A new water heater typically costs between $800 to $1,550, and on average about $1,175. That being said, the price can vary depending on how much labor is required, if an old model needs to be removed, and what type of water heater you choose.
In addition to expenses like labor, which can add anywhere between $150 to $800, there are a number of other factors that can affect the cost of a new water heater. Let’s take a closer look at the variables involved so that you can get a better idea of how much your new unit will cost.
The Type of Water Heater You Choose Can Affect How Much It Costs
If you’re in the market for a new water heater, you’ve probably considered which type of unit you want to purchase. There are pros and cons, as well as different price points for each type of heater, so it’s important to know the details if you want to choose a unit that works for your house and your budget.
If you want to get the most out of your dollar, it’s helpful to check out the specs and average costs of each type of water heater. The most common styles are gas, electric, oil, solar, hybrid, propane, and high efficiency.
Gas
A new gas water heater can cost between $250 and $1,800. If you’re considering buying a gas water heater, you should know that they tend to be on the expensive side, and also have been known to increase the likelihood of residential water health safety hazards.
Although gas powered units tend to cost more than others, you’ll save more money in the long-run, especially if you choose an energy-efficient model. Either way, gas water heaters are definitely worth the cost because they heat water faster than other models, and they keep running if there’s a power outage.
Electric
A new electric water heater usually costs around $200 to $2,880. Electric units generally cost less to install, but are more expensive to run compared to other types. If you’re on the fence about choosing a gas or electric powered heater, you might be interested to know that electric units don’t heat water as fast as gas heaters.
Although electric heaters aren’t as quick as their gas powered counterparts, they do come with less safety risks and are inexpensive to maintain.
Oil
A new oil powered water heater can cost $1,000 to 3,000. If you’re looking for a unit that doesn’t run on gas or electricity, an oil-fired unit might be the right fit for you. Although they can be expensive to install, they’re exceptionally efficient and inexpensive to operate.
Solar
The cost of a brand new solar powered water heater is typically between $1,800 to $5,500, but in some instances it can be as high as $13,000. Although solar powered heaters are one of the most expensive types, you’ll save money down the road since it uses renewable energy. Ambient Edge is here to answer any additional questions you may have, such as how long does it take to install a hot water heater?
Hybrid Heat Pump
A new hybrid heat pump water heater generally costs between $1,200 and $3,500. They use little energy and are incredibly efficient water heaters. Hybrid heat pump units can be very large, so if you live in a small home they might not be the right choice for you.
Propane
Water heaters that use propane usually cost between $1,000 and $3,000. If you live in an area that doesn’t have nearby access to natural gas, a propane powered water heater might be a good alternative for your home.
High Efficiency
With the added cost of labor, high-efficiency water heaters typically run between $1,000 and $3,000 for a new unit. The insulation, smart control panels, and leak prevention features make these models more energy efficient than any other type of water heater.
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Additional Factors That Affect the Cost of a New Water Heater
Once you’ve decided which type of water heater is best for you, there are several other features and factors to consider when estimating your final bill. Let’s learn more about the additional variables that determine how much a new water heater costs.
Storage Tank
When you’re shopping for a new water heater, one of the decisions you’ll have to make is if you want a storage tank. A tank can hold between 30 and 80 gallons of heated water and costs around $700 to $2,000 to install. Tankless models usually run around $1,000 to $3,000.
Heaters with storage tanks typically require fewer repairs, but they take up a lot of space and can only hold enough water for about three hot showers. If you choose a tankless model, you’ll never have to wait for hot water and your unit will last longer compared to tank-style heaters.
Location of Heater
The cost of your new water heater can also depend on where you choose to install it. If you intend on putting it in a place that’s hard to access, like the basement, you should expect to pay a bit more for installation. The same goes for spots that installers will have to climb stairs to reach.
Size
If you choose a tank-style water heater, the size of the tank will also impact cost. Tanks can hold as little as 20 gallons or as much as 80 gallons of water. Heaters with lower capacity usually cost $300 to $900, while larger ones run between $1,000 to $3,000.
Ventilation
Water heaters come with two main types of venting systems. The first is a direct vent which vents gases out through a pipe above the unit. If you’re switching from an electric heater to a gas heater, installing direct venting will increase your bill by $500 to $1,000.
The other style is known as a power vent. This type of vent contains a fan that blows gases out of your house. Opting for a power vent unit can add $300 to $600 to the overall cost of your new water heater.
Additional Materials
Installing a new water heater involves a variety of additional materials that will increase the cost. Depending on your circumstances, you might need piping, vents, pressure valves, and a number of other parts that need to be considered when estimating how much you’ll have to pay.
Warranty
Every type of water heater comes with a warranty that usually lasts around eight to 12 years. If you’re interested in an extended warranty for your new unit, know that it could add up to $600 to the cost of your new unit.
Installation Costs Can Increase the Bill for Your New Water Heater
There are a myriad of expenses involved in installing a new water heater. If you’re replacing an old unit or switching to a different fuel source, you’ll definitely want to consider the installation variables that affect the cost of your heater.
