How to Calculate the Cost of a Hot Water System

Hot water systems are critical to making a home comfortable. If you’re in the market for a new hot water system, you probably have a lot of questions. The following will help to answer some frequent concerns.

System Size and Style

There are storage hot water systems and continuous hot water systems. Storage hot water systems will heat and maintain warm water in a tank until it’s time for usage. 

Continuous hot water systems are different from storage heaters and can heat unlimited amounts of water when you need it. It will conserve a lot more energy because it will not be in use if it is not needed.

System Type

While there are two main styles of water heaters, there are different types available.


An electric storage hot water system uses an electrical powered source that can be found at the base of the tank. 


Gas heating systems use a gas burner to continually heat the water in the tank. There is usually a burner that will ignite whenever you need water.


Solar water heaters work via energy that they get from the sun. The power from the sun is generated from solar panels on the roof of the house.

Heat Pump

Heat pump water heaters work by using a fan to draw warm air into the water heating system. This heat is then transferred to the water storage tank.

The Quality of Your Unit

The quality of the unit is also very important. Electric water heating systems tend to be the most popular because of their convenience and safety. 

You should also consider the brand of water heater that you chose. Always go with a brand that is well known and has good reviews.

Delivery and Installation Costs

The delivery cost that you receive will be based on the size and weight of the unit. It will also depend on the distance that it will travel. 

You will also need to pay to have someone install it for you. You need to get a quote from your plumber for the installation cost, so you can understand your total costs. 

Always make sure that you are employing certified plumbers to install your water heating system.

Disposal of Old System

One of the charges that you must be prepared for is the disposal of the old water heating system. Since there are regulations in place about how the unit can be disposed of your fees may increase as a result.

Rebates and Incentives

There are several government incentives and programs available to give you rebates if you use solar energy for water heaters. Ensure that you ask about the incentives and rebates that you are entitled to ahead of installation.

Running Costs

The running costs of water heaters can vary significantly.

Prices for running a heat pump water heater start from $90 to $125.  For solar heaters, the running cost can range from as low as $60 to as high as $110. 

The running cost of electric water heaters range from 265 to $340. Running costs for gas heaters generally start from $125 all the way up to $615.

A water heater is an important addition to your plumbing system and you need to make sure that you are making the right selection. If you would like help with your hot water system installation, get in touch with a water heating expert. You also need to make sure that it is affordable.