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How much do Solar Hot Water Systems cost?

$2,500 - $8,000

    How Much Do Solar Hot Water Systems Cost?

    Australians can purchase solar hot water panels with the help of small-scale technology certificates (STCs). Many suppliers of hot water systems list prices based on the value of the system minus the cost of the small-scale tech certificate. Though estimates vary, a hot water system installation cost is typically from $2,300 to $8,600.

    Solar Hot Water System Costs in Australia

    City Average Reported Cost
    Sydney $4,400
    Melbourne $4,500
    Brisbane $4,000
    Canberra $5,900
    Perth $4,000
    Darwin $8,600
    Hobart $5,600
    Adelaide $5,000

    What is a Solar Hot Water System?

    A solar hot water system uses the sun’s energy to heat water for your house. Several types of solar heater systems are available. You can select your particular solar heater based on many variables, such as your household size, the characteristics of your roof and the available space on your property.

    Why Choose Solar Hot Water Systems?


    The government offers rebates to consumers to help offset the solar hot water cost. These rebates can save you hundreds of dollars off the purchase price.

    A More Environmentally Friendly Option

    Converting to a solar water system helps reduce pollution. If you are concerned about reducing your carbon footprint and decreasing our dependence on fossil fuels, consider switching to a solar heating system.

    Reduce Energy Bills

    For a typical Australian household, the water heating costs account for about 25% of the total household energy usage. When you switch to a solar system, you save money on your water heating expenses.

    Factors Impacting the Cost of Solar Hot Water Systems


    The rules vary by state in terms of what each household is available to receive in rebates. For instance, in Victoria, you may receive a rebate of $1,000 toward the purchase of a solar heater. However, under government law, to receive a refund, you must have a household income below $180,000 per year. You must also live in a home valued under $3 million. Several other stipulations apply. Check with your local government for more specifics.

    A More Environmentally Friendly Option

    Many families heat their water using fossil fuels, which releases tonnes of carbon into the earth’s atmosphere. If you switch to solar hot water, you can reduce your carbon emissions and environmental footprint.

    Most homes use energy from coal to heat their water. However, the byproducts of coal-burning pollute the air and cause many harmful effects on the environment. However, when you heat using solar hot water, you help improve air quality.

    Reduce Energy Bills

    Depending on the climate where you live and the model of your solar heater, the system can provide between 50% to 90% of your hot water. Most solar hot water systems pay for themselves within five years. A majority of these systems are designed to last for several decades, which is a good value for the Solahart hot water system price.

    Types of Solar Hot Water Systems

    Evacuated tube collectors are one popular type of solar heaters. They work by collecting sunlight via glass tubes with a vacuum seal. Many experts consider these types of systems to be the most effective, but they generally cost more money. Evacuated tube solar hot water prices will differ depending on the size. On average, expect to pay between $3,000 and $7,000.

    The flat-plate collector system has a panel–like surface area that catches the sunrays and transfers heat to a water tank. An attractive quality of the flat-plate collector is that it tends to be the most affordable system. However, the system is not always effective in cold weather. Flat-plate systems come in two varieties. The first is the roof-mounted system, in which the system is mounted to your rooftop. The other option is a tank that must be placed on the ground.

    The heat pump is another type of system. This system heats water by drawing the sun’s heat from the air. However, the heat pump does rely slightly on electricity to pump the air.

    Price Estimates for Different Types of Solar Hot Water Systems

    Heat Pumps

    These are usually the most affordable and cost between $3,000 and $4,000.

    Flat Plate Collectors

    Prices range from $3,000 to about $4,500. Keep in mind that ground-mounted panels usually cost more than roof-mounted systems. The ground-mounted option is more expensive because ground systems require additional time, materials and labour, which raises the solar hot water system price.

    Evacuated Tube Collectors

    These are generally the most expensive solar systems as they can absorb high temperatures. Prices typically start at about $6,000.

    Housing Uses

    The installation of solar panels can provide a home with the opportunity to have running hot water for a variety of uses. While a solar hot water installation cost may seem excessive, it is more beneficial in the long-term. Here are some uses for a solar hot water system:

    • Pool – Water is pumped from the pool to a solar tube collector located on the roof. From here the water is heated using the sun’s energy and transferred back into the pool.
    • Spa – A spa or spa pool will also utilise a solar hot water system. It works in the exact same way as a pool but takes less time to heat and is less prone to heat loss given its smaller size.
    • Shower – When operating hot water for a shower, the water is generally collected from an insulated tank. This water has been accessed via solar panels mounted on the roof which have used solar energy to heat the water.
    • Bath – Accessing hot water for a bathtub is carried out in the same way as it would for a shower. It’s important to note that taking baths and showers can make up about 65% of your hot water usage.

    Hot Water System Comparison

    It is important to analyse a range of hot water systems. You can note where a solar hot water systems comparison is in relation to other hot water systems.

    Gas Hot Water System:

    A gas hot water system uses natural or liquefied petroleum gas to power a burner that heats water on the inside of the tank.

