How Much Does It Cost To Install Hot Water Heater

If y'all've just had a shocking ability nib, or your hot water system needs replacing, perhaps you're wondering if a solar or rut pump version might exist the way to go. Is it worth the upfront cost and will it really save you coin in the long run? For most homes, the short answer is: yes and yes.

A well chosen solar hot h2o organisation or a heat pump may cost more to brainstorm with, simply for virtually homes they'll be significantly cheaper to run than a conventional electric or gas system. That'due south adept for your depository financial institution business relationship and proficient for the planet. And some of the purchase cost can be offset with government rebates and incentives.

On this page:

What is a solar hot water system?
What is a heat pump hot h2o system?
How much does a solar hot water system price?
What is the payback fourth dimension for solar hot water?
Authorities rebates
What about solar panels?
Installation and maintenance
Getting a quote

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What is a solar hot h2o system?

Rooftop solar hot water organisation.

Solar hot h2o systems consist of solar collector panels and a storage tank. A four-person household typically needs about four square metres of solar collector area (two panels) and a 300–360L tank. You demand a big tank to allow for days with less sunlight (or more than hot showers than usual).
Thermosiphon systems have both the collector panels and the storage tank mounted on the roof. The liquid in the panels circulates into the tank via the thermosiphon consequence (as water heats up, information technology becomes lighter and rises into the tank).
Pumped or split systems have collector panels on the roof but the tank is located at ground level (or elsewhere in the building). Hot h2o is pumped from the panels to the tank.
If panels tin't exist installed in an ideal location (usually a north-facing role of the roof with no shading), their efficiency may drop and you'll demand a larger collector expanse.
Collectors may be flat panel or evacuated tubes. Evacuated tubes are by and large more efficient – so require less panel expanse, simply they're besides more than expensive.
The storage tank usually has an electric or gas booster element to keep the h2o hot on days with less sunshine.
In frost-decumbent areas, the h2o tin can freeze and damage the panels, and then you need frost-tolerant panels which utilise a special heat-exchange fluid to oestrus the tank rather than heating the water directly.
Solar hot water systems can exist comparatively expensive and fourth dimension-consuming to install compared to conventional gas and electric hot water systems, but a well-chosen system will pay for itself in the long run due to very depression running costs.

What is a heat pump hot h2o organisation?

Heat pump hot water arrangement.

A heat pump hot h2o system is a very efficient electric storage tank organization that works on the same principle as a fridge or air conditioner, by extracting heat from the air and using it to heat the h2o tank.
Units are usually integrated (tank and compressor together) but can also be split (separate tank and compressor).
They need to be installed in a well-ventilated area, unremarkably outdoors.
The compressor on the unit can be noisy, like the outdoor unit of an air conditioner, so don't install it besides shut to a neighbouring home.
They tend to piece of work best in warm and temperate regions, but some models are designed to work well in cold climates too, and about systems have a booster element for days of cold weather condition or loftier demand.
You'll typically demand a 270–315L tank for a four-person household. Tank sizes more often than not range from 125–400L.

How much does a solar hot water system cost?

Prices

For both solar and heat pump hot water systems, the concluding cost can vary every bit information technology depends on the cost of the system, installation, rebates and the cost of pocket-size technology certificates (or STCs) at the time of purchase.

Solar power hot water systems range in price from near $4000–8000 fully installed. Systems with a roof-mounted tank tend to be a bit less expensive than split systems, and electrical-additional systems tend to be less expensive to buy than gas-boosted systems.
Heat pump hot water systems range in price from nearly $3000–4000 fully installed.

Brands

Solar and heat pump hot h2o systems are supplied past many companies, such equally Rheem, Solahart, Bosch, Chromagen, Apricus, Dux, Stiebel Eltron and others.

While nosotros haven't tested solar hot h2o or rut pump systems, we have surveyed our members nigh their hot water systems to discover out which brands they find most reliable. The survey includes solar and heat pump systems.

What is the payback time for solar hot water?

