Hot Water System Installation Cost Guide
Waking up to a cold shower on a cold morning can be a nightmare for most, if not all of us. Right? Well, that’s why choosing the right system and knowing the Hot Water System Installation cost is crucial.
Hot water systems are a fundamental part of our daily routines, providing hot water for laundry, showers, dishwashing, and other household tasks. Whether you’re looking to replace an outdated hot water system or install a new one, it’s crucial that you understand the basics to make an informed decision.
On that note, what’s the cost of replacing a hot water system? What types are there, and which is the best for you? What should you consider when looking to install a hot water system? This is what we are going to cover in this article, and more. Read on!
Types of Hot Water Systems
Hot water systems are mainly categorised into two: storage systems and instantaneous (continuous flow) systems, either of which can be powered by electricity, solar energy, or gas (natural or LPG).
Storage Hot Water System
As the name implies, storage hot water systems feature an insulated tank in which water is constantly heated using nickel-chrome or copper components. One upside of these systems is that they can be installed outdoors or indoors.
Moreover, larger units may readily supply hot water to several outlets at once, allowing you to use hot water in the shower and the hot tap in the kitchen.
Instantaneous Hot Water System
Also known as tankless or continuous flow systems, instantaneous hot water systems don’t feature storage tanks. Instead, they heat water instantly as it flows through a coiled pipe known as a heat exchanger.
These systems are ideal for smaller households with space constraints and tend to be more energy efficient. The only downside? Water may take slightly longer to heat up.

Which Hot Water System is Best?
Like with any other appliance, determining the best water heater comes down to personal preference. Even so, there are a few factors that may influence your decision on the type of heating system best suited to your needs. They include:
- Your budget. Do you want a high-end heater? Or do you simply want to upgrade your connection?
- How much space is available. As mentioned earlier, electric instantaneous systems are ideal for smaller homes, and so on.
- Which power source(s) are available on your property? For example, solar panels, natural gas, etc.
- The size of your household and average water usage. For instance, a bigger family may be better off with a gas-powered system.
- The need to keep your running costs low, in which case you might want to go green with a gas- or solar-powered system.
How Much Does a Hot Water System Cost to Install?
Installing a hot water system can cost anything from $1000 to $7000. There are several factors that can influence this price increase, one of which is whether you’re switching to a new system, upgrading your initial system, or installing a brand-new system.
As you’d expect, a new installation could cost more if you want all of the necessary equipment or additional connection and setup. In other words, installation costs of hot water systems can be categorised into two: basic and high-end replacement costs.
Basic costs include the fundamentals—acquiring a standard hot water system and paying standard installation labour fees. On the other hand, if you’re looking for a premium model with complex installation requirements and advanced features, you’ll end up paying high-end prices.
Factors to Consider for Hot Water System Installation
When looking to replace a hot water system, several factors might have a considerable impact on the overall cost. These factors include, but are not limited to;
Brand and Model
Like with most appliances, the brand and model of a water heater can significantly impact the pricing. Brands such as Rinnai, Rheem, and Dux, all have various models with varying levels of efficiencies and features.
One good example is the Rinnai Infinity 26, which is a popular choice among homeowners due to its low operating expenses and energy efficiency.
Size and Capacity
The unit’s size and capacity are also important. To determine the right size for you, consider the size of your household and your hot water usage patterns.
If you have a large family, a storage water system with a large tank may be ideal for you. On the contrary, an instantaneous system may be the better option for a smaller household.
To pick out the right system for you, you may want to consult with the manufacturer or your local plumbing experts at RD Plumbing Solutions if you’re in Adelaide and its environs. We’d be more than happy to help.
Installation Complexity
If your home has an existing hot water connection, chances are installation will be cost-effective and straightforward. However, new plumbing or upgrades to your initial connection can significantly raise installation costs.
Therefore, when planning for a new hot water system, you may want to keep these potential additional expenses in mind.
Your Go-To Hot Water System Experts in Adelaide
Installing a hot water system may appear to be a significant investment, but it may help you save money while also ensuring that you have hot water all year.
As we’ve already established, the cost of replacing a hot water system is influenced by various factors, including installation complexity, brand and model, the unit’s size and capacity, which you’ll need to understand to make an informed decision.
Need expert advice? Contact RD Plumbing Solutions today for a free consultation!

Russell is a qualified Master Plumber, having been in the industry since 2004. He started his own company in 2013, and today, is a reputable company operating in metropolitan Adelaide. We are truly your local plumber!
We specialise in all aspects of plumbing services including 24 hour emergency response, blocked drains, drain camera inspections, pipe relining, gas fitting, hot water service & replacement, rain water tanks and all other home maintenance plumbing services. We aim to exceed your expectations in everyway and deliver the level of service that has made our business what it is today.