Water heaters are one of the most used household appliances in homes around the world. A functional water heater is nothing short of a blessing in winter. One of the things to consider when planning a water heater installation project is the installation cost. The cost of installing a 40-50-gallon water heater with a tank ranges from $400 to $900. The installation cost for a tankless water heater is usually between $1,470 and $2,500. The overall cost of owning a water heater will depend on a number of factors such as the number of people using the heater, operating expenses, and remodeling done in the home.
Tank vs. Tankless Systems
While several plumbing contractors in Alpharetta believe that tankless heaters are more energy efficient, many people argue that they are not as beneficial as they are billed to be. A tankless water heater can cost you up to as much as $2500 installed. A tank water heater is relatively inexpensive (up to $900 installed). Tankless systems are difficult to maintain. Though households using these systems report a saving of $70-$80/year, it takes those years to recover the difference in the initial cost. If you prefer using your heater to perform more than one task at the same time, opt for a tank water heater. These heaters are relatively easier to maintain, and provide hot water more quickly than their tankless counterparts.
Labor
Plumbers typically charge $45-$65 per hour. In most cases, a plumber will install a water heater in a day (6-8 hours). You can expect to pay between $270 and $520. Water heaters that are difficult to access can take extra 2-3 hours to install.
Type of Water Heater
Some of the most popular types of water heater systems are natural gas systems, propane water heaters, electric water heaters, and solar water heater systems. Natural gas systems are known for their affordability ($500-$700). Expect to pay between $400 and $550 for natural gas water heater replacement in Alpharetta.On average, getting a new natural gas water heater system installation will cost you between $1,500 and $2,300. Propane water heater installation will cost you around $1,000-$1,500. Though getting an electric water heater installed normally costs between $350 and $450, the original cost can exceed $500 if there are structural complexities. A fully installed water heater can cost up to $5,000.
Additional Considerations
If you want to get an existing water heater replaced, add $500 to the overall cost. If you’re old water heater pipe is damaged or not compatible with the new system, you will have to purchase new piping ($8-$10 per linear foot). Check with your plumbing contractor in Alpharetta whether you need permits for a new water heater.
Your search for a plumbing expert ends at Fletch Barney. We are one of the most trusted plumbing contractors in Alpharetta. Whether you have a water heater repair problem in Alpharetta or need sewer line repair services in Alpharetta, we got you covered. To discuss your project with an expert, call us at 770-333-3031.
Hot water heater replacement costs an average of $1,250
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Without a hot water heater, washing sheets or relaxing in a warm bubble bath just isn’t the same. Water heater replacement costs range from $840 to $1,700, but the price depends on whether you’re doing a simple one-for-one swap or a detailed upgrade to a tankless system. If you’re planning a replacement, here’s a comprehensive look at potential costs to help you set your budget.
| $350 | $1,250 | $12,000 |
Water Heater Replacement Cost Factors
When it comes to a replacement, there’s a huge range of hot water heater costs. You’re paying for materials and labor, and not all installations are easy. Here are some factors that impact the overall price of the job,
Size
Hot water heaters come in different sizes, measured by gallons (for tank-style systems) or gallons per minute (for tankless systems). Generally, tank-style heaters hold anywhere from 20 gallons to 100 gallons. The larger the tank, the more it’s going to cost. Here are some common prices by size, including parts and labor.
| 30 | $550 – $2,100 |
| 40 | $550 – $2,100 |
| 50 | $650 – $2,400 |
| 75 | $1,250 – $3,500 |
| 80 | $1,350 – $3,500 |
For a two- or three-person household, a water heater that holds 40 to 50 gallons—or heats 3 to 5 gallons per minute—is usually adequate. Larger families will need a larger tank, but as your family grows, you won’t necessarily need a replacement; the cost of an expansion tank is $40 to $200 plus labor.
Type
When you install a hot water heater, costs are dependent on the type of fuel the unit runs on. Natural gas, propane, and electric water heaters all start at around $600—but costs rise from there. A high-end electric water heater is the most expensive and could cost as much as $3,500, excluding hookup or installation. You’ll pay significantly more if you need to install gas or electrical lines.
Tank vs. Tankless Water Heater
Tankless models are rising in popularity because of their efficiency and durability. Unfortunately, high-end models can cost twice as much as a conventional tank-style water heater. For a replacement, expect to spend $600 to $2,500 on a tank-style water heater or $1,200 to $3,500 on a tankless water heater.
