Water heater installation usually costs between $882 and $1,807*, which includes the unit and associated labor. In most cases, you can expect to pay about $1,327 for a new water heater.
There’s nothing worse than expecting a steaming hot shower in the morning and instead finding only ice-cold water. Water heaters tend to last six to 20 years, depending on the type, and they can stop working for several reasons. If it’s time to replace your water heater, it’s time to call a plumber.
Water heaters come in a variety of types and sizes. The best unit for you depends on your home’s occupants, water usage, fuel, and other needs. You’ll have to pay more for an energy-efficient appliance or if you need any extra services, such as permits, new line installation, or a venting system. If you’re not sure which water heater would be best for your home, you can ask the professional for their recommendations.
While installing a new water heater might seem straightforward, I highly recommend hiring a licensed and experienced plumber. Mistakes can prove disastrous, causing water damage, gas leaks, or even explosions. Errors could also void any manufacturer warranties.
In this article, I explain water heater installation costs and the various factors that can impact the total bill, including labor costs, tank size, type, and warranties. I also provide advice on what to look for in a professional plumber.
*Costs in this article sourced from Angi.
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This site receives compensation from the companies featured in this listing, which may impact where and how products appear. This listing doesn’t feature all companies, products, or offers that may be available.
This site receives compensation from the companies featured in this listing, which may impact where and how products appear. This listing doesn’t feature all companies, products, or offers that may be available.
How Much Does It Cost to Install a Water Heater?
On average, water heater installation costs between $882 and $1,807. Most homeowners pay around $1,327 to install a new water heater, including the appliance and the labor costs.
The total cost depends on several factors, including the type of water heater, fuel source, and efficiency.
| Low | Average | High |
| $350 | $1,327 | $12,000 |
Key Takeaways
- On average, installing a water heater costs between $882 and $1,807.
- Most homeowners only need a 30- to 50-gallon water heater, which costs between $700 and $2,500 on average to install.
- The most affordable water heaters start at $350, but energy-efficient models often range from $1,200 to $5,500.
How Do Water Heater Installation Costs Differ By Size?
Size is the biggest factor that affects water heater costs. The larger the water heater, the more hot water you’ll have at any given time — and the more expensive it is. A 30-gallon tank costs $700 on average on the low end, while a 70-gallon tank often costs between $1,100 and $4,000.
The number of people in your home should help you select the best water heater for you. A 30-gallon water heater is ideal for one to two people, but if you have six or more, you may need a 70- or 80-gallon tank. You might also need a larger tank if you need more hot water overall.
Here is a look at how different water heater tank sizes affect the average price:
| Tank Size (Gallons) | Number of People in Home | Average Cost |
| 30 | 1–2 | $700–$2,100 |
| 40 | 2–3 | $800–$2,300 |
| 50 | 3–4 | $800–$2,500 |
| 70 | 5–6 | $1,100–$4,000 |
| 80 | 6+ | $1,300–$7,500 |
Tank Vs. Tankless Water Heater Installation Prices
There are two types of water heaters: tank and tankless.
Traditional tank water heaters typically cost between $600 and $2,500 to install, but some high-efficiency models are more expensive. They keep a stash of hot water ready, and they’re often perfect for three- or four-person homes. It takes professionals about one to three hours to install a tank water heater.
For tankless water heater installations, you can expect to pay $1,400 to $3,900. Unlike tanks that store a set amount of water, tankless units warm water on demand. As a result, they’re more energy-efficient. Tankless units also take longer to install.
| Type of Water Heater | Average Price Range | Average Lifespan |
| Tank | $600–$2,500 | 6–15 years |
| Tankless | $1,400–$3,900 | 20 years |
What Are the Benefits of Installing a Tankless Water Heater?
The main benefit of installing a water heater is having hot water for your showers, laundry, and dishwasher — but if you are considering a tankless water heater over a tank, you could benefit even more from the change.
Here are just a few advantages tankless appliances have over tank units:
- Abundant hot water supply: Unlike traditional tank heaters that keep a constant supply of hot water at the ready, tankless water heaters create warm water on demand. As long as you have the right size for your home, you’ll never run out of hot water.
- Longer lifespan: Tankless water heaters last an average of five years more than a tank water heater. While tankless units are more expensive, the added years can make the extra few hundred dollars worth it.
- Lower utility bills: Since tankless water heaters only heat the water you need, they’re up to 50% more energy-efficient than tank models. This can save you hundreds of dollars in energy costs.
What Other Factors Impact Water Heater Installation Cost Estimates?
The size and type play an important role in the total price of a water heater, but several other factors can influence the final bill.
