2019 Costs to Install a Hot Water Heater

How much does a water heater cost?

Water Heater Repair

$250 - $350

40 Ga. Water Heater

$850 - $1100

Tankless Water Heater

$1200 - $3500

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Having a functional water heater is essential for every household to stay on top of all its daily routines. If the last time you replaced a water heater was 10 years or more, and its starting to give you trouble, it may be time to get a new device.

Moreover, a new addition to the family or increased water usage are also good reasons to consider getting a bigger size water heater that has more capacity, or switching to a tankless model.

Whether you are replacing an old water heater or installing a brand new system, there are a number of different options to consider. Popular hot water heaters are available as traditional storage tanks or tankless devices, and they can be powered by gas, electricity or solar energy.

Lets take a look at the installation costs for different types of water heaters, as well as their pros and cons.

In this post:

Cost to replace a water heaterInstallation costs break downTank vs tanklessGas vs electricHow to size a water heaterSplurging on an expensive brandExpansion tank considerationsSigns of an aging or broken water heater

Homeowners across the US are paying $850-2,500 to install a new water heater, including professional labor. Such a wide price range depends on the following factors:

type of heater (tank vs. tankless) size/capacity (40, 50, 75 gallons) power type (gas, electric, solar).

A storage tank water heater costs $600-900, but prices can be as low as $300-350.

A gas tankless water heater costs $800-1,300. High-end models are priced at $1,500-2,000+

Electric devices, both tank and tankless, are significantly cheaper than gas ones. For example an electric tankless water heater can cost as little as $200-500. An electric storage tank is $300-600.

There are a number of factors that will impact how much a plumber will charge to install your water heater:

1. Type of water heater

If you want a regular gas storage tank, the job is fairly straight forward. This is especially true if you are simply replacing the device you have had before with a new model. Consequently, you should expect to pay no more than $300-450 for this work.

Installation of a tankless gas device starts at around $1,200 because the process is more involved and time-consuming.

2. Switching from a tank to a tankless device

If you have a storage unit and want to switch to a tankless one, you should be prepared to spend a lot more. Homeowners looking to make this switch should budget $1,500-3,5000 for labor.

This is because in most homes the existing gas piping, meter and gas line to the meter may not be able to handle the high gas load of a tankless model.

Consequently, there will be a lot of additional labor involved in the install, such as:

retrofitting the existing gas line perhaps putting in a new line installing a proper venting system possibly having additional electrical wiring done (you will need to hire an electrician) maybe re-routing gas and water lines, and possibly electricity, depending on the layout of your basement and ventilation it may not be possible to vent the gas tankless heater into the chimney and the installer will need to do a direct vent outside

3. Installing an electric tankless water heater

Similarly, if you are switching to an electric tankless device, an electrician will need to do a lot of work to rewire and expand your homes existing system to handle the extra power usage from the heater (which is VERY high). Some of the most powerful electric tankless models can use as much as 120 amps.

So if you have a 100 amp service, you cant use a tankless electric water heater without upgrading the electric panel to at least 200 amps. On average, this will cost an extra $1,000-1,500. However, you cost can be as high as$3,000 depending on the complexity of labor involved, such as having to open walls, etc.

4. Your location

While this may not seem fair to you as a homeowner, the reality is that contractors rates vary depending on where you live. In high-income suburban areas, as well as expensive cities such as San Francisco, New York, Boston, Miami, etc. a plumber will charge as much as 15-25% more for labor, compared to areas where incomes are significantly lower.

5. Unreasonable pricing scams

Because most homeowners have no idea about plumbing and what this work entails, many plumbers take the liberty of charging EXTREMELY high prices for NO REASON. For example, many companies may offer to buy the hot water heater for you (they will help you select one), and then will roll their labor fees into the total cost.

As a result, many people end up paying as much as the cost of the heater itself for an easy, straight forward installation! For example, if your heater costs $700, your total charge will be $1,400, or more.

To avoid these types of companies, it is important to get estimates from 3-4 local professionals, and ask them exactly what type of work they will be performing. It is also a good idea to conduct your own research online, ask your neighbors, etc, to see how much homeowners in your area are spending on this home improvement project. If a contractor sees that you have done your research, he will most likely give you a fair price.

We strongly recommend paying for professional installation, as opposed to going DIY, because dealing with gas and electricity can be very dangerous!

There are four general types of water heaters: tank (storage), tankless, hybrid and solar. Tank and tankless models are the most popular, so we will focus on them.

If you have been researching various water heater options, you way be wondering if its worth it to pay more for a tankless model. Perhaps a traditional hot water heater would be just as good?

