If you live in a super cold country like the United States of America, the most relatable product that makes all the sense would be a water heater for you. Why? Well, because it gets freezing cold, and surviving without a water heater is nothing less than a death sentence for the Americans. That’s why here, I’ll tell you the cost for the water heater installation as per the water heater’s type and size so you can get this life-saving product and shower comfortably in your home.
There you may have a question. What are the types of water heaters? Typically it has two types such as,
- Electric water heaters
- Gas water heaters
Water heaters are usually less costly as compared to other types of heaters. The water heater comes in different types. So, you can choose according to your needs and requirements. In this guide, we will look at the details of each type of tank. We will also discuss it’s about the installation cost of a water heater.
Let’s get started for a better understanding!
Overview of Water Heater Installation Costs
The installation cost of the water heater depends on its size and kind. It may cost between 500$ to 3500$. This cost includes everything including labor and unit costs. Typically, there are two types of water heaters such as,
- Tank water heater: Tank water heater is the most commonly used water heater. The price of these heaters may range from 1200$ to 2500$. The large tanks are more expensive as compared to small ones.
- Tankless water heater: Tankless water heaters usually warm up the water instantly when you need hot water. It does not store hot water. The installation cost of a tankless water heater may range from 1,000$ to 3,500$. The precision specifically depends on the size and functionalities of the water heater.
Moreover, the cost may be affected by several factors such as,
- Increased ventilation
- Additional plumbing work
- Permits
For example, you are installing a new heater system instead of replacing it with an old one. It may also include the additional cost of the plumbing system. These factors can increase the installation cost.
For additional insights on energy-saving features and installation guidelines, you can also visit the ENERGY STAR Water Heaters page.
Water Heater Installation Costs Across Different States
The installation cost of the water heater is not specified or fixed for all the states of the US. It may vary due to various factors. The installation cost can also differ due to local labor rates and building codes. Below we have a table that helps you to understand the estimated cost required to install a water heater.
| State | Estimated Installation Cost |
| Alaska | $1,500 – $4,000 |
| Colorado | $1,500 – $4,000 |
| Idaho | $1,500 – $4,000 |
| Illinois | $1,500 – $4,000 |
| Indiana | $1,500 – $4,000 |
| Iowa | $1,200 – $3,500 |
| Maine | $1,500 – $4,000 |
| Massachusetts | $1,500 – $4,000 |
| Michigan | $1,500 – $4,000 |
| Minnesota | $1,200 – $3,500 |
| Montana | $1,500 – $4,000 |
| Nebraska | $1,200 – $3,500 |
| New Hampshire | $1,500 – $4,000 |
| New York | $1,200 – $3,200 |
| North Dakota | $1,200 – $3,500 |
| Ohio | $1,300 – $3,500 |
| Oregon | $1,500 – $4,000 |
| Pennsylvania | $1,200 – $3,500 |
| Rhode Island | $1,200 – $3,500 |
| South Dakota | $1,200 – $3,500 |
| Vermont | $1,500 – $4,000 |
| Washington | $1,500 – $4,000 |
| Wisconsin | $1,200 – $3,500 |
| Wyoming | $1,500 – $4,000 |
Types of Water Heaters and Their Installation Costs
1. Tank Water Heater
A tank water heater is the most commonly used tank system used for hot water. It has a huge size that can store a large quantity of water. However, it may cost 1200$ to 2500$ to install a water heater system.
The heater runs constantly and keeps the water warm inside the tank. Even when the hot water is not in use it continues the heating process to increase the results.
