How Much Does It Cost To Install A Water Heater? | [HVAC Heating & Cooling]

Installing a new water heater is a significant investment, and the price tag often makes homeowners nervous. There are some factors to consider while replacing your water heater. The type of heater, the size, and the fuel source are all important considerations. The cost of installation can also be a factor. How much should you expect to pay? Is it worth the expense? This guide will help you navigate the process of choosing and installing a new water heater.

Water Heater

Water Heater

A water heater is used for heating and storing hot water. The primary function of a water heater is to heat water to a temperature above 120 degrees Fahrenheit (49 degrees Celsius). However, some models also store cold water at lower temperatures for later use. Water heaters generally come in different sizes and shapes, ranging from small portable units to large tank models installed under sinks.

How do I know if I need a new water heater

How do I know if I need a new water heater?

Replacing your water heater isn’t something you’ll think about, like getting a new sofa or rug for your living room. In most cases, you won’t even think about your water heater until it’s performing in a way that seems less than ideal. If you notice any of these signs given below, your water heater may be failing, and you should call a professional for help:

1. Water leaking from the tank: This is one of the most obvious signs that something is wrong with your water heater. If you see water pooled around the base of your unit or dripping from any valves or fittings, there is a good chance that your tank is starting to leak.

2. Strange noises coming from the unit: If you hear popping, banging, or other strange noises from your water heater, it can indicate that the tank is starting to fail. Sediment buildup on the bottom of the tank causes these sounds, which can create hotspots and cause the metal to expand and contract unevenly.

3. The unit isn’t producing enough hot water: If you find that your showers are shorter than usual or that dishes aren’t getting as clean as they used to, it could mean that your water heater isn’t able to produce enough hot water. Sediment buildup in the tank and a faulty heating element can cause this. 

4. The unit takes too long to heat up: If it seems like it’s taking longer and longer for your water heater to produce hot water, it could be a sign that the heating element is failing. This problem usually comes with other issues, such as the unit not making enough hot water or strange noises coming from the unit.

5. The water isn’t as hot as it used to be: If you notice that the water coming out of taps is not as hot as it used to be, it can mean that the heating element in your water heater is starting to fail. This problem comes with other issues, such as the unit taking longer to heat up or not producing enough hot water.

How Much Does It Cost to Install a New Water Heater?

How Much Does It Cost to Install a New Water Heater?

The cost of installing a new water heater can vary depending on the type and size of the unit and the amount of labor involved. You can expect to pay anywhere from $829 to $1,636 for a new installation. If you need additional plumbing services, that will add $45 to $150 per hour to the bill. Remember that the replacement price will also depend on the type of water heater.

The cost can vary depending on some factors. Such as:

1: Size of the water heater:

Here is a breakdown of the average water heater cost by tank size.

  • 30-gallons: $270–$1,000
  • 40-gallons: $300–$1,600
  • 50-gallons: $400–$2,500
  • 75-gallons: $900–$3,200
  • 80-gallons: $1,000–$3,200

2: Type of water heater:

The average prices shown below reflect only the unit price of the water heater, not including labor or additional costs:

Type of Water HeaterInstallation Cost (Average)Annual Cost (Average)LifespanEfficiency Factor (EF)
Gas$500$2508-12 years0.58%-0.60%
Electric$700$5008-12 years0.92%-0.95%
Solar$2000-$3000$17520 years1.0%-1.1%
Tank$820-$1290$2508-12 years0.58%-0.60%
Tankless$1200-$3500$17515-20 years0.92%-0.95%
Indirect$1500$35515-20 years0.59%-0.90%
Hybrid Heat Pump$1200-$3500$2508-12 years2.0%

3: The plumber you hire:

It comes to appliances like water heaters; it’s essential to do your research while choosing who to hire for installation. A poor installation job can cause repeat work, costly repairs, and higher energy bills. While more experienced and reputable companies will charge more for installations, you can rest assured they installed it the first time correctly.

How can I choose the correct size water heater for my home

How can I choose the correct size water heater for my home?

When shopping for a water heater, you need to consider the size of your home and how many people will use the hot water. You can follow the chart below:

People in HouseholdTank (gallons)Tankless* (gallons per minute)
What are the different types of water heaters?

What are the different types of water heaters?

Tank, solar, electric, gas, and tankless are the five types of water heaters. The gas water heater is the most common type of tank-based water heater, which has a faster recovery rate than electric systems but is less energy efficient. Electric water heaters are more energy efficient but cost more in the long run. Solar water heaters are the most expensive option, but they have the potential to be the most efficient. Oil-powered water heaters are commonly found in older homes, while propane and hybrid systems are more common in newer ones.

Electric heat pumps use air or geothermally to extract heat from their surroundings and convert it into hot water for your home. Electric heat pumps are usually only available for bigger houses because of their large space requirements.

How do I know which type of water heater is right for me

How do I know which type of water heater is right for me?

When it comes time to replace your water heater, choosing the right one for your needs is essential. There are five types of water heaters: tank, solar, electric, gas, and tankless.

Each type has its benefits and drawbacks, so you’ll need to decide which is best for you.

Electric water heaters are usually the most common type. They’re affordable and easy to install, but they use a lot of energy and can be expensive to operate.

Gas water heaters are generally more efficient than electric ones but require a gas line and can be dangerous if not installed correctly.

Tankless water heaters are generally a bit more expensive than other types, but they’re incredibly efficient.

What are the different fuel sources for water heaters

What are the different fuel sources for water heaters?

