What’s the cost of a water heater installation or replacement?

Are you planning to get your water heater replaced? You might probably be making a smart decision by installing a new water heater because of energy savings and cutting down maintenance expenses. But what would be the average water heater replacement cost?

Typically, a water heater replacement cost for a home is around $1,000 to $3,000. The actual cost depends on the water heater type, placement, labor, piping, and your home’s location.

In this article, we’ll analyze the factors affecting the cost of installing a water heater in your house — Stay tuned.

6 Factors Affecting the Cost of Installing a Water Heater

A water heater is one of the most essential yet costly home appliances. Each factor contributes towards increasing the cost of installing a water heater in your home.

Tank vs. Tankless Heaters

Two types of water heaters are commonly available in the market; tank-styled & tankless. Since tank-style heaters are older, they are the most common in the US. Their cost is significantly lower than tankless heaters (two to three times cheaper), but they have a limited capacity for holding hot water.

Although tankless heaters are expensive, their lifespan is a decade longer than tank-style water heaters. Moreover, they offer an unlimited supply of hot water because of super-heated coils combined in a series. It’s solely your choice to select any of the two.

Size of the Water Heater

You would need to know your average daily consumption of hot water when you’re going to buy a tank-style water heater. If you have two to three household members, a 40-gallon water heater would be sufficient for your family, costing around $320 to $1,600.

However, 60-80 gallons would be ideal for a five-person household — exceeding the installation costs to over $2000 depending on your location.

A tankless water heater would produce as much hot water as you want for daily household needs — generating a never-running water stream.

Energy Type

Household water heaters use either gas or electricity primarily as an energy source. Electric heaters are $100 to $200 cheaper than gas-fired water heaters. In gas heaters, the heating source is the gas pilot light which isn’t as efficient as electric coils in electric heaters. Therefore, gas heaters have lower heating efficiency and more operating costs.

On the other hand, electric heaters do not need venting, making them an ideal choice for small apartments with two or three household family members.

Materials Used During Heater Installation

During a water heater installation, there are many additional materials used alongside the actual water heater. For example, fittings, piping systems, valves, soldering, and connectors. An extra gas piping would be needed (if the heater is gas-fired). This would also include labor costs (hourly based), and you should expect at least two to three hours of installation time — making the labor costs to $250 and $600

If the job requires more materials, it would add up in the final water heater replacement costs.

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