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How much does installing a water heater cost?

Average cost in 20149: $515 See National


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The average cost for a water heater specialist is $515. You are likely to spend between $240 and $1,115 total. Exact price may vary depending on your area and project details.

Updated August 1st, 2017

Next Step: Find out exactly how much your project will cost.

Water heater professionals help when a home’s hot water is not reliable or not running at all. It can be dangerous for homeowners to repair water heaters themselves because of the gas or electric work involved. Water heater pros can safely diagnose and repair problems or install new water heaters when necessary. Costs depend on the nature of the problem, what type of new heater will replace a failed one and the amount of hot water needed on a daily basis.

Tank or tankless

The most costly part of water heater installation is the water heater itself. Water heaters come either with a tank or without. Tankless water heaters cost three or four times more for installation because most homes need to be retrofitted to accommodate them. Tankless water heaters, however, are more energy efficient than those with tanks because they only heat water when it’s needed. Homeowners can save anywhere from $40 to $100 or more on annual energy bills with a tankless heater, depending on how much hot water they use.

Gas or electric

Water heaters are available in gas or electric options. The long-term cost of each option depends on the relative costs of natural gas and electricity in a given area. Gas might be slightly more expensive, but an electric water heater will go out during a power outage, for example. The most straightforward and least expensive plan ultimately may be to go with the same type of water heater than was previously in the house to avoid the cost of retrofitting. Some (less common) water heaters are powered by propane or solar energy. Solar, in particular, can help homeowners save big on energy costs, but these water heaters are much more expensive to purchase and install.


The size of the water heater should be based on the number of people living in the house and how much water is typically used on a daily basis. The two most common options are 40- or 50-gallon tanks. The larger the tank, the more expensive the water heater, but homeowners will be less likely to run out of hot water during peak times.


Most water heater installers charge either by the hour or a flat rate for their labor.


Some installers, as well as many utility companies, offer a maintenance plan to keep the water heater in good shape for years.


Once on site, an installer may discover that the gas, electric or plumbing hookups have issues that must be resolved prior to installing a new water heater or to simply bring a house up to current code. Be sure to ask for a quote prior to work, and if the quote seems high, call around to get other estimates. Retrofitting costs can also include the cost of any permits and licenses required by the city.


Some companies roll the disposal of an old heater into the overall cost of the new water heater installation. Other professionals charge an additional removal fee that can range from $35 to $150.

Cost-saving strategies

Before installing a new water heater, ask whether an existing one can be repaired. The older the heater, the more economical it is to install a new one when problems arise. Younger ones are often worth salvaging. Also consider purchasing the new water heater on your own to avoid the plumber’s markup—but be sure to hire an installer who specializes in the same type and brand of heater you purchase.

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Recent reviews

R&R Plumbing Services Inc.

What can I say about these guys, that all of the other extremely satisfied customers haven’t already said? I had a leaking 40 gallon water heater and looked at the various companies provided to me by Thumbtack. I was presently surprised to see so many positives reviews on R & R Plumbing on Yelp, so I sent them an email and received a call from Ryan R within 30 minutes. Ryan R asked if I could send him a picture of the water heater, which I told him I could not, but I explained that it was a 40 gallon propane water heater, located in the garage. I requested a quote to replace my 40 gallon propane water heater with 30 gallon propane water heater, because I thought that it would be less expensive, (retired on a fixed income). Ryan R told me that a 40 gallon replacement propane water heater would be less expensive than a 30 gallon water heater and that the cost to run a 40 gallon propane water heater over a 30 gallon propane water heater was very small. Ryan R said that he could fit it in on Saturday, but I said why don’t we just schedule it for next week, (it was still working but leaking). Ryan R said that he would schedule it for the first thing Monday morning, (7:00am – 8:00am). Ryan called at 7:10 am Monday morning and told me he would be there within 20 minutes. He arrived on time and replaced my 40 gallon propane water heater. He also spent his valuable time cleaning up the area around the old leaking water heater, prior to installing the new water heater. Ryan R was able to get the job done very quickly, (you could tell that he has done this a number of times before, ha, ha, ha) he was very efficient and the quality of his work was second to none. Thank You Ryan R for a job well done! Since he was already at my home, I asked him to provide me with a quote on three leaking outside hose bibs, which he did. We will be scheduling a time for him to repair those as well. I could not see calling anyone else for any of my plumbing needs and neither should you.

Eagle Home improvements (Hi Solutions)

This is my first time using Thumbtack and honestly, I am really satisfied with water heater installation from Walter. Our Water heater was leaking (19 years old) and needed immediate replacement since it was leaking. I was calling all over for the contractors for prices and they all ranged over $1000. Also, other contractors were willing to charge extra fees and unnecessary county code. Walter was professional and very kind. He explained in details about the water heaters and purchasing county code is not necessary. He also showed up at home depot 7 in the morning and picked all the necessary parts and water heater. All I needed to do was to make the purchase. Also, he delivered water heater to my home AT NO ADDITIONAL COST. He finished the work in a timely manner and cleaned up well. I am REALLY satisfied with his service. Walter is going to my plumber and I am going to introduce him to my friends and neighbours. His labour cost is very affordable and reasonable compare to other contractors. I was able to save hundreds of dollars in labour cost. Overall you will never regret hiring Hi solution and Walter is the guy. He is a licensed contractor.

Montag Maintenance LLC.

Aaron was awesome. He replaced my water heater and was very honest and upfront about the cost and process. His prices are very competitive and his level of service and experience was very impressive. I would definitely recommend him to anyone.