Of all the appliances used in households, only a few have as many utilities as the water heater. With hot water comes bathing, cooking, and even cleaning, among many other activities of daily living and your water heater plays a vital part in it. Eventually, like any other appliance, you will require a new water heater installation. The cost of installing a new water heater varies with several factors, which include the type of heater, the complexity of its installation, and your location.
In this article, we will discuss the typical costs of installing a new water heater to break down the structure of pricing and prepare you to become ready for such expenses.
Types of Water Heaters and Their Costs
The first factor that will influence the cost of hot water heater installations is the type you choose. There are many options, each of which varies in price and the benefits it has to offer. Here’s a summary of the most common types of water heaters and their approximate costs:
1. Tank Water Heaters
The most commonly installed type in residential homes is the traditional tank water heater. A large tank holds hot water that is constantly heated and ready to use at a moment’s notice.
- Installation Cost: The cost of tank water heater installations ranges between $800 and $1,500 depending on the size and brand.
- Advantages: They are relatively inexpensive and easily available. They work pretty well for most homes with average hot water usage.
- Disadvantages: Tank water heaters tend to be inefficient because they keep heating the water in the tank even when they are not being used.
2. Tankless Water Heaters
A tankless water heater, also known as an on-demand water heater, heats the water only when required. It does not store any hot water in a tank and is thus energy-efficient compared to the traditional tank water heaters.
- Installation Cost: The installation cost of a tankless water heater can range between $1,500 and $3,000. The more expensive installation occurs when the old plumbing or electrical system has to be upgraded to handle the new unit.
- Advantages: Tankless heaters use less energy because they heat water only when in use. They also save space because there is no large storage tank.
- Disadvantages: Tankless water heaters can be more costly to install compared to the common tank-type heater and may not be the very best choice in houses that get a lot of hot water unless multiple units have already been installed.
3. Solar Water Heaters
Solar water heaters convert solar energy coming through the sun towards heating the water, and as such, the devices are well energy-efficient yet eco-friendly.
- Installation Cost: This is the costliest of all, where installation may cost anywhere between $4,000 to $7,000, including the installation of the panel and the necessary equipment for water heating.
- Advantages: Solar water heaters can save much of your money on energy consumption in the long term and have a relatively long lifespan. They also emit minimal environmental hazards.
- Disadvantages: Their initial cost is very high, and the effectiveness of solar water heaters depends upon the location and the level of sunlight exposure your house experiences.
4. Hybrid Water Heaters (Heat Pump Water Heaters)
Hybrid water heaters, or heat pump water heaters, use heat from the air to warm water. They are more energy-efficient than traditional tank heaters and can provide substantial savings on your energy bills.
- Cost of Installation: Installation costs of a hybrid water heater generally lie in between $1,500 to $3,000.
- Pros: Hybrid water heaters are energy efficient, hence it saves the money for electricity. It is suited for houses having a moderate climate.
- Cons: In colder climates where air temperature is very low that it can’t efficiently transfer heat to the water. Hybrid water heaters don’t work properly.
Expense Factors of Hot Water Heater Installations
Other than the kind of water heater you may wish to employ, several other factors add up to raise the cost of the system during its installation. They include:
1. The Unit’s size
The cost depends on the size of the water heater your home requires. Large homes or more than one bathroom will require a bigger tank or several units to supply enough hot water. In the same way, tankless heaters with higher flow rates are more expensive than those meant for smaller houses.
2. Removing Old Water Heater
If you are replacing an old unit, then the cost to remove the old one will be included. The price for removal usually ranges between $100 and $300, depending on how difficult it is to remove the unit.
3. Labor Costs
Labour will vary depending on where and what the installation is. In general, labour will range from $300-$1,000. Depending on the style of water heater, installation can be anywhere from 2 to 6 hours; this also can depend on any plumbing or electrical work that has to be completed.
4. Replacing Plumbing and Electrical Systems
Install an updated plumbing or electrical system in your house to accommodate the new water heater. It can add to the cost of the whole installation. For example, electrical wiring has to be upgraded with a tankless water heater installation. This will add $500-$1,500.
Additional Considerations
First, there is the initial installation cost; however, second and maybe more important, is the cost of maintaining the water heater and keeping it running. Some factors include:
- Energy Efficiency: An energy-efficient water heater will save you money on your energy bills in the long run. Look for one with an Energy Star rating to give you optimal performance.
- Maintenance: Regular maintenance, such as flushing sediment from the tank, can extend the life of your water heater and keep it running more efficiently. Basic maintenance typically costs between $75 to $150 annually.
- Warranty: Many water heaters come with warranties ranging from 6 months to 12 years, depending on the brand and type. Be sure to check the warranty terms and consider purchasing an extended warranty if available.
How to Save on Hot Water Heater Installation Costs
Get quotes from several contractors or plumbers. This will make you compare prices among different contractors and plumbers, and ultimately, you end up with the best offer.
If you’re looking to save on the cost of hot water heater installation, here are a few tips:
- Energy-Efficient Models: Though these models will cost you more, they will save you a lot on utility bills in the long run.
- Consult Rebates and Incentives: Rebates at the local level, and government incentives to install an energy-efficient or environmentally friendly water heater may be available in your area.
Conclusion
A new water heater has a different cost depending upon factors such as type, size of unit, and whether any upgrades in plumbing or electrical are needed. For the average homeowner, the installation costs will vary from $800 to 7,000.