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Water Heater Installation Cost

Cost of Installing a New Hot Water Heater

The cost of water heater installation will depend on several different factors. The information below should help you get a better idea of how much your project will cost.

Where you live. The cost of living in your area may increase or decrease the cost of installing a water heater. You should expect to pay more for your water heater if you live in a major metropolitan area than a small town in a rural area. ProMatcher can help you research cost reports in your area.

Permit fees. If some areas, you may need to secure a permit for installing or replacing a water heater. The cost of any permit inspections should be included in the cost estimate from your contractor.

Water heater replacement. Are you replacing an existing water heater? The disconnection and disposal of your existing unit may increase the cost of your project. Will the new water heater fit in the same location? This may help you save a few dollars.

Water line. Is there a water hook-up available where you want to install the water heater? If not, this will come at an additional cost.

Type of water heater. What kind of water heater do you want to install? The two main choices are 1) a conventional storage tank water heater or 2) a tankless water heater. Tankless systems are more energy efficient as they heat water “on-demand”. Tankless water heaters are generally more expensive, but they are more affordable to operate.

[+] Learn More: Tankless vs. Storage Water Heaters

Fuel source. Water heaters can be powered by 1) electricity, 2) solar energy, 3) natural gas, or 4) liquid propane. For example, electric units are typically more affordable than solar or gas-powered water heaters. If you are converting fuel sources, this will also add to the cost of installation.

Ventilation. When installing a gas water heater, you may need to install additional ventilation in the area of the water heater. This will be an extra cost.

Tank capacity. For storage tank water heaters, the average tank size is about 50 gallons. Anything larger than this will be slightly more expensive. However, this added cost may make sense for larger families. To learn more about tank capacity, check out this article.

Tax credits. There may be tax credit available for installing an energy efficient water heater. Make sure to ask your contractor about the availability.

To find water heater installers in your area, click here.

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About the Author

ProMatcher Staff, ProMatcher
Orlando, FL 32803

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