If you’re converting a tank system to a tankless system, you may pay twice as much for labor because the job can take twice as long. On the other hand, a tankless water heater costs as little as $100 to $300 for a single-point system that’s only for one appliance.
Keep the ongoing maintenance for the unit in mind when making a decision. “Many homeowners invest thousands in upgrading their water heaters to tankless systems but are never informed about the importance of regular maintenance,” says Jeff Botelho, Angi Expert Review Board member and Massachusetts-licensed journeyman plumber.
Venting System
Electric water heaters generally don’t need venting, but gas or propane water heaters do. There are two types of venting: direct or power. Direct-vent heaters are less expensive and use an exhaust pipe or chimney. Power-vent heaters are more expensive and use a fan or blower.
In general, expect to spend an additional $300 to $600 on a direct-vent unit, plus $300 to $500 for the electrical work.
Location
You’ll spend more on installation if you’re replacing a water heater in a difficult-to-reach area. For example, it will cost more if your contractor has to carry the unit down multiple staircases. You’ll also spend more if you relocate your water heater. On average, relocation costs $150 to $3,400, depending on the complexity of the move.
Installation and Labor
Labor is a significant part of a hot water heater replacement, but costs vary based on how long the job takes. In general, plumbers cost $45 to $200 per hour, while electricians cost $50 to $100 per hour. Expect the following price ranges for labor alone:
Replacing a tank-style water heater: $150–$450
Replacing a tankless water heater: $600–$1,850
Converting a tank-style water heater to a tankless system: up to $2,500
Permits
Permits for a hot water heater replacement usually cost $100 to $1,500 depending on the extent of the work and your local laws, but at the very least, you’ll need a permit to install a gas appliance or alter plumbing and electricity.
Water Heater Replacement Cost by Type
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Most electric and gas water heaters cost between $550 and $1,500, but there’s a huge range depending on the type you purchase. A light-duty commercial heater is more durable but will generally cost $1,000 more than a residential unit. Here’s what you can expect for each type of water heater.
| Electric | $600 – $3,500 |
| Gas | $700 – $2,700 |
| Propane | $700 – $2,500 |
| High-Efficiency | $1,500 – $3,000 |
| Indirect | $1,200 – $3,500 |
| Solar | $1,700 – $5,500 |
| Hybrid Heat Pump | $1,200 – $3,500 |
Electric
Electric water heaters typically cost $600 to $3,500 to install. The units are relatively more affordable upfront, and you can purchase a small electric water heater for a single appliance for as little as $200. These units are around 95% energy efficient, but overall costs depend on current electricity prices.
Gas
Natural gas water heaters cost an average of $700 to $2,700 to replace. They’re one of the most common types of water heaters and tend to heat water more quickly than electric units. Unfortunately, they’re not usually very energy efficient. As gas prices rise, you could find yourself stuck with high operating costs.
Propane
Propane water heaters cost an average of $700 to $2,500 to replace. This type of unit is an alternative to natural gas. You’ll commonly find them in rural areas without accessible natural gas lines or homes that are off-grid (think: a mountain cabin or island property).
High-Efficiency
It costs an average of $1,500 to $3,000 to install a high-efficiency water heater—but costs can rise depending on the type. These units are 100% to 300% more efficient than a traditional tank water heater. In other words, they come with a higher upfront cost, but you can save on utilities in the long run.
Indirect
These units cost an average of $1,200 to $3,500 to install but tend to be the most budget-friendly to use.
“Indirect-fired heaters use a coil inside the tank that connects to a boiler with piping, similar to a heating zone,” says Botelho. “The heat radiating from the coil heats the water inside the tank. These tanks are more expensive than traditional gas or electric tanks and take about four to eight hours to install.”
Solar
The typical cost of a solar water heater is $1,700 to $5,500, including labor. Costs can rise to as much as $13,000, depending on the circumstances. These units are more costly option upfront, but they don’t really cost anything to run beyond regular maintenance—so long as the sun shines.
Hybrid Heat Pump
On average, a hybrid heat pump water heater costs $1,200 to $3,500 to install. This type of unit pulls in heat from the air and uses a compressor or coil to transfer the heat to water stored in a tank. Though it’s highly efficient, it needs up to 1,000 square feet to work, so it’s not a good option for small homes and apartments.
