Installing a new hot water system is a significant investment, and understanding the costs involved can help homeowners in Mandurah budget effectively. The price of installation in Mandurah depends on factors such as system type, capacity, installation complexity, and additional plumbing work.
This guide breaks down the costs associated with installing gas, electric, and solar hot water systems, helping you choose the best option for your home.
Factors That Influence Installation Costs
The total cost of installing a hot water system includes the price of the unit itself and labour charges. Key factors affecting the price include:
✔ Type of system – Gas, electric, and solar systems have different installation requirements and costs.
✔ Tank size and capacity – Larger storage tanks cost more than smaller ones.
✔ Installation complexity – If additional plumbing, electrical, or gas connections are required, the cost increases.
✔ Location of installation – Replacing an existing system in the same location is cheaper than installing a new system in a different area of the property.
✔ Government rebates – Solar and energy-efficient heat pump systems may qualify for rebates, reducing upfront costs.

Cost Breakdown by System Type
Hot Water System Type | Unit Cost (AUD) | Installation Cost (AUD) | Total Estimated Cost (AUD) |
Gas Storage | $900 – $2,000 | $600 – $1,200 | $1,500 – $3,200 |
Gas Instantaneous (Continuous Flow) | $1,000 – $2,500 | $700 – $1,500 | $1,700 – $4,000 |
Electric Storage | $500 – $2,000 | $500 – $1,200 | $1,000 – $3,200 |
Electric Instantaneous | $1,000 – $2,500 | $700 – $1,500 | $1,700 – $4,000 |
Solar (with Booster) | $3,000 – $7,000 | $2,000 – $4,000 | $5,000 – $11,000 |
Heat Pump | $2,500 – $5,000 | $1,000 – $2,500 | $3,500 – $7,500 |
Gas Hot Water System Installation Costs
- Storage Gas Systems: $1,500 – $3,200
- Continuous Flow Gas Systems: $1,700 – $4,000
Gas systems tend to have lower running costs but require access to natural gas or LPG. If gas plumbing needs to be installed, this adds to the cost.
Electric Hot Water System Installation Costs
- Storage Electric Systems: $1,000 – $3,200
- Instantaneous Electric Systems: $1,700 – $4,000
Electric systems have lower upfront costs but can be expensive to run, especially if not connected to off-peak electricity tariffs.
Solar Hot Water System Installation Costs
- With Gas or Electric Booster: $5,000 – $11,000
Solar systems have the highest upfront cost but offer long-term energy savings. Government rebates may reduce the initial cost.
Heat Pump Hot Water System Installation Costs
- Estimated Cost: $3,500 – $7,500
Heat pump systems use ambient air to heat water, making them highly energy-efficient. They qualify for rebates but have higher installation costs.
Additional Costs to Consider
✔ Removal of old system – Typically $100 – $300, depending on the type of system being replaced.
✔ New plumbing or gas connections – If modifications are needed, additional costs range from $500 – $2,000.
✔ Upgrading electrical supply – For electric systems, additional wiring or circuit upgrades can cost $300 – $1,500.
✔ Government rebates – Rebates for solar and heat pump systems can reduce costs by up to $1,000 or more.
Conclusion
The cost of installing a new hot water system in Mandurah varies based on the system type, installation complexity, and potential upgrades to plumbing or electrical connections. Gas and electric systems are cheaper upfront, while solar and heat pump systems offer long-term savings despite higher installation costs.
For an accurate quote and professional installation, a plumber in Mandurah can assess your property and recommend the best option. Whether you need a new installation, system replacement, or advice on energy-efficient options, a hot water plumber Mandurah can ensure your system meets your household’s needs efficiently and cost-effectively.