These heaters may vary in size. These sizes also affect the heater cost and its installation cost. There are several benefits of tank water heaters. Besides, these also have some drawbacks, let’s have a look at them.
| Pros | Cons |
| Affordable upfront cost: Cheaper than other water heating options. | Higher energy costs: Heats water continuously, even when not in use. |
| Easy installation: Simple to set up with minimal modifications. | Limited hot water supply: Once the tank is empty, you must wait for it to refill and reheat. |
| Low maintenance: Requires little upkeep over time. | Takes up space: Large tanks require dedicated space in the home. |
| Reliable hot water supply: Always stores hot water, ready for use. | Shorter lifespan: Typically lasts 10-15 years, which is less than some alternatives. |
2. Tankless Water Heater
A tankless water heater system is also known as the on-demand water heater. It only heathens the water when you need hot water. As compared to a tank water heater, it’s a more efficient choice. It prevents energy loss as it does not work when you do not need hot water.
The installation cost of a water heater can fluctuate between 1,000$ to 3,500$. This method is useful when you want to reduce utility bills and save energy. As this water heater is energy efficient but, it also has some drawbacks. Let’s have a look at its pros and cons.
| Pros | Cons |
| Unlimited hot water: Heats water on demand, so it never runs out. | High upfront cost: More expensive to buy and install than traditional heaters. |
| Energy-efficient: Uses less energy by heating water only when needed. | Complex installation: This may require upgrading plumbing or electrical systems. |
| Long lifespan: Lasts 20+ years, longer than traditional water heaters. | Gas models need ventilation: This adds to installation costs but improves performance. |
| Space-saving design: Compact and mounts on walls, freeing up floor space. | Electric models may struggle with high demand: Not always ideal for large households. |
3. Heat Pump Water Heater (Hybrid)
A hybrid water heater is also called a heat pump water heater. It typically works differently from other water heaters. It uses environmental heat to warm up the water. So, this makes it the best choice for those who are looking for an energy-efficient heating system. This system can be switched into the typical electric heater. So, you can switch to the eclectic system when the external heat is not sufficient to operate the heater.
The installation cost of a hybrid system can be anywhere between 1,500$ to 3,000$. This price may vary according to the size and kind of heater. Before choosing the right system you must know about its pros and cons.
| Pros | Cons |
| Energy-efficient: Uses up to 60% less energy than traditional electric heaters. | Higher upfront cost: Installation costs range from $1,500 to $3,000. |
| Lower utility bills: Saves money over time by reducing electricity use. | Needs extra space: Requires proper airflow, making it harder to install in small homes. |
| Long lifespan: Can last 10-15 years or more with proper maintenance. | Less efficient in cold climates: Works best in warm areas but loses efficiency in colder temperatures. |
| Eco-friendly: Reduces energy consumption and carbon footprint. | Slower heating: Takes longer to heat water compared to gas heaters. |
| Dual heating modes: Can switch to electric mode if needed for faster heating. | May require modifications: Might need electrical upgrades or additional space for installation. |
4. Solar Water Heater
Solar heaters directly use the sunlight to warm the water. This is the most eco-friendly and cost-effective option. Installation costs of solar water heaters range from $2,000 to $6,000. There are two types of such systems:
- Active systems: Use pumps to circulate water. This makes them more efficient but more expensive.
- Passive systems: Cost less but are not as effective.
| Pros | Cons |
| Uses free solar energy, reducing electricity or gas bills | High initial installation cost ($2,000–$6,000) |
| Eco-friendly, lowers carbon footprint | Less effective in cloudy or cold areas |
| Low maintenance requirements | Requires sufficient roof space for solar panels |
| Long-term savings on energy bills | A backup system (electric or gas) may be needed for consistent hot water |
| These systems can increase home value | Installation can be complex and may require a professional setup |
5. Condensing Water Heater
A condensing water heater saves energy by reusing heat from exhaust gases. This makes it more efficient than regular gas water heaters. This water heater is ideal for homes that use a lot of hot water.
It may have high costs at the start but will lower your utility bills later. Usually, installation costs for condensing water heaters may vary from 1200$ to 3500$.