Additional Hot Water Heater Replacement Costs to Consider
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In the simplest replacement, a professional will swap out your old hot water heater for a similar model. The installation will usually be simple because the new unit already fits in the space. This isn’t the case for all installations, though. In some cases, you’ll need additional work, which will lead to extra costs.
Hiring an Electrician
If you have to do any extra electrical work, expect to spend $50 to $100 per hour to hire a licensed electrician. This expense may be particularly high if you’re upgrading to an electric tankless model. These units use 120 to 160 amps, so you might have to upgrade your electrical service to 200 amps or more.
Additional Wiring
If you're converting from one fuel source to another, you’ll often need additional electrical wiring. Most homeowners spend $500 to $1,000 installing a new electrical line, but wiring can cost upwards of $2,300.
New Gas Line
Gas line installation costs an average of $260 to $820, but you can spend upwards of $1,500 switching from an electric water heater to a gas water heater.
New Water Line
If your water heater installation requires a new water line, expect to spend an additional $400 to $2,000. This is a common expense for homeowners relocating their units.
Required Permits
Depending on the work your contractor needs to do, you may need a builder’s permit, plumbing permit, or electrical permit to install a hot water heater. Generally, these permits cost anywhere from $100 to $1,500, depending on your location.
Wall Framing: $200–$400
If you’re installing a new water heater or relocating your water heater, the job may require extra carpentry work. If you need to frame a wall during installation, expect to spend $200 to $400.
Drywall Installation: $1,000–$3,000
Sometimes, a contractor needs to open up a wall to install a replacement water heater properly. The typical cost of drywall installation is $1,000 to $3,000 or $1.50 to $3 per square foot.
Water Heater Removal: $100–$500
Removing your old water heater generally costs $100 to $500, but it depends on your contractor’s hourly rate. If the water heater is in an inaccessible area or it’s difficult to remove, costs will tilt toward the high end.
Cost to Install or Replace a Hot Water Heater Yourself
Flatly put, it’s not a good idea to install a water heater on your own—nor is it even legal in most cases. Since water lines and gas or electricity lines are involved, you’ll need a permit to do any work. Your city, state, or homeowner’s association will typically only grant permission to a licensed contractor.
There might even be insurance requirements. Regardless of the legalities, the list of what can go wrong is enormous. Something as simple as over-tightening a gas control valve can cause a gas leak and lead to a fire or carbon monoxide poisoning. For this job, skip the potential hazard and hire a water heater installer near you.
Cost to Hire a Pro to Install a Water Heater vs. DIY
A local water heater installer typically charges $840 to $1,700 to replace an old water heater, including the heater itself. Depending on the installation, you’ll generally spend anywhere from $150 to $2,500 or more on labor.
How to Save When Replacing Your Water Heater
Replacing a water heater is often an emergency expense, so it’s not exactly the most budget-friendly project. Fortunately, there are a couple of ways you can save a little money.
Repair, Don’t Replace
Water heaters have a typical lifespan of six to 20 years, depending on the model and how well it’s maintained. If your water heater isn’t nearing the end of its average lifespan, you can try repairing it instead of replacing it. The cost of water heater repairs is as little as $100 or as much as $1,300. It could be a simple fix if you need something small like a valve replacement.
Stick With the Same Type of Water Heater
If you need to replace your water heater, reduce installation costs by replacing it with a similar model. This mostly eliminates the expenses of installing new electrical wiring, gas lines, water lines, and plumbing—as long as your hookups are in good condition.
Frequently Asked Questions
Hot water heaters are replaced about every six to 15 years, while a tankless model can last 20 years or more. Over time, water heaters fill up with sediment that can start causing issues. Flushing your tank-style water heater can increase the lifespan of the unit.
If you pay attention to the signs of a failing water heater, you’ll be able to avoid costly water damage by replacing your unit before it’s too late. Some warning signs are:
Discolored water or water with a weird smell
Your tank is leaking
Your tank makes unusually loud sounds when it heats water
You run out of hot water quicker than in the past
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You don’t have hot water, or your water isn’t getting hot enough
The time it takes to replace a water heater depends on the complexity of the job. Expect your contractor to spend:
One to three hours on a standard tank-style water heater replacement
Two to three hours on a tankless water heater replacement
Four to six hours replacing a tank-style water heater with a tankless water heater
One hour for each additional parallel or point-of-use water heater