Written by: Corey P.
Plumbing Contractor
November 17, 2023
Go into any home and there are a few things you can expect to find. Among those, is the water heater. Water heaters are important staple in our everyday lives. Did you know, that restaurants cannot be open without a functional water heater? It is easy to see the importance we place on having hot water ready at our literal fingertips should we need it. This article focuses on the costs associated with replacing your water heater and the factors that can lead to an expensive or, hopefully, cheaper installation.
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Factors Affecting Water Heater Replacement Costs
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There are several factors that contribute to water heater replacement cost:
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​Type of Water Heater: Whether you choose for a more traditional tank type water heater or a tankless, the cost associated with each replacement will be similar (within 25%). Only the initial upgrade from tank to tankless carries a significant cost increase due to possible venting, gas, or electrical requirements being needed.
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Size of Water Heater: This is probably a no-brainer, but the larger the water heater capacity, the more money. This is mostly due to the increase in materials needed to construct it, but can also affect labor costs due to the difficulty and possible need for help getting it into place.
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Fuel Source: If you have gas or propane, you are probably familiar with the need to exhaust the fumes to the outside. This need can lead to additional materials and labor when replacing your unit. Even electrical work can be necessary if something doesn't meet code or an underlying problem is discovered.
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Labor Costs: This is the biggest swing category of them all. Some companies will quote large numbers while others will quote significantly smaller numbers. Why the discrepancy? Good question. This could be an article in and of itself, but just remember that not all companies are at the same stage in their journey. Some may feel they provide the best service and charge accordingly. While others are new and are trying to get established.
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Permits: Local municipalities can sometimes require a permit, depending on where you live, but generally, this isn't the case for water heater installation.
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Additional Expenses: Anything that is out of the ordinary can fall in this category. Whether it is need for additional plumbing or a problem that was masked for a long time. Always be weary of Murphy's law.
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Average Water Heater Replacement Costs
Thermal Expansion Tanks
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Thermal expansion tanks are becoming increasingly popular since plumbing systems have gotten more complicated. Ultimately, this device has an "air cushion" that absorbs the increase in volume of water. Water is one of the universe's weird molecules that expands when heated and when frozen.
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Location of the Water Heater
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This should be one of the obvious reasons as well, but it's important to point out. If your home has the water heater in a "difficult" location, or one that requires two people to safely move, that cost is going to be passed onto to you. It's just the nature of the beast.
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Regional Variations in Water Heater Replacement Costs
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Depending on what part of the country you live in, your costs will differ slightly. Regional variations are normal due to factors of cost of living, local ordinances, and material costs. Just think, if you lived on an island, things are going to be more expensive, but then again, if you have an island, money probably isn't a factor.
Additional Considerations
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DIY Replacement: Ah yes, the ole' DIY option. And to be fair, even as a plumber, I consider this is a viable option for many with years of experience working on their homes and the homes of their friends and families. Just remember, it can be a hassle as plumbing has a lot of specialty tools that make life easier for the professionals. But, if you're feeling frisky, and don't mind the occasional explicative being thrown around, you have a good chance at achieving the coveted, "good enough."
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Professional Replacement: Hiring a professional does come with some perks. Along with experience and know-how, you should get some sort of warranty on the work performed. If that isn't mentioned before beginning work, you should ask. Secondly, the hassle and frustration saved from having someone else do it can't be overlooked.
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Energy Efficiency: Energy efficiency is a thing... however, don't be fooled into thinking you won't pay handsomely for that feature right out of the gate. Just search for heat pump water heaters and take a look at their prices... need I say more?
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Incentives and Rebates: If you're the frugal shopper, you should always be on the lookout for savings whether from the point of sale, government, or energy provider.
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Conclusion
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By now, you should be an expert on the costs associated with replacing a water heater, more or less. There are many factors that come into play. Incidentally, we have an online tool that gives you a quote in minutes. If you're interested, click here. If you're looking for a pro to service your water heater around the Indianapolis area, give us a call.
