How Much Does a Hot Water Heater Replacement Cost?
Suddenly cold showers? Weird noises? Leaks? It’s time to learn more about your hot water heater replacement cost.
On average, you can expect to pay between $600 and $4,000, depending on the type and size of the unit, as well as installation factors. The typical cost of a hot water heater is $1,327, according to NerdWallet. However, a lot of factors can affect the final price you pay.
In fact, replacing a water heater can be a big expense. Understanding these costs will help you plan more effectively.
This guide breaks down your hot water heater replacement cost, including heater types and installation.
Repair or Replace? Making the Right Choice
Before looking at the hot water heater replacement cost, think about if you really need a new one.
Usually, fixing your current heater can make it last longer. Ask yourself these questions:
- First, how old is it? Tank heaters usually last 8-12 years. Tankless heaters can last 20 years or more. If it’s old, replacing it might be better than fixing it again and again.
- Next, how often do you repair it? If you’re always fixing it, it’s probably near the end of its life.
- Then, do you see rust? Rust usually means internal corrosion. If you see rust (or red stains on clothes or fixtures), you likely need a new water heater.
- Also, is it efficient? Older heaters often waste energy. A new, efficient model can save you money, even with the hot water heater replacement cost. Plus, hard water in your home can cause calcium buildup that reduces efficiency.
- Finally, are there strange noises? Rumbling or popping sounds usually mean internal problems.
If your water heater is old, needs lots of repairs, or has rust, replacing it is a good idea. A licensed and knowledgeable plumber should check your system as soon as possible.
Factors Affecting Your Hot Water Heater Replacement Cost
Several things can affect the hot water heater replacement cost. Too, understanding these factors will help you estimate how much you’ll spend.
1. Type of Water Heater
The type of water heater is a major factor. The main types are tank and tankless.
Traditional tank water heaters: Overall, these are the most common for creating and storing hot water. The hot water heater replacement cost is usually less than tankless heaters. But they often waste energy because they constantly heat water. Even if it’s not currently needed.
Generally speaking, the most common sizes are 40 and 50 gallons.
The hot water heater replacement cost for a 50-gallon unit is usually a bit more than for a 40 gallon-unit. Obviously, this is because of the larger size.
Tankless water heaters: These only heat water when you need it. They save energy and can lower your bills. However, the tankless water heater cost to install is higher at first.
Here’s a more detailed cost breakdown:
Traditional Tank Hot Water Heater Replacement Cost:
- Unit Cost: $300 – $1,200
- Installation Cost: $500 – $1,300
- Total Cost: $800 – $2,500
Tankless Hot Water Heater Replacement Cost:
- Unit Cost: $800 – $3,500
- Installation Cost: $1,200 – $1,500
- Total Cost: $2,000 – $5,000
2. Size and Capacity
The size of the unit affects the price. Bigger tank models or tankless units that heat more water per minute cost more. Plus, it’s crucial to choose the right size for your home.
Tank Water Heaters:
- 40-gallon: Good for 1-3 people
- 50-gallon: Good for 3-4 people
- 60-gallon or Larger: Good for larger families
Tankless Water Heaters:
GPM (Gallons Per Minute): This depends on how many hot water appliances you use at the same time. So, use this handy calculator to find out what you need.
3. Brand and Quality
Quality also affects the cost of a new water heater. Well-known brands often cost more, but a top-notch product can save you money in the long run.
Ultimately, this is because they need fewer repairs and last longer. Rheem, Bradford White, and A.O. Smith are popular brands.
4. Installation Complexity
Difficult installations can make the hot water heater replacement cost higher. Examples include:
- Location: If the water heater is in a hard-to-reach place, such as an attic, labor costs will be higher.
- Additional plumbing: New pipes will add to the cost.
- Electrical: Tankless models may need new electrical circuits, which can be expensive.
- Permits: Most cities require permits. The cost varies.
