
Why it's difficult to find cost information for water heaters
It can be difficult to find the actual costs of a water heater installation online because prices vary widely depending on several factors, such as the type and size of the unit, the brand, energy efficiency ratings, and whether it’s a tank, tankless or heat pump model.
In addition, installation costs are heavily influenced by the home’s existing plumbing and electrical setup, any necessary upgrades (like venting or expansion tanks), regional labor rates, and permit requirements. Many contractors also avoid listing flat prices online because each job is unique, and quoting without a site visit risks giving inaccurate expectations.
The Cost of water heater installation: Things to Consider
There are several key factors that need to be considered when determining the cost of a water heater installation/replacement.
Keep in mind that prices will vary greatly from region to region.
Water Heater Types
One of the key factors when determining the cost of a water heater is the type. Three of the most commoon types of water heaters found in residential homes are tank, tankless, and heat pump water heaters. Each have their distinct advantages and disadvantages. Below are some of the key differences.
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Lowest Initial Cost
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Easy Installation
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Stores Water In Case Of Power Outage
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Higher Investment Cost
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More Energy Efficient
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Heats Water on Demand
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Compact
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Longer Life Span

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Highest Initial Cost (Can Be Offset Through Rebates)
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Most Efficient
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Stores Water In Case Of Power Outage
Tank water heaters have the lowest initial cost. These are the most common type of water heaters for residential customers.
The replacement cost for this type of water heater ranges between $500-$1500 for a customer supplied water heater to $1500-$3000 for a full service installation.
The cost range is affected by several factors like:
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Water heater brand
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Installation complexity
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Plumbing and electrical modifications
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Warranties
Contractor factors that affect cost:
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Licensed or unlicensed
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Length of warranty being provided if any
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One-man shop vs reputable company
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Insured vs not insured
Tankless water heaters have a slightly higher initial cost. This is due to the fact that most customers will be converting from an old tank water heater at installation. This adds additional factors to consider like new venting, new electrical, higher cost of the unit, modification of water and gas lines.
The replacement cost for this type of water heater ranges between $900-$2000 for a customer supplied water heater to $2500-$4000 for a full service installation.
The cost range is affected by several factors like:
-
Water heater brand
-
Installation complexity
-
Plumbing and electrical modifications
-
Warranties
Contractor factors that affect cost:
-
Licensed or unlicensed
-
Length of warranty being provided if any
-
One-man shop vs reputable company
-
Insured vs not insured
Heat Pump water heaters have the highest initial cost mainly due to the fact that the heat pump water heaters have a higher per unit cost that can be double that of some tank or tankless units. It's important to note that some of these costs can be offset through rebate programs.
Additional factors to consider are: 240v electrical requirements,e higher cost of the unit, modification of water and gas lines.
The replacement cost for this type of water heater ranges between $1200-$2500 for a customer supplied water heater to $4000-$6000 for a full service installation (before rebates).
The cost range is affected by several factors like:
-
Water heater brand
-
Installation complexity
-
Plumbing and electrical modifications
-
Warranties
Contractor factors that affect cost:
-
Licensed or unlicensed
-
Length of warranty being provided if any
-
One-man shop vs reputable company
-
Insured vs not insured
THREE STEPS TO BETTER COMFORT
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Contact Us
Contact us via telephone or our convenient contact form. Our team will reach out to you as soon as possible to schedule an appointment.

Inspect / Estimate
Once we've completed the inspection, a detailed estimate describing the required work will be provided. We will also provide you with different options that best suit your needs.

Installation
Our professional installation team shows up, provides a high quality installation at the fastest possible time.
Benefits of Professional Water Heater Installation
Safety is one of the main reasons you want to leave this important task to the professionals. Highly combustible gas is used to heat the water, and gas water heaters have pilot lights that can cause the unit to explode if not properly installed, along with the possibility of carbon monoxide leaks. Our professionals understand how to properly size the unit needed, and our water heater installation services ensure longevity with warranty protection.
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