In recent years, a hot bath or shower has become an essential part of modern life. So whether you are installing a brand new hot water tank or replacing an old one, your budget should be all-inclusive of the unit’s price as well as the plumber’s installation cost. Determine how much hot water heater installation will cost and think of these factors when pricing the set-up of your new heating device.Water-Heater-Installation-Cost-224x300

In recent years, a hot bath or shower has become an essential part of modern life. So whether you are installing a brand new hot water tank or replacing an old one, your budget should be all-inclusive of the unit’s price as well as the plumber’s installation cost. Determine how much hot water heater installation will cost and think of these factors when pricing the set-up of your new heating device.

Factors That Influence the Water Heater Installation Cost

Storage Tanks vs. Tankless Systems

Whether it’s the conventional storage tank or the energy-efficient tankless system, the actual installation cost varies.

Storage tank heaters are the most popular heating system in the market these days. Their positive elements make them highly in demand particularly because they are affordable to purchase and economical to install. With an average of $300 – $500 for the unit and the same amount for the installation, you will have a complete set up. For high rated tankless water heaters, you can expect the installation cost to be around $1,200 – $2500 and so is the price of the unit.

Tank-Water-Heater-vs.-Tankless-Water-Heater

In comparing cost savings between the two systems in terms of energy-efficiency, tankless takes as much as 20 years to recoup from the ‘initial financial outlay’ compared to only 12 years for storage tanks.

Quick Guide Installation Cost
Tank-type $300 – $500
Tankless $1000 – $2500
Hybrid $300 – $500

Location

For a replacement, most likely the contractor will be able to work on the existing connections that are already in place. Hence, the set up is going to be less strenuous. But, if maneuvering your hot water tank is made difficult because of the limited access, this may result to an increased the installation cost. For installations in the basement of a home, average labor cost will be around $348 compared to $378 for installation in the garage or $388 for fitting the unit in a closet.

Location Factor Installation Cost
Basement of Home $348
Garage $378
Closet Fitting $388

Single Point System vs. Whole-House

When you need consistent supply of hot water throughout the house, both tankless and tank-type water heaters can serve as whole-house system. The installation costs an average of $579, but you will have hot water supply for all fixtures and appliances needing hot water to operate. In some application of this system you will need multiple point-of-use (POS) units which are installed at an average cost of $385. POS units are set up throughout the house for a more efficient and consistent delivery. However, to offset this additional installation expense, you need to evaluate your expected usage to determine if you need a whole-house supply system with POS or a Single Point System is enough for your needs.

Quick Guide Installation Cost (Additional)
Total $964
Whole-House System $579
Multiple Point-of-Use $385

Energy Sources

Another important factor that influence the installation cost is the heat sources. Water heaters are powered by electricity, natural gas, propane and even solar water heaters are gaining increasing attention these days. The type of fuel you intend to use for your new hot water tank and whether any conversion is necessary will affect the cost installation variable. Cost for a natural gas unit is at an average of $ 426 while installation for propane heaters only plays in an average of $387. Gas leaks occur when not installed correctly that can result to catastrophic damages to the occupants and the property. The complex installation of this type makes labor more costly compared to the $385 average installation cost for electric models. Since solar heater installation process is more complex, typical installation cost is about $405. Your contractor can help you decide which fuel energy can best meet your family’s need for hot water.

Fuel Factor Installation Cost (Average)
Natural Gas $426
Propane $387
Electric $385
Solar $405

Learn more here: Wiehagen, J.; Sikora, J. L. (March 2003). Performance Comparison of Residential Hot Water Systems. NREL Report No. SR-550-32922.

Homeowner Purchased Unit vs. Contractor Supplied

Though most hot water tank contractors and installers can provide or recommend you the unit for your project, you can still choose to purchase your own. Ordering and delivery will have some influence in the installation cost. Installation, when contractors supply the unit, average a hefty $514 compared to $341 when you personally purchase the device and settle for its delivery.

Quick Guide Installation Cost
Homeowner Purchased Unit $341
Contractor Supplied $514

Conclusion

Installation cost for a brand new appliance is a huge addition to the initial financial outlay. A replacement and another installation expense might break your bank. It is always recommended to learn proper maintenance and care for your water heater to prevent problems such as tank leaks. Check out related posts to learn more about your hot water heater.

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