How much will a solar hot water system cost?

Solar hot water system installation costs can vary drastically, so how much should you be paying? Find out the factors that influence the overall cost of a solar hot water system in Australia.

Are your electric and gas bills continuing to rise? Whether you’re looking to make significant financial savings or just want to reduce your overall energy usage to better the environment, switching over to a solar hot water system is the perfect solution.

But how much is a solar hot water system? Whilst a solar hot water system may cost more upfront, your total solar hot water system cost will pay itself off in just a few years as the running expenses are significantly cheaper than conventional gas or electric hot water systems. When you consider that a portion of the purchase cost can be offset with government incentives and rebates, the switch to a solar hot water system seems like a no-brainer. Let’s take a closer look at why that is the case.

Solar Hot Water System Costs: Rebates and Incentives

Solar hot water systems are eligible for small-scale technology certificates (STC’s) all across Australia. The amount you receive as a subsidy from the government is based on the size and performance of the system. Different supplies will quote different amounts for STC’s; however, you usually receive anywhere from $30 to $40 per STC generated.

For example, if your system is eligible for 36 STC’s at a price of $35 per STC, you would receive $1,260. For more information on solar incentives, see the government page on rebates and assistance.

How Much Is a Hot Water System Upfront?

A solar hot water system can cost anywhere from $2500 to $6500 to purchase upfront, depending on the installed system.

In comparison, an electric hot water system will typically cost anywhere from $500 to $1900, and a gas hot water system will cost anywhere from $750 to $1800 upfront.

Note that a four-person household will need a tank that can hold around 250 litres of water. A 250 litre solar hot water system price ranges from $750 to $1300 but can be more expensive depending on the brand.

As you can see, the solar hot water system cost is higher compared to electric and gas. However, in the long-term, you will save money. It should be noted that certain solar hot water systems will require an ‘assist’ for days that are particularly overcast or cold. If you are thinking of switching to a solar hot water system, ensure that your geographical location and climate are suitable to power the system.

Factors Influencing the Typical Cost of Solar Hot Water System

Solar Hot Water System Cost: Type of System

Solar hot water systems come in a few varieties: Roof-mounted solar, electric-boosted split or gas-boosted split. Like solar hot water systems, a heat pump system is a viable green alternative to electric and gas-powered systems.

1. Roof-mounted Solar Hot Water System

The most common solar hot water system is a roof-mounted model. If you have free roof space and live in an area infrequently affected by shade or overcast weather, this is the best hot water system solution. This solar hot water system costs as low as $3800 or as high as $5400+.

2. Electric or Gas Boosted Split Solar Hot Water System

This solar hot water system is preferable when roofs cannot support the total weight of a hot water tank or if there is limited space on the roof. Solar panels are mounted on the roof while the storage tank is located on ground level. This system, at its lowest will cost around $3900 and can hit prices of $6000 or more.

3. Heat Pump Water Heater System

If your home has roof shading issues or limited space, a heat pump is a good option. Heat pumps operate even when the sun is not present by drawing heat from the encompassing air, even operating at night. This system saves money like solar but requires a warm climate to function. Unfortunately, they can also be quite noisy. Prices usually start at $3800 for a 160L system, up to $4500 for a 315L system.

Solar Hot Water System Cost: Annual Cost

Whilst solar hot water system cost more than alternative systems to purchase, they are much cheaper to run over time, saving you up to 75% in specific scenarios. The exact amount is dependent on your location, climate, and energy tariff.

As a general rule of thumb, the typical cost of solar hot water systems to run annually is $150, depending on the type of system and other external variables.

In direct contrast, you can expect to pay around $850-$950 a year with an electric-powered hot water system in running costs.

Solar Hot Water System Installation Costs

How much is a solar hot water system to install? The installation cost of a solar hot water system can range from $2,500 to $6,000, depending on the size of the system, scope of the job, number of solar panels, access to roof and location and company installing the system.

CDL Plumbing are the local experts in solar, gas and electric hot water systems installation. If you need a solar hot water installation, give us a call today on 0499 192 821 to request a quote. The team at CDL Plumbing will ensure that your system runs efficiently so you don’t run into any problems down the track.

Should I Get A Solar Hot Water System?

At CDL Plumbing, we have over 15 years’ experience across the installation of solar, electric and gas hot water systems and are experts in making sure you get the most extended life possible from your system without any troubles along the way.

Our team is ready to help with any and all solar hot water system concerns with same-day service in the Newcastle and Lake Macquarie areas. Not only do we install expert systems, but we also provide leading hot water system repairs.

Looking to install a solar hot water system? Want to know if your house is suitable for a solar hot water system? Maybe you’re just trying to understand the typical cost of solar hot water systems. For any and all solar hot water system concerns, give us a call on 0499 192 821 today.