A storage tank is the most common and budget friendly water heater. It continuously heats and stores a specific amount of water (40, 50, 75, 100 gallons), in an insulated tank. The stored water is delivered via pipes, when its needed.

Lower-end models can cost as little as $300, but on average they run $650-850, by brands like Westinghouse. High-end tank heaters can cost over $1,000, by brands like A.O.Smith.

Pros to consider:

On demand or tankless water heaters DONT store water. Instead, they use special heating coils to heat water when you need it. These devices can cost significantly more than tank models of the same size (although high-end water heaters cost about the same). Prices start at around $800 for a gas heater from brands like Rheem, and can go up as high as $1,500+ for premium brands such as Noritz.

Electric tankless water heaters cost $160-500. EcoSmart, being a very popular, highly rated brand.

Pros to consider:

A typical on-demand unit is more expensive than a storage one, because it offers a number of significant advantages:

An electric water heater costs significantly less than a gas one. Among tankless models, the majority cost between $200-350. A device that costs between$700-800 is considered the very top of the line, from brands like Stiebel.

By comparison, the $700 dollar range is a fairly low average for a tankless gas water heater. The vast majority of gas devices cost between $1,200-1,800.

When it comes to storage water heaters the difference in price between electric vs gas-powered models is less pronounced. The range for most electric devices is $300-600, and you can find many gas heaters in the same price range. Still, gas tank style water heaters are more expensive overall, with many costing well over $1,500.

With tank-style models, the size of the water heater has a direct affect on the cost. The bigger the tank, the higher the price. The difference between 40 vs 50 gallons is about $150-250, depending on the manufacturer. However the difference between 50 vs. 75 gallons can be as high $400-600. Tanks that hold 100 gallons are very expensive. They often cost double or even triple the price of a 50 gallon tank of the same brand.

How to choose the right water heater (video):

Quickly determine the size water heater for your house

It all boils down to how much hot water you use. Some people like 30-minute showers and long baths, while others are in and out in 5 minutes, and never/rarely take a bath.

I was going to get us a 40 gallon tank, because I take 3-5 minute showers. But my plumber convinced me to go with 50 gallons, and he was absolutely right! My kids take baths (we have a large jacuzzi tub), and when they do, hot water disappears!

With tankless models, efficiency is determined by the maximum temperature rise possible at a given flow rate, known as GPM. Average size tankless heaters have a GPM rating between 5-6. More powerful devices can go as high as 11-12 GPM. Roughly, every additional GPM costs about $100 extra, depending on the manufacturer.

Keep in mind that gas tankless water heaters produce a larger temperature rise per GPM than electric models. This means that if your household water usage is very high and frequent, you are better off paying more for a tankless gas model.

Note, whether you go for a storage or tankless device, its important to get the RIGHT size, based on a real calculation of your households water usage. This may mean spending more money upfront, but its well worth it!

If you get a heater that is too small, your family will be very uncomfortable for the next 10-12 years in all daily tasks, from taking showers to doing laundry.

When you browse different devices, you will quickly notice that some water heater brands cost at least double the price of others, when all else is equal.

However, high-end brands are often more expensive for the following reasons:

they have better quality internal parts that last longer overall better design offer longer, more comprehensive warranties

Surely, you will also be paying a premium for the prestige of certain brands.

It may not be worth it to splurge thousands of dollars on a water heater by A.O Smith or Westinghouse, but it is also safer to steer clear of budget brands. While you will save a few hundred dollars upfront, in the long run, you will spend more on repairing or replacing a device that stopped working way before the expected end of life.

Your best bet is to go for good quality brands such as Rheem, Tagaki this is where the BEST VALUE is.

This depends on whether your house runs on a closed or an open water supply system. If you have a closed system, having a water heater expansion tank is a MUST. When the water in your tank gets heated, it naturally expands, this is called thermal expansion. As a result, pressure builds up, and this water needs somewhere to escape.

In an open system, the water will simply flow into the citys water supply. However, in a closed system, this water can cause your tank to burst, if it has nowhere to go. When you have this extra expansion tank, the water will temporarily go in there, and your house will be safe.

There are some easy ways to tell that your water heater is beginning to show signs of trouble. These may be fixable, but often signal that its time to get a new device.

Old age: if your water heater is older than 10 years, get ready to replace it within the next few years. Or you can do it now, instead of waiting for it leak or break

Sudden leakage around the water heater tank. This is a sign of serious internal damage, and you need to call a plumber right away

The water temperature is not as hot as it used to be, or worse yet, its cold

You hear loud crackling sounds or banging coming from the device

The color of the water that comes out is not clear. Often it has a rusty color

The hot water that comes out has an unusual smell, or an unpleasant taste