Hot Water Heater Installation Cost Guide

Do installation costs matter, or do all water heaters have a flat installation fee? When it comes to purchasing a water heater, it can depend. The size, type, and brand could make the difference in how many pennies your bank needs to pay the professional installing your water heater. While companies may have a standard flat fee or hourly fee for installation, that price could depend on the complex job.

Here I’ll explain everything you need about hot water heater installation costs. From the units themselves to having it installed, along with all the minor costs associated, which cover permits, expansion tanks, relocation, warranties, and changing power/fuel type.

There are several different brands and types of hot water heaters available on the market today. The most common include electric storage tank heaters, gas-fired storage tank heaters, and tankless (or instantaneous) units.

Each has its benefits and drawbacks regarding initial costs, operating costs, efficiency levels, and more.

Water Heater Replacement Cost

On the low-end, a water heater replacement can cost between $500-$900 but can cost as high as $1,200-$5000. On average, you can expect to be paying between $700-$1,200 for a replacement. (Note: these prices include the price of the water heater + installation costs)

The price of water heater replacements depends on various factors: the brand, the type of water heater, the size, the quality, whether it is gas or electric, and your region. But most notably, the kind of water heater will be a leading factor in the cost.

• For a Standard Tank: $500-$1,500 + installation fees
• For a Tankless: $300-$2,500 + installation fees
• For a Hybrid: $700-$3,000 + installation fees
• For a Solar: $1000-$5000 + installation fees

*These are approximated prices; a replacement could cost you more or less where you live.

The most common type of electric water heater is the storage tank water heater. Storage tank water heaters keep hot water ready to go and can be found in several sizes. Most households find that 40 to 50 gallons is sufficient, but you may need a larger tank if you have high water needs. The average cost for an electric storage tank water heater is $500 to $1,500, with most homeowners paying $1,000 for a 50-gallon electric tank water heater installed in a new location with an electrical upgrade.

Tankless water heaters are another option. They heat water on demand without storing it in advance. The heater is installed inside your wall, so it uses less space but can be more expensive to install, depending on the location. The average cost for a tankless water heater is $2,000.

Hybrid units are a third option. They switch between heating with a heat pump during times of high water usage while using standard electric resistance for everyday needs. Hybrid units can be a good option if you have high water needs and want low energy bills. The average cost for a hybrid water heater is $1,500.

Installation Cost Factors to Consider

Type of water heater: The type of water heater being installed can affect the cost of the installation. Tankless water heaters, for example, typically require more extensive installation compared to traditional tank water heaters, and this can increase the cost.

Size of the water heater: The size of the water heater being installed can also impact the cost of the installation. Larger water heaters will typically require more labor and materials, and this can increase the cost.

Location: The location of the water heater installation can also affect the cost. For example, installations in remote or difficult-to-access areas may require additional labor and materials, and this can increase the cost.

Accessibility: The ease of access to the installation site can also impact the cost. If the water heater is being installed in a tight or cramped space, it may require additional labor and equipment, which can increase the cost.

Additional services: The cost of water heater installation can also be affected by any additional services that may be needed, such as disposal of the old water heater, installation of new piping or ventilation, or upgrades to the electrical or plumbing systems.

Costs To Install Water Heaters

Does it really matter who you call to install your water heater? What can you expect to be paying a person or company? The answer may vary where you live, but here is the general pricing from various sources:

Home Depot Water Heater Install Costs

According to their website, Home Depot estimates that based on all the different factors involved, the total cost for installing a new water heater (40 gallons) is between $1,300 and $2,000. This price includes the cost of the water heater itself when you buy from them.

If you are only looking for them to do the installation, you will need to call your local Home Depot to determine the permit and labor costs. So, you have an idea of the price Home Depot will quote you; a range for the installation cost would be around $500-$1200.

Lowes Water Heater Install Costs

From Lowes, the costs for a water heater installation will vary, depending on your system’s needs. The lowest cost range for a basic install will be around $200-250, but that can easily change to somewhere between $500 and $700 for the installation costs.

The factors for this include, but are not limited to, inspection, piping, old water heater disposal, delivery, and labor.

Local Plumber Install Cost Range

Going through Lowes or Home Depot for installation will also add surcharges for the base cost, as they are the middleman connecting you with a licensed plumber.

