What is the Cheapest Hot Water Heater?

Discover the best tips for purchasing hot water systems in Canberra and Newcastle. Learn how to find the cheapest hot water heater for your needs in your area.

Canberra and Newcastle Hot Water Systems

What Canberra and Newcastle hot water buyers consider a worthwhile investment is a hot water system that demands fewer upfront costs but gives you reliable hot water throughout its lifespan. Only a few Newcastle and Canberra hot water customers would consider the operating costs involved, and regard dependability and warranty as the most important factors. To find out what the cheapest hot water heater to buy in your area is, consider the following:

Upfront Costs for New Water Heater Installation and Replacement

We can provide you with a comprehensive estimate of the expenses involved in water heater installation and replacement. Our guide is designed to give you a clear idea of all the possible costs and what you can anticipate when purchasing a new water heater.

Type of Hot Water Heater

The price of a hot water system is heavily influenced by the type of unit you choose. Even when capacities are identical, traditional electric storage hot water systems are typically the most affordable option on the market. These systems have been widely used for decades and are often considered a budget-friendly choice for households.
Type of Hot Water Heater

Instant Hot Water Systems vs. Storage Tank Hot Water Systems

When comparing the upfront purchase costs of instant (tankless) hot water systems with storage tank hot water systems, there are notable differences. Storage tank systems, which maintain a reservoir of heated water ready for use, are generally more expensive than their instant counterparts.

On the other hand, instant hot water systems heat water on demand and do not require a tank, making them a cost-effective option for initial purchase. However, it’s important to consider long-term efficiency and operating costs, as instant systems often consume less energy over time, potentially offsetting their initial affordability advantage.

Hot Water Heater Capacity

As the capacity of the hot water heater increases, so does its price tag. You also have to be familiar with the following terms:
delivery truck

Delivery Capacity

Is the volume of hot water that your hot water service can provide given a specific period of time.
First Hour

First Hour Capacity

Is the volume of hot water that your hot water system can provide upon the first hour of consumption or usage
Storage Capacity

Storage Capacity

Is the maximum volume of hot water that a storage water heater can hold based on the hot water tank’s physical volume

Hot Water System Installation Costs

If you are replacing an old water heater with the same type and capacity, the hot water system installation costs are lower. It’s a different case altogether if you are switching from an electric hot water system to a solar hot water system or from a storage hot water system to an instant hot water system or vice versa. There are also considerable costs involved if you move your hot water system to another area in your home.

Disposal of the Old Hot Water System

For hot water system replacement jobs, plumbing companies charge for hot water system disposal. Depending on the state’s regulations, there is a proper way of disposing of the hot water system.

Hot Water Heater Fittings

There are many valves, copper tubings, and fittings that go into the installation of your hot water system. The most common valves are tempering valves, which mix and cold water at the right amount to ensure that there will be no scalding incidents. Pressure-limiting valves reduce the pressure going to your water heater. Finally, the duo valves isolate your water and stop backflow from your water heater back into your cold water pipes.

Rebates

There are rebates available when you purchase and install energy-efficient hot water systems such as solar water heaters and heat pump hot water systems. Both are eligible for small-scale technology certificates (STC). An STC is the measure of renewable energy which can be traded for cash or a discount on the purchase price of the system, according to the Australian Department of Industry, Science, Energy and Resources.

How much should a Hot Water System Purchase Cost?

Here is a tabulation of the cost of hot water systems per type that is dependent on size and warranty.

Hot Water System Purchase Cost

Operating Costs for New Water Heater Installation and Replacement

Here are the factors that could affect your hot water system’s operating costs:

Fuel Type

Two of the most commonly used water heaters in Australia are electric hot water systems and gas hot water systems.  It is true that gas water heaters may cause more in terms of upfront costs than electric hot water heaters. However, how much cheaper it is to run a water heater using natural gas or LPG rather than through electricity compensates for the price difference. On the other hand, solar hot water systems are still the cheapest to run considering that solar energy will always be free.

Energy Efficiency

The Energy Factor (EF) indicates a water heater’s overall energy efficiency based on the amount of hot water produced per unit of fuel consumed over a typical day. The bigger the energy star label, the more efficient the hot water is. Energy efficiency plays a big role when you are choosing between a 4-star gas hot water system versus a 5-star gas hot water system. The latter may cost more, but it uses less energy to produce the same amount of hot water as the 4-star unit.

Tariff

It is important to understand what types of energy tariffs you are paying for. According to Energy Australia, tariffs are the prices charged to customers for the use of energy.

Electrical Tariffs

If you have the time of use electric tariffs, you might want to run your hot water heater during off-peak hours that would charge you less for electricity use. However, if your home is using a single rate tariff, you get a flat rate no matter when you use electricity.

Gas Tariffs

There are two types of gas tariffs, seasonal and nonseasonal gas rates. We only use the nonseasonal tariff in Newcastle and Canberra, so your gas provider charges you with a flat rate no matter if it’s winter when there’s an influx of hot water usage or summer when usually only your dishwasher and washers use the hot water.

Estimated Monthly Operating Cost

Operating Costs for New Water Heater Installation and Replacement

First, you need to know the following information to get an estimate of your hot water operating costs:

  • Your Hot Water Heater’s Energy (E). For electric hot water systems, this comes in kilowatt (kW) and megajoules per hour (MJ/h).
  • The Delivery Capacity (C) of your hot water heater in Litres per hour.
  • Your average household hot water consumption in Litres (L) for a month.
  • The Average Energy Rates (R) in your state in AUD per kWh
  • Energy Efficiency Factor (EF)

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FREE Hot Water System Quote from Licensed Plumbers

If you are looking for a new hot water system for your new home or a replacement for an old hot water unit, the Plumbing and Electrical Doctor can provide you with a free quotation on the supply and installation of the most affordable hot water systems available in the Australian market.

For more information on Canberra Hot Water Systems installation and Newcastle Hot Water issues, reach out to us via our contact page or dial our hotline at 131091 to reach a friendly representative.

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