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How Much Does it Cost to Install a Water Heater in 2024?
Installing a water heater is a significant investment, and one of the primary concerns is the cost. This cost can vary based on several factors. In this article, we will delve into these factors, additional considerations to keep in mind, the benefits of professional installation, signs indicating it's time for a replacement, and a comparison of different water heater types. We will also discuss the pros and cons of DIY installation versus hiring professionals.
KEY TAKEAWAYS
- On average, new water heater installations typically cost between $1,500 and $5,000 depending on the type of water heater you’re installing and complexity of the work.
- Rebates and other incentives can reduce the cost of installing a new water heater depending on the type you choose.
- When possible, installing a new water heater yourself can save you money on the professional labor charges when your complete the task correctly.
Factors Affecting Water Heater Installation Cost
Several factors influence the cost of water heater installation, and understanding these can help you make an informed decision.
Type of Water Heater
The type of water heater—tank, tankless, or hybrid—affects the installation cost. Tank water heaters are common and affordable, while tankless heaters are energy-efficient but often have a higher upfront cost for the product and installation. Hybrid heaters combine both types, offering energy efficiency and versatility. Plumbing revisions are typically required to install a hybrid water heater because it is often taller than a standard tank water heater.
Switching from a gas water heater to a hybrid electric water heater can be costly unless you qualify for rebates. Some states will soon have instant rebates available through the HEEHRA provisions of the 2022 Inflation Reduction Act to help defray the costs of switching from a gas water heater to a high-efficiency electric model. If you qualify, taking advantage of these rebates will greatly reduce the cost of installing a new hybrid water heater in your home.
Size and Capacity
The size and capacity of the water heater also impact the cost. Larger units require more labor and materials, increasing the installation price. Choose a size that meets your household's hot water needs without incurring unnecessary expenses.
Choosing the same size and type of water heater as your current model will help minimize the cost of installation. Replacing your water heater with a nearly identical model will often cost you around $1,500 to $2,500 in many areas of the country.
Labor Costs
Professional installation ensures safety and efficiency. Labor costs depend on the installation's complexity, location, and the installer's expertise. Installation costs for replacing a water heater with a nearly identical model will typically run between $1,200 and $3,000 in many areas.
You can sometime eliminate the professional labor costs of installing a new water heater by completing the work yourself when possible. Situations where DIY replacement is feasible typically involve replacing an electric water heater with a nearly identical model. Gas water heater replacement and revising plumbing to install a different type of model of water heater are typically too complicated for DIY’ers.
Although DIY might seem cost-effective, it's advisable to hire a licensed professional to avoid risks and costly errors in most situations.
Additional Considerations for Water Heater Installation
For a successful water heater installation, consider the following:
Permit and Code Requirements
Local building departments may require permits for installation. Familiarize yourself with plumbing codes to ensure compliance and avoid issues. Code and permits will prevent your from installing a new water heater yourself in some local areas.
Location and Accessibility
Install the water heater in a well-ventilated area with proper clearance for safety and easy access for maintenance and repairs. Moving the water heater to a different location or switching from a tank water heater to tankless model can require extensive plumbing modifications but moving the water heater to a good location can be worth the extra expense.
Upgrading or Modifying Plumbing
Assess the condition of existing plumbing connections. Upgrades or modifications may be necessary for compatibility and performance. Consulting a professional plumber can help you determine the best course of action.
Benefits of Professional Water Heater Installation
Hiring licensed plumbers for water heater installation offers numerous benefits.
- Expertise and experience: Professionals have the necessary skills to handle all types of water heaters and provide expert advice on the best options for your home. They can address any issues during installation, saving you time and money.
- Warranty and guarantees: Reputable companies like offer installation warranties and/or guarantees, ensuring your investment is protected. If problems arise post-installation, professionals will resolve them promptly.
- Compliance with codes and regulations: Licensed plumbers ensure your installation meets all safety requirements and local codes, protecting your home and family.
Overall, professional installation ensures your water heater is installed correctly and functions efficiently for years to come.
Signs You Need to Replace Your Water Heater
Consider replacing your water heater if you notice the following signs:
- Age and lifespan: Water heaters typically last 8 to 12 years. If your unit is older, it may be less energy-efficient and costlier to operate.
- Frequent repairs: Constant repairs indicate your water heater is struggling. Investing in a new unit can save you money in the long run.
- Inadequate hot water: If you frequently run out of hot water or it’s not as hot as it used to be, sediment buildup might be affecting performance.
Comparing Water Heater Types: Tank vs. Tankless
Understanding the differences between tank and tankless water heaters can help you make an informed decision.
Tank Water Heaters
These store and heat a large amount of water, ready for use. A large family often needs a tank water heater with plenty of hot water storage capacity. They are affordable but take up space and may be less energy-efficient. Installation costs for replacing a tank water heater with a similar model typically run less than replacing a tank water heater with a tankless model.
Tankless Water Heaters
These heat water on demand, saving energy. They are compact and have a longer lifespan but come with a higher initial cost. Their energy efficiency can lead to significant savings over time and they produce fewer greenhouse gas emissions.
At Sears, we offer various water heater options. Our experts can help you choose the best type for your home. Contact us for more information about the various water heaters and the best type for your home and family.
DIY Water Heater Installation vs. Professional Services
Deciding between DIY and professional water heater installation involves weighing the risks and benefits.
DIY Installation
While it may seem cost-effective, DIY installation poses risks such as mistakes in connections, wiring, and venting. These errors can lead to leaks, electrical issues, or unit damage, potentially costing more in the long run.
You should only consider DIY installation when you’re replacing an electric water heater with a nearly identical mode because plumbing connections are simple and any revisions to the current pipes and drains would be minimal.
Professional Installation
As noted above, professionals have the expertise and tools for a correct and efficient installation. They ensure compliance with local codes and regulations, and their services often come with warranties, providing peace of mind.
Though DIY projects can be rewarding, opting for professional installation saves time, effort, and potential headaches, ensuring a reliable setup.
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Glossary Terms
Hard water is water that contains high levels of dissolved minerals, particularly calcium and magnesium. It contrasts with soft water, which has lower concentrations of these minerals.
A thermocouple is a sensor used for measuring temperature, consisting of two different metal wires joined at one end, which generate a voltage proportional to temperature changes.
A K-type thermocouple is a sensor used for temperature measurement, consisting of two dissimilar metal wires that generate a voltage proportional to temperature changes, widely recognized for its accuracy and wide temperature range.
A heat pump water heater is an energy-efficient appliance that uses electricity to move heat from the air or ground into water, rather than generating heat directly.
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