Water heaters use either natural gas, propane, oil, electricity, solar energy, or wood as fuel. Natural gas is considered the best option since it has the lowest carbon footprint. However, it is expensive and requires professional installation. Propane is also popular because it is cheap and easy to install.

Tankless water heaters use a small amount of hot water. An energy-efficient heating element heats it instead of a large hot water tank.

Natural gas water heaters use the same fuel as your fireplace – propane – to create hot water.

Electric water heaters use electricity to produce hot water.

What are the benefits and drawbacks of each fuel source?

Each fuel source has its positive and negative sides. The main advantage of natural gas is that it produces less pollution than other energy sources like coal and oil. However, natural gas is much more expensive than coal or oil. Another advantage of using natural gas is that it is often available at local stations. On the other hand, burning natural gas releases carbon dioxide into the atmosphere, contributing to global warming. Burning coal also emits harmful gases such as sulfur dioxide and nitrogen oxides. Finally, burning oil creates air pollutants known as particulate matter PM2.5 and PM10. These particles cause health problems for humans, especially children, and older adults.

Gas Water Heaters:

  • More expensive to install than electric water heaters
  • May have lower monthly utility bills in the long run
  • Require a more powerful electrical panel to function properly
  • May have repair costs after installation

Electric Water Heaters:

  • Cheaper installation expenses than gas water heaters
  • Offer lower monthly utility bills in the long run
What are some common problems with water heaters

What are some common problems with water heaters?

Water heaters can have a variety of problems. 

One common issue is sediment buildup in the tank, which can reduce the heater’s efficiency and shorten its lifespan. Other issues can include corrosion, leaks, and thermostat failure.

If you notice any of these signs, it’s essential to call a licensed plumber right away for repair or replacement:

  • A rumbling noise coming from the water heater
  • Water that’s not hot enough
  • Leaks around the base of the tank or at the joints
  • Rusty water
How can I extend the life of my water heater

How can I extend the life of my water heater?

You can do a few things to extend your water heater’s life.

1. Check the anode rod: The anode rod is a metal rod that helps protect the inside of your water heater from corrosion. Over time, the anode rod will rust.

2. Flush the tank: You should flush your water heater tank every few months to remove any sediment that has built up. Which will help improve efficiency and extend the life of your water heater.

3. Adjust the thermostat: You can save energy and extend the life of your water heater by simply adjusting the thermostat to a lower setting (120 degrees Fahrenheit).

4. Inspect for leaks: Regularly inspect your water heater for any signs of leaks or other damage. If you find any damage, try to repair it as soon as possible.

How often should I replace a water heater

How often should I replace a water heater?

How often you should replace the water heater depends on some factors. Such as:

  • Age of your water heater
  • Type of water heater
  • Size of your household
  • Water quality in your area

Here are some Recommendations:

-If you have a gas water heater, it should be replaced every 8 to 12 years.

-If you have an electric water heater, it should be replaced every 10 to 15 years.

-If you have a tankless water heater, it should be replaced every 20 years.

Who should I call if I have a problem with my water heater

Who should I call if I have a problem with my water heater?

If you have any problem with the water heater, it’s crucial to call the right person. Depending on the situation, you need to call a plumber, an electrician, or an HVAC technician.

Here are some suggestions on whom you can call if you have a problem with your water heater:

– Plumbers: If you have a plumbing problem, call a plumber.

– Electricians: If you have an electrical problem, call an electrician.

– HVAC technicians: If you have a heating or cooling problem, call an HVAC technician.


1. If you want to fix your water heater by a professional, it would cost 100 to 200 dollars.

2. The ball valve of a water heater in San Diego costs 16 dollars.

3. The heater vending can be repaired if damaged and costs twenty dollars.

Frequently Asked Questions:

How long will it take to install a water heater?

Installing a new tankless water heater takes approximately 4-6 hours, depending on how much work you need to do inside the home.

Can I install a water heater myself?

Yes, you can if you are comfortable with basic plumbing skills. However, you will need to purchase an electric water heater, which may require professional installation.

How far should a water heater be from the wall?

Not more than six inches from the wall. Which will help prevent moisture from building up inside the walls.

Why is installing a water heater so expensive?

Installing a water heater can be expensive because it requires professional installation. In addition, there are also costs associated with replacing an old one.

Does installing a water heater by yourself void the warranty?

Installing a water heater can void the manufacturer’s warranty if it doesn’t meet safety standards. However, exceptions exist, such as when installing an electric water heater.

Is it better to have the water heater inside or outside?

Having the water heater inside your home can be dangerous if there are cracks in the walls or other areas where cold air could leak into your house. If you install an outdoor unit, ensure it has proper ventilation and protects it from extreme heat.

Does a water heater need to be elevated off the floor?

Elevating it from the ground can cause flooding if there are leaks or cracks in the tank. If there aren’t any leaks or breaks, an elevation isn’t needed. 

Do tankless water heaters save space?

Yes, they do. These water heaters are great for saving space because they only require hot water when needed. They also help reduce energy consumption because there is no need to store hot water.

Can a water heater last 30 years?

Yes. A water heater can last more than 30 years if properly maintained. 

What type of water heater is most energy-efficient?

It depends upon the size of your home and how much hot water you use. If you are looking to save money, you can consider replacing an older tankless water heater with one that has a larger capacity.


Water heaters are essential in our lives, and it’s not always easy when they break down. Not only do we have to go without hot water, but we may also have to deal with expensive repairs. That’s why it’s essential to properly maintain your water heater and be aware of the replacement cost.

We hope our article seems helpful to you.


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