How Much Does Water Heater Replacement Cost
- What are the main differences between tank and tankless water heaters
- How long does it typically take to replace a water heater
- Are there any energy-efficient water heaters worth considering
- What are the signs that my water heater needs to be replaced
- How much does it cost to convert a water heater from gas to electric
The cost of water heater replacement typically ranges from $1,600 to $5,500, with an average of around $3,550. However, prices can vary significantly based on several factors:
Factors Affecting Cost
- Type of Water Heater:
- Tank-style heaters (most common) cost around $1,000 on average.
- Tankless water heaters are more expensive, averaging about $2,500.
- Size:
- A 40-gallon tank (suitable for a two-person household) is most common.
- Larger tanks (60-80 gallons) for households with more than five people will cost more.
- Brand: Prices vary by brand, ranging from $350 for Kenmore or Whirlpool to $3,500 for high-end A.O. Smith models.
- Installation Location: Difficult-to-reach areas or relocations can increase costs by $150 to $3,400.
- Geographic Location: Labor costs vary by city. For example:
- San Diego or Los Angeles: $1,900
- New York: $1,800
- Chicago: $1,600
- Phoenix: $1,300
Additional Costs
- Removal of Old Unit: $100 to $500
- Fuel Source Conversion:
- Electrical wiring: $550 to $2,300
- Water line addition: $350 to $1,900
- Gas line addition: $275 to $825
- Expansion Tank: $40 to $350
It’s important to note that while some sources provide lower estimates, recent data from 2025 suggests higher average costs. Always get multiple quotes from reputable professionals for the most accurate pricing in your area.
What are the main differences between tank and tankless water heaters
Tank and tankless water heaters differ in several key aspects:
Size and Space
Tankless water heaters are significantly smaller, about the size of a small carry-on suitcase, while tank water heaters can be up to five feet tall. This makes tankless models more suitable for homes with limited space.
Heating Method
Tank water heaters preemptively heat and store water, keeping it hot at all times. In contrast, tankless water heaters heat water on demand, only when it’s needed.
Energy Efficiency
Tankless water heaters are generally more energy-efficient, using 8-14% less energy than tank models for households that use less than 41 gallons of water per day[1][4]. This efficiency can increase to 34% for low-usage households.
Hot Water Availability
Tank water heaters provide a limited amount of hot water based on tank capacity, typically 30-50 gallons[5]. Once depleted, you must wait for more water to be heated. Tankless models offer a continuous supply of hot water, making them suitable for high-demand households.
Lifespan
Tankless water heaters typically last longer, up to 20 years, compared to tank models which last around 10 years.
Cost
Tankless water heaters have higher upfront costs, often 2-3 times more expensive than tank models, but may offer long-term savings through energy efficiency.
Maintenance
Tank water heaters generally require more frequent maintenance due to sediment buildup and more moving parts. Tankless models need less maintenance but repairs can be more expensive when needed.
These differences highlight the trade-offs between the two types, with tankless models offering space savings and efficiency, while tank models provide lower upfront costs and simpler installation.
How long does it typically take to replace a water heater
Water heater replacement typically takes between 2 to 4 hours for a standard installation. The process can be broken down into several key stages:
Installation Timeline
- Removal of Old Unit: Approximately 1 hour
- New Unit Placement: Around 30 minutes
- Connection and Testing: 1 to 1.5 hours
Factors Affecting Installation Time
Several variables can impact the total installation duration:
- Switching between tank and tankless systems
- Necessary plumbing adjustments
- Type of water heater (gas, electric, hybrid)
- Accessibility of installation location
Important Considerations:
- A straightforward replacement of a similar water heater type usually takes 2-3 hours
- Switching from tank to tankless or vice versa may extend installation time
- Professional technicians recommend having the work done by experts to ensure proper installation
For a 40-gallon water heater, heating time varies:
- Gas water heaters: 30-40 minutes to heat
- Electric water heaters: 60-80 minutes to heat fully
Homeowners should plan for a half-day project when scheduling a water heater replacement.
Are there any energy-efficient water heaters worth considering
Here are some energy-efficient water heaters worth considering:
| Model | Type | Efficiency Features | Best For |
|---|---|---|---|
| Stiebel Eltron Tempra 24 Plus | Tankless Electric | Uses 15-20% less energy by eliminating standby heat loss | Small to medium households |
| Rheem RTEX-24 | Tankless Electric | 99.8% energy-efficient with advanced self-modulation for demand-based heating | Medium to large households |
| Rheem Performance Platinum 50 Gal. | Hybrid Heat Pump | 3x more efficient than standard electric models, saving up to $315/year | Larger households (3-4 people) |
| A.O. Smith Signature 900 50-Gallon | Hybrid Heat Pump | Saves up to 76% in annual energy costs, with smart features like leak detection | Households needing reliable and efficient hot water |
| A.O. Smith Signature 900 66-Gallon | Hybrid Heat Pump | High efficiency with plug-in design, saving up to $563/year compared to standard electric models | Larger households with high hot water demand |
Hybrid heat pump models offer the highest efficiency, while tankless options provide on-demand heating with no standby losses. Choose based on household size and water usage needs.
What are the signs that my water heater needs to be replaced
Here are the key signs that your water heater needs replacement:
Age of the Water Heater
Most water heaters have a lifespan of 8-12 years. If your unit is approaching or past this age, it’s time to consider replacement.
Critical Warning Signs
1. Water Leaks
- Water puddles around the base of the water heater
- Moisture or leaks indicate potential tank fractures
- Immediate replacement is crucial to prevent water damage
2. Water Quality Issues
- Rusty or discolored water coming from hot water taps
- Indicates internal tank corrosion
- Suggests the sacrificial anode rod has been exhausted
3. Performance Problems
- Insufficient or inconsistent hot water supply
- Hot water doesn’t last as long as it used to
- Sediment buildup reduces heating efficiency
4. Unusual Sounds
- Banging, rumbling, or popping noises
- Caused by sediment hardening at the bottom of the tank
- Indicates the water heater is nearing the end of its operational life
Additional Warning Indicators
- Frequent repairs needed
- Increasing energy bills
- Pilot light issues (for gas water heaters)
- Decreased water pressure
If you’re experiencing multiple signs, especially if your water heater is over 10 years old, it’s recommended to replace the unit before a sudden breakdown occurs.
How much does it cost to convert a water heater from gas to electric
Converting a water heater from gas to electric typically costs between $870 and $4,100. This price range includes the cost of the new electric water heater, installation labor, and necessary adaptations to your home’s electrical system.
The total cost can be broken down as follows:
- Electric water heater unit: $350 – $2,500
- Installation labor: $150 – $450
- Electrical upgrades: $250 – $600
- Removal and disposal of old unit: $95 – $115
Several factors influence the final cost:
- Size and type of the new electric water heater
- Complexity of the installation
- Need for electrical panel upgrades
- Local labor rates
It’s important to note that while the upfront cost of conversion can be significant, electric water heaters may have higher operating costs than gas models in many areas. Homeowners should consider both initial and long-term expenses when deciding to switch.
For the most accurate estimate, it’s recommended to get quotes from local professionals, as costs can vary based on your specific situation and location.
