What’s the Cost of an Instant Hot Water System?

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    Published on 16 Apr 2025
    Written by vitaladmin

    At Fix N Flow, we’re all about making the complicated world of plumbing and hot water systems easy to understand. If you’re upgrading your current system or installing a brand-new one, it’s important to know what to expect in terms of costs. After all, systems for instant hot water in Sydney can vary significantly in price depending on several factors, which will be discussed in this blog.

    Let’s break down everything you need to know about instant hot water system costs and give you a clearer idea of what to expect for your budget. We’ll dive into the prices and more to ensure you’re fully informed when it’s time to make that purchase.

    How Does an Instant Hot Water System Work?

    An instantaneous hot water system (often referred to as a continuous flow hot water system) heats water on demand. Unlike traditional systems that store hot water in a tank, instant systems only heat the water when you need it. This makes them an energy-efficient option as they don’t waste energy keeping a large tank of water hot 24/7. So, when you turn on the tap, the system kicks in, and voilà, hot water flows within seconds.

    But, what does this all cost? Well, that depends on several factors, so let’s break them down to give you a complete picture of your options.

    Factors that Affect Instant Hot Water System Cost

    When looking at prices for both instantaneous gas and electric hot water systems, there are a few other factors to keep in mind that can affect the overall cost:

    • Size & Flow Rate: The flow rate (litres per minute) indicates how much hot water the system can provide per minute. Larger homes or high-demand households require a system with a higher flow rate, which will increase the price.
    • Energy Efficiency: Both gas and electric systems come with varying levels of energy efficiency. Generally speaking, gas hot water systems tend to be more energy-efficient than electric ones, but newer electric models have improved in this regard. Energy-efficient systems come with a higher upfront price but can save you money in the long run by lowering your utility bills.
    • Brand Reputation & Warranty: Premium brands come at a higher price, but they offer better warranties, customer support, and overall system longevity.
    • Installation Location: The complexity of installation will impact the final price. For example, if you need extra plumbing work, an upgraded power supply, or a gas line installed, your installation cost will be higher.

    The Cost of Instant Hot Water Systems

    Instant Gas Hot Water System Prices

    On average, you can expect to pay anywhere between $850 and $1,800 for a gas instantaneous hot water system.

    In addition to the initial cost of the unit, you’ll also need to consider installation costs, which can vary. Installation costs for instantaneous gas hot water systems range between $1,000 and $1,575.

    One of the biggest perks of gas systems is that they provide continuous hot water, meaning you’ll never run out as long as the system’s connected to a gas supply. They’re a solid choice for larger homes or families with high hot water usage.

    Instant Electric Hot Water System Prices

    When it comes to pricing, instant electric hot water systems tend to be more affordable than gas-powered units. The range of instantaneous electric hot water system prices is $450 to $1,400.

    Installing an instant electric hot water system can cost between $1,200 and $1,600. While the installation is generally simpler than gas systems, electric units may require electrical upgrades, such as a new panel or dedicated circuits, to handle higher power needs, especially for larger systems. This adds to the installation cost.

    Though gas systems require venting and gas line work, electric systems may involve more complex electrical work. Hiring a qualified professional is essential to ensure proper installation.

    Electric systems tend to have lower upfront costs, but they might not be as energy-efficient in the long term, especially if you use a lot of hot water.

    Comparison of Instant Hot Water System Prices

    Let’s put the numbers together to compare costs:

    System TypePrice Range (Unit)Installation CostTotal Estimated Cost (Unit + Installation)
    Instant Gas Hot Water System$850 – $1,800$1,000 – $1,575$1,850 – $3,375
    Instant Electric Hot Water System$450 – $1,400$1,200 – $1,600$1,650 – $3,000

    As you can see, gas systems tend to be a bit more expensive overall, but they are the better choice for larger homes or those with high water usage.

    Things to Keep in Mind for Selecting a Hot Water System

    • Energy Source Availability: Gas-powered systems require a steady gas supply, making electric systems a suitable alternative for homes without gas connections.
    • Maintenance Costs: All hot water systems require periodic maintenance to keep them running efficiently. Gas systems require regular servicing to ensure components like the burner and gas lines perform optimally.
    • Rebates & Government Incentives: In some areas, you may be eligible for rebates or incentives when installing an energy-efficient system. Be sure to check with your local council or energy provider for any available support.

    Conclusion: Which System Is Right for You?

    Choosing between a gas or electric instantaneous hot water system depends largely on your home, budget, and hot water needs.

    While the upfront cost of an instant hot water system is higher, the investment is well worth it if you’re looking for an efficient, on-demand solution for hot water. Choose wisely based on your household’s needs, and make sure to consider both installation costs and long-term savings.

    If you’re still unsure about which system is best for you, don’t hesitate to contact our experts at Fix N Flow. We’re here to help you make the right choice for your home and your wallet. Call us at 1300 319 275 or submit our online form for a consultation. We’ll guide you through the process and ensure you make the best decision!

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