$600 – $1,800 Average standard tank replacement
$800 – $3,500 Average tankless installation

Water heater installation costs $600 to $1,800 on average. Tankless water heaters cost $800 to $3,500 to install on average. A new hot water heater costs $300 to $2,000 for the unit alone. Labor costs to install a standard replacement water heater are $200 to $1,000 or $300 to $2,500 for a tankless.

Water heater system design must be carried out by licensed competent persons. For further advice contact Rheem. For uncontrolled heat source, such as wetback heaters or some solar systems, the water heater must be open vented. Page 8: To Turn Off The Water Heater.
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In this Video we will show you how to replace a water heater and just how easy it really is! We hope this video helps any contractors or homeowners wanting t.

Reviewed and approved on June 15, 2021, by Tom Grupa and 11 expert water heater installers on HomeGuide.

Water heater installation cost

Water heater replacement costs $600 to $1,800 for a tank or $800 to $3,500 for a tankless. A new 40- to 50-gallon hot water heater costs $330 to $2,000 for the unit alone, plus the plumber labor cost to install is $200 to $1,000. Gas water heaters cost $100 to $700 more than electric to install.

Water heater installation cost
Type	Average cost
Standard tank	$600 – $1,800
Tankless	$800 – $3,500
Solar	$1,500 – $6,600
Hybrid heat pump	$1,500 – $4,400
Indirect	$1,200 – $4,300

*Price ranges include materials and labor. Solar prices include federal tax credit and rebates.

Tank units take 2 to 6 hours to install on average.
Most tank units last 8 to 15 years on average.
Most homes need a 40- to 50-gallon tank or a tankless system.
Annual operating costs are $225 to $580 for tank units and $150 to $535 for tankless systems.

Water heater installation cost
New hot water heater costs by type
Average cost to install a high-efficiency water heater
Hot water heater prices
Labor cost to install a water heater
Water heater replacement cost factors
Frequently asked questions
Hiring a plumber to install a water heater

Average cost to replace a water heater

The following table shows the average cost to replace a standard tank water heater.

Average water heater replacement cost
National average cost	$1,200
Minimum cost	$350
Maximum cost	$5,000
Average range	$600to$1,800

*Based on 1,762 project costs reported by HomeGuide members.

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New hot water heater costs by type

A new hot water heater installation costs between $500 and $4,600 total, depending on the system type, size, labor, and fuel source.

New water heater cost by type
Type	Unit cost	Labor cost	Total cost installed
Standard tank (gas)	$400 – $1,800	$200 – $1,000	$600 – $2,800
Standard tank (electric)	$300 – $1,100	$200 – $1,000	$500 – $2,100
Tankless (gas)	$400 – $2,100	$300 – $2,500	$700 – $4,600
Tankless (electric)	$300 – $1,000	$300 – $1,500	$600 – $2,500
Solar	$1,000 – $6,000	$2,000 – $3,000	$3,000 – $9,000
Hybrid heat pump	$1,200 – $2,800	$300 – $1,600	$1,500 – $4,400
Indirect	$900 – $2,800	$300 – $1,500	$1,200 – $4,300

*Prices not including tax credits or rebates.

Hot water tank cost vs. tankless

A hot water tank replacement costs $600 to $1,800 on average. Storage tank water heaters are the most common and keep 30 to 80 gallons of water heated to a preset temperature. Most systems take 40 minutes to 2 hours to reheat a full tank.
Tankless water heater installation costs$800 to $3,500 total on average. Tankless water heaters are more energy-efficient, last longer, and provide an unlimited supply of hot water on-demand.

Hot water tank cost vs. tankless
Factor	Tank	Tankless
Average unit price	$400 – $1,000	$500 – $1,500
Average cost installed	$600 – $1,800	$800 – $3,500
Lifespan	8 – 15 years	10 – 20 years
Installation time	2 – 6 hours	3 – 10 hours
Annual operating cost	$225 – $350 (gas) $440 – $580 (electric)	$150 – $260 (gas) $300 – $535 (electric)
Energy sources	Gas Electric Propane Oil-fired Indirect Hybrid Solar	Gas Electric Propane
Pros	Cheaper Easier to install Lower maintenance costs Lower repair costs Operates during power loss (gas systems only)	Energy-efficient Unlimited hot water supply Longer lifespan and warranty Compact and space-saving
Cons	Less energy-efficient Shorter lifespan Runs out of hot water when the tank empties Takes up more space	More expensive Limited flow rates Special venting requirements Requires a larger diameter gas pipe

Gas water heater cost vs. electric

Gas water heater installation costs $600 to $2,800 total for a standard tank or $700 to $4,600 for a tankless. Gas water heaters cost $100 to $700 more than electric up front, but cost $220 less per year to operate.

Electric water heater installation costs $500 to $2,100 total for a standard tank or $600 to $2,500 for a tankless. Electric water heaters are cheaper to replace than gas and last 2 to 3 years longer.

Gas vs. electric water heater cost
Factors	Gas	Electric
Unit price	$400 – $1,800	$300 – $1,100
Total cost installed	$600 – $2,800	$500 – $2,100
Annual operating cost	$225 – $350	$440 – $580
Recovery rate	40 – 60 minutes	1 – 2 hours
Lifespan	8 – 12 years	10 – 15 years
Works during a power outage	Yes*	No

*Excluding power vent units.
**Prices and factors are for a standard tank replacement.

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