Business Telegraph

6 Steps to Calculating the Cost of a Hot Water System

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Do you know how much a new hot water system costs? And how much do they cost to install? What about ongoing running costs? These are all valid questions you’ll need to answer when you’re considering a new hot water installation, as their answers will, to a large extent, inform what type and size of system you’ll go for.

In this post, we’ll answer these questions and, hopefully, help you find out what type of hot water system works best for you.

Step 1: Your Household’s Needs

The first step is considering your household’s hot water needs. This is vital because, without knowing your hot water requirements, you could end up paying too much for a system that’s too big or even end up with a system that doesn’t meet your needs.

Step 2: The Size and Type of Hot Water System

Based on your needs, you can decide on the size of the hot water system you’ll need to meet your requirements. Generally, the larger the system, the higher its price. You’ll also need to decide what type of system you would like. Here, gas and electric systems are cheaper, with tank-based systems being the cheapest. On-demand gas and electric systems are more expensive, but they are more efficient.

Next in line are heat pump systems that vary in price based on the capacity of the system. Finally, solar systems are the most expensive to purchase, with split systems being the most expensive.

Step 3: Delivery and Installation Costs

Once you’ve chosen the type and size of hot water system you would like, you’ll also need to factor delivery and installation costs into your calculation. When it comes to delivery costs, these are mainly influenced by the size of the system and the distance needed to travel for delivery.

Installation costs, in turn, depend on the complexity of the work needed. For example, if you replace an existing electric system with a new electric system, your installation costs will be fairly low. In contrast, if you replace your existing gas system with a new solar installation, you can expect the installation costs to be higher.

Another factor that plays an important role during installation is accessibility. In other words, the installation costs depend on the ease of access at your property. This is simply because the ease of access can influence the complexity of the job which, in turn, impacts the equipment and labour needed.

Step 5: Government Rebates

The Australian government incentivises the purchase of more efficient hot water systems. Depending on the system you choose, you can thus benefit from a reduction in the purchase price as a result of these incentives.

Step 6: Disposal

The final factor that influences the initial costs of your hot water system is the disposal cost of your old system. While not much, responsibly disposing of your existing system does add an amount to your upfront costs.

Step 7: Operating Costs

In following the previous steps, you’ve calculated the initial costs of purchasing and installing your new hot water system. The final consideration in calculating the cost of your hot water system is its operating costs.

This depends on several aspects, with the type and size of the system probably being the most important. Generally, you can expect to pay higher running costs for gas and electric systems and lower running costs for solar and heat pump systems.

There you go, now you’re in a good position to calculate the cost of your new hot water system. When you’re ready to buy, you’ll need a licensed plumber to help install your new hot water system.