Gas Hot Water System Replacement in Oxley, QLD
If your gas hot water system in Oxley has failed or is close to it, you have two real choices: replace it like for like, or switch to a heat pump. A new gas storage system typically costs $1,200 - $3,500 installed and a continuous flow unit $1,500 - $3,000 (national ranges, 2026), with no rebate. A heat pump typically costs $2,300 - $4,400 installed in Oxley after rebates and runs for about $200 - $400 a year against $800 - $1,200 for gas. Compare both before you replace.
Cost Comparison
| Cost Factor | Gas Hot Water | Heat Pump |
|---|---|---|
| Annual running cost | $800 - $1,200/yr | $200 - $400/yr |
| Annual savings | - | $400 - $800/yr |
| Gas supply charges saved | - | $300 - $500/yr |
| Installed cost | $1,200 - $3,500 (no rebate) | $2,300 - $4,400 after rebates |
| Estimated payback period | - | 3 - 5 years |
Like for like prices are national installed ranges from Tempco Energy 2026 installation cost guide and What's The Damage hot water cost index (September 2026), checked September 2026. Heat pump: PumpSwap's modelled pricing for Oxley. Running costs are typical household figures; yours depend on tariff and usage.
Worked example for Oxley: a mid-range heat pump quoted at about $4,600 installed comes to about $3,400 once federal STCs are taken off, for households that qualify. Climate zone 3 sets the STC count, so your own quote will differ.
Save Even More by Disconnecting Gas
If hot water is your only gas appliance, switching to a heat pump lets you disconnect gas entirely and eliminate the $300-$500/year gas supply charge. Combined with the running cost savings, total annual savings can reach $700-$1,300. With 22% of Oxley homes on gas, you are not alone in making the switch to all-electric.
How to Switch from Gas Hot Water to Heat Pump in Oxley
Get a site assessment
A licensed installer visits your Oxley home to assess your current gas hot water setup, available space for the heat pump unit, and electrical capacity.
Choose your heat pump system
Select the right heat pump size and brand based on your household size, hot water usage, and budget. Your installer will recommend the best options.
Installation and gas disconnection
Your old gas unit is removed and the heat pump is installed. The gas supply to the hot water can be disconnected, eliminating ongoing gas supply charges.
Claim rebates and start saving
Your installer handles STC paperwork as a point-of-sale discount. State rebates are applied or claimed separately. You start saving from day one.
Rebates Available in Oxley, QLD
The same rebates apply whether you are replacing a gas system or any other type. All heat pump installations in Queensland qualify for these incentives.
Small-scale Technology Certificates (STCs)
Applied as a point-of-sale discount by your installer. Value varies by system type and climate zone.
What happens to my old gas hot water system?
Your installer will remove and dispose of the old gas unit as part of the installation. If the gas connection was only used for hot water, you can have the gas supply disconnected entirely, saving $300-$500/year in gas supply charges. If you still use gas for cooking or heating, you can keep the connection but your gas bills will still drop significantly.
Replacing a Different System?
What are you replacing?
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