How Much Does Replacing a Water Heater Cost?

Your water heater is an essential part of your home, delivering piping hot water for everything from dishes to showers. Unfortunately, even the best water heater has a limited life span, and you’ll eventually need to consider a replacement. The cost of replacing a water heater varies greatly depending on the product you’re installing and the complexity of the installation. Here are some averages to help you understand your options:

Water Heater Cost

If you’re interested in a water heater replacement, the first thing you need to consider is the cost of the appliance itself. Water heater costs vary by type, size, and model. A traditional tank-style water heater is typically cheaper than a tankless model. A tank water heater usually costs between $500 and $1,500, depending on the capacity and efficiency. Electric water heaters usually cost less than gas models.

A tankless water heater, on the other hand, may fall somewhere between $2,000 and $4,500. Tankless water heaters use high-powered burners to heat the water as it passes through the appliance, which makes this product much smaller and more efficient. Rather than storing hot water at all times, a tankless water heater only heats water as needed for your home. Contact a plumber for expert help deciding which option is best for you.

Installation Cost

The total cost to replace a water heater includes more than just the appliance. You’ll also need to pay the appropriate professionals for assistance replacing a water heater. The average cost to replace a storage tank water heater is between $400 and $1,000, depending on your location and the installation requirements.

Installing a tankless water heater is more expensive, with the installation averaging about $2,500. For some homes, the cost is as little as $1,000, while others may see a bill as high as $6,000. A reputable plumber can provide you with a detailed price quote before installation so you know exactly what you’re getting into.

Lifetime Water Heater Costs

Though a tankless water heater costs more upfront, you should also consider long-term water heater costs. A tankless water heater is far more energy efficient and may reduce your water bills by as much as 25%. Tankless water heaters also last twice as long as storage tank water heaters, with a life span of 20 to 30 years, which helps you save money in the long run.

Whether you use gas or electricity will impact your operating costs as well. When Consumer Reports compared water heaters’ operating costs, they found the gas storage tank water heater costs $245 per year while the electric storage tank model costs $580 annually. A gas tankless water heater costs $195 per year, while the electric tankless model costs $535.

There are many variables to consider when replacing a water heater, including your home’s square footage, the number of bathrooms, your energy source, and the type of water heater you used previously. For a detailed explanation of the cost of replacing a water heater in your home and find the right one, contact our professionals at Plumbing Outfitters. We have over 50 years of experience providing plumbing solutions to Texas residents.