Replacing a hot water system supplied and installed typically costs $1,400 to $2,600 inc GST for a like for like electric or gas storage swap. Continuous flow gas sits in a similar band. Heat pumps cost more upfront at $3,000 to $5,000 before any rebate, and cost far less to run.
Typical replacement: $1,400 to $2,600 inc GST installed
Electric storage, like for like swap: $1,400 to $2,100. Same location, same size
Gas storage, like for like swap: $1,700 to $2,600. Includes flue check
Continuous flow gas: $1,900 to $2,900. Wall mounted, no tank
Heat pump: $3,000 to $5,000. Before any applicable rebate
Changing fuel type or location: add $400 to $1,200. New gas, water or power runs
Tempering valve replacement: $180 to $320. Required on most replacements
Remove and dispose of the old unit: $120 to $250. Old tanks are heavy
Emergency or after hours attendance: add $120 to $250. Nights and weekends
Signs it is time to replace
Most storage tanks last 8 to 12 years. Rusty water, a puddle under the tank, a relief valve that constantly weeps, or hot water that runs out much faster than it used to are all end of life signs.
If the tank itself is leaking, it cannot be repaired. Once the cylinder has corroded through, replacement is the only option. Repairs are worth doing when the fault is a thermostat, element, valve or gas ignition unit on a system that is still reasonably young.
Is a heat pump worth it
A heat pump uses roughly a third of the electricity of a standard electric tank for the same hot water. For a family of four the running cost saving is meaningful, and Victorian households can often access a rebate that closes much of the price gap.
The trade offs are a larger outdoor footprint, a compressor that makes some noise, and a higher upfront cost. If your current unit is electric storage and you have somewhere sensible to put it, a heat pump is usually the best long term value.
Get an instant quote