A water heater installation or replacement is a crucial home improvement project. The average cost to install or replace a water heater is about $1,200. This figure usually depends on the unit type and size. Replacement and labor charges will also impact the project’s total cost. Plumbers charge between $150 and $450 to replace a regular unit. According to teamemergencyplumber.com, Labor costs can increase to up to $1,000 or more, depending on the plumber’s rates, unit type and size, and installation location. Permit fees, old unit removal and disposal, expansion tank installation, materials, and other variables may also affect the overall cost of installing or replacing a water heater.
Installation and Replacement Costs by Unit Type
The type of water heater determines the overall installation or replacement price. Hot water units fall into two main categories: tank-based and tankless water heaters. You should consider all available options and choose a unit that meets your budget and your home’s unique needs.
Solar Water heater
Solar-powered units heat water using energy from sunlight collected by solar panels. They come in several types and sizes and cost anywhere from $3,000 to $9,000. In some cases, it can increase to around $13,000, depending on the complexity and location of the installation.
Such heaters are cost-effective in the long term, as they rely on a renewable and environmentally friendly energy source. What’s more, you can significantly lower your energy bills by many folds by supplementing your old water heater with a solar-powered one.
Indirect Water Heater
This unit contains a special coil in the tank. This coil is responsible for heating the water. The average replacement cost for an indirect hot water unit is between $1,800 to $3,000. This figure represents the cost of the new unit and labor.
Hybrid Heat Pump
Such pumps unit uses coils and a compressor to transmit heat from the surrounding environment to the water. The average cost to replace this unit ranges from $7,500 to $12,000. This figure includes labor and material costs. Although hybrid heat pumps are energy efficient, they are costly for household use. They are also huge and unsuitable for small homes.
Gas
Gas-powered units are usually energy efficient and heat water faster. They remain operational even in case of a planned or unexpected power outage due to weather conditions. The average gas water heater cost is about $2,700 for a 50-gallon tank. This unit can save money down the road because of the usually higher power bills and lower natural gas costs.
Electric
Electric water heaters are less expensive than gas-powered ones. In fact, they usually cost $100 to $300 less to install. They are, however, costlier in the long run because of the higher electricity prices. They heat water slower than gas-powered heaters. They also do not work during a power failure, but if you have less budget to spend on heating, then these can be a useful choice.
Propane Water Heater
Installation costs for propane-powered heaters are higher than those of natural-gas- or electric-powered units. Average prices can range from $800 to $3,000, with labor and material costs included.
Installation and Replacement Costs by Unit Size
The cost of installing or replacing a water heater also varies with the size of the unit in question. The size of tank-based systems can be between 20 and 100 gallons of storage. Most homes in California and across the United States have a 40-gallon tank size.
A 40-gallon tank can adequately serve a household with two individuals. A household with over five individuals will require at least a 60-gallon tank. Costs of water heating systems by size are as follows:
- Between $550 and $2,000 for a 30-gallon tank
- Between $550 and $2,350 for a 40-gallon tank
- Between $650 and $2,700 for a 50-gallon tank
- Between $1,250 and $3,500 for a 75-gallon tank
- Between $1,350 and $3,500 for an 80-gallon tank
Labor Charge
Besides the price of a new unit, labor charge accounts for a significant chunk of the installation cost. Labor charges could range from $150 to $450. They could also increase to up to $1,000. Labor costs usually depend on the installer’s hourly charges, unit size and type, and installation location.
Plumbers can handle all the major tasks of installing electric- or gas-powered water heating systems. They can charge from $45 to $150 per hour. An electrician may be necessary if the project involves intricate electrical work, including installing a new circuit or switching from a gas to an electric heater. Hiring an electrician could cost between $50 and $100 per hour.
Installing a tank-based unit may take three hours. A tankless water heater may take up to 10 hours to replace or install. The duration of the job and accompanying costs can increase even more when switching from a gas to an electric unit. The same consideration applies when transferring the unit to a new location within the building.
Permit Fees
A plumbing permit to replace or install a water heater system is compulsory in most states by authorities. This document allows relevant authorities to inspect and determine if the work satisfies the current safety and quality requirements. Overall permit costs can range from $50 to $500 based on the project design and the number of permits needed.
Old Water Heater Removal and Disposal Costs
Your plumber will remove the old tank before installing the new one. The removal and disposal costs for the old tank will depend on your plumber’s hourly charges, tank size, and accessibility. The average cost is typically between $100 and $500. Expect to pay a significantly higher amount if the old tank is large, inaccessible, and difficult to remove.
Cost of Installing Expansion Tank
An expansion tank protects the pipe from bursting if the water heater’s tank malfunctions. Many older residential properties lack these essential safety systems. Fortunately, building rules and regulations in most jurisdictions require homeowners to have these systems installed during water heater replacements. Expect to pay about $40 to $350 for a new expansion tank installation.
Materials
Plumbers use solder, discharge pipes, connectors, and other materials to install or replace water heaters. These materials can cause the hot water heater cost to surge significantly based on the specific details of the project and the materials required to get the job done.
Final Thoughts
Water heater installation or replacement is a labor-intensive project. It requires specialized equipment, knowledge, and expertise in performing electrical, gas, or plumbing work. As such, you should never do this project yourself. Instead, hire a licensed and experienced plumber to ensure the job is done properly and according to building codes on the first visit.
