Determining the installation cost of a new gas hot water system will vary depending on the type of system you select and how big it is.

A 4-person household using the dishwasher daily, washing machine on cold/warm settings three times per week, and having two showers each day with one being fifteen minutes long, could expect to pay an initial cost between $2,000 to $3,500 for their new hot water system and installation. Installation costs, on average, are between $250 and $1,000.

A gas hot water system is a great choice for those who want to save money on their energy bills, as it is more energy-efficient than an electric system. It can also be a greener option as it emits fewer greenhouse gases than an electric system.

If you are thinking of installing a gas hot water system in your home, it is important to consider the following factors:
  • The size of your home and the number of people who will be using the hot water.

  • The climate.

  • Whether or not you have access to natural gas.

How do gas hot water systems work?

Gas heats stored water and the heated water is then circulated through the home’s plumbing system, providing hot water for taps and appliances.

What size gas hot water system is right for me?

The size of the hot water system you need will depend on the size of your home, the number of people who will be using it, and the climate you live in.

Choosing the right size of gas hot water heater is important, you can save money by decreasing hot water running costs.

For a group of two or less, you'll need about 115-150 litres; for three people, 150-190 litres; for 4 people: 190-230 litres and for a household of five individuals, 230-300 litres.

Are gas hot water systems energy efficient?

Gas hot water systems are known for energy efficiency compared to electric systems. This is because they use natural gas, which is a renewable resource and emits fewer greenhouse gases. Electric hot water systems, on the other hand, generally use electric power, which depends on coal or oil power plants that emit more greenhouse gases into the atmosphere.

When should I update my gas hot water system?

If you have an older-style storage tank that regularly runs out of hot water when it rains or when everyone is taking showers in your home at once, then it might be time to consider replacing your existing hot water system with a newer model.

What are the alternatives to a gas hot water system?

A gas hot water system is the most common type of hot water system, but there are other alternatives available. Electric hot water heaters are effective and efficient.

There are solar water heaters that depend on Solar power and indirect systems are also available. While solar hot water systems save energy, but they are expensive when it comes to the installation cost.

Heat pump water heaters are alternatives to save energy, they heat water by drawing heat from ambient air. Heat pump systems are more efficient in warm climates.

What is included in the cost of a gas hot water system installation?

When you have a gas hot water heater installed in your home, the following items are typically included in the hot water installation costs:

  • The hot water system unit.

  • Delivery and installation of the system.

  • Cost of connecting the system to your home’s natural gas supply (if necessary).

  • Tempering valves cost, which is a valve to keep water temperature under 60° C, required by the Australian government.

  • Additional labour.

Do I need to upgrade my plumbing for a hot water system replacement?

You shouldn't have to. A gas water heater installation can use the same pipes and fittings as your current system. If you are not sure if your plumbing can handle a new system, it is best to consult a licensed plumber.

How long does it take to install a hot water system?

It usually takes between one and two days for hot water system installation, depending on the size and complexity of the job. For a gas hot water system installation process, a professional who is both a licensed gas fitter and plumber needs to be on-site to connect the system to your home's gas lines (if necessary) and to set up the plumbing. For more information on hot water systems, take a look at energy.gov.au.