Average Water Heater Installation & Replacement Cost

When it comes to water heater installation and replacement, understanding the costs involved is essential. Whether upgrading to a more energy-efficient system or simply replacing an old unit, it’s important to budget accordingly. This comprehensive article will explore the factors influencing water heater installation and replacement costs, different types of water heaters, additional expenses to consider, signs indicating the need for a replacement, DIY vs. hiring a professional, and money-saving tips.

Water Heater Installation and Replacement Cost Breakdown

When you’re thinking about how much it costs to install or replace a water heater, there are a few important things to consider. These include the cost of the workers’ time, the materials needed, and the size of the water heater. Let’s take a closer look at what goes into the total cost.

Labor Cost Per Hour

Regarding plumbing services, you’ll find that most plumbers offer a fixed rate that includes both their work and materials. However, some plumbers charge by the hour. When you enlist the services of a nearby plumber, you should anticipate a cost ranging from $50 to $200 per hour. If you also need electrical work done, hiring an electrician will typically cost you between $50 and $150 per hour.

Parts and Materials

A successful and efficient water heater installation requires various materials. These include discharge pipes, fittings, pipe thread compounds, pressure release valves, solder, venting pipes, connectors, and water and gas piping. It’s important to note that more complex installations might necessitate additional materials, which can influence the overall cost of replacing your water heater.

Unit Size

The size of your water heater is determined by the number of people in your household, which can impact the cost of replacing the water heater. Water heaters are available in different sizes, ranging from 20 to more than 100 gallons. Typically, a 40-gallon tank is suitable for a two-person household and is the most common choice. If your household has more than five people, you may need a larger tank, such as a 60-gallon or 80-gallon unit.

Unit Size (Gallons)	Average Price Range
30	$550 – $1,700
40	$550 – $2,000
50	$700 – $2,200
75	$1,200 – $3,400
80	$1,300 – $3,600

Cost of Installing Different Types of Water Heaters

Water Heater Type	Average Installation Cost	Average Annual Cost
Gas	$500 (+venting)	$250
Electric	$700 (+venting)	$500
Tank	$820–$1,290	$250
Tankless	$1,200–$3,500	$175
Hybrid heat pump	$1,200–$3,500	$250
Indirect	$1,500	$355
Solar	$2,000–$3,000	$175

Different types of water heaters are available on the market, and the installation costs can vary depending on the specific type you choose. Below are the different types of water heaters and their average prices so you can make the best decision for your home.

Tank

Water storage tanks store and heat a significant amount of water. They are typically placed in less visible areas like garages, basements, or utility closets and can be powered by electricity or natural gas.

Unlike tankless water heaters, installing storage tank water heaters is simpler and more cost-effective, typically requiring approximately three hours of labor. Depending on the tank’s size, the price can range from $600 to $800. The installation cost averages between $900 and $2,500.

However, it’s important to note that tank water heaters are not as energy-efficient. They continuously run to keep the water in the tank at the desired temperature, leading to higher utility bills and a shorter lifespan. On average, they use 58% to 60% of energy for heating, lasting about 8 to 12 years.

Tankless

Tankless water heaters warm up water when needed, using a gas burner or electricity to heat it as it moves through the pipes. Like traditional storage tanks, tankless units can be placed in basements or utility closets. They are smaller and can even be mounted on the walls of bathrooms or bedrooms.

Tankless water heaters can vary, ranging from $600 to $1,500. However, installing a tankless water heater is typically more expensive, ranging from $1,000 to $3,500. This is because it requires more labor and the installation of new gas and water lines for gas-powered units or new electrical wiring for electric tankless heaters.

Despite the higher initial cost, tankless heaters offer greater energy savings. They have an efficiency factor (EF) of 0.92% to 0.94%, which means they efficiently convert 92% to 94% of their energy into heated water. Moreover, tankless water heaters have a longer lifespan, typically lasting around 20 years.

Electric Water Heaters

Electric tank water heaters are a cost-effective choice both in terms of upfront purchase and installation, typically priced at around $500 for a 50-gallon residential tank. However, their monthly operational costs are higher than those of gas heaters. One notable advantage is their safety, as there is a lower risk of leaks or combustion.

One drawback of electric heaters is their reliance on electricity. In a power outage, you won’t have access to hot water. These heaters have an EF rating ranging from 0.90% to 0.95% and a typical lifespan of 8 to 12 years.

Gas Water Heaters

Gas water heaters are pricier to buy upfront, usually around $700 for a 50-gallon tank. However, their operational costs are lower than electric models. Despite the potential risks of natural gas, such as combustion or leaks, gas water heaters can provide hot water without needing electricity.

One significant drawback of gas heaters is their environmental impact, as they emit carbon dioxide. They also have lower EF ratings, resulting in an energy efficiency of 60% to 70% and a lifespan of 8 to 12 years.

Solar Water Tank Heaters

Solar water tank heaters harness the power of sunlight to warm your water supply. They consist of a storage tank for holding water and special solar collectors that generate heat. Typically, these systems come equipped with a backup traditional water tank for emergencies.

