Short answer: a like-for-like electric storage replacement runs $800-$2,500 installed, gas continuous flow $1,500-$4,000, and a heat pump $3,500-$7,000 before rebates - often $2,500-$5,500 once state and federal incentives land. Hot water is about a quarter of a typical home energy bill, so the replacement choice matters beyond the install day.
| System | Installed range | Notes |
|---|---|---|
| Electric storage | $800-$2,500 | Same Day Hot Water / DLG Electrical - the budget like-for-like swap |
| Gas storage | $1,200-$3,500 | Same Day Hot Water |
| Gas continuous flow | $1,500-$4,000 | Never runs out; needs gas line capacity checked |
| Heat pump | $3,500-$7,000 | Often $2,500-$5,500 after rebates - runs at about a third of electric storage running costs |
| Solar (roof collector + tank) | $4,000-$9,000 | Highest upfront, lowest running cost where roof space suits |
| Repair (element, thermostat, valves) | from ~$320 | Our calculator's minimum job - worth it on systems under ~8 years old |
Two of our sources disagree by a few hundred dollars at the edges (one puts electric at $1,200-$2,200, another at $800-$2,500) - we publish the wider reconciled band rather than a fake-precise middle. Emergency after-hours replacement sits above these ranges; that premium is a timing cost, not a system cost.
The unit itself is most of the bill. Capacity is sized to the household - roughly 50 litres per person for storage systems - and undersizing is the false economy that shows up every winter.
Swapping the same type in the same spot is the cheap job. Moving the unit, changing fuel type or adding a power point, gas line or condensate drain is where quotes grow.
Heat pumps attract federal small-scale technology certificates and, in several states, an extra rebate - together they can take $1,000-$2,000 off. Your installer usually claims them on your behalf; confirm the quote is the after-rebate figure.
A dead system in July is an emergency purchase, and emergency rates reflect it. If your system is old but alive, replacing it on your schedule is almost always cheaper than replacing it on its schedule.
Hot water is roughly 25% of a typical home's energy use. A heat pump uses about a third of the electricity of a storage unit - over a 10-year life that difference can exceed the price gap between the systems.
Internal cupboards, roof-mounted solar and units needing new tempering valves or drainage all add labour. Tempering valves are a legal requirement on new installs, not an upsell.
The job: replacing a dead electric storage unit with a heat pump, same position, standard install, before rebates.
The maths: our calculator prices a heat pump replacement at a $4,200 typical point - inside the published $3,500-$7,000 band - and shows the usual spread around it.
Guide estimate: $3,550 - $5,050 (before rebates)
Sanity check: Same Day Hot Water and DLG Electrical both put heat pumps at $3,500-$7,000 installed, often $2,500-$5,500 after rebates are applied. Try your own system in the hot water calculator.
Hot water systems must be installed by a licensed plumber, and the electrical disconnection and reconnection by a licensed electrician (or a plumber holding the relevant restricted licence) - in every state. Gas work requires a licensed gasfitter. You should receive a compliance certificate for the install; without one, warranty and insurance claims get difficult. Keep the paperwork with the unit's manual.
All figures in this guide are guides, not quotes. If your system has failed, the fastest accurate price is a plumber looking at the actual install - use the ranges here to judge whether that price is fair.
Prices cross-checked against Same Day Hot Water Service, DLG Electrical and Geelong Emergency Plumbing cost guides - October 2026.
Short answer: a like-for-like electric storage replacement runs $800-$2,500 installed, gas continuous flow $1,500-$4,000, and a heat pump $3,500-$7,000 before rebates - often $2,500-$5,500 once state and federal incentives land. Hot water is about a quarter of a typical home energy bill, so the replacement choice matters beyond the install day.
The biggest drivers are system type and size, like-for-like or a change?, rebates and urgency. Each one is worked through with prices in the guide above, and the calculator prices them for your job.
Use the free calculator linked from this guide - it prices your job with the same installed ranges used here, in about 30 seconds. It is a guide range, not a quote: your contractor confirms a fixed price after seeing the job.
No - they are researched guide ranges, cross-checked across at least two published sources, not quotes. Prices move with your area, the condition of the site and the scope you choose. Get itemised quotes in writing, and check the tradesperson's licence with your state building authority before you book.
The calculator prices electric, gas and heat pump replacements - plus repairs and blocked drains - at the same installed rates as this guide.