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Hot Water System Cost Comparison — Melbourne Pricing Guide
A clear, side-by-side look at what each hot water type costs to install and run, where rebates apply, and which configuration suits your home. Relative pricing only — get a quote for exact figures.
- Install vs running cost, compared
- Where VEU & STC rebates apply
- Fixed, upfront quotes — always
- Free, no-obligation pricing
System Comparison at a Glance
$Low
$$Moderate
$$$High
$$$$Very High
Relative pricing only — get a quote for exact figures.
| Gas | Electric | Solar | Heat Pump | |
|---|---|---|---|---|
| Install cost | $$ | $ | $$$$ | $$$ |
| Running cost | $$ | $$$ | ~$0 | $ |
| Best for | Reliable all-rounder, cold climates | Low upfront budget, no gas line | Long-term savings, eco-friendly | Energy efficiency, mild climates |
| Heats fast | Yes | Slower | Varies | Moderate |
| Works in outage | Yes | No | Partial | No |
| Rebates (VEU/STC) | No | No | Yes | Yes |
| Eco rating | ★★ | ★★ | ★★★★ | ★★★★ |
The Quick Verdict
Cheapest to Install
Electric Storage
Cheapest to Run
Solar Hot Water
Best All-Rounder
Heat Pump
Configuration Types at a Glance
Storage Tank
Heats and stores a set volume. Lower upfront cost, needs more space, and can run out under heavy use.
Continuous Flow
Heats on demand — no tank. Compact, energy-efficient and never runs out. Higher install cost.
Heat Pump (Split)
Extracts heat from the air; pump and tank can be separate (quieter). Highest efficiency, VEU/STC eligible.
Cut Your Running Costs
Simple ways to spend less on hot water, whichever system you have.
Upgrade to an energy-efficient system
Fix leaking taps and pipes promptly
Install a low-flow showerhead
Wash clothes in cold water where possible
Schedule regular maintenance to extend lifespan
Claim VEU / STC rebates on heat pump & solar installs