A permit is required for hot water heater replacement in most of Illinois. However, West Palm Beach does not require a permit for this.
5. Labor Costs
The labor cost to install water heater is a large part of the total cost.
Licensed plumbers usually charge by the hour. Typically, rates depend on experience, your location, and how complex the job is.
Licensed plumbers usually cost more, but they do better work. They also know and follow local building codes.
Average labor costs: $50 – $150 per hour, depending on your location.
6. Additional Costs
Additionally, consider these potential extra hot water heater replacement costs:
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- Old water heater disposal: Some plumbers include this in their price. Others charge extra.
- Permits: Permit costs vary depending on your location.
- Upgrades: New plumbing or electrical work will add to the cost.
- Emergency fees: Emergency service calls cost more.
Tank vs. Tankless: Which Hot Water Heater is Right for You?
The best choice depends on what you need and how much you want to spend.
Choose a traditional tank water heater if:
- You don’t want to spend a lot of money upfront.
- You live in a small household.
- You want a simple installation.
Choose a tankless water heater if:
- You want to save money on your energy bills.
- You have a large household.
- You want to save space.
While a cheap water heater might seem appealing upfront, it’s often not such a great deal.
Lower-priced models typically use cheaper materials and components. Hence, this leads to a shorter lifespan and potential issues. This can result in higher operating costs, more frequent repairs, and even premature replacement.
Ultimately, the hot water heater replacement cost will be higher in the long run.
DIY vs. Professional Installation
To be sure, it’s always best to hire a licensed, experienced plumber, like the team at Angel Water.
- Safety: Plumbing can be dangerous. Plumbers make sure the installation is safe.
- Code compliance: Licensed plumbers are familiar with the local building codes.
- Warranty: Water heater warranties usually require professional installation.
- Proper installation: Correct installation prevents problems later.
The labor cost to install a water heater is usually worth it.
Getting Accurate Estimates for Your Hot Water Heater Replacement Cost
Get price quotes from several plumbers to ensure you’re getting the best price.
First, provide all the important details: Give potential plumbers as much information as possible about your current setup.
Then, always get a written estimate: Make sure the estimate includes all costs.
Next, compare your quotes: Ensure the quotes are for similar heaters.
Finally, always check references: Use a licensed plumber that has a good reputation. Verify their license using your state’s licensing board.
Minimizing Your Hot Water Heater Replacement Cost
Here’s how to lower the average cost to replace your water heater:
- Shop around: Some water heater manufacturers offer deals or specials.
- Consider efficiency: Choose an energy-efficient model to save on your energy bill.
- Take advantage of rebates: Check with your local utility company or with EnergyStar for rebates or incentives.
- Maintain your water heater: Regular maintenance can make your water heater last longer. Always follow the manufacturer’s instructions.
Equally important, consider a heat pump water heater. Also known as a hybrid water heater, these systems pull heat from the surrounding air and transfer it to the water in the tank.
This process makes them two to three times more energy efficient than standard electric resistance water heaters.
While the initial hot water heater replacement cost may be higher, the long-term energy savings can be significant.
Investing in Hot Water Comfort and Efficiency
Replacing your water heater is a smart investment. It makes your home more comfortable. Plus, it lowers your energy bills and gives you peace of mind.
By understanding what affects your hot water heater replacement cost, you can make informed decisions and choose the best solution for your needs and budget.
Think about the type of water heater, size, installation costs, quality, and potential extra costs. Get quotes from several licensed plumbers. Also, consider the long-term energy savings you’ll get with an energy-efficient model.
At Angel Water, we know how important it is to have a reliable hot water system.
We only offer the highest-quality water equipment. Of course, we only use licensed plumbers for water filtration and water heater installations. We’re dedicated to providing expert advice and professional service throughout the whole process.
If you’re looking for the best solutions for your water treatment needs or need help understanding your hot water heater replacement cost, contact us today for a free consultation and see the Angel Water difference!
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