How Much Does Water Heater Installation And Replacement Cost In 2024? (2024)

When it comes to water heater installation and replacement costs, several factors come into play, such as the labor cost per hour, parts and materials and the size of the unit. Let’s explore the key components contributing to the overall cost.

Labor Cost Per Hour

Most plumbers will provide a flat rate that covers both labor and materials, but others may bill you by the hour. Hiring a local plumber will cost between $50 and $200 per hour. If you need additional electrical work, hiring an electrician will cost between $50 and $150 per hour.

Parts and Materials

Various materials are needed to ensure a successful and efficient water heater installation. These materials include discharge pipes, fittings, pipe thread compound, pressure release valves, solder, venting pipes and connectors, as well as water and gas piping. Remember that more complex installations may require additional materials, which can impact the overall water heater replacement cost.

Unit Size

The size of your water heater is determined by the number of people in your household and can impact water heater replacement costs. Tank-style water heaters range in size from 20 gallons to over 100 gallons, with a 40-gallon tank being the most common for a two-person household. Homes with more than five people may require a larger tank, such as a 60-gallon or 80-gallon unit.

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

Tank water heaters are the traditional option, storing and constantly heating a supply of water. Storage tank water heaters are usually easier to install than tankless water heaters, which means they’re also typically less expensive. Storage tank water heaters can cost around $600 to $800, but costs vary on the size of the tank. Installing a tank-style water heater will cost between $900 and $2,500 on average.

Tankless

Tankless water heaters warm water on demand, eliminating the need for a storage tank. These units tend to be more energy-efficient but may require additional installation considerations. Tankless water heaters can range in price from $600 to $1,500. A tankless water heater installation costs between $1,000 and $3,500.

Gas

Gas water heaters rely on natural gas or propane to heat the water. The installation cost for a gas water heater can range from $500 to $2,500. Installation costs depend on the tank size and any additional work needed. But remember that while gas models are less expensive to operate, you do need an existing natural gas line to be able to use them.

Electric

Electric water heaters use electricity to heat the water. The installation starts at the same price as gas water heaters; from $500. But they can be more expensive, with high-end electric options that can cost up to $3,500. Remember that the monthly costs of electrical and gas heaters are different—electric models tend to be more expensive than their gas counterparts.

Direct Vent

Direct vent water heaters bring combustion air from outside and exhaust gasses directly outside your home. Installing a vent pipe when switching from an electric direct vent tank-style water heater to a direct vent gas model usually costs between $500 and $1,000.

Power Vent

Power vent water heaters use a fan or blower to assist in venting combustion gasses out of the unit. Power vent water heaters are suitable for situations where a traditional chimney or natural draft venting is not available or practical. The power vent water heater installation cost may vary based on the venting setup and additional electrical requirements. Expect to pay between $500 and $1,000 for vent pipe installation.

Aside from labor, parts and the type of water heater unit itself, there may be additional costs to consider when installing or replacing a water heater:

Permits and Inspection

Obtaining permits and undergoing inspections are essential for water heater installation or replacement projects. Local building codes may require permits to ensure the installation meets safety and environmental standards. To install a gas appliance or change the plumbing and electricity, you’ll need a permit at the very least. The costs of permits vary from $100 to $1,500.

Water and Gas Line Installation

Properly connecting the water heater to the existing plumbing and gas supply is essential for safe and efficient operation. If your home’s water and gas lines require modifications or extensions to accommodate the new water heater, this can add to the overall installation cost. It is necessary to hire a qualified professional to ensure that the water and gas line installations are performed safely and in compliance with building codes and regulations.

Location in the Home

Installing the water heater in a hard-to-reach area like the basem*nt or a corner of the attic may increase the complexity and cost of the installation. Consider the accessibility of the chosen location and discuss any potential challenges with the installation professional to anticipate any additional expenses.

Recognizing the signs that indicate the need for a new water heater can save you from unexpected breakdowns and costly repairs. Look out for these indications:

• Insufficient hot water supply
• Rusty or discolored water
• Strange or loud noises
• Leaks or pooling water around the unit
• Increased energy costs
• Age of the water heater (typically over 10 to 20 years)

While water heater installation or replacement can be a significant investment, there are ways to save money:

• Weigh the cost of the different kinds of heaters. Some heaters might be more expensive to buy and install, but they might be running more efficiently, saving you on energy costs in the long run.
• Get your current water heater repaired instead of installing a new one (if the current heater isn’t too old).
• Take advantage of any available discounts or incentives for energy-efficient water heaters.
• Consider purchasing a slightly smaller unit if it meets your needs, as larger units are more expensive.
• Make sure to insulate your water heater and the associated pipes to improve energy efficiency and reduce heat loss.

We recommend hiring a professional to get your water heater installed or repaired. DIY installation can save on labor costs but requires technical expertise and may void 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.

To arrive at the average costs in this article, we surveyed two retailers as well as five local and national cost databases. All averaged figures were correct at the time of publication and may be subject to change.