There are two main solar water tank systems: active and passive. Active systems use a pump to deliver heated water to your home, while passive systems use natural convection to circulate the water. Homeowners usually cost around $2,000 for a passive system and approximately $3,000 for an active system. The higher price tag is because of the labor involved in installation and the need for a backup water heater.

Indirect Water Heaters

Indirect water heaters are designed to use the energy produced by an existing furnace or boiler to heat the water in the tank. This is achieved by circulating water from the boiler into coils within the tank, which then warms up the water. While these water heaters are more energy-efficient than traditional models, they come at a higher cost, typically around $1,500. However, their monthly operational costs are generally lower than those of conventional water heaters.

Hybrid Heat Pump Water Heaters

Hybrid heat pump water heaters are super efficient, but they can be a bit pricey. These machines work by grabbing heat from the air around them and making hot water. They’re pretty big and need a good amount of space – about 7 feet of room to breathe. When you add up the installation and materials, you’re looking at an average cost of $1,200 to $3,500.

Other Costs Associated With Water Heater Installation or Replacement

In addition to the basic costs like labor, parts, and the type of water heater unit itself, there are some other expenses to keep in mind when installing or replacing a water heater:

Permits and Inspections: When setting up or changing a water heater, following local building codes is important. This typically includes getting permits and going through inspections to ensure everything is safe and meets environmental regulations. Permit costs can vary, ranging from $100 to $1,500.
Water and Gas Line Adjustments: Properly connecting your new water heater to existing plumbing and gas lines is crucial for safety and efficiency. The installation cost can increase if your home’s water and gas lines need modifications or extensions to accommodate the new unit. Hiring a qualified professional ensures compliance with building codes and regulations.
Location Considerations: The placement of your water heater in your home can affect installation complexity and cost. If it’s in a hard-to-reach area like the basement or attic, expect potential additional expenses. Discuss the chosen location with the installation professional to anticipate any challenges.
Venting System: Depending on your water heater type, you may need a specific venting system. Power venting can add $600 to $1,100 to your installation costs, while direct venting may increase expenses by $500 to $1,000.
Tank Removal: Removing a previous water tank may come with an extra charge from the installer.
Expansion Tank: To handle water thermal expansion and prevent excessive pressure, a professional installer might recommend adding an expansion tank, which typically costs between $40 and $150.
Local Permits: Check if your area mandates water heater installation permits. These permits could involve additional costs.
Carpentry Work: In some cases, carpentry work may be needed, such as altering woodwork in your attic to accommodate the heater. This will increase labor costs and hours worked.

When planning your water heater installation or replacement, it’s essential to factor in these potential expenses beyond the basic components and installation labor. Discuss these considerations with your chosen professional to get a clear estimate for your specific project.

Signs You Need a New Water Heater

Identifying when it’s time to replace your water heater is crucial to avoid sudden issues and expensive fixes. Keep an eye out for these signs:

Not Enough Hot Water: If you’re running out of hot water quicker than usual, it might be time for a new water heater. This can be especially noticeable during showers or when using hot water for various tasks.
Rusty or Discolored Water: If the water from your taps looks rusty or has an unusual color, it could be a sign that your water heater is deteriorating inside. This is not only unpleasant but also a potential health concern.
Unusual Noises: When your water heater starts making odd or loud sounds, it’s usually a sign that something isn’t right. These noises might be caused by sediment buildup or other problems, suggesting your heater requires maintenance.
Leaks or Puddles: Any visible water leaks or pooling around the water heater are red flags. Leaks can lead to damage to your home and are a clear indication that your unit may need replacing.
Higher Energy Bills: If you’ve observed a sudden rise in your energy costs, it could result from an ineffective water heater. Water heaters can become less energy-efficient as they age, increasing costs.
Age of the Water Heater: Most water heaters have a lifespan of around 10 to 20 years, depending on the type and maintenance. If your unit is nearing or has surpassed this age range, it’s a good idea to start considering a replacement.

In summary, pay attention to these signs: not enough hot water, rusty or discolored water, strange noises, leaks, rising energy bills, and the age of your water heater. Addressing these issues can help you avoid unexpected breakdowns and save you money in the long run.

When to Get a Replacement

Several signs indicate the need for a water heater replacement. These signs include:

Age: Most water heaters have a lifespan of around 8 to 12 years. If your water heater is nearing or surpassing this age range, it may be time for a replacement.
Leaks: If you notice any leaks or water pooling around your water heater, it clearly indicates a problem. The issue may be repairable in some cases, but if the tank is leaking, a replacement is necessary.
Inadequate Hot Water: When your water heater can’t supply sufficient hot water anymore, it could be an indicator of a malfunctioning unit.
Rust or Corrosion: If you see rust or corrosion on your water heater tank, it’s a clear sign that it’s time to replace it. This is especially true if the rust is causing leaks or affecting the unit’s performance.
Strange Noises: Unusual noises from the water heater, such as popping or rumbling sounds, may indicate sediment buildup or other issues. If these noises persist even after maintenance, a replacement may be necessary.

If you’re unsure whether your water heater requires replacement, it’s a good idea to seek advice from a professional plumber. They can examine your unit’s condition and offer expert guidance.