That means you have to invest a handsome amount to buy and install the condensing water heater. Despite its great benefits it also has some drawbacks. Let’s have a look at the pros and cons that will help you to make a clear decision.
| Pros | Cons |
| Uses less energy, making it cost-effective | Requires proper drainage and ventilation, complicating installation |
| Reduces energy bills over time | Needs regular maintenance to avoid buildup in the heat exchanger |
| Environmentally friendly due to lower energy usage | Higher upfront cost ($1,200–$3,500) |
| Ideal for homes with high hot water usage | Best suited for homes with natural gas hookups |
6. Point-of-Use Water Heater
A point-of-use water heater is a small device that heats water instantly. It can be used anywhere like in a shower and sink. It’s used to avoid waiting for hot water from a central system. These heaters are available for both tank and tankless heaters. But most commonly they operate by using electricity.
The installation cost typically ranges from $500 to $1,500. These are less expensive as compared to other types of water heaters. But it’s not appropriate for the usage of large families. Listed below are some pros and cons of point-of-use water heaters which can help you to make a clear decision.
| Pros | Cons |
| Heats water instantly at the point of use | Not suitable for heating water for an entire house |
| Saves space and energy | Increased electricity costs with more units |
| Convenient and fast hot water | Limited to specific areas (e.g., kitchens, bathrooms) |
| Ideal for kitchens, bathrooms, etc. | Requires installation close to the fixture |
7. Indirect Water Heater
An indirect water heater is an energy-efficient option. It heats water using your home’s existing boiler or furnace. It works by transferring heat from the boiler to a storage tank via a heat exchanger. This makes it a good choice for homes that already have a central heating system.
The installation cost may vary from $1,200 to $3,500. They usually cost a little higher as compared to electric heaters. But these heaters are the best option to save energy and utility bills. If you want to know in detail about its pros and cons then given below table can be beneficial for you.
| Pros | Cons |
| Uses existing boiler, saving on energy costs | Not suitable for homes without a central heating system |
| Provides a consistent hot water supply | Performance depends on the efficiency of the boiler |
| Fewer parts to break, leading to a longer lifespan | Energy usage may rise in the summer when heating is not needed |
| Efficient and saves money over time | Higher upfront installation cost compared to some other options |
Factors Affecting Water Heater Installation Costs
Several factors can affect the installation cost of a water heater system. Some of these factors are listed below.
Labor Costs:
Labor cost depends on the complexity of the installation of a water heater. It’s less expensive if you are replacing an outdated heater with a new one. However, the expenses may increase if you are installing a brand-new system. A new system requires electrical and plumbing work.
The estimated amount for installation falls between 150$ – 1,000$. Electrician heater installation is less expensive as compared to gas heaters. Gas heaters require a proper venting system. Hiring professional labor guarantees safe and effective installations.
Replacement vs. New Installation:
| Pros | Cons |
| Replacement of an outdated system with a new one is usually less expensive. | Installation of a new system is more expensive. |
| No need to install a plumbing system. | It requires electrical wiring and plumbing services. |
Additional Components:
Sometimes the installation cost may rise due to some additional parts. These parts include,
- Piping
- Better venting
- New expansion tank
Electric heaters require wiring modifications to install a new system. On the other hand, gas heaters require new gas lines. Depending on your requirements the additional parts costs may install the cost by 100$-1,000$.
Permits and Inspections:
Most of the places require a permit before the installation of a water heater. It ensures that a water heater satisfies safety regulations. The price of the permit changes from region to region. Price may vary from 50$ to 500$.
Moreover, sometimes an examination may also required especially for tankless or gas water heaters. These examinations raise the installation prices but they guarantee a safe and proper installation of the system.
Choosing the Right Water Heater
1. Based on Household Size:
It’s necessary to choose the appropriate water heater size so that you can get enough hot water without wasting electricity. Moreover, it also depends on,
- How many people reside in your house?
- How much hot water they consume each day?
- 30-40 gallons: For one to two people, a water tank of 30 to 40 gallons is sufficient to provide hot water. Select a tankless option that has a flow rate between two and five gallons per minute (GPM). This size is ideal for homes with little hot water requirements.
- 40-50 gallons: A 40-50 gallon tank is the best option for three to four people. You can choose a 5-7 GPM tankless water heater according to your choice. This hot water is sufficient for laundry, dishwashing, and showers.