Labor
If you’re planning on purchasing a new water heater, you’ll need to pay someone to install it. Installing a unit on your own can be extremely complicated and an untrained individual is likely to make mistakes that will negatively impact the effectiveness of the unit and possibly lead to safety issues.
The labor cost for new water heater installations usually runs between $150 and $800. If you also need plumbing work done it will cost between $45 and $200 per hour, depending on the extent of the job. Electrical work will typically cost $50 to $100 per hour
Removal of Old Unit
If you’re replacing an existing water heater, you’ll need to have your old unit removed. Depending on the removal company you hire, the location of your unit, and how big it is, removal can add $100 to $500 to the cost of your water heater.
Water and Gas Lines
If you’re switching fuel sources, you’ll probably need to install a new water or gas line. Putting in a new water line can add between $350 and $1,000 to your bill, and a gas line can increase it by $250 to $800.
Electrical Fees
If you’re switching to an electric unit, you’ll need to install wiring to power it. Electric-style heaters need a circuit all to themselves, which can add $200 to $500 to the overall cost of your new water heater.
Plumbing
Sometimes, when you install a new water heater, you need to replace old pipes or install new ones, especially if you plan on changing the location of your unit. Plumbing is an essential part of running a water heater, but it can add a few extra bucks to your bill.
Carpentry
If you’re putting in a new water heater, the cost can increase if you need to frame a new wall, enclose a certain area or expand an area. This can add $200 to $400 to your bill, and an additional $600 if you need to install drywall.
Permits
Anyone who’s interested in purchasing a new water heater should include the cost of permits when estimating the bill. Water heater permits usually cost between $50 to $500, but in some cases they can be as much as $1,500.
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How to Reduce the Cost of Your New Water Heater
After learning about all the expenses that factor into the cost of a new water heater, you might be wondering how you can lower your final bill. Here’s a few things you can do to make sure you pay the lowest price possible:
- Pick the right size. The size of your water heater can play a role in determining how much you pay. If you live alone or with one other person, don’t pay for a larger tank, a 40 gallon storage tank should be perfect for your circumstances. However, if you have four or more people living in your home, a 60 or 80 gallon tank would be more sufficient.
- Rebates and discounts. If you want to lower the cost of your new water heater, rebates and discounts are the way to go! Check to see if your energy provider offers a rebate or discount for customers who replace their water heater. It can also be helpful to purchase an EnergyStar approved unit, as it could make you eligible for a $150 tax credit.
- Compare units. Comparing the prices of different types of water heaters, tank-styles, fuel sources, and venting systems is crucial to finding the best price. Be sure to search the web and your local home center to find a unit that fits your budget.
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Signs That You Need a Replacement Water Heater
If your water heater stops working or has sprung a leak, you’ll obviously need a new unit. However there are several subtler signs that your water heater needs replacing. Here are some clues to watch for that indicate your heater is failing:
- Warm water only or water that only runs hot for a very short time
- Rusty, cloudy or metallic-tasting water
- Small leaks or moisture around the base of the unit
- Loud noises coming from the tank
- Your current water heater is 10 years old or more
How to Maintain Your Newly Installed Water Heater
Once you’ve estimated the cost of your new water heater, purchased one, and installed it, it’s time to learn how to keep it in good working order so that you don’t have to worry about paying for expensive repairs or replacements any time soon. Here’s what you can do to keep your new unit well maintained and save money on related expenses:
Test the TPR Valve
The temperature pressure release (TPR) valve will open if the pressure inside the tank gets too high. To check it, first turn off the power and water supply to the valve. Then, put a bucket under the pipe that connects to the TPR.
Next, lift the tab on the TPR valve and allow some water to flow out, then close it again. If the water continues to come out, let the tank drain halfway. After that, remove the old valve and put in a new one. Doing this will ensure that your tank’s pressure stays normal.
Replace the Anode Rod
Keeping up with your heater’s anode rod can extend the lifespan of your unit. To do this, look to see if your anode rod is less than half an inch thick. If it is, you’ll want to install a new one. Once you have the new rod, wrap its thread in teflon tape and secure it to your tank.
Drain and Wash Out the Tank
Keeping your water heater’s tank clean and free of sediments is an easy way to keep it working well. To do this, drain the water in your tank and mix up the sediment at the bottom of it by quickly engaging and disengaging the water supply valve.
Once all the sediment is stirred up you’ll want to drain it out. Complete this process a few more times or until the water comes out looking clear and free of buildup. Once you’ve finished, you’re ready to refill your storage tank and enjoy some nice hot water.
Adjust the Temperature of Your Heater
Adjusting the temperature of your water heater won’t prolong its life, but it will do wonders for your wallet. To do this, locate the temperature dial on your tank, remove the outer cover, and turn the dial a few degrees. A good rule of thumb to keep in mind is that every 10 degree turn will save you about 5% on your utility bill.
If you’re leaving home to go on vacation or just to skip town for a couple days, you might want to consider lowering your hot water heater’s temperature. Putting it on the lowest setting is a great way to save a few bucks when you’re planning on being away for a while.
Insulation
Insulating your water tank and your water heater pipes are two other actions you can take to lower your energy consumption. Keeping your unit insulated will prevent it from losing excess heat, and will save you a few bucks on your monthly energy bill.
