Check your rebate eligibility
A solar hot water system costs $3,000 to $7,200 installed before rebates, depending on the type (flat plate, evacuated tube, or heat pump) and tank size (160L to 400L). After federal STC rebates of $600 to $1,000, most households pay $2,000 to $6,000. Running costs sit between $100 and $300 per year, saving $500 to $900 annually compared to a standard electric system.
Check Your Rebate Eligibility
Enter your postcode to check rebate eligibility in your area.
Over 3.6 million homes already claiming rebates
Solar Hot Water Prices by Type and Tank Size
Prices below are fully installed estimates including GST. The three main system types each suit different roof layouts and climates.
| Tank Size | Flat Plate | Evacuated Tube | Heat Pump |
|---|---|---|---|
| 160L (1–2 people) | $3,000–$4,000 | $3,500–$4,500 | $3,000–$4,200 |
| 250L (2–3 people) | $3,800–$5,000 | $4,200–$5,500 | $3,500–$4,800 |
| 300L (3–4 people) | $4,200–$5,500 | $4,800–$6,200 | $3,800–$5,200 |
| 400L (5+ people) | $5,000–$6,500 | $5,500–$7,200 | $4,500–$6,000 |
Prices include standard installation. Actual costs vary by location, roof type, and plumber rates.
What Affects Solar Hot Water Cost?
The price you are quoted can vary by $1,000 or more depending on several factors. Here is what drives the final number.
System Type
Flat plate collectors are the most affordable. Evacuated tube systems cost 15–25% more but perform better in cooler climates. Heat pumps sit in a similar range but do not require roof-mounted collectors.
Tank Size
Bigger tanks cost more. A 160L system suits a couple, while families of four or more typically need 300L or larger. Oversizing by one step is common to cover peak demand days.
Roof Mount vs Split System
Close-coupled (tank on roof) systems are cheaper to install because they use thermosiphon flow with no pump. Split systems with ground-level tanks add $500 to $1,000 for the circulation pump and extra plumbing.
Boosting Method
Most solar hot water systems include an electric or gas booster for cloudy stretches. Gas-boosted models cost $300 to $600 more than electric-boosted equivalents, and require a gas connection.
Plumber and Location
Labour rates vary between cities and regional areas. Metropolitan installs tend to be slightly cheaper due to competition. If your existing hot water system is in a difficult location (tight roof access, long pipe runs), expect to add $300 to $800 to the base price.
Brand Pricing Guide
Prices vary significantly between brands. Here is where the most common names sit in the market.
| Brand | Type | Price Range (Installed) | Positioning |
|---|---|---|---|
| Solahart | Flat plate / Split | $5,000–$8,000 | Premium. Australia's best-known brand with national service network. |
| Rinnai | Flat plate / Evacuated tube | $3,500–$5,500 | Mid-range. Strong warranty, widely available. |
| Chromagen | Flat plate / Evacuated tube | $3,000–$5,000 | Budget to mid. Good value, Israeli-designed. |
| Stiebel Eltron | Heat pump | $3,500–$5,500 | Premium heat pump. German engineered, quiet operation. |
| Reclaim Energy | Heat pump | $3,800–$5,500 | Australian-made heat pump. CO2 refrigerant, strong reviews. |
Prices are indicative for a 250–300L system. Solahart pricing includes their installation service.
See How Much You'd Save
Enter your postcode to see your estimated rebate amount.
Over 3.6 million homes already claiming rebates
Rebates That Reduce Your Cost
Government incentives bring the out-of-pocket cost down significantly. The main ones to know about are listed below.
Federal STCs (All States)
Small-scale Technology Certificates are the primary rebate for solar hot water. Your installer claims them on your behalf and passes the value on as an upfront discount of $600 to $1,000, depending on your climate zone and system type. The discount is applied at the point of sale, so you never need to process paperwork yourself.
Learn more about federal rebates →Victoria: $1,000 VEU Rebate
The Victorian Energy Upgrades program provides an additional $1,000 when replacing an old electric or gas system with a solar or heat pump alternative. This stacks on top of federal STCs, meaning Victorian households can save $1,600 to $2,000 in total.
View Victorian rebate details →ACT: Interest-Free Loan
The ACT Government offers interest-free loans of up to $15,000 for energy-efficient upgrades including solar hot water. Repayments are made through your rates over up to 10 years, making it easier to cover the upfront cost without dipping into savings.
Running Cost: Solar vs Electric Hot Water
The real value of solar hot water shows up on your energy bills. Here is how annual running costs compare for a typical household of three to four people.
| System Type | Annual Running Cost | Annual Saving vs Electric |
|---|---|---|
| Electric storage (off-peak) | $500–$700 | Baseline |
| Electric storage (anytime tariff) | $800–$1,200 | Baseline |
| Gas storage | $400–$600 | $200–$600 |
| Solar hot water (flat plate/tube) | $100–$300 | $500–$900 |
| Heat pump hot water | $150–$300 | $500–$900 |
Based on average electricity rates of 30–35c/kWh and gas rates of 3–4c/MJ. Actual costs depend on your tariff, usage patterns, and climate.
Over 10 years, switching from electric storage to solar hot water saves approximately $5,000 to $9,000 in running costs. Combined with the upfront rebate, many systems effectively pay for themselves within 4 to 7 years.
Payback Period
The payback period depends on what system you are replacing and how much sun your area gets. Replacing an anytime-tariff electric system in Brisbane or Perth gives the fastest return, often under four years. In Melbourne or Hobart, where winter sun is weaker and the booster kicks in more often, expect five to seven years.
If you are replacing a gas system, the payback stretches to six to eight years because gas running costs are already lower than electric. That said, with gas prices rising steadily, the economics of switching to solar are improving each year.
The next step
If you have any questions about the information in this guide, feel free to get in touch:
Email: andy@whysolar.com.au
Tel: +61 433 405 530
If you're considering solar panels or batteries for your home, Andy and the team can help you get quotes from trusted, pre-vetted local installers:
Written by
Andy McMasterSolar Installer Partner Relations
Connects homeowners with trusted, vetted solar installers across Australia. Andy works directly with installation companies to ensure quality standards and helps homeowners navigate the quoting process.
Learn more about Andy McMaster