Hot water systems
Replacing a hot water system can be a straight swap or a change of energy source, location and tempering valve. Those are different quotes. The published range on this page is for installing a heat pump water heater, from the NSW government page, and it is not a price for every storage or instantaneous replacement.
Ask for the installed price of a named system, including removal of the old unit, valves and any electrical or gas connection. A unit-only price leaves the labour out.
Published figures
Heat pump water heater, installed
$2,000–$6,000 AUD
NSW Climate and Energy Action says the cost of installing a heat pump water heater can range depending on the size, model and the installer. The page says government incentives can significantly reduce this upfront cost. It also says an upfront NSW discount could be up to $640 when replacing an old electric water heater, or up to $330 when replacing a gas water heater. Those discounts are not part of the range. The range is not a price for a gas or electric storage replacement.
Source: NSW Climate and Energy Action, Heat pump water heaters (opens in a new tab). Source checked Published 9 July 2026. Checked 22 October 2026.
What the publisher says about running costs
Bill saving stated against a traditional hot water system
$200–$800 AUD
The same NSW page says a heat pump water heater can save this much per year on energy bills compared with a traditional system. It is the publisher's savings claim, not a price for the heater. A separate homeowner quote on the page is one household's experience and is not repeated here.
Source: NSW Climate and Energy Action, Heat pump water heaters (opens in a new tab). Source checked Published 9 July 2026. Checked 22 October 2026.
What changes the price
- Storage, instantaneous or heat pump. The hardware and the trades involved are different. A like-for-like swap of the same type is the cleanest comparison.
- Energy source and location. Moving the unit, changing from gas to electricity, or adding a tempering valve and new pipework is extra work. Say so in the quote request.
- Household size. Storage size and recovery rate should match how you use hot water. An undersized unit is not a saving if it runs out.
- Access and compliance. Gas work and electrical connections belong to licensed people. Drainage from a relief valve and a safe place for the unit matter too.
- Removal and make-good. Who takes the old tank, and is disposal included? A cylinder in a cupboard is a different lift from one on a stand outside.
Questions to ask
- What brand, model and capacity are in the price, and is it installed?
- Does the price include removal of the old system?
- What gas, electrical or plumbing changes are excluded?
- Is a tempering valve included where one is required?
- What warranty covers the cylinder, the parts and the labour?
- Who is licensed to do the gas or electrical connection?
Common questions
Does the published range cover a gas storage swap?
No. The range is the NSW page's installed cost for a heat pump water heater. A gas or electric storage replacement needs its own quote. We have not found a government rate for that swap that we can link.
Should I compare the sticker price?
Compare the installed price for the same type of system. A cheap unit with installation excluded is not comparable to a supply-and-install quote.