Make the repair or replacement decision
In short
Repair may make sense when an appropriately licensed professional identifies a fixable fault and the rest of the system remains serviceable. Compare replacement when the tank or other major parts have failed, faults keep returning, parts are unavailable or the system no longer meets your household’s needs. Age alone is not a diagnosis. Ask for a repair scope and an installed replacement quote, including running-cost assumptions, before deciding. There is no universal price or percentage rule that settles the choice.
Step 1
Deal with immediate risks before comparing prices
A photo or a description cannot establish whether a heater is safe to use. Keep away from suspected electrical faults, leaking hot water and steam. Arrange professional advice rather than opening covers, adjusting thermostats, testing valves or attempting a repair.
What to do first
| What you notice | First action |
|---|---|
| Gas smell | Keep people away, avoid flames and electrical switches, and contact the gas distributor’s emergency number from a safe location. For LPG, contact the supplier’s emergency service. |
| Fire or immediate danger | Move to safety and call 000. Do not approach the heater to investigate. |
| Water near electrical equipment, sparks or a suspected electrical fault | Keep clear of the equipment and affected water. Seek urgent help from a licensed electrician. |
| A leak, unusually hot water or steam | Keep people away from the affected area and seek prompt advice from an appropriately licensed professional. |
| No hot water, without an obvious hazard | Book a fault assessment and confirm the attendance and diagnosis charges. Tell the provider if anyone in the household has an urgent need for hot water. |
Step 2
Ask what has failed and what a repair would achieve
Ask the technician to identify the failed part, explain the evidence and describe the condition of the remaining system. A leak near a tank does not, by itself, prove that the tank needs replacing. Ask whether the fault is in the tank, a connection, a valve or another component.
Get the repair price, parts availability, likely downtime and written repair warranty. Ask about the risk of further faults and the limits of any remaining-life estimate. Where it is safe to wait, a second assessment can help with a substantial replacement recommendation.
Questions that change the decision
| Finding after inspection | What to compare |
|---|---|
| A replaceable part has failed; the rest is serviceable | Repair cost and warranty against replacement cost and any useful efficiency improvement. |
| The tank or a major assembly has failed | Whether a reliable repair is possible, its full cost and how it compares with an installed replacement. |
| Repeat faults or unavailable parts | Further repair uncertainty, parts lead time and the cost of restoring a dependable supply. |
| The system works but hot water runs out | Whether capacity, heating schedule or another issue explains the shortage before choosing a larger system. |
Step 3
Choose replacement options for your home
Ask the installer to assess household demand, available space, energy supply and local requirements. Tell them how many people use hot water, when showers overlap and whether you have a bath or expect demand to change. Request a model and capacity recommendation with an explanation.
For a heat pump, consider where the unit can sit without disturbing bedrooms or neighbours. Apartment and shared-property restrictions can limit placement. Ask about any electrical upgrades, permissions or other work needed for the proposed model.
System choices to discuss
| Option | What to check |
|---|---|
| Conventional electric storage | Purchase and installation cost, electricity tariff and when the tank heats. A cheaper unit may have higher running costs. |
| Heat pump | Uses heat from the air to heat water. Check climate suitability, airflow, noise, available space, controls and installation cost. |
| Solar hot water | Check roof suitability, available sun, tank location and the backup heater needed when solar heating is insufficient. |
| Gas storage or continuous flow | Continuous flow heats water as needed. Check gas availability, local installation rules, ventilation and the full energy bill. |
Step 4
Compare the installed price and running costs
Compare complete written quotes rather than the advertised unit price. The installed total can include removal, disposal, plumbing alterations, electrical work, a new location, temperature-control devices and required paperwork. The sources below explain system choices but do not supply a national repair or installation price.
Request annual energy-use and running-cost estimates for your household and climate. Ask which tariff, heating schedule and hot-water demand were assumed. If rooftop solar is part of the estimate, ask how heating times and lost payments for exported electricity were treated. Switching one gas appliance does not remove gas supply charges while the connection remains.
Check any proposed rebate or small-scale technology certificate discount against the current official rules for your location and model. Confirm eligibility, application timing, who claims the benefit and the amount you pay if the discount is unavailable.
Step 5
Send a useful brief and confirm the handover
Include your location, the symptoms and when they started, previous repairs, the model and approximate installation date if known, household demand and access restrictions. Add photos only if you can take them safely without touching the heater or approaching a hazard.
For example: “Our electric storage heater has stopped producing hot water. Four people use it, with three showers close together in the morning. Please assess the fault and quote for a repair if practical, plus a suitable replacement option. Include removal, electrical work, warranty terms and the expected time without hot water.” This is an example brief, not a diagnosis.
Check the provider’s relevant licence with your state or territory regulator and confirm who will carry out each part of the installation.
At handover, ask for the invoice, model details, warranty documents, required compliance records and operating and servicing instructions. Have the installer explain the temperature controls and safe operation; do not lower storage temperatures yourself to save energy.
Sources and useful links
Sources checked 6 October 2026
- energy.gov.au: hot-water systems
System types, purchase and running-cost trade-offs, tariffs, installers and possible incentives. General guidance, not a property assessment or job price.
- YourHome: renovations and additions
Hot-water replacement, electrification, heat-pump placement and apartment constraints.
- Energy Safe Victoria: gas emergencies
Gas-leak precautions and contacting the distributor or LPG supplier. Victorian distributor numbers apply only to their service areas.
- QBCC: home owner’s guide to plumbing matters, May 2025
Queensland hot-water servicing, temperature controls, installation requirements and licence endorsements.
- Queensland Health: Legionnaires’ disease prevention
Why storage and delivered-water temperatures have different safety requirements; thermostat adjustments require a licensed electrician.
- ACCC: warranties
Written warranties are additional to consumer guarantees. Entitlement to a particular remedy depends on the circumstances.
