Key Factors That Influence the Cost to Install a Water Heater
There are a few key factors that determine the total cost of installing a water heater in your home or business.
Where you live can make a big difference in the installation prices. For example, in the Pacific Northwest, homeowners can expect to pay 45% above the national installation average due to the region’s considerable building codes. Gulf Coast installations run about 10%-20% higher, and South Florida prices run about 20% lower than the national average.
The energy source will dramatically impact the cost of installing a water heater. If you choose an electric water heater, installation costs generally range from $920 to $1,177, while installing a gas water heater costs around $2,607. Solar water heater prices range from $2,000 to $7,500, depending on installation, but, as with solar, they save you money in the long run.
Changing fuel sources will add an expense of around $1,500 to $2,300 to your project. The easiest access and least expensive labor will be with a basement install. Even higher labor costs will only add $200 to $1,000 to the cost of installing an attic water heater.
Tank size is also a concern, as it relates to installation costs.
- A 40-gallon water heater can cost $600 to $1,200 for installation.
- A 50-gallon one will cost $700 to $1,800.
- An 80-gallon water heater will cost $1,000 to $3,000 to install.
Labor costs for installation generally range from $45 to $200 per hour. A standard tank install takes 1-3 hours, while a tankless install takes 4-6 hours.
Installation Charges for Various Water Heater Types
The type of water heater will significantly affect your installation costs. Traditional tank water heaters are generally the most common and inexpensive option. Installing a new tank water heater can cost $1,000 to $2,500.
A gas-only tank water heater unit costs $400 to $1,200, and an electric-powered tank costs $300 to $900. Tank-style water heaters have hot water storage capacities of 40-80 gallons. They have an efficiency rating of 58%-60%, and an average lifespan of 8-12 years.
By design, tankless water heaters have no water storage capacity. They heat water only as needed.
- For tankless water heaters, the average cost to install one ranges from $2,100 to $4,000.
- Gas tankless types vary in price from $800 to $2,000.
- Electric tankless units will cost between $250 and $1,500 to install. Tankless units have an efficiency rating of 92% to 95% and are designed to last up to 20 years total.
- Heat pump water heaters cost $1,200 to $3,600 to install. Still, they are a smart long-term option because they significantly reduce energy use over time.
- Solar water heaters are usually the most expensive upfront, costing around $2,000 to $7,500. Many areas have discounts or tax credits for solar water heaters.
Average Cost to Install a Water Heater
How much is the cost to install a water heater? The national average is between $1,600 and $5,800.
The cost to install a water heater will also vary by tank capacity.
- A 40-gallon water heater will average around $600 to $1,200.
- A 50-gallon tank costs between $700 and $1,800.
- A 75-gallon tank costs between $900 and $2,300.
- An 80-gallon water heater costs between $1,000 and $3,000.
- Commercial units cost between $2,500 and $4,500, including installation of a water heater.
The cost to replace a water heater and install a complete tank unit ranges from $3,000 to $4,000. The cost to install a tankless replacement unit is between $7,000 and $9,500 when installed in place of a new unit.
How to Tell if You Should Repair or Replace Your Hot Water Heater?
You can fix many minor issues with simple fixes costing $150 to $500. One of the most common issues is a pilot light failure. Other likely issues can be faulty heating elements and thermostat issues that don’t require replacement to effect repairs. The cost to replace a water heater element is far less than replacing the entire unit.
Consider the cost of replacing the water heater when your unit is 10 years old. Tank water heaters typically have a life of 8–12 years. Rusty water usually means the inner tank has corroded. If you have multiple trips from a service company in a year, you probably need to replace your unit.
Any water pooling around the base of the unit is a clear sign of a serious problem. If a repair costs you more than half the price of the new unit, you may want to replace it instead.
Ways to Save On Water Heater Installation
The Investment Tax Credit provides a tax credit of up to $2000 if you buy an energy-efficient water heater. Local utility companies may offer discounts of $100 to $ 2,500. All of these savings help offset the cost of installing the water heater.
Contractors will receive seasonal discounts during spring and fall. Scheduling during regular business hours will also save you 20-50% over emergency call rates. You should also get estimates from 3 or more licensed plumbers. Pricing varies considerably from contractor to contractor.
You can also have the same plumber perform regular maintenance and services for $100 to $300 per year. This can help you avoid the expense of emergency replacements.
Can I Install the Water Heater Myself?
You should never attempt to install your own water heater. You will be exposing yourself to serious hazards. You could also end up blowing up your house if there is a gas leak, exposing yourself to carbon monoxide poisoning. And there’s always the potential for voiding the equipment warranty by doing DIY work.
Licensed plumbers are knowledgeable about complex, multifaceted issues such as venting laws, gas line safety, and electrical codes. Without professional installation, you can’t be 100% sure the connections you finish are code-compliant. Plumbers are typically bonded and insured against damages resulting from installations.
Have you considered the cost of water heater installation compared to the cost of replacing your DIY installation if something goes wrong? You probably paid a few hundred less, but you’ll likely be inconvenienced or need to spend some additional time. Overall, it does not add up to installing a water heater yourself.
Desert Dogs—Your Go-To Team For All Your Home Needs
When you understand how much it costs to install a water heater, you can plan, save money, and avoid avoidable surprises. If you’re in the market for a simple upgrade to your unit or a complete install, proper budgeting and ensuring a professional take-over will save you time and stress during this process.
Don’t let installation hassles or hidden installation costs rob you of your comfort. For expert service with your home’s best interests at heart, contact Desert Dogs for dependable, veteran-led water heater installation and home solutions.
Call today to experience the loyalty, experience, and care of Desert Dogs on any size job, big or small.
Frequently Asked Questions (FAQs)
1. How long can a new water heater last?
Tank water heaters typically last 8-12 years with regular maintenance. Tankless and solar water heaters last even longer, with some lasting more than 20 years. The quality of your water and how often you maintain it both greatly influence how long a water heater lasts. In general, the longer you keep a water heater, the longer it will last.
2. Does a new water heater make sense for me?
When a water heater is approaching 15 years old and the cost of repairs approaches 50% of the price of a replacement, it is a good time to replace it. New water heaters tend to have higher efficiency ratings and can use 15-30% less fuel than older models. You can also often find tax credits and local utility discounts that can get you between $100-$2,500 to help offset the cost of installation. Plus, if you keep the old water heater too long, it may flood and damage your property.
3. How much should I pay to install a water heater?
A reasonable installation price for a water heater can range from $1,600 to $5,800, depending on the type. The average cost to install a basic tank is $1,200-$2,500. The average installation cost for a tankless water heater could range from $2,100 to $4,000. The price for a complete tank water heater replacement is typically $3,500-$4,000. Make sure to get multiple estimates from licensed plumbers in your area to ensure you get a fair price.
