When thinking about how much you will spend to buy or replace your current water heater you must consider unit cost as well as the cost for a contractor/plumber installation.
Traditional tank type heaters cost between $300 - $500, depending on the model. The price range for tank storage units vary according to tank size, efficiency, and features. Gas units are typically more expensive than electric. Installation will cost between $300-500.
Tankless units which are large enough to serve an entire house (rated at 8 gpm) are normally more expensive than tank water heaters, ranging from $800 to as much as $1,200 or greater for higher performance models. In addition, installation requirements may impact cost by as much as an additional $1,200.
A hybrid water heater will have a total cost typically between tank and tankless, ranging from $1,500 to $2,300 after product purchase and installation.
|Unit||Unit Cost||Installation Cost||Total|
|Tankless||$800- $1,200||$1,000-$2,500||$1,800- $3,700|
|Hybrid||$1,200- $1,800||$300-$500||$1,500- $2,300|
When comparing costs between tank and tankless, the cost savings acquired in the tankless through energy efficiency may take as much as 20 years to recoup after the initial financial outlay (unit cost plus installation cost).
When thinking about replacing a tank type water heater for your home, make sure to check the connections to determine what type of replacement heater you will need. A tank type water heater uses gas, electricity or propane.
Installation costs to replace a tank type unit with a tankless should be considered and may be quite expensive due to different plumbing requirements for input gas lines, venting, and other requirements. Click here to learn more