Selecting Your Water Heater

When picking a water heater for your home, there are some important factors to keep in mind:

Fuel Type and Availability: First, check if the type of fuel required by the water heater is accessible and suitable for your home. For instance, if you’re considering a natural gas water heater, ensure your property has a natural gas connection or can easily get one.
Home Size: Choosing the right-sized water tank is crucial based on the number of people in your household. For instance, a 30-40 gallon tank should suffice if two people are in your home. However, if you have four people, you’ll need a larger 50-60 gallon tank.
Cost and Energy Savings: Consider the initial cost of the water heater and its long-term energy efficiency. Some water heaters may have a higher upfront price, but they could save you money over time due to their energy-efficient operation.

Remember, selecting the right water heater for your home can make a big difference in your comfort and expenses.

DIY Water Heater Installation and Replacement vs. Hiring a Professional

We recommend hiring a professional to get your water heater installed or repaired. Opting for a do-it-yourself (DIY) installation can help you cut labor expenses, but it demands technical know-how and could potentially nullify any warranty coverage. Hiring a professional ensures proper installation, reduces the risk of errors or safety hazards, and often comes with warranty protection for the work performed. Here are some factors to consider when making this decision:

DIY Water Heater Installation and Replacement

Pros:

Potential cost savings: DIY installation may save you money on labor costs.
Satisfaction of completing the project yourself: If you enjoy tackling home improvement projects, installing a water heater can be a rewarding experience.

Cons:

Safety risks: Working with gas or electrical connections can be dangerous if not done correctly. Improper installation can lead to gas leaks, electrical hazards, or even explosions.
Lack of experience: Without experience with plumbing and electrical work, installing a water heater can be challenging and time-consuming.
Voiding warranties: DIY installation may void the warranty on the water heater if not done according to the manufacturer’s specifications.

Hiring a Professional

Pros:

Expertise and experience: Expert plumbers possess the expertise and experience to install or replace water heaters correctly, guaranteeing safety and optimal performance.
Time savings: Bringing in a professional can save you time and energy since they’ll manage every installation or replacement process aspect.
Warranty protection: Professional installation often comes with warranty coverage, providing peace of mind in case of any future issues.

Cons:

Additional cost: Hiring a professional plumber will incur labor costs, which can add to the overall project cost.
Scheduling and coordination: You may need to coordinate with the plumber’s schedule and availability, which could cause delays.

Money-Saving Tips on Water Heater Installation

If you’re looking to save money on water heater installation and replacement, consider the following tips:

Compare Quotes: Obtain multiple quotes from different plumbers to ensure you get the best job price.
Energy Efficiency: Consider investing in an energy-efficient water heater. While the upfront cost may be higher, energy-efficient models can save you money in the long run through reduced energy consumption.
Maintenance: Regular maintenance can extend your water heater’s life and prevent expensive repairs or replacements. Flushing the tank annually and checking for leaks or rust can help keep your water heater in good condition.
Utilize Off-Peak Hours: If you’re on a time-of-use electricity plan, using hot water during off-peak hours can help reduce energy costs.
Insulation: Properly insulate your water heater and hot water pipes to minimize heat loss and improve energy efficiency.
Water Heater Blanket: Consider adding a blanket to your tank-style water heater to help retain heat and reduce energy consumption.
Rebates and Incentives: Check for any available rebates or incentives from utility companies or government programs that promote energy-efficient water heaters.

By implementing these money-saving tips, you can reduce the overall water heater installation and replacement cost while maximizing energy efficiency.

FAQs

What is the typical duration for a water heater installation?

The installation time for a water heater can depend on various factors, such as the type of water heater, the complexity of the installation, and the plumber’s experience. On average, the installation process typically takes between 2 to 4 hours.

Can I install a water heater myself?

While it is possible to install a water heater yourself, it’s important to consider the potential risks and challenges associated with DIY installation. Working with gas or electrical connections can be dangerous if not done correctly. Hiring a professional plumber is advisable to guarantee safety and a correct installation.

How often should a water heater be replaced?

Water heaters can typically last 8 to 12 years, but how long yours lasts can vary based on how much you use it, how well you take care of it, and the quality of your water. Doing regular maintenance and check-ups can make it last longer.

Are tankless water heaters worth the cost?

Tankless water heaters cost more at the beginning than tank-style ones. But, they have advantages like saving energy, lasting longer, and providing endless hot water. Eventually, the money you save on energy can make up for the higher initial price.

Can I replace my water heater with a different type?

Replacing your water heater with a different type is usually possible. However, this may require additional plumbing, venting, or electrical wiring modifications. Consulting with a professional plumber is recommended to determine the feasibility of switching to a different type of water heater.

Conclusion

In conclusion, water heater installation and replacement costs can vary depending on many factors, such as the type of water heater, size, fuel type, venting system, and location. It’s important to consider these factors when budgeting for your project. Whether you choose to DIY or hire a professional, ensuring proper installation and maintenance will help maximize the lifespan and efficiency of your water heater. By implementing money-saving tips and considering energy-efficient options, you can reduce costs and save on energy expenses in the long run.

GET IN TOUCH