Most households switching from a gas or electric storage tank system to a solar hot water system or rut pump should find that their hot water costs reduce past at least 50%, and in many cases a lot more.

Payback times volition vary depending on the system y'all're replacing, your household's hot water usage and (of course) the size and price of the new solar or heat pump hot water organization. Here'due south a rough guide.

Replacing an electrical hot water system

The ability to run an electric storage tank hot water system tin make upwardly a quarter of your electricity bill. That's a hefty amount of electricity to pay for (unless most of it is coming from your ain solar PV panels). If you supercede an electric hot water organisation with a solar or heat pump hot water system, the new system's price savings will probably pay for it in most five years or less.

Replacing a gas hot water system

Payback time for replacing a gas hot water system with a solar or heat pump hot water system may be longer. That'southward because gas is actually quite an efficient manner to heat water. For small households with relatively low hot water consumption, a continuous flow ("instantaneous") gas hot h2o organisation is oft relatively cheap to install and run.

Likewise, information technology may not be quite every bit elementary to replace a gas storage tank hot water organization with an electrical heat pump hot h2o system. For example, new electrical circuits or connections may be needed as part of the installation.

You tin can estimate the cost savings for replacing your gas hot water system by looking at your gas bills. A solar hot h2o system will probably reduce them past nearly 60% or more, depending on how much of the gas bill is due to hot water (if you have ducted gas heating in your dwelling house, for case, that may be a much bigger factor in your gas bill than the hot water). The payback fourth dimension for gas hot water systems is generally 5–10 years.

Government rebates

State government incentives

Some state governments operate energy-efficiency incentive schemes. To find incentives and rebates for hot h2o systems, see the federal government energy website. Select the state you lot live in and under "I am interested in these areas", select "hot water". Or, just contact your state government. Some manufacturers and suppliers also have rebate calculators on their websites.

Federal government incentives

The main upfront financial incentive for buying a new solar or heat pump hot h2o arrangement comes from federal government-regulated pocket-size technology certificates (STCs) – the "solar rebate". These apply in all parts of Australia. Solar and oestrus pump systems authorize for a certain number of STCs depending on the efficiency of the arrangement and where yous live.

In near cases, the easiest way to employ STCs is to sell them to the visitor supplying your new hot h2o system – they unremarkably 'pay' you by discounting the organisation you lot're ownership. Normally the quoted cost for your system will factor in this discount, but brand certain the quote is clear about that.

You can also opt to merchandise the STCs yourself, simply this is a fleck trickier and you lot might not practise any better out of it.

Solar and heat pump hot water systems typically qualify for somewhere between 20–40 STCs. The market price for STCs varies but is usually virtually $30–40. So for a system eligible for xxx STCs, at a price of $30 per STC, you would go $900. Dissimilar suppliers may quote different amounts for STCs.

Country government incentives

At the time of writing, these state incentives also employ for solar or estrus pump hot water systems.

ACT: Free energy-efficient electrical h2o heater upgrade

NT: Home Improvement Scheme (HIS)

SA: Retailer Energy Productivity Scheme (REPS)

Vic: Solar hot h2o rebate, Victorian Free energy Upgrades

What well-nigh solar panels?

If you're going for a solar or heat pump hot water system, it's a logical stride to also consider a solar photovoltaic (PV) panel system to assistance power your habitation. Information technology's some other upfront expense of course, only for near homes in Australia, solar console systems will pay for themselves within a few years, thanks to the savings on your electricity bills.

Run across our practiced guides to:

solar panels
solar inverters
solar battery storage

Solar diverter

If you have a solar PV system, so you lot should consider a solar diverter also. A solar diverter is a device which takes any excess solar power (i.e. ability generated past your solar panels that your abode doesn't need right then) and uses information technology to heat your hot h2o tank. Usually this backlog power is exported to the grid, and you're paid a feed-in tariff for it (a few cents per kWh). Notwithstanding, feed-in tariffs aren't very generous for most home owners these days, and it may be more than cost-effective to utilize some of the excess power in your hot water system.

A solar diverter can be used with a conventional electric hot water tank storage organisation, or an electric-boosted solar hot water arrangement.

