(basic installation without electrical changes)
(smart capabilities and reconfiguring the spot)
Cost to install an electric water heater varies greatly by region (and even by zip code).
Get free estimates from water heating professionals in your city.
The average cost of installing an electric water heater is around $1,035.
Electric water heaters use electricity instead of fire to heat your home water. With electric water heaters, you won’t use heating oil, propane 1, or gas to create your hot water. They tend to be more energy efficient than traditional storage, gas-fired heaters.
There are a few different kinds of electric water heaters to consider when choosing one for your home. The average price to install a new, standard 40-gallon water heater, adding electrical without needing to reconfigure the location of the equipment is $1,035.
When installing water heaters there are many different costs to consider, from the price of the tank, to the updating electrical. If you have an electric tank you are replacing, the cost would be lower than if you are replacing a standard gas-fired water heater. Regardless of type, they all run off of electricity rather than gas, propane, or oil, and require electrical components, wiring, and attachment to the electrical panel.
Warranties are usually covered in the regular cost of the water heater, however you can also choose to extend the warranty. Warranty extensions may be provided by the installation company or by the manufacturer. The average cost to extend a warranty for 2 years is $150.
Electric water heaters can be storage tanks, tankless, or hybrid. Storage tank water heaters keep hot water ready to go, and tankless water heaters heat water on demand when you need it, without storing the water in advance. Both storage tanks and tankless water heaters might be a good option depending on your home and your family’s needs. Hybrid water heaters switch between heat pump heating and standard electric resistance heat.
Type | Characteristics | Price |
---|---|---|
Tankless | Smaller than a storage tank Heats on demand Never runs out of hot water, but may decrease the flow More energy efficient than the storage water heater Good for 20 years or more | $210-$540 |
Storage tank | Comes in different tank sizes, between 20 and 80 gallons Uses the First Hour rating to determine heating Newer models are energy efficient Good for 10-15 years Lowest purchase price | $340-$1,200 |
Hybrid | Move heat from one place to another Three or four operating modes for different efficiencies and needs Higher end of the price range than standard electric heaters Lower operating costs | $1,200-$2,900 |
Storage tank water heaters typically hold between 20 and 55 gallons of hot water at one time. Some models can hold up to 80 gallons of water. To know what size water heater you need for your home, you have to figure out the first hour rating (FHR). The FHR is how many gallons of hot water a storage tank can supply in one hour. On the yellow EnergyGuide sticker, the FHR is usually labeled “capacity.”
To calculate your needs, first determine your peak hour demand or what time of day you use the hottest water at home. If everyone showers in the morning or at night, for example, then morning or evening would be your peak hour for demand.
The average family of four might use 100 gallons of hot water in a day, between showers, dishwasher, and washing laundry. However, a 100-gallon tank is not necessary since you wouldn’t use all 100 gallons within one hour. Remember, the FHR is how many gallons of hot water is produced in one hour. A 40-gallon tank produces 40 gallons every hour.
Tankless water heaters provide a gallons-per-minute rating (GPM) because they do not hold water. This type of water heater provides heated water on demand as needed, and often do not run out of hot water the way a storage tank does.
Each type of water heater comes with its own energy efficiency information. Energy-efficient electric water heaters can save money on your utility bills. The cost averages between $180 and $550 a year in energy, depending on the type and size of the unit, but also depending on usage (such as the number of showers and people using the hot water).
Newer hot water tanks are more energy efficient than older models. Replacing your older model with a new one will save you money on your utility bill. Savings can total anywhere between $50 and $350 a year, depending on the type of tank purchased. The EnergyGuide label, usually posted on the tank itself, will tell you how much energy consumption a tank will demand and the average cost per year to run, or the average savings per year.
Hybrids have three or four operating modes for different efficiencies, depending on needs. Efficiency/economy mode maximizes efficiency and energy savings and is best for occasional use. Auto/hybrid mode is best for daily use and utilizes sustained heat to heat water efficiently. Electric/heater mode uses the electric element only to heat water, is really just for high-demand periods (such as when everyone is home taking a shower), and is the least efficient. Some models also have a vacation setting, which puts the unit in a sleep mode to keep it from operating while you’re away.
A professionally licensed plumber knows how to properly install water heaters. They are also able to apply for permits if necessary and hire an electrician to handle any required electrical components during installation. A professional can install a hot water heater in one day, and sometimes in as little as a few hours.
On average, a professional plumber charges between $45 and $65 an hour for labor. If it takes about six hours to install an electric hot water tank, the labor cost would be between $270 and $390.
Electric water heater installation costs generally include the water heater, permit, electrical upgrades, labor, and old water heater removal. The average price in the US to install a new electric water heater is between $620 and $1,020.
There are many different brands of electric water heaters. This is a small comparison of some of the top brands.