Gas Water Heater Vs. Electric Water Heater
Most water heaters use gas or electricity. Electric units range from $600 to $3,500 on average, while gas models are often between $700 and $2,700.
If you’re not sure which to choose, there are a few points to compare. As of 2024, natural gas averages $14.62 per thousand cubic feet in the United States, while electricity is 16.26 cents per kilowatt hour. Overall, gas tends to be less expensive than electricity, but prices can vary significantly in different parts of the country.
However, electric water heaters are still more energy-efficient. A gas water heater costs less to run, but it uses more energy and releases more waste than electric units.
Energy Efficiency
A high-efficiency water heater can be as much as 300% more efficient than older, more traditional models, but they’re more expensive, ranging from $1,200 to $5,500 on average. However, if you plan on staying in your home long-term, installing a high-efficiency system can save money on your monthly energy bill. Stay in the house long enough and it may end up paying for itself.
There are three types of energy-efficient water heaters:
- Indirect water heaters, similar to tank models, use heat from a boiler or furnace to warm water held in a storage tank. They often cost between $1,200 and $3,500.
- Solar water heaters have a wide price range ($1,700 to $5,500) as there are a variety of different types. In some larger homes, they may cost over $10,000. They use thermal energy from the sun to warm the water.
- Hybrid heat pumps average between $1,200 and $3,500. They extract heat from the air, and the heat exchanger warms the water.
Brand
Costs vary between different water heater brands. Whirlpool and Kenmore are affordable options — they both offer units starting at around $350. While Bradford White has similarly priced water heaters, their high-end options can cost $3,000. AO Smith is one of the more expensive choices, where the average unit costs $800 to $3,500.
Related: Rheem Proterra vs Performance Platinum – Which Water Heater is Better?
Here’s a look at how some water heater brands compare when it comes to cost:
| Brand | Average Unit Cost |
| AO Smith | $800–$3,500 |
| Bradford White | $400–$3,000 |
| Kenmore | $350–$1,000 |
| Rheem | $600–$2,300 |
| Whirlpool | $350–$1,500 |
Additional Cost Factors
Additional needs and situations can add to your total water heater bill. For example, if you select a gas water heater, you might need to install a venting system, adding about $300 to $1,100 to the cost.
Here are just some of the extra expenses you might run into:
- Venting: Gas water heaters (and propane) have to be vented with either a direct or power-vent heater. Direct venting systems are less expensive as they use an exhaust pipe. Power-vent heaters use fans and electricity — they typically cost between $300 to $1,100 with electrical work.
- Electrician labor: If your home needs electrical work before you can install the new water heater, you’ll pay around $50 to $130 per hour for a licensed electrician.
- Electrical wiring: You might need additional wiring if you’re converting fuel sources. A new electrical line is $500 to $1,000 on average, but if you need a sub-panel as well, you might find your bill increases by over $2,300.
- Expansion storage tank: Usually ranging from $90 to $350, expansion storage tanks prevent damage from freezing water.
- Warranty: If your new water heater doesn’t come with a robust warranty, you might have to pay an extra $100 to $300 for coverage.
- Permits: Permit costs vary depending on your location, usually ranging from $25 to $300. If you need to connect your home to natural gas, you’ll need a separate permit for $50 to $300.
- Plumber labor: Plumbers tend to charge between $45 and $200 per hour.
- New Lines: New gas lines average around $260 to $820. If you’re making the switch from electric to gas, you might spend over $1,500. A new water line is often $400 to $2,000.
| Cost Factor | Average Cost |
| Direct or power vent | $300–$1,100 |
| Electrician labor costs | $50–$130 per hour |
| Expansion storage tank | $90–$350 |
| Optional water heater warranty | $100–$300 |
| Permits | $25–$300 |
| Plumber labor costs | $45–$200 per hour |
| New line installation | $260–$2,000 |
The most common fuel sources for tankless water heaters are electricity, natural gas, and propane. Natural gas water heater units can typically burn either gas or propane.
Professional Vs. DIY Water Heater Installation
Installing a water heater is a difficult task that requires knowledge of water lines, gas lines, electrical work, and more. Mistakes can cause hazardous conditions, including gas leaks and explosions. You’ll also need a permit to install a new water heater. For these reasons, I strongly recommend hiring a professional to install your water heater.
DIY Water Heater Installation
In almost all cases, I recommend hiring a professional for your water heater installation. Most homeowners won’t have the expertise and tools needed to tackle the job. Improper installations can lead to explosions, water damage, mold, poor performance, and voided warranties. Some cities also require you to obtain the right permits and invite an inspector to review the work. Mistakes or neglected building codes can result in fines.
