Water Heater Installation Costs

The specific water heater, whether a gas or electric model, not only determines the availability of hot water in the home - it can also greatly affect energy consumption based on the efficiency of the unit. Prices for hot water heaters installed range from $650 all the way to $1,900. But there are a number of factors that will determine actual costs, such as who is doing the installing, the type of water heater going in and whether it is a new installation or a replacement of an exising heater unit.

Various Water Heater Pricing

Speaking of capacity, water heaters are common in 40 gallon and 50 gallon sizes. Consulting with your plumber installer can help optimize by capacity, type and and model. For electric units, some of the pricier models like the Rheem 3500 watt heater costs around $410 with a 6 yr tank warranty - with installations found at $250 to $300, prices tend to rise from there.

While many quotes for water heater replacements be based on the idea that certain items be already in place - all should account for supply lines such as in flex or copper, and drain pans and fittings in addition to expansion tanks where called for, and permits as this applies, among other details.

For gas units, like those put out by manufactureres such as A.O. Smith and others, will cost more. Many are priced in excess of $900 particularly those for larger capacities.

Tankless water heaters, available in electric or gas, offer on-demand hot water and begin near $170 for the most inexpensive models (.7 gpm to 3.0 gpm to meet lower usage requirements) and costs go up to over $800 for units that are intended to provide service to an entire house. Claiming benefits, based on expected tank life and reduced costs via less energy consumption.

One commonly overlooked aspect of any installed hot water heater is the warranty as part of the total purchase price. Typically expressed as a 'tank and parts warranty' that span 6 to 12 years with some possibly ranging outside of this - the covered labor, however, often is agreed at only 1 to 3 years which leaves a huge gap for the owner to make up for in the event that a replacement is needed. With the labor expense representing a large chunk of the incurred bill.

Water Heater Tank Tips

• Abide by any regular maintenance per the installed unit as this can help determine such factors as tank lifespan. Brass drain valves typically perform better than plastic valves over the longer term.


• Seek out figures on yearly operating costs by water heater(s) ahead of the purchase. Along with ratings of efficiency, and 'Energy Start Qualified' statements.


• Check cost of parts and their availability prior to the install. Like for elements and thermostats, particulary in situations where multple water heater units are being placed.


• Water heaters should only be put in by qualified professionsals as there are clear risks posed for doing so improperly.