Can you keep your onetime electrical storage tank hot water arrangement and power information technology with your solar PV panels?

Aye yous can! Brand certain the electric hot water organisation is not fix to be heated at night on off-pinnacle power though. For best results, you should utilize a timer switch (aka load shift timer) on the hot water system to make sure information technology's powered during the day by your solar PV panels, say between 10am and 3pm. There are various such switches available, and they usually need to exist installed by an electrician. A good electrician or local solar installation company should exist able to help you hither.

Annotation that this method assumes in that location'due south enough excess solar PV ability to run the hot h2o system as well equally your household appliances. If that's not the instance – for example, if you lot have a minor solar PV organization, and you accept several other appliances running during the twenty-four hours – and then at that place might not be enough left over to estrus the h2o, and the hot water system will end up using expensive power from the filigree after all. So this method works best if y'all accept a big solar PV system or if you have relatively low power needs in daytime in the rest of the business firm.

Remember that you're forgoing some feed-in tariff by using your "excess" solar electricity to ability your hot h2o arrangement, just don't worry – it's still a better option financially.

Installation and maintenance

Installation of a solar hot water arrangement can be more complex than for a conventional electric or gas organisation. It won't happen the next day, so unless you can live without hot showers for a while, it's probably non a expert option for when your erstwhile hot water organization dies. A heat pump hot water arrangement is easier, as it'south oftentimes situated and plumbed in merely like other outdoor electric tank systems.

Solar hot water panels demand a section of roof with practiced access to sunlight, preferably facing north for maximum exposure. With a thermosiphon organisation, the roof might demand reinforcing equally information technology has to comport the load of the water tank. And if the roof is difficult to access, the supplier might charge more for installation.

Check with your local council about building regulations. Councils probably won't object to you installing a solar hot water system, but there may be restrictions. For example, dissonance regulations cover the noise from a heat pump hot h2o system. The installer should know the relevant regulations but it's still worth checking with them – you don't desire to end up in a dispute with your neighbor over a noisy oestrus pump.

What about apartments?

For apartment buildings, it might not be applied or even possible to install solar hot water for individual units, and nigh units won't have suitable outdoor space for a estrus pump. However, the owners' corporation could consider a commercial installation for the entire building. Villas and townhouses have more options, but owners' corporation approval will still be needed, and the close proximity of homes means the potential noise from a heat pump becomes an important consideration.

Maintenance

Solar and rut pump hot h2o systems should run without problems for years, and in virtually cases they should not need significantly more maintenance than a regular hot water system. An inspection every five years is worthwhile (but every bit it is for a regular hot h2o arrangement).

The toll for inspecting and maintaining a solar hot water system may be a piddling higher, as the tradesperson will need to get onto the roof to check and clean the solar collectors and connections.

Just as with any hot water system, at that place are parts such as pressure valves and sacrificial anodes in the tanks which may need occasional replacement. A full service will likely price $300–500 depending on parts and labour.

Getting a quote

Suppliers usually need most 30 minutes to assess your domicile. Retail suppliers are oftentimes connected with just one or two brands, but most brands have a broad range of products, so suppliers should be able to quote on a range of different types and models. As e'er, become quotes from at least two suppliers.

Questions the supplier should inquire yous:

How many people live in the house? How much showering and hot clothes washing do you practise each day, and what time of twenty-four hours do you do it?
What sort of hot h2o system exercise yous currently have?
Is gas connected to the property?

Questions you should ask the supplier:

Is installation included in the quote?
How long will it take from placing the order to completion?
How many STCs does the system qualify for? Is STC buyback included, and at what cost for the STCs?
Can they assist you with other government rebates?
Tin can you keep your existing hot water heater tank as part of the new arrangement? Information technology might be possible to incorporate it as a booster for a solar hot water system. Still, doing this may mean you may not be eligible for STCs, because they only apply to completely new installations.

Source: https://www.choice.com.au/home-improvement/energy-saving/solar/buying-guides/solar-hot-water-systems

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