The Cost of Water Heater Replacement: Why is it So Expensive?

Discover why replacing your water heater can be a costly endeavor and learn about the various factors that contribute to the expense.

The Cost of Water Heater Replacement: Why is it So Expensive?

As a plumbing expert with years of experience, I have seen firsthand the high costs associated with water heater replacement. Many homeowners are often surprised by the price tag, but there are several factors that contribute to the expense of this necessary home upgrade. First and foremost, installing a water heater is a time-consuming and labor-intensive process. Connections for water and electricity must be made, and ensuring a safe and effective setup adds to the total cost. In some cases, a permit may even be required for installation.

Additionally, new water heaters are now manufactured to meet stricter standards, which means they require more insulation material and may even include heat pumps as part of the unit. But it's not just the unit itself that comes with a higher price tag. The installation process also requires more effort and resources. Larger units often require larger delivery trucks and more labor to move and install them. This can result in increased installation costs for homeowners.

Another challenge is that many homes have their water heaters located in the attic, which can pose a problem when it comes to replacing them. New tank water heaters may not fit through the attic staircase opening, so pipes may need to be redirected to the first floor or a larger access may need to be created to accommodate the larger unit. While there are various types of water heaters available, each with their own benefits and drawbacks, some options come with a higher price tag than others. For example, heat pump water heaters are energy-efficient but can be expensive, similar to a standard heat pump. Gas water heaters are reliable even during power outages, but they come with safety concerns due to their use of gas.

It may be tempting for homeowners to try and save money by installing a new water heater themselves, but this is not a project that should be taken lightly. It's best to leave it to the professionals, unless the homeowner is highly trained in handling pipes, gas lines, and electrical work. A professional plumber can not only recommend the best water heater for a home, but also has access to a wide selection of top-quality makes and models. They will also obtain any necessary permits and ensure that the new water heater is installed correctly and safely the first time. When it comes to choosing the right water heater for your home, it's important to consider factors such as fuel type and location. Since there is always a risk of a water heater leaking, it's crucial to install it in a location where it won't cause significant damage to the home if a leak were to occur.

Electric water heaters rely on a house's electrical supply, so it's worth noting that a power outage or blown fuse can cause the unit to fail. To extend the life of a water heater, regular maintenance is key. This includes replacing the unit's anode rod every 5 years, which helps protect the unit from corrosion. If homeowners are not satisfied with their current water heater's performance, they may consider upgrading to a more energy-efficient option. Some have even supplemented their conventional water heater with one that runs on solar energy, which not only saves money in the long run but also uses a renewable and environmentally friendly energy source. Ultimately, choosing the right water heater replacement contractor and keeping overall costs low can be overwhelming for homeowners.

One way to save money is by replacing the old unit with one of the same size and type. However, there are other ways to save money without sacrificing desired features in a new water heater.

Randy Strombach
Randy Strombach

Plumbing Contractor, father to three great kids and husband to an amazing wife