Hiring a Professional for Water Heater Installation
Hiring a professional for your water heater installation delivers peace of mind. They can also help you determine which size and type of water heater is best for your home.
To find the best plumbers in your area, follow these steps:
- Read reviews. Before contacting potential plumbers, read their reviews on trusted review sites. What are customers saying about their previous work, specifically water heater installations?
- Check licenses. Make sure the plumbers have the appropriate licenses, permits, and insurance needed to install water heaters.
- Get quotes. Gather at least three quotes from plumbers in your area. Ask for their recommendations based on your home and needs. Compare their included services and warranties. If a price seems too good to be true, it probably is.
- Hire a plumber. Read over any contracts carefully before signing. Then, schedule your water heater replacement.
Ready to hire a professional plumber to install your new water heater? Use the tool below to get started.
This site receives compensation from the companies featured in this listing, which may impact where and how products appear. This listing doesn’t feature all companies, products, or offers that may be available.
So, Is Water Heater Installation Worth It?
If you don’t have a water heater in your home, you don’t have access to hot water. So, of course, a water heater is worth it. Most water heaters cost between $882 and $1,807, or $1,327 on average.
If you’re looking for energy savings and don’t want to pay a potential $5,500 or higher price tag on a solar unit, I recommend going with a tankless water heater. They’re efficient, lower utility bills, and provide an endless supply of hot water.
FAQs About Water Heater Installation Cost
The best-size water heater depends on your home’s needs.
A 40-gallon water heater, which often costs between $800 and $2,300, is ideal for homes with two or three people. 50-gallon units have a similar price tag — $800 to $2,500 — and they’re best for three- to four-person households. If you have three individuals in your house, it may make financial sense to go with a 50-gallon unit due to the very slight price increase.
Other factors could impact your choice. For example, if you expect multiple hot water devices to run at the same time, you might need a larger unit. To calculate the right size for your home, you’ll need to first decide what type of water heater you’d like.
- Tankless: List the number of concurrently running hot water devices, their flow rates, and the required temperature rise needed for their use.
- Solar: Consider the collector area and storage volume that will meet your household’s hot water needs in summer. You might need to consult with a professional to find the best size.
- Heat pump and tank: These units deliver a set number of gallons of hot water in an hour if the tank is full. Determine when your home uses the most hot water throughout the day and calculate the maximum usage to get your peak hour demand. Look for a water heater that has a “Capacity” or “first hour rating” that at least matches your peak hour demand.
The most common hazard of a water heater is water damage, but it can also be responsible for carbon monoxide (CO) poisoning, gas leaks, scalding, and explosions.
- Water damage: Even a small water heater leak can cause significant damage over time, affecting the home and personal belongings and leading mold growth. If the pressure inside the tank is too high, the tank could burst, resulting in flooding.
- Water damage: Even a small water heater leak can cause significant damage over time, affecting the home and personal belongings and leading mold growth. If the pressure inside the tank is too high, the tank could burst, resulting in flooding.
- Carbon monoxide poisoning: If your gas water heater is installed incorrectly or isn’t vented properly, CO and other gases can build up in the home. CO has no odor, color, or taste. Some early signs of CO poisoning include headache, dizziness, fatigue, and nausea.
- Electrical issues: If the water heater has the wrong size wire or breaker, the appliance might regularly trip the breaker. Water around the system could cause short circuits, and improper grounding can cause electrical shocks.
- Electrical issues: If the water heater has the wrong size wire or breaker, the appliance might regularly trip the breaker. Water around the system could cause short circuits, and improper grounding can cause electrical shocks.
- Temperature and pressure buildup: Valves release pressure if the temperature or pressure rises too high. If the pressure valve malfunctions or is blocked, it could lead to an explosion. Temperature control issues can cause the water temperature to reach unsafe levels, resulting in scalding injuries.
To mitigate these risks, work with a professional to install your water heater and place a CO monitor in your home. Have your electrical system, plumbing, and water heater inspected every year. If you notice any issues with the unit, shut off the gas or electricity supply and call a professional. If you smell gas, leave the home immediately and call 911.
In most cases, an experienced, licensed plumber will install your water heater. They follow the best and safest practices so homeowners can rest assured their appliances are working as intended. Some professionals also offer service warranties.
I don’t recommend installing your own unit. While some water heater installations seem straightforward, mistakes are costly. Errors can damage the appliance, cause water damage to the home, or result in an explosion or gas leak.
Professionals can help you determine the best water heater size and type for your home. They also understand your area’s unique requirements, including installation clearances and safety procedures. Plus, if you need permits or the work has to be inspected, plumbers can arrange it for you.
