How Water Heater Replacement Cost is Calculated

When homeowners have determined that they need a new water heater, the water heater replacement cost is often their primary concern. Fortunately, the average water heater should last for a decade or more, but eventually, they will need to be replaced. Here is some information and guidelines for determining what the final cost is going to be for a new water heater.
How new water heaters can affect energy costs
Fortunately for those who find themselves needing a new water heater, the ones that have been made in recent years are highly efficient. By some estimates, they may help homeowners save hundreds of dollars a year on heating costs. These savings are wonderful for offsetting the costs associate with investing in a new water heater.
The cost of the water heater and installation
The final water heater replacement cost and the installation will depend heavily on the type of heater desired. For example, many customers prefer to install a natural gas water heater with a tank. The final cost of installation and machine can range from from nearly $1,000 to $2,000. On the other hand, many homeowners prefer to invest a little bit more and get a tankless or on-demand water heater. These water heaters will cost more upfront on the equipment and the installation, but they will help homeowners save even more on monthly energy bills. Those interested in a tankless water heater or on-demand heater can expect to pay up to $5,000 for the equipment and the installation. The installation tends to be more complicated and take twice as long to complete.
The hidden costs of water heater installation
There are many people who would like to try and save money on installation costs by doing it themselves, but many times this is not advisable. For example, those interested in getting a tankless water heater or an on-demand water heater, it will be necessary to have a professional do the job, especially if a gas line is involved in the installation. Even for other standard water heaters, most people should trust the job to professionals. Electric water heaters involve dealing with 240 watts of electricity or more, which can be very dangerous for those who are not experienced with this level of home improvement. Similarly, a natural gas water heater involves hooking the equipment up to the natural gas, which can be very dangerous for all the occupants of the home if it is not done perfectly. Even though installation costs contribute greatly to the final water heater replacement cost, it is not an area where homeowners should cut corners.
Another contributing factor to cost can be hidden upgrades. Occasionally regulations change and when homeowners go to change their water heater, they must change many of the attachments. Some of the most common parts to require upgrading are the water heater mount, the venting system, the supply pipes, or the drain pan along with sewer replacement. A professional can help homeowners determine if any of these costs will apply to them. Again, even though it might add to the final water heater replacement cost, it is better to make sure everything is done correctly the first time.

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