Hot water changeover cost: rebates, brand-by-brand pricing & 10-year ownership cost

Replacing a hot water unit is one of the more confusing decisions in a home — there are five fuel types, ten major brands, and a maze of state and federal rebates that change every quarter. Get it right and you can cut your hot water bill by 60–80%. Get it wrong and you're stuck with a $2,500 mistake for the next decade.

Here's the 2026 Melbourne reality: real installed prices, current rebate amounts, and 10-year cost of ownership for the systems we install most.

The five hot water options in 2026

Heat-pump (electric). Highest upfront, lowest running cost. Eligible for biggest rebate.

Solar with electric or gas boost. Excellent if your roof orientation is good. Higher install cost.

Continuous flow gas. Endless hot water, no tank. Good for renovations.

Storage gas. Reliable workhorse. Phasing out in new builds.

Storage electric (resistive). Cheapest install. Most expensive to run. Avoid unless you have huge solar export.

Installed prices — what you actually pay

System type	Typical installed	After rebates
Heat-pump (250–280L)	$4,200 – $5,800	$1,800 – $3,200
Continuous flow gas (26L/min)	$2,200 – $3,200	n/a
Storage gas (170L)	$2,400 – $3,400	n/a
Storage electric (315L)	$1,650 – $2,400	n/a
Solar + electric boost (300L)	$5,500 – $7,800	$3,200 – $5,200
Solar + gas boost (300L)	$5,200 – $7,200	$3,500 – $5,500

Current Victorian & federal rebates (mid-2026)

VEU heat-pump rebate. $700–$1,650 off heat-pump installs replacing electric or gas. Applied at point of sale by approved installers (we are).

STC certificates (federal). Apply to solar and heat-pump. Worth $400–$2,800 depending on system size and zone.

Solar Victoria rebate. Up to $1,000 off heat-pump for eligible owner-occupiers. Stacking rules change — check current eligibility.

We register and apply every applicable rebate at the quote stage so the price you see is the price you pay.

10-year cost of ownership (typical 4-person household)

System	Year 1 cost	10-yr running + replace
Heat-pump	$1,800 – $3,200	$3,200 – $4,800
Continuous flow gas	$2,400 – $3,400	$8,500 – $11,500
Storage gas	$2,600 – $3,600	$9,500 – $12,500
Storage electric	$1,800 – $2,500	$14,500 – $18,500
Solar + electric boost	$3,200 – $5,200	$3,800 – $5,800

Same-day vs scheduled installs

Cold shower this morning? We carry the most common like-for-like replacements (Rinnai, Rheem, Dux) on the truck for same-day swap-outs at standard pricing. Heat-pumps and solar are scheduled — typically 5–10 business days from quote acceptance.

Frequently asked

Q. Can I just replace gas with gas like-for-like?

Yes — and sometimes that's the right call (existing flue, no electrical capacity). But always model heat-pump payback first. The numbers usually win.

Q. Do I need a sparkie for a heat-pump?

Usually yes — a dedicated 15A or 20A circuit is required. We coordinate the electrician as part of the install.

Q. How long does a heat-pump install take?

Half a day for a like-for-like position, full day if relocating. Same-day commissioning.

J.O. PLUMBING · CONTENT LIBRARY

CALL TO ACTION

Hot water unit on the way out? Send us a photo of the existing nameplate on 0411 234 567 and we'll return a same-day quote with every rebate applied. Call now to lock in same-week install.

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