- 70 gallons: A 70-gallon tank is enough for five or more people. This is the ideal size for those who have more people to use hot water. So, you don’t need to worry if several people are using hot water at the same time.
2. Based on Energy Source:
- Electric Water Heaters: If you don’t have gas pipelines, electric heaters are the greatest option. They need very little maintenance and are easy to install. However, because they require electricity to function, they can be expensive to run. For people with little space, these heaters are perfect.
- Gas Water Heaters: If your home has the necessary gas lines, a gas water heater may be the better option. For big families who require a lot of hot water, these are the ideal options. These water heaters operate faster. However, to prevent gas deposits, they require adequate maintenance and ventilation.
- Solar Water Heaters: Solar water heaters are the most energy-efficient systems. They directly use the sunlight to operate the system. They can save you money on utility bills. But, you should have a backup option for these systems as they rely directly on Sunshine.
- Hybrid Water Heaters: These water heaters are a combination of power and natural heat. As compared to electric heaters they usually consume less energy which makes them more energy efficient. They can be expensive initially, but they help you save on electricity bills.
Electric Water Heater Installation Cost Based On Tank Capacity
The installation cost of the eclectic heater varies based on tank capacity. Usually, larger tanks are more costly to install. However, they can hold more water.
- 30-40 Gallons: This size is ideal for one or two individuals. The installation price for 30-40 gallons may vary from 800$-1800$. These compact, energy-saving heaters are ideal for tiny areas or apartments. However, they might not supply enough hot water if several people use the shower at once.
- 40-50 Gallons: This is the perfect size for three to four persons living in small to medium-sized homes. The installation cost for this size of the heater may cost 900$-2200$. You can perform routine tasks like showers, laundry, and dishwashing. Therefore, it’s the best choice for families who use hot water frequently.
- 50-75 Gallons: Ideal for larger families with four to five members. The installation cost may range from 1000$ to 3000$. These heaters maintain a consistent supply of hot water, even when several people are taking showers or using appliances at once.
- 75+ Gallons: Ideal for big families who use a lot of water. Installation costs for such types of water heaters can be high. It can fluctuate between 1800$ to 3500$. They are usually costly to install and run.
Here we have a simple table, that helps you to understand the installation cost of water heaters according to the number of gallons.
| Tank Size (Gallons) | Estimated Installation Cost |
| 30 Gallons | $800 – $1,500 |
| 40 Gallons | $900 – $1,800 |
| 50 Gallons | $1,000 – $2,200 |
| 60 Gallons | $1,200 – $2,500 |
| 75 Gallons | $1,500 – $3,000 |
| 80+ Gallons | $1,800 – $3,500+ |
Electric Water Heater Cost by Brand
The price of an electric heater can differ from company to company. Here we have a list of companies that provide water heaters at an average cost. Let’s discuss these companies one by one.
1. Rheem
Rheem is a popular brand that is well known for its reasonable pricing of electric heaters. Their products are long-lasting and energy efficient. The exact price of a water heater depends on the size and model of the heater. But the estimated price can be between 400$ to 1500$. This is a cost-effective product for those who have a low budget.
However, if you want to get a tank with a capacity of 75 gallons then it will cost 1500$. And the price of 40-gallon Rheem tank can be around 600$. They also provide warranties for the heater. You can claim an exchange within 12 years.
2. A.O. Smith
Another well-known option for water heaters is A.O. Smith. They are known as the best due to their advanced technology and reliability. The electric heaters of this company can cost between 350$ to 1800$.
However, if you need a large tank with a capacity of 50 gallons, it may cost 1200$. Similarly, prices decrease with the decrease in the capacity of the tank. A-gallon wank heater cost roughly 500$. The models of A.O. Smith may have high charges but they will help you to save on electric bills.
3. Bradford White
Bradford is also a well-known company for water heaters. It is popular in the market due to its durability and excellent manufacturing. An electric heater of Bradford usually costs between 500$-1600$. This cost can be changed according to the size and model of the water heater.
