An old hot water system leaves the house in one of three ways: the installer takes it away, the council takes it or a scrap yard buys it. Which is best depends on the type, who is replacing it and how much trouble you will go to for a small return. This guide covers the options we could find in Australia, what a yard looks at and what we could not confirm. It is the practical companion to our guide on how much scrap metal is in a water heater, which explains the metal. We give no prices. ScrapTrade runs a scrap marketplace and has a commercial interest in the scrap trade.
The three usual routes
- The installer or plumber takes it. The ACT government's recycling guide says that if you are replacing your system you can ask the installer to remove and dispose of the old one, and another source says a plumber replacing a unit may haul it off. Ask when you get the quote, and ask whether the price includes it.
- A council site or hard waste collection. One NSW council says hot water units can be dropped at a resource recovery centre for a fee and are handled as scrap metal. In Victoria, Kingston council says to book a hard waste collection. Councils differ, so check yours.
- A scrap yard or metal recycler. The ACT guide notes that hot water systems contain metals that can be recovered into new products, and yards accept them. The tank must be fully drained first.
A scrap removal service on Airtasker is a fourth option, with listings we saw quoting roughly A$50 to A$100 for a hot water heater, which are individual listings and not a price guide.
What is inside
In our reading a storage system is mainly a steel tank with an element or burner, which we did not source. One source says nearly all older water heaters have a copper coil inside, and that some people strip it out to get a higher price. We could not verify that, and our guide to how much scrap metal is in a water heater goes through what is typically inside. We found no figure for what a yard pays for a whole unit or for the coil.
Preparing it
- Drain it. The ACT guide says the tank must be fully drained before it is handed in. Confirm how to isolate it and drain it safely with your plumber.
- Have the utilities disconnected by a licensed person. We found no source on licensing for plumbing or gas disconnection, so ask your plumber, and do not disconnect gas or electrical connections yourself.
- Remove what the yard asks you to remove. Some yards want the copper separate, and some prefer the whole unit.
- Get a quote. Ask two or three yards what they pay for a whole unit and for copper, and whether they charge to take it.
Heat pump and solar systems
A heat pump hot water system holds refrigerant, and one source we found discusses how to dispose of them properly, though we did not read it, so treat heat pumps as a refrigerant job and ask a licensed technician. Our guide to air conditioner disposal and refrigerant rules sets out the licensing for air conditioners, and we did not confirm the same rules apply to heat pump water heaters. We also found nothing specific on solar hot water collectors.
Can a used system be sold?
A working system removed in good condition may have a buyer, and a working heat pump or solar unit more so. But we found no source on resale: nothing on warranties, nothing on who installs a second-hand unit and nothing on rules. The buyer is also buying an installation, which we assume needs a licensed tradesperson and did not verify, as with a used air conditioner. Treat a resale as a bonus if someone asks, and scrap the tank if not.
Where ScrapTrade fits
One tank is not a marketplace job, and the installer or council is easier. ScrapTrade may suit a plumbing business, a building contractor or a demolition crew with several tanks, copper coils or mixed metal to sell. Listing is free with no commission, you negotiate live and an accepted bid places the buyer's 5 percent deposit in escrow. Businesses and individuals can sell after verification, and traders in more than 50 countries bid. We could not confirm that whole hot water systems can be listed, so email cs@scraptrade.com.au first.
For recovery percentages and whether to strip cable, see Scrap Copper Cable: Strip It or Sell Whole.
For copper tube grades and preparing plumbing offcuts, see Scrap Copper Pipe: Grades and How to Sell It.
What we could not verify
- What a yard pays for a whole system or the coil.
- Licensing for disconnecting gas or electrical connections.
- Rules and refrigerant handling for heat pump and solar systems.
- Resale rules and warranties.
- Whether ScrapTrade lists whole systems.
Frequently asked questions
Can I scrap an old hot water system?
Yes. Yards and metal recyclers accept them, and the tank must be fully drained first.
Will the plumber take the old one away?
Often, according to the ACT guide, if you are replacing it. Ask when you get the quote.
Is the copper coil worth removing?
One source says some people strip it for a higher price. We could not verify it, so ask the yard.
What about a heat pump system?
It contains refrigerant, so use a licensed technician. We did not confirm the rules.
Can I list a hot water system on ScrapTrade?
Verified sellers can list scrap. We could not confirm whole systems, so ask support.
Sources
- Ubersuggest keyword data, Australia, queried November 2026.
- ACT City Services recyclopaedia and NSW and Kingston council pages on hot water systems, as summarised in search results.
- Airtasker scrap removal listings and scrap-preparation guides, as summarised in search results.
- ScrapTrade website, accessed November 2026.
General information only, not plumbing or legal advice. Rules differ by state and council.