Have you ever wondered, how much does it cost to replace a water heater? If so, you are in the right place.
Average Cost for Water Heater Installation
The average cost to replace a traditional water heater is $820. This includes the cost of a new unit, but labor is typically extra. If you choose a tankless water heater, the installation will start at around $1,200. The labor for installing a water heater ranges from just $40 up to $200 per hour for a professional plumber to handle the job and the installation process usually lasts from one hour up to three hours.
Water Heater Cost by Size
Here you can find a list of the average cost of a water heater based on the size of the tank here.
- 30-gallon tanks cost between $270 and $1,000 (labor not included)
- 40-gallon tanks cost between $300 and $1,600 (labor not included)
- 50-gallon tanks cost between $400 and $2,500 (labor not included)
- 75-gallon tanks cost between $900 and $3,200 (labor not included)
- 80-gallon tanks cost between $1,000 and $3,200 (labor not included)
The cost will also vary based on the type of tank you choose. The cost of tank vs. tankless water heaters varies significantly.
Compare Water Heater Installation Cost
| Type of Water Heater | Average Cost to Install | Average Cost Per Year | Total Expected Lifespan | Expected Efficiency Factor |
| Tank Style Unit | $820 to $1,290 | $250 | Eight to 12 years | Up to .60% |
| Tankless Unit | $1,200 to $3,500 | $175 | 15 to 20 years | Up to .95% |
| Gas Unit | $500 + venting | $250 | Eight to 12 years | Up to .60% |
| Electric Unit | $700 + venting | $500 | Eight to 12 years | Up to .95% |
| Solar Unit | $2,000 to $3,000 | $175 | 20 years | Up to 1.1% |
| Indirect Unit | $1,500 | $355 | 15 to 20 years | Up to .90% |
| Hybrid Heat Pump | $1,200to $3,500 | $250 | Eight to 12 years | Up to 2.0% |
Tank vs. Tankless Water Heater Costs
It’s important to note that traditional tank tankless units are popular options and offer both pros and cons.
Tank Water Heaters
A traditional water heater with a storage tank is a popular option for some homeowners. It holds and heats water constantly. Usually, these units are installed in a location that is not accessed much, such as a utility closet, garage, or basement. The tank is heated using either natural gas or electricity.
Water heaters with storage tanks are easier and faster to install than tankless units. They require just a few hours labor (in most situations).
While this is usually the more cost effective option, tank-style water heaters aren’t as energy efficient because they are constantly running to maintain the needed tank temperature. Because of this, the tanks usually result in higher utility costs and a shorter lifespan.
Tankless Water Heaters
Another popular option is tankless water heaters. These work by heating up the water on demand by using electricity or a gas burner. These usually have better energy savings than traditional tank units. What this means is that it will help you save money.
Like hot water storage tanks, tankless units can be installed in utility closets or a basement. These are smaller than tank units and can be mounted on your bedroom or bathroom wall.
Tankless units cost more than traditional storage tank units due to the installation being more labor intensive. Also, it’s usually required that new water and gas lines be installed.
If you choose an electric tankless unit, then new wiring must be installed. While the installation of tankless units is more expensive than traditional tank units, they are more efficient and don’t require as much energy.
Gas vs. Electric Water Heater Costs
You can choose either gas or electric tank or tankless water heaters. Each option offers you unique benefits and disadvantages.
If you plan to purchase one of these units, you must also decide if you want direct venting or power venting. With direct venting, combustion air is brought from outside and it exhausts outside of your home. This option will add between $500 and $1,000 to the cost of your unit. With power venting, a fan is used to push exhaust air from your home. You can expect to pay $300 to $600 extra for this option.
Electric Water Heaters
Electric tanks are less expensive to buy and install than gas tanks. Most residential 50-gallon tanks cost around $500. The total cost for monthly operation is higher than gas units. Electricity is typically viewed as safer than gas and there is a reduced risk of combustion or leaks.
The biggest downside to an eco-friendly electric heater is if your electricity goes out, so does the hot water.
Gas Water Heaters
You can purchase a gas unit for around $700 with a 50-gallon tank, which makes it slightly more expensive than electric units. However, the total operational cost for these heaters is much less than for electric units. The biggest disadvantage of gas units is the harm they can do to the environment via carbon dioxide emissions.
Energy-Efficient Costs for Water Heaters with Storage Tanks
Are you searching for an eco-friendlier unit? If so, there are a few energy-efficient options to choose from.
Solar Water Tank Heaters
This unit heats the water by harnessing the power of the sun. They are made of a storage tank that holds the water and then heat is generated using solar collectors. Usually, these units rely on a traditional water tank in case of an emergency.
There are two types of solar water tanks – active and passive. Active systems use pumps to supply homes with water and passive systems use natural convection for circulating water through your home. You will pay around $2,000 for passive systems and $3,000 for active systems. The increased cost is attributed to the additional labor that is required.
Indirect Water Heaters
This type of unit uses energy from your existing boiler or furnace to heat the water that is being stored inside the tank. This process is done by circulating water out of the boiler and into the coils of the tank, which heats the water inside. The system is extremely energy efficient and utilizes heat that is created by a furnace or boiler. While the monthly cost of these units is low, the initial cost is higher than the other options.
Hybrid Heat Pump Water Heaters
This type of water heater is extremely efficient that you can choose. While this is true, these also come at a higher price point. This type of unit will use heat out of the air around it to create hot water through a compressor and coils. These units are also bigger than others and are not a good option for smaller homes or spaces. Some require up to seven feet of space.
Additional Cost Factors for Water Heater Installation
When it comes to water heater installation, other factors can increase the cost too. These include:
- Location in your home. Where your water heater is installed will impact how much it costs for labor.
- Venting system. Power venting will add $600 up to $1,000 to the installation cost and direct venting adds $500 up to $1,000 to the installation cost.
- Your water heater’s size is determined by how many people are in your home. The price goes up with the size.
- Installing a water heater requires different materials, such as solder, thread compound, venting pipes, piping for gas and water, and pressure valves.
- Local permits (if required). Sometimes, local permits are needed to install a new water heater. This depends on your home’s water heater.
- Expansion tank. Professional installers may install an expansion tank, which will help handle the thermal expansion of water while preventing excess water pressure.
- Tank removal. In some situations, the installer may charge more to remove your existing water tank.
Signs of a Failing Water Heater
If you have a water heater installed in your home right now, you should watch for indications of a problem, like the ones listed here. These signs tell you it is time to consider the installation of a new unit. It’s possible to prevent some of these issues by investing in system maintenance. Some signs of a failing water heater include:
- Leaks
- Strange tasting or discolored water
- A unit that is more than 15 years old
- Odd or loud sounds coming from the unit
- Water will take a lot longer to heat up
If you are dealing with these issues, then investing in a new unit is recommended.
Selecting Your Water Heater
When you are ready to select the proper water heater for the size of your needs and your personal requirements, there are a few things to consider. These include:
- The fuel type it requires and how available it is
- The size of your home
- The cost and potential energy savings
Is It Time to Call a Plumbing Professional
Have you noticed your water heater is showing signs of aging and breaking down more than it used to? If so, you should call the professionals. They can help you install a new unit and ensure it is right for your needs and your budget.
