In this article…
- What Does It Cost To Replace My Water Heater?
- What Factors Affect The Cost Of A Water Heater Replacement?
- Is It Time To Replace My Water Heater?
Have you noticed your hot water not coming out as hot as it should? Is your water heater making strange noises when you turn the hot water on? Is it more than 10 years old?
Whether you’ve noticed severe issues with your water heater or recently bought an older home with an outdated water heater, you know it’s time for a replacement.
When upgrading any home appliance, one of the first things you want to know is how much it’s going to cost. Replacing your water heater is no different.
A water heater replacement can cost as little as $800 and up to $2,700 or more depending on various factors, like the model, installation, warranty, and more.
Understanding what goes into the cost of a full water heater replacement and how different factors influence the cost is essential before diving head-first into this project, and we’re here to help.
At Jim’s Plumbing Now, we’ve helped hundreds of homeowners in the Dallas and Fort Worth area with their water heater issues, from simple repairs to total replacements.
We know that cost isn’t the most fun topic to discuss for any home upgrade, but it is important.
The more you understand about the cost of a water heater replacement and what affects that cost, the more confident you’ll be when searching for the right water heater and plumber for you.
This article will detail the average cost of a water heater replacement, what affects the cost and why, and how to find the right plumber for you.
What Does It Cost To Replace My Water Heater?
Lack of hot water, discoloration or rust in your water, and leaks around your water heater are key signs it’s time to replace your water heater.
If you’re considering a water heater replacement, it’s important to know what to expect regarding costs and what factors can influence them.
The cost to replace your water heater can range anywhere from $800 on the lowest end and upwards of $2,300 – $4,000.
Now, this is a fairly wide range – we understand.
Like with any purchase, there is a large range in cost and quality, and they have a direct relationship. The lower the cost of a new water heater, the lower the quality of the product, installation, warranty, and more.
If you choose the cheapest water heater on the market, you will most likely have to install it yourself or hire a handyman to do the job, which can lead to installation problems, a voided warranty, and a short lifespan.
On the flip side, a high-quality water heater installed by a professional plumber will cost more, but you will also reap the benefits of a quality product, installation, warranty, and overall longer-lasting water heater.
We’ve just touched the surface on what factors affect the cost of your new water heater, so let’s explore these points more as well as other items that impact the price.
What Factors Affect The Cost Of A Water Heater Replacement?
Quality of the product, installation, and labor are some of the top factors that affect the cost of a new water heater, but that’s not all.
Several things will greatly influence the cost of a new water heater, like the water heater type, size, city permits, and more.
Here, we will outline each of these points in detail so you have a full understanding of how each factor affects the price of a water heater replacement and why it is important.
1. Water Heater Type (Tank-Type and Tankless)
There are two main types of water heaters: tankless and tank-type.
Tank-type water heaters have a tank, typically 40-50 gallons, that keeps a reservoir of water in the tank that must be heated when you want to use hot water, whereas tankless water heaters provide hot water on demand when you need it.
Tankless water heaters have become a popular choice among homeowners because of their energy efficiency and longevity, lasting several years longer than tank-type water heaters on average.
Replacing your water heater with a tankless water heater can cost anywhere from $700 to $1,500 more than a tank-type water heater.
Although it is a more costly investment upfront, depending on your wants and goals for your new water heater, tankless may be the way to go.
2. Tank Size and Capacity
If you want to stick with the traditional tank-type water heater, considering the size of the tank needed is important.
A 40 to 50-gallon tank is standard for a single-family home, but smaller homes may only need a 30-gallon tank. On the other hand, larger homes may need a bigger tank with a higher capacity for the home’s plumbing.
For tankless water heaters, larger homes will need a water heater with a higher flow rate measured in gallons per minute (BPM) to ensure an adequate amount of water can flow throughout the home.
A larger tank or tankless water heater with a higher flow rate will increase the cost of your water heater replacement.
3. Fuel Type
The fuel type of a water heater determines how the water heater is powered. Electric and gas are the two most common fuel types, but solar is another form of power to source the water heater.
Electric water heaters are the most affordable type, followed by gas water heaters. However, if you don’t already have a gas-powered water heater, it can be more expensive due to the installation of a gas line and venting.