For instance, large tanks cost up to 1600$. They can store large amounts of water. On the other hand, a tank with a capacity of 40 gallons can cost roughly 650$. These water heaters are the best choice for the household who is looking for a high-performing water heater.
4. Whirlpool
Whirlpool has a wide range of water heaters at reasonable prices. Most of their models have prices between 300$-1,100$. A 40-gallon tank is the best choice for people who have a tight budget. It may cost around 400$. Additionally, they also have energy-efficient models which may cost a little bit higher as compared to typical electric heaters. But these heaters will save your bills lately.
5. Kenmore
Kenmore is also a reputable brand for water heaters and household appliances. A normal electric heater of Kenmore may charge between 350$ and 1200$. However, large models which have a high capacity to store water are more expensive. They usually cost up to 1200$. Kenmore is famous in the market due to its reasonable pricing and good quality of appliances.
What Can Be The Expected Lifespan Of Water Heaters?
The life span of a water heater system depends on its type, usage, and maintenance. Here we have an estimated expected lifespan for each type of water heater.
- Traditional Tank Water Heater: The traditional heater includes both electric and gas heaters. They usually last for 8 to 15 years. After that, you may need to install a new system or replace it with an upgraded version.
- Tankless Water Heater: Tankless water heaters usually have a long life span. If you keep them with proper care and maintenance they can last for 20-25 years.
- Heat pump water heater: A heat pump water heater’s life span depends on its usage and maintenance. Usually, they can last around 10 to 15 years.
- Solar water heater: Generally, a water heater remains efficient for 15 to 20 years. Its longevity makes it the best choice to save money for a long time.
Tips To Maintain Water Heater For A Longer Lifespan
Proper maintenance can increase the life span of a water heater. Here we have some maintenance tips that help to expand the longevity of your water heaters.
- Traditional Tank Water Heaters: Traditional water heaters include both electric and gas heaters. To maintain them it is necessary to flush the tank after every 6-12 months. It’s necessary to remove sediment buildup. Also, check and replace the anode rod every 3 to 5 years to prevent corrosion.
- Tankless Water Heater: It’s necessary to descale the unit after every 12-18 months. Moreover, clean or replace the inlet water filter regularly.
- Heat Pump Water Heater: For heat pump water heaters it’s essential to clean the air filters after a few months. This increases the functionality and performance of the water heater.
- Solar Water Heater: To maintain the efficiency of the water heater make sure to clean and check the solar panels. Also, flush the storage tank every 6 to 12 months. This helps to prevent mineral buildup.
Conclusion
There is no set price for installing a water heater. Usually, it depends on several variables, including size, type, and functionality. Installing a tankless water heater could be more expensive than installing a tank water heater. Although they could be less expensive, traditional water heaters may result in greater electricity costs.
Furthermore, the water heater’s size has an impact on its cost. The cost of smaller heating systems is lower than that of bigger ones. However, these only work well if you have a tiny family of two or three people. Your needs and financial situation will determine which water heater is best for you.
For additional industry insights and trusted guidelines, visit the U.S. Department of Energy’s Water Heating page .
FAQs on Water Heater Installation Costs
What is the average cost of water heater installation?
The cost of a water heater depends on various factors. Typically, it depends on the water tank type and its size. However, the average cost range may vary from 600$ to 2,500$.
How much does it cost to install a tankless water heater?
Installation of a water heater system costs 1,000$ to 3,500$. It includes all the charges such as installation fees and labor charges. The price depends on multiple factors such as the size of the unit and the complexity of the installation.
What are the labor costs for installing a water heater?
The labor costs for installing a water heater vary from model to model. There are typically two types of models such as, Standard Models: They usually cost 250$ to 800$. Advanced System: Labor usually costs 500$ to 1,200$.
How do I choose the right size water heater?
You have to consider the following factors before choosing a water heater. Consider household size Assess hot water usage Check for space availability Account for energy efficiency
