Solar Hot Water System Costs Australia 2022

solar hot water system cost cover

How much does a solar hot water system cost?


Solar hot water system supply and installation costs can vary dramatically depending on your location and the type of hot water system that you opt to install on your property.


So, how much should you be paying and what are the factors that impact the overall cost of solar hot water systems in Australia? In this article, we will investigate the average cost, factors that influence price, and why more Australian’s are turning to solar hot water systems in 2022.


Reasons to install a solar hot water system


Solar hot water systems can save you money on your energy bills, and they can help reduce your carbon footprint. Whether you’re looking to lower your energy bills, or just ready to take a positive step forward for the environment – solar systems are a great option.


Some of the most common reasons why Aussies are installing solar systems in their home include:

  • Free energy from the sun
  • Protect yourself against rising energy costs
  • Offset your investment with attractive government rebates
  • Continual, reliable access to hot water
  • Decrease your overall carbon footprint
  • Increase the value of your home
why make the switch to solar hot water systems

Solar hot water system rebates and incentives


All new solar hot water systems are eligible for the small-scale technology certificates (STC’s) rebate. The rebate amount that you receive will depend on the size and performance of the hot water system that you install. Depending on the supplier that you go with for installation, you can expect to receive between $30 to $40 per STC generated.


By way of an example, if your solar hot water system is eligible for 30 STCs at a rate of $34 per STC, you can expect to receive a rebate of $1020. For more information on solar incentives, check out the government rebates and assistance page online today. 


What is the upfront cost of a hot water system?


The upfront cost of a solar hot water system in Australia ranges from $2,600 – $6,000 depending on the unit that you select.


By way of a comparison, the equivalent electric hot water system will cost between $500 to $1,900, while a gas hot water system will cost between $800 to $1,400 to purchase up front.


In Australia, the average four-person household will require a 250-litre water tank. The cost of a 250-litre hot water tank will range from $750 to $1300 depending on the make and model that you select.

solar hot water systems might cost more short term, but they will give you more savings in the future

Factors that influence the cost of solar hot water systems


On top of the upfront costs associated with purchasing a solar hot water heater, there are a number of factors that will determine solar hot water costs in 2022. Here are the main factors that can influence how much you can expect to pay to get a new solar heating system:


1. Type of hot water system

Solar hot water units are available in a couple of different types. If you’ve done your research, you’ll know that you can get active systems, which have circulating pumps and controls, and passive, which do not. Generally speaking, passive solar hot water systems are less expensive than active systems but lack the same overall efficiency. Passive solar systems are also known to last a little bit longer, but lifespan often comes down to how well the system is maintained.


When considering types of solar hot water systems and costs, you’ve got a couple of options:


Roof-mounted solar hot water systems


The most popular system is the roof-mounted solar hot water heater. If you live somewhere sunny, and have free roof space, this is the most ideal type of hot water heater. Roof-mounted systems will cost between $3,800 and upwards of $5,400+.


Boosted split solar water heaters


Where properties cannot facilitate roof-mounted solar hot water systems, an electric or gas boosted split solar hot water system may be the second-best option. Solar panels will be mounted on the roof, while the storage tank will be located at ground level. These systems will cost anywhere between $3,900 and $6,000 +.


Heat pump solar hot water


If your roof is frequently covered by shade or has limited space, a heat pump is good alternative. Heat pumps operate at all times, even when the sun is not out, drawing heat from the surrounding air. This type of system can be cost-efficient, like solar, but needs to be installed in a warm climate to function effectively. Heat pump systems will cost approximately $3,800 to $4,500.


Solar hot water systems will also require a well-insulated collection tank. There are three types of solar collectors used across residential properties, including flat-plate collectors, integral collector storage systems, and evacuated tube solar collectors.


2. Size of System


When it comes to calculating the costs of a solar hot water system, size matters. The size of the house and hot water demands, as well as the size of the system, will influence costs.


Solar hot water system sizes range from 1.2L systems, to 4.1L systems. The size of solar hot water system needed will come down to how much hot water your family uses day to day.

think about your water needs, which will affect your costs when installing a hot water system

3. Installation Costs


So, how much does it cost to install a solar hot water system? The installation needs to be completed by a qualified plumber or technician – installation costs range from $2,500 to $6,000, depending on the location of the system, the size of the system, the number of solar panels, access to roof, and overall scope of the job.


Waterline Plumbing are Perth’s leading experts in solar hot water installation, servicing, and replacement. Local experts with years of experience in working with hot water systems, our qualified team of hot water plumbers can help you to choose the right solar system, get it installed, and provide ongoing maintenance. The best bit? We offer solar hot water system services at competitive prices, without compromising on quality of work or customer satisfaction. Give the Waterline team a call to learn more.


4. Running Costs


While solar hot water systems can be more expensive upfront, the running costs are much lower over time when compared to gas or electric hot water heaters. In fact, those who choose solar hot water systems can save up to 75% in running costs over the lifespan of the solar hot water heater.


Generally speaking, you can expect solar hot water running costs to be around $150 annually, depending on the type of system and relevant solar variables.


In comparison, electric hot water systems can cost up to $850 – $950 per year to run. For gas hot water heaters, you’re looking at annual running costs between $600 – $800.

factors impacting total cost of solar hot water system

Wrapping Up


Now that we’ve outlined all relevant solar hot water costs, it’s pretty clear that renewable energy is the way to go in 2022. While more expensive upfront, a solar hot water system can save you thousands of dollars over time. What’s more, the government offers a number of excellent rebates to get your money back when installing a solar hot water system.


With this guide, you should have a pretty accurate idea of how much you can expect to pay for solar hot water heating, taking into consideration your home, your location, your heating system, and installation costs.


Ready to get your new solar hot water heater? Waterline Plumbing are Perth’s leading providers of hot water installation. We work across all types of hot water heating systems, including solar. Have your solar hot water system installed, serviced, or replaced by the experts at Waterline Plumbing – you’ll get the highest quality service, at the most competitive price. Give our friendly team a call on 0450 334 373 today to get a free quote and learn more about getting hot water installed on your property.

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