore, you stand a chance of saving about $250.

Electric hot water system

Generally, it costs around $1100 to $2100 to install an electric hot water system. This price is inclusive of labour costs as well as the cost of the installation unit. However, if you’d like to shift to a tankless hot water system, you would be required to add an extra $100 to $200 to cover the cost of additional fittings and piping.

Solar hot water system

Under solar hot water heater systems, there are roof-mounted systems, gas-boosted split systems, and electric-boosted split systems. A roof-mounted system installation costs around $3800 and above, while the electric split systems cost $3900 to $7900. On the other hand, gas-boosted split systems cost between $4900 to $8900. However, where a tempering valve is required, there is an additional $185 to be paid.

Replacement installation costs for hot water systems

Primarily, if you are considering installing a new hot water system to replace your old hot water system unit with a similar type of hot water unit, you would part with about $300 to $750. However, if you’re shifting from an electric hot water system to an LPG hot water system, it would cost you about $1250 to $1350 to install a gas hot water system.

Similarly, for a like-for-like type of installation or replacement for a gas hot water unit, you should have around $150 to $250 handy. Generally, to get a gas hot water system replacement, you will need about $1150 to $3200. This amount is inclusive of the labour provided together with all the materials required.

However, when you are considering a replacement of a gas hot water unit, you would be required to pay about an extra $150 to $275. A like-for-like hot water system replacement in the same place as an electric hot water heater system will cost you around $250 to $700. For a simple shift, the replacement installation cost of an electric hot water heater would be about $550 for both labour and fittings.

The replacement installation costs for electric hot water heaters are the most expensive. Compared with natural gas hot water heaters, the average replacement costs for electric hot water heaters range from $820 to $1115, while the replacement costs of operation for natural gas hot water heaters range from $410 to $475 per year.

Consequently, the costs of electric hot water system installation and the purchase price of an electric hot water heater range from $475 to $1950. This means electric hot water heaters have the cheapest upfront cost of installation for hot water systems.

Rates per hour for installation of water heaters

The costs of installing hot water systems per hour are slightly different from the regular costs of installation. If you are considering going for the hourly installation rates, you should be prepared to part with about $130 per hour. However, this price is not standard; the costs depend on the complexity or simplicity of the work done.

If the installation process is quite simple, you might pay less than the above-stated amount – about $120 or less. The vicinity of your home and the kind of installation are the main factors determining the installation process’s complexity or simplicity. Additionally, the cost of pipes to be used, fittings to be made, and the hot water cost also determine how much a plumber would charge you per hour for an installation.

Tips for your next hot water system installation

Generally, gas water heater system installation consists of the cost of installation and the system purchase price. While most people prefer purchasing the hot water heater system replacement from their plumbers, it is not the most effective practice. It is always best to compare the installation prices of the gas hot water heater system separately from the purchase price of the gas hot water heater.

However, there’s no need to worry. It is possible to compare the purchase price and the installation costs of various gas hot water heater brands like Rinnai, Rheem, and Bosch online. Do not pay more than you need to for installation! Remember, you stand a chance to save a lot of money by purchasing the right size of hot water heating system replacement.

If you buy a larger or smaller hot water heating system replacement, you may end up spending a lot more than you anticipated. You need to be sure of the size choice since most manufacturers confuse their customers by providing wrong information about hot water system installation sizing.

Should you DIY or get professional help?

Another important thing to note is the approach to take during a hot water system installation. Should you do it yourself, or should you hire a qualified plumber? As opposed to other practices such as troubleshooting a hot water system that has broken down, the installation process is for qualified plumbers. It is not recommended that you try to install a new or replacement hot water system by yourself.