Hybrid heat pump water heaters use both natural gas and electricity to power your water heater, which can be 2-3 times more efficient than your standard electric water heater.
Solar-powered water heaters are the most expensive, costing up to $5,000 or more with solar panel installation, but this type of water heater does provide you with long-term energy savings.
4. Labor, Installation, and Warranty
The quality of labor, installation, and warranty directly impact the cost of your water heater replacement.
If you’re looking for the cheapest option for a water heater installation, the outcome is going to be cheap, and you’re most likely going to end up paying more in constant repairs or another full replacement in the short term.
Alternatively, if you want to invest in a high-quality water heater installed by a licensed, experienced plumber that you know will last, it is going to cost more.
Some plumbing companies may also charge for hauling and disposing of your old water heater, so that is important to distinguish before signing any work orders.
When it comes to finding the right plumber for you, it’s important to outline your wants and needs for your project.
If you know you will be in your home long-term and want a quality water heater, understand it will cost more than buying one at a big box hardware store and having a local handyman install it.
5. Location of the Water Heater
The location of a water heater can significantly impact replacement costs because of the accessibility, labor, and safety requirements.
Attic installations typically cost more because of difficult access, potential structural reinforcements, and added safety measures like leak detectors to prevent water damage. Garage installations are generally easier but may require the heater to be elevated on a platform, especially for gas units, to comply with safety codes.
Outdoor installations need weatherproofing, insulation, and possibly protective enclosures to guard against the elements, adding to installation costs.
The more difficult a water heater replacement is, the more it will cost due to the difficulty of labor and installation.
6. Water Heater Additions and Upgrades
Like with many other home upgrades, you can customize your water heater with several additions to aid with functionality, ease of use, and energy efficiency.
Some common water heater upgrades include a smart thermostat, high-efficiency anode rod, drip pan, and a leak detection/automatic shut-off valve kit.
Water heater add-ons are not mandatory for standard water heater installations, but depending on your wants for a new water heater, a professional plumber will recommend the best additions for you if you’d like.
A flood stop is also a popular water heater addition that will shut the water heater off and sound an alarm if any water starts to leak and overflow.
These additions can range anywhere from less than $100 on top of your water heater replacement to several hundreds of dollars, depending on the upgrade.
7. Permits and Code Compliances
Did you know that a permit from your city or municipality is standard practice for new water installations? It’s true, especially if it is a gas water heater.
Because water heaters involved plumbing, electrical, gas, and vents, a permit is necessary to ensure the right products and installation processes are used along with following the proper building codes, depending on the type of building.
Some insurance companies will also require that a permit be obtained in case you incur any damage caused by the water heater.
A licensed plumber will ensure the installation complies with local building codes, which adds to the cost slightly but ensures safety and peace of mind.
Is It Time To Replace My Water Heater?
Now that you know how much a water heater replacement costs and what main factors affect the overall cost, you have a realistic understanding of how much replacing your water heater will cost and won’t feel blindsided by a price tag.
The cost to replace your water heater heavily depends on the quality of the product, labor, and installation. Other factors that influence the overall cost include
- Water heater type
- The tank size and capacity
- Fuel type
- Labor, installation, and warranty
- Additions and upgrades
- City permits and code compliances
It’s important to remember that cost and quality have a direct relationship. A high-quality water heater installed by professional, trustworthy plumbers will cost more than other options.
Finding the right water heater replacement for you all comes down to your wants and needs.
If you aren’t looking for a long-term solution and aren’t concerned with the quality of the water heater, then a low-cost solution may be right for you. But if you plan to live in your home for the foreseeable future and want to invest in a water heater that is reliable and long-lasting, it will reflect in the price tag.
At Jim’s Plumbing Now, we’re here to provide you with all the information you need to feel confident in your decision regarding your plumbing project because we understand how stressful it can be.
Along with knowing what a water heater replacement costs and what elements impact the price, you also want to be sure you need to replace your water heater and what signs implicate it’s time for a full replacement.
To better help in your journey, check out this article that outlines six signs it’s time to replace your water heater. Then, you can be fully confident knowing replacing your water heater will be a worthy investment and have realistic expectations on the cost.
