How Much Does Water Heater Installation Cost?

The biggest factor in hot water heater installation cost is the type of unit you choose. The fuel it uses plays a big role in the cost to install a water heater, as does the type of unit you select. 

Bigger tank sizes come with bigger price tags, and commercial options typically cost more than residential ones when you're wondering, "How much does it cost to install a water heater?" 

The energy requirements of an appliance naturally affect water heater installation costs — both at the outset and in the long term. Choosing a fuel type that's economical also means understanding which energy sources are more readily available in your area and picking appliances that operate easily on readily available fuels.

Electric 

Because electric appliances are generally cheaper, it's only natural that electric water heater installation cost is usually lower upfront than other fuel types. The downside to an economical purchase price, however, is increased operational costs in areas where electricity is priced higher. 

Expect to pay $920 to $1,177 for electric water heater installation costs.

Gas

Both types of gas water heater installation types have similar upfront costs, with propane models priced a little higher than their natural gas counterparts. Let's take a look at the costs associated with installing gas water heaters. 

On average, gas water heater installation costs around $2,607.

Natural Gas

Natural gas has several advantages over propane, including a cheaper upfront price point in most cases. In areas where natural gas is readily available, this type of water heater also offers lower operating costs. Whether you can install natural gas water heaters depends on the availability of lines in your area, with the cost of running them to your home adding to your price tag.

Propane

Propane water heaters usually cost a bit more than natural gas options, and operating costs run higher, especially in areas where propane is in higher demand during the winter. Because propane doesn't come through lines and is stored in tanks that connect to your property, these water heaters are a viable choice in rural or remote areas with no natural gas lines or unreliable electricity. Costs of installing a propane storage tank, however, drive up costs for propane water heaters.

Solar

Solar water heaters almost always cost more upfront than gas or electric models because you also require solar infrastructure to power them. 

Expect to pay roughly $2,000 to $3,000 on average, with high-end models costing upwards of $7,500. 



On the flipside of higher prices at the outset, solar water heaters typically save you money on energy costs after the initial sticker shock of water heater cost and installation. 

Many areas offer rebates or tax credits for installing energy-efficient appliances, so you may be able to recoup some of your water heater installation cost that way.

Beyond the initial purchase price for your water heater, other costs come into play that you might not think about until you're staring at an invoice with sticker shock. Before you make a decision about the type, size and power source for your water heater upgrade, consider these additional costs you're apt to incur during the installation process.



Hourly Labor

Labor costs to install a water heater in your local area and the complexity of your installation influence the final price. For example, less common high-efficiency units may require more time and special tools or skills, so they almost always cost more to install than standard