So, suppose you have a trusted local plumber. In that case, you will most likely get a better deal from them than going through Home Depot or Lowes (unless you get some significant discounts from them). On a national level, installation and repair costs will be an average of $165 when hiring a local plumber. The lowest price on the curve will be about $100, while the high side for just installation for most water heater systems will be $300 (75 gallons).

Remember that this range for all these places will not account for every situation. This is because some systems will need more done to them due to age, neglect, or damage, and in these cases. These costs can be much higher than expected, so be prepared to pay the upper end of installation costs. Most trained plumbers will not ignore hazards they run into when doing an installation.

Roto-Rooter Water Heater Replacement cost

Roto-Rooter is an emergency plumbing company that offers service anytime, any day, 24/7. If you have an emergency, the company will send a plumber within 2 hours (it could be, depending on how far away you are). 

A dead-set price depends on what works need to be done on your water heater. However, they do have a flat rate in some cases. Servicing can cost anywhere between $100 and $1000 for repairs or replacement. For the installation of a replacement water heater, you can expect to be paying at least $500 for installation (but it likely can cost you more). 

Rheem Water Heater Prices vs. Other Popular Brand Prices

Rheem water heaters, with how many options they have, are very competitive when it comes to the cost of the appliance itself. They have the basic water heaters that are competitively priced and have some of the highest-end ones with every add-on imaginable to where they are the highest priced.

Replacing the same water heater or adding alterations and costs

Suppose you consider replacing the same water heater or adding alterations or costs. In that case, you must be mindful of budgets and installation and alteration costs.

Replacing the same water heater will not be nearly as costly as adding alterations or getting a different water heater type, depending on water heater accessibility and how easily alterations could be made to your current system.

Cost to Bring Water Heater Up to Code

To keep your water heater in running condition, you must have it serviced regularly (every 6 months or so). Without proper maintenance, it can be easy for problems to arise without you noticing. 

A typical inspection can cost about $200, but it can cost under $100 to almost $500 to have your water heater checked. However, this price doesn’t include the costs of replacement parts or if your plumber finds an issue and fixes it.

Tips on how to save money on your water heater installation

There are several ways that homeowners and business owners can save money on water heater installation, including:

• Choosing an energy-efficient model: Water heaters that are Energy Star certified are generally more energy-efficient than non-certified models, which can save you money on your monthly energy bills.
• Taking advantage of rebates and incentives: Many local utility companies offer rebates and incentives for customers who purchase and install energy-efficient water heaters. These programs can help offset the upfront cost of the water heater and save you money in the long run.
• Hiring a professional: While it may be tempting to try to install a water heater yourself, hiring a professional plumber can ensure that the installation is done correctly and safely. This can save you money in the long run by avoiding costly mistakes and repairs.
• Shopping around: Comparing prices from different vendors and plumbers can help you find the best deal on a water heater and installation services.
• Negotiating: Don’t be afraid to negotiate with vendors and plumbers to try to get a better deal on a water heater and installation services. It never hurts to ask for a discount or to see if they can offer any additional savings or promotions.

Average Water Heater Installations Costs By State (USA)

Frequently Asked Questions

Who is The Best Company to Install a Water Heater?

When it comes down to who is the best company, the easy answer will always be the one you trust the most and have the most experience with. That company helps solve as many problems as possible without adding additional issues. Of course, different factors will be involved in who the best installer is. If you have a trusted local plumber, you will often not find a better price or service elsewhere.

Suppose you are looking for a convenient way to find someone to install your water heater when you do not have a local plumber you trust already. In that case, Home Depot or Lowes’s convenience – a one-stop store for the water heater and installation – is a great option.

 Remember that you need to read the fine print to ensure you truly understand all the costs when using a middleman to connect you with a professional. You will also need to know if they include the installation cost or just the connection cost to get you the professional to install your water heater.

It also depends on what type of water heater you have installed and if it is the first time one is being installed or if it is a new type different from the previous water heater (ex., To switch from electric to gas is more complicated, as gas lines also need to be be installed).

Final Thoughts

Now that you have a better idea of what installation can cost you when installing a water heater, you can make better-informed decisions about who you should contact for the job and why.

Do not try to install it unless you have had the certified training to do so. Contact your local plumber or contact your local hardware store if you need access to professionals. It may cost you a lot initially, but it will significantly reduce the cost of time, money, and headache later if anything goes exceptionally wrong.