A Water heater is a crucial appliance in every household. These units provide a steady supply of hot water, letting you bath, wash dishes, do laundry, etc., easily. But what if your water heater isn't functioning properly? It's time to replace the water heater when you see early signs of reduced functioning, which might be a better option than repairing it, as a water heater is good to use within 8-12 years.
After knowing its age, you must be wondering about the price of a water heater. The replacement and installation cost of a water heater ranges from $800 to $5,800, depending on your selection, and some advanced systems are likely to raise the price to $10,000 or more.
It's important to understand the reasons for the replacement, such as excessive noise, cloudy water, increased energy bills, etc. Let's understand this in a broad way.
Types of Water Heaters and Their Cost
One should choose the water heater depending on sustainability goals and energy consumption, which will affect future costs. There are around five types of water heaters to understand and select from.
Tank Water Heater
Tank water heaters are best known for their simplicity and ease of repair, making them the most economical option. Compared to other water heaters, their installation costs are less, around $1,000- $2,500. However, they are not as energy efficient as other water heaters, which will likely affect the overall cost.
Tankless Water Heater
There are two types of tankless water heaters: condensing and non-condensing. The difference between them is how each handles and uses the combustible gases it generates during heating.
The installation cost of a condensing tankless water heater is expensive. However, these units are energy efficient and usually cost between $960 and $3,910.
Heat Pump
Heat pump water heaters are known for their energy-efficient design, which benefits long-term savings. Their installation costs a little more than tankless water heaters. However, the complexity of installation would probably affect the upfront costs.
Hybrid
Hybrid water heaters combine tank water heaters and heat pumps to improve efficiency. This unit usually costs between $1,250 and $3,600. Also, the labor cost to install water heater options like this will likely rise more than usual due to the extra necessary components.
Direct Vent
Direct-vent water heaters may cost more than other power-vent water heaters because they require special venting. The cost of this unit may rise higher or lower than that of other types, depending on whether it uses a gas or electric power source. The addition of this type of ventilation may add an extra $500 to $1,500 to your water heater installation cost.
Types of Fuel
Selecting an economical fuel type is necessary as it allows you to understand which energy sources are more easily available in your area and select appliances suitable for operating on easily available fuels. Choosing a kind of fuel is important because an appliance's energy requirements automatically affect heater installation costs.
Electric
Electric water heaters' installation costs are generally inexpensive compared to natural gas or liquid propane water heaters. They do not require venting in a fitting dimensional location like 450 sq ft. However, the operating cost of electricity is higher than that of natural gas or liquid propane. The expected installation cost for an electric water heater may range from $920 to $1,177.
Gas
The propane model is more expensive than the natural gas water heater, but the cost of both installations is similar. The installation cost of a gas water heater, on average, is around $2,607.
Natural Gas
Natural gas has various advantages, including a low upfront price compared to propane, being easily available in some areas, and lower operating costs.
Propane
Propane water heaters are expensive compared to natural gas options, and the operating cost is also higher, specifically in areas where propane is in higher demand during the winter months. The reason is that propane is stored in tanks and connected to your property as it can't be supplied through lines. This makes propane a successful choice for rural or remote areas with no natural gas or irregular electricity. However, the cost of installing propane storage tanks rises higher for propane water heaters.
Solar
Solar water heaters have higher upfront prices than gas or electric models, and you also need solar infrastructure to power them. However, the lower operating costs over a water heater's lifespan balance the higher installation costs. The expected pay may range from $2,000 to $3,000, with advanced models costing up to $7,500.
Factors Considering Water Heater Replacement
Certain factors, including size, brand, location, and others, should be considered before choosing a new water heater to replace an old one.
Size - Water heaters come in various sizes. Tank water heaters are measured in gallons, and tankless water heaters are measured in gallons per minute.
Brand - The brand of water heater you select plays a vital role in the overall cost. Some brands include Rheem, Kenmore, Whirlpool, etc.
Location - The more complex the work due to difficult-to-reach areas for contractors to carry out, the more expensive the water heater installation will be.
Venting system - Gas or propane water heaters need venting, but others don't. There are two kinds of venting: direct vent heaters, which are less expensive and use a passive venting system and an exhaust pipe or chimney, and power vent heaters, which are more expensive and use a fan or blower plus electricity.
Labor cost - The labor cost depends upon the duration of the job. Plumbers generally cost between $45 and $200 per hour, while electricians cost between $50 and $100.
A tank-style water heater replacement would cost around $150-$450, and a tankless water heater would range between $600-$1,850.
Permits - The cost ranges from $25-$300, depending on the extent of the work and your local laws regarding the permits for a water heater replacement. The additional charge for the permits to connect your home to natural gas before replacing the water heater would be around $50 and $300.
Final Words
After knowing the reasons, types, fuel types, and factors for replacing a water heater, it is also necessary to understand when to replace it and how to save money while doing it. You can replace it when you see signs of discolored water, no hot water at all, an immediate rise in utility bills, running out of hot water faster than usual, etc.
You can also buy the water heater directly instead of buying through a contract, which will lower your cost. Also, you can save some monetary charges if you schedule a weekday replacement, as contractors charge more during holidays or weekends.
Make sure to choose the right model based on all the factors and requirements. Contact a professional if you find buying and replacing a complex job to do on your own.