Brands | Pros | Cons |
---|---|---|
Bosch Tankless $200-520 | Easy to install Compact design for smaller spaces Easy to maintain | Not much capacity compared to others |
EcoSmart Tankless $230-500 | Great in both cold and hot weather climates No temperature fluctuations Smart heating technology Fits in small spaces Easy to install | Water flow is not consistent |
Rheem Storage tank $340-$430 Tankless $550 Hybrid $630 | Many options--comes in 20-50-gallon tanks, tankless, smart heaters, and hybrid Medium and tall sizes to fit a variety of spaces Automatic thermostat 6-year warranty Easy installation | Heating element doesn’t last as long as the tank Thermostat 4 sometimes fails Connection points can rust |
Reliance Storage tanks $350-$500 | Environmentally friendly Copper-sheathed heating elements to prevent rust Glass lined tank prevents erosion | Not as long-lasting as other top brands Needs maintenance and repairs often |
A.O. Smith Storage tank $400-750 Tankless $1,200 Hybrid $1,300 | Long-lasting when maintained Permaglass coating inside to prevent rust Works well with water filters and softeners The flow rate is great for a large family | Difficult to set up |
Bradford White Storage tank $650-$1,200 Hybrid $1,300 | Easy to install High capacity Large variety of storage tank water heaters | Parts break easily and may need replacing Doesn’t last as long as other heaters Warranty does not include labor costs Expensive depending on size |
Stiebel Eltron Tankless $650-$850 Hybrid $2,300 | Tankless compact model fits in smaller, tight spaces Handles high water volume Easy to install | Does not use alternative power sources More expensive than other tankless brands |
Westinghouse Storage tank $700-$2,100 Hybrid $2,100 | Capacity up to 80 gallons Stainless steel tank is less likely to rust Energy efficient Function to prevent overheating Lifetime warranty | More expensive than other brands |
No matter the type of water heater purchased, regular maintenance extends the life cycle of the heater.
For storage water heaters, a quarter of the tank’s water should be flushed every three months. Pressure valves and temperatures should be checked every six months, and anode rods may need to be replaced periodically. Test the temperature pressure release valve by opening it to check for water flow. If water continues to pour out when released, replace the valve. You can also insulate the pipes and the water heater tank to maintain temperatures and prevent condensation.
To clean the tank, first, drain all the water. Then allow cold water to flow into the bottom of the tank to rinse the sediment out. Continue to add water and drain until the water flows clear. Replace the water in the tank.
Maintaining a tankless water heater is a little more difficult and requires more effort. It should be cleaned every 6 months to 2 years. Each water heater comes with instructions on how to clean it if you choose to do it yourself. Generally speaking, you will need to close all water valves and use a hosing line with vinegar to flush it multiple times. A safer option, a professional plumber will have the know-how and equipment to handle this.
Deciding between gas and electric water heaters might be a hard task. These are the pros and cons of each one:
Type | Pros | Cons |
---|---|---|
Gas | Works when there is a power outage Runs off of natural gas, regular gas, heating oil, or propane. They cost less to operate Provide 8-10 gallons of hot water a minute | The unit might lose heat Requires an existing gas line More expensive than electric Uses heating fuel and you may run out of heating fuel Costs more to install than electric Emits carbon dioxide into the environment |
Electric | Cheaper than gas water heaters Uses electricity so it never runs out of fuel except in a power outage Requires minimal maintenance Environmentally friendly | Installation requires electrical wires and circuits, increasing price Provides less hot water per minute than gas |
Specialty tanks that include mobile alerts and smart capabilities have a higher cost, between $600 and $1,900. Smart water water heaters allow you to set controls and change the water temperature and operating modes.
Solar water heaters use the sun’s energy to provide hot water. You can use a solar water heater instead of just electrical to help save costs. Solar water heaters cost $600 - $2,500. They are more expensive to install, but save money in the long run.
An expansion tank is a small tank that sits with the water heater and protects an enclosed water heater system. Some cities require expansion tanks for home owners if they have a closed system. An expansion tank average price is $45.
In earthquake-prone regions, water heaters can topple over. Water heaters should be strapped to the wall with special straps if you live in an earthquake-prone region or have loose flooring. Small tanks can also be hung up high to keep them off the floor.
The average price to install a new electric hot water heater is between $620 and $1,035.
Labor cost is between $45 and $65 per hour for a plumber. Installation takes between 6 and 8 hours, resulting in $270-$520 in labor costs.
Homeowners should consult a professional to install a water heater. It may require a permit, new piping and ductwork, space redesign, and electrical wiring.
It should take between 6 and 8 hours to install.
Cost to install an electric water heater varies greatly by region (and even by zip code). To get free estimates from local contractors, please indicate yours.