Installing a water heater is a major job and one that requires a knowledgeable professional. It can also be an expensive process, so it’s important to know the costs involved before you start the process.

This post will provide a general overview of what you can expect to pay when having a water heater installed in your home.

Types of water heaters


The type of water heater you install in your home will affect the overall cost. If you need professional assistance choosing a water heater, click here. Gas and electric models are typically the most popular options, but there are also solar-powered and tankless water heaters available for installation.

Here is a list of some different types of water heaters:

Gas water heaters

Natural gas is connected to the unit and when it is turned on, the burner pulls combustible air from the surrounding environment and mixes it with the gas. This mixture is ignited and produces heat, which is then transferred to incoming cold water via a heat exchanger, heating it up for household use.

Electric water heaters

An electric element in the tank heats up when the unit is turned on. Cold water enters the tank and circulates around the electric element, causing it to heat up and provide hot water for household needs.

Solar powered water heaters

A solar thermal system captures energy from sunlight using a solar collector mounted on your roof. The energy from sunlight creates heat inside a storage tank, which is then used to warm incoming cold water for household use.

Tank water heaters

Tank water heaters use an insulated storage tank to store heated water at all times. When you turn your hot water faucet on in your home, cold water is drawn into the tank through a dip tube inside the tank and heated by either a gas burner or an electric heating element.

The heated water then rises to the top of the storage tank and is ready for use when needed. To keep the hot water supply constant, the heater cycles off and on as needed throughout the day.

Tankless water heaters

Tankless units have a heating device that only activates when hot water is requested. As cold water travels through a pipe connected to the heater, an electronically controlled heating coil activates at pre-set levels of demand, instantly heating up all incoming cold water to provide hot water for household needs.

Other fees associated with water heater installation


In addition to the cost of the water heater itself, there are other fees associated with water heater installation that must be taken into consideration. These can include plumbing costs, permits and labor costs for installation or repair.

Depending on where you live and the type of water heater you choose, these added costs can significantly increase the total cost of your project.

Average cost of labor

The cost of labor varies depending on who does the job and where you live, but you should expect to pay between $120 and $250 per hour for professional installation services. Additionally, some companies may have additional fees such as travel costs or access charges that need to be taken into account when budgeting for your project.

Average cost of materials

Material costs associated with installing a water heater must be accounted for in any budgeting process.

These can include items like piping, fittings, venting materials, tank wrap insulation, expansion tanks and other necessary supplies which can range between $400-$800 depending on the type of unit being installed.

Cost of permits and licensing

Depending on the water heater type and where it will be installed, a permit may be required for its installation. This usually involves a fee set by the local government or municipality in which you are installing the water heater.

Permit fees vary widely based on factors such as your location, the type of water heater being installed, and the scope of work being done. Be sure to check with your local authorities before beginning any installation project to ensure you know what permits are necessary and what fees are associated with them.

The average water heater permit fee in the United States is approximately $50, depending on your local regulations. The cost can vary widely based on the type of water heater you are installing and the location in which it will be installed. It’s important to check in with your local authorities before starting any work to ensure you understand what permits and fees may be applicable to your project.

Contact a professional to get a quote


Contact a licensed plumber before beginning any water heater installation project. A professional will be able to provide you with an accurate quote for the cost of your water heater and installation.

This is important to ensure that all permits and fees associated with the project are accounted for. A professional is also best equipped to advise you on any local regulations or codes that must be complied with in order to successfully install your new water heater.

Getting a quote from a professional is crucial when it comes to water heater installation projects. Although it may be tempting to try to handle the installation on your own, it’s important to remember that water heaters can be dangerous and complicated to install.

Hiring a licensed plumber will ensure that the installation is done properly, safely, and in compliance with all regulations and codes.

Additionally, a professional will be able to assess your specific needs and recommend the best type of water heater for your home or business. This can save you money in the long run by avoiding the purchase and installation of an inadequate or inefficient system.


Installing a new water heating system can be a costly undertaking, but it is an important part of keeping your home functioning properly. Understanding all aspects of what is involved before getting started will help ensure that all costs associated with the project are taken into account and that the job is done quickly and efficiently by experienced professionals.

Contact a professional plumber to get a quote and details specific to your specific situation and needs.