    Estimated Installation Cost Costs Per Year
    $230 – $750 $200 – $500

    Electric Hot Water System:

    An electric hot water system uses a mechanism similar to a gas hot water system to heat water at the bottom of the tank.

    Estimated Installation Cost Costs Per Year
    $250 – $800 $700 – $1,000

    Solar Hot Water System:

    A solar hot water system uses the sun’s energy to heat water in a tank generally located on the roof. The water is then released from the tank when hot water is needed. It’s important to note the government rebates that are on offer also.

    Estimated Installation Cost Costs Per Year
    $2,500 – $7,500 $60 – $280


    How to Hire a Solar Hot Water System Installer

    If you’ve made the decision to have a solar hot water system installed, it’s time to decide who will install your system. When asking for quotes, remember to ask your installer:

    1. The rebate system and the incurred total costs.
    2. The length of time required for the installation.
    3. The installer’s required licensing (read below for more information within your state). 


    How to Create an Accurate Estimate

    1. Ask if the installation is included in the quote.
    2. Ask if the installer can help you claim rebates or STCs.
    3. Ask if your existing water tank can be included in the new system.


    Licensing and Qualifications

    Now that you’ve got information about rebates, let’s look at how to choose the right solar system installer in your state. Please check up-to-date information in your city, before finalising a decision on hiring an installer.

    State/Territory Licencing and Regulations
    New South Wales The heating system must be installed by a licenced plumber and if gas is involved, installed by a licenced plumber or gasfitter
    Victoria Registered with the Victorian Building Authority and have a compliance certificate for jobs valued over $750
    Queensland Hold Drainer, Plumber or Restricted Licence and be an accredited supplier to use STCs
    South Australia Contractor’s Licence and Worker’s Licence and the installer must carry photo ID for the validity of their card and class of work
    Western Australia Tradesperson (only work under the supervision of a Plumber) or Plumbing Contractor Licence in Water Supply, Drainage or Sanitary
    Tasmania REW Water Heater Licence and be part of the Clean Energy Regulator and Department of Justice if you are installing an energy-saving gas or electric boosting solar system
    Northern Territory Tradesperson Licence and plumbing must be carried out by a Journeyman Plumber or Advanced Tradesman


    How to Save Money Hiring a Solar Installer

    1. Shop around and get multiple quotes from different installers online.
    2. Ask about rebates and STCs to understand if they have knowledge in the solar energy system industry

    Frequently Asked Questions

    How Much Do I Save Changing to a Solar Hot Water System?

    The time-lapse for the solar system to pay itself off is based on electricity bill savings, and this period is called the payback period. The period varies depending on what sort of system you purchase, where you live, and how expensive utilities are in your state.

    Solar hot water prices for an installation could vary depending on whether you install a battery to store energy. Batteries can cost double the amount of system installation. Keep in mind, though, that most systems are designed to last about twenty-five years. Purchasing battery storage could mean that you pay back the price of your solar heater in about ten years. However, it is overall worth it to buy batteries because they provide energy during blackouts.

    Here’s a scenario. If an Australian household spends $800 annually on hot water and purchases a solar appliance that replaces 50% of the energy used to heat water, then the household saves about $400 yearly.


    How Hot Is Solar Hot Water?

    Hot water produced from a solar heater is as hot as what you’d receive from an electric or gas heater. For instance, the international standard for hot water is 60°C. The thermostats for most solar-powered heaters are set to that standard.

    When the water temperature falls below 60°C, a booster is triggered to elevate temperatures back to acceptable levels. Overall, solar heaters can produce water heated up to 90°C.


    Does Solar Hot Water Work in Winter?

    Yes, solar hot water systems work even in climates with little sunlight. Your system will have a booster that stores sunlight so that on days with low sun, so you will still have hot water.

    However, if it is cloudy for too long, the effectiveness of your heater may work to a lesser degree. For this reason, many solar heating systems also come with a gas-assisted or electricity-assisted component. This way, if your access to full sunlight diminishes for very long, the backup gas or electric system kicks in to heat your water.

    If you live in a climate with heavy snows, you may have to learn how to clean off your solar panel. However, most panels are designed so that snow slides off of them.

    How much does a 250-litre solar hot water system cost?

    A 250 litre solar hot water system price will vary greatly depending on the brand you choose and the installation of the tank and solar panels. Expect to pay between $750 and $1,200 for the tank alone, without the installation of solar panels. The installation of solar panels will set you back between $1,500 and $6,000.


    * The cost data is based on Oneflare and third-party sources


    Real Oneflare Customer Quotes

    Len's Solar Water Job

    Location PinEast Brisbane, QLD
    Job type

    New hot water system


    Current hot water system leaking

    New solar water system type


    $1275inc. gst

    Quoted by Zr Plumbing Pty Ltd

    Greg's Solar Water Job

    Location PinBrisbane, QLD

    Major leak from water system

    Job type

    Repair or replace solar water system



    $4300inc. gst

    Quoted by Jr Gas & Water

    Lorna's Solar Water Job

    Location PinSouth East Perth, WA

    Tap dripping water

    Job type

    Fix leak and replace release valve


    5 years

    $250inc. gst

    Quoted by Gooseberry Hill Plumbing And Gas