What Is a Gully Trap?
December 22, 2025
20 Peacock Street, Burwood VIC 3125
Office Address
Email Address
Office Address
Email Address
If you are wondering how much it costs to install a hot water system in Melbourne, you are not alone. It is one of the most common questions we get from homeowners across Burwood, Box Hill, Glen Waverley, and nearby suburbs.
In 2026, the cost of hot water system installation in Melbourne usually sits between $1,200 and $7,000 or more. This typically includes the hot water unit itself, labour, materials, and the required compliance certificate. The final price depends on the type of system you choose, its size, and how complex the installation is.
For example, continuous flow systems generally cost more upfront than standard storage units. Solar systems sit at the higher end too, although Victorian government rebates can significantly reduce that initial cost.
In this guide, we will break down exactly what affects hot water installation costs and how to make the right choice for your home and budget. If you would like a tailored quote, feel free to contact our team for a free assessment.
Let’s get into it.
Here is a simple way to understand pricing:
Installation cost = unit cost + materials and fittings + labour + upgrades (if required) + compliance certificate
When you receive a quote, it should clearly show each of these items. That way, you know exactly what you are paying for and why.
Electric storage units from reliable brands like Dux or Vulcan are usually the most affordable to install. Solar systems tend to be the most expensive if you do not already have solar panels, although rebates and low running costs make them attractive long term.
Materials also play a role. Basic copper piping and standard mounting hardware usually cost around $100 to $250. If corrosion resistant or upgraded materials are required, this can increase to $400 to $800.
Labour costs vary between plumbing companies, but cheaper is not always better. A licensed, experienced plumber who knows local homes around Deakin University Burwood Campus, Box Hill, and Glen Waverley will save you headaches later by getting the job done properly the first time.
Upgrades are not always needed, but some installations require a new electrical circuit, improved drainage, or gas line work. Costs depend on what your property needs.
Finally, compliance certificates for hot water system installations or replacements usually cost $100 to $200 and are legally required in Victoria.
Several factors determine what you will ultimately pay.
Here is a general guide for average Melbourne households:
Electric storage systems
Approximate cost: $1,000 to $2,000
Pros: Affordable, simple installation
Cons: Higher running costs
Gas systems (storage or continuous flow)
Approximate cost: $2,000 to $4,000
Pros: Lower running costs than electric
Cons: May require gas upgrades if no existing connection
Solar hot water systems
Approximate cost: $4,000 to $8,000
Pros: Very low running costs, eligible for government rebates
Cons: Higher upfront cost, uses roof space
Heat pump systems
Approximate cost: $3,000 to $6,000
Pros: Energy efficient, eligible for Victorian rebates
Cons: Requires outdoor space, can be noisy
Size of the System and Household Demand
The average Melbourne resident uses around 50 to 80 litres of hot water per day.
A household of two people is usually comfortable with a 125 to 160 litre system. Larger families often need 250 litres or more, with big households sometimes requiring 400 litres plus.
Larger systems cost more because they need stronger mounting, additional materials, and sometimes electrical upgrades. Going too small to save money is risky though. An undersized system works harder, wears out faster, and often leads to cold showers at the worst time.
Replacing a hot water system with a like for like unit is usually the most cost effective option. Existing pipes, wiring, and mounts can often be reused, keeping labour costs down.
Switching from electric to gas, or from storage to continuous flow, increases complexity. Gas lines, flow upgrades, or electrical changes can all add to the total cost. Homes with tight access or older layouts can also take longer to work on.
Not all quotes include removal and disposal. Always check.
Disconnecting, transporting, and disposing of an old hot water unit must be done correctly and in line with EPA regulations. Improper disposal can result in serious fines, so it is worth confirming this is included upfront.
Victorian government rebates are available for solar and heat pump hot water systems. Depending on eligibility and system type, rebates can range from $1,000 to $2,000.
At Moz Plumbing, we guide our customers through the rebate process to help reduce upfront costs wherever possible.
A few smart decisions can make a big difference to your energy bills.
Choose the right size system for your household. Oversized units cost more to run and reheat unnecessarily.
Invest in energy efficient models. They cost more initially but save money over time.
Consider systems with timers or smart controls. Running during off peak hours can reduce energy costs by up to 40 percent.
Book professional servicing at least once a year to keep the system running efficiently and extend its lifespan.
Local homeowners trust Moz Plumbing because we offer:
Electric systems typically cost $1,000 to $2,000. Gas systems range from $2,000 to $4,000.
Heat pump systems are usually $3,000 to $6,000, while solar systems range from $4,000 to $8,000.
Contact us for a tailored quote.
New installations usually cost more than replacements because they often require additional plumbing or electrical work.
Like for like replacements are the most affordable. Upgrades may require new pipes, circuits, or compliance work, which increases the price.
Modern homes use more hot water than ever before. Larger systems, smart features, compliance requirements, and disposal of the old unit all contribute to the cost.
Most quality systems last 10 to 15 years with proper maintenance. Replacing an ageing unit before it fails can help avoid emergency breakdowns.
A family of four usually needs a 250 to 315 litre system, depending on usage habits. We are happy to assess your home and recommend the right size.
We take the time to assess your household needs and explain your options clearly, without pressure or guesswork. You will know what you are getting, how much it costs, and why it makes sense for your home.
Give us a call today (0478 841 918). We are always happy to chat and provide a free consultation and quote.
