How much do new water heaters cost?
The cost of a new water heater depends largely on the type and size of the heater. The average national cost for a new water heater installation including a 40- to 50-gallon tank is $350-$780. Most homes don’t need larger tanks, but they are available — for a price. The average difference between a 50-gallon tank and a 75-gallon tank (the next most common size) ranges from $400 to $600. Hundred-gallon tanks are also available, and they can cost double or triple the price of a 50-gallon tank from the same manufacturer. New water heaters tend to be far more energy-efficient, so they can cut energy costs; homeowners may also be eligible for a new water heater rebate from their local utility company.
Typically, tankless water heaters, which heat water only when you need it, cost more but can save about 25 percent of annual water heating costs, on average. They also lose only 5 percent of their energy compared with a tank unit’s 30 percent energy loss. Note, too, that a water heater with a tank has a life expectancy of 10 years, while tankless units generally last about twice as long.
The final expense to consider is a possible disposal fee to get rid of the old water heater; some companies include it in the price, while others charge an average of $35-$150.