Cost To Install Water Heater

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How Much Does Water Heater Installation Cost At Lowes

How much does it cost to replace a water heater?

According to our web research, the costs to have Lowes install a water heater that you purchased from them will be heavily influenced by the current promotion, the type of water heater being installed, and the scope of your project. Based on these considerations, the prices for the basic installation alone would range anywhere from $250 to $425, and this does not include the expenses of the water heater itself. However, when you consider in the other fees, which we will discuss below, the total cost of the installation might go well into the $500 to $650 area.

We were able to locate a few individuals online who were willing to share their charges, and we have included the pricing they were offered in the table below:

Price Quoted

Cost Of An Electric Water Heater

Normally, water heaters are fueled by either electricity or gas. Electric water heaters usually cost lesser than gas heaters. If youre replacing your electric water heater, you need to budget from $200 to $2,000 for a new one.

Electric water heaters are eco-friendly and easy to maintain but arent very efficient. Also, installing an electric water heater comes with many complications. However, your electric water heater replacement expenses depend on its type and size.

What Size Tankless Water Heater Do I Need

Tankless water heaters are sized in gallons per minute and temperature rise. Follow these steps to find the ideal tankless size for a home:

  • To determine the minimum required GPMâalso known as the flow rateâcalculate the peak water demand by adding the flow rates of all the fixtures and appliances that will use hot water simultaneously:
  • Tankless water heater flow rate calculator

    Fixture type
    • Requires a larger diameter gas pipe
    • Won’t work in a power outage
    • Costly replacement parts when out of warranty

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    Electric Vs Gas Water Heater

    You have an alternative to an electric water heater if your home is piped for natural gas. Electric units can be used in any home, but it is common for households with natural gas to use this for heaters and other appliances.

    Of the two, electric heaters tend to be less expensive to purchase and install. However, they are more costly to run. Natural gas is generally a less-expensive form of energy, but gas units require more maintenance and cleaning. They also need to be vented, increasing installation costs.

    Natural gas is also not available in all areas, making electric models more versatile. Below are the average costs of installing a 50-gallon heater in both types.

    Energy Source
    $1,000 – $2,500

    Check Your Homes Agreement And Purchase Of Sale

    Ask Angies List: How much does water heater installation cost?

    See if hot water heater is listed under Rental Items. Our purchase agreement included it:

    This means that you have agreed to assume the contract notwithstanding that you never saw or signed it. The law more or less says that if you had had concerns, you could have made the Agreement conditional on reviewing the rental agreement.

    If the water heater is not listed under rental items, the real estate agent made a mistake and you can demand that the seller buy out the contract.

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    Lowes Water Heater Installation Cost

    Seeking further financial savings? There may be a refund available for several ENERGY STAR ®certified water heaters, including the A. O. Smith heat pump water heater, depending on where you live. You can find out how much money you may save by visiting our rebates page if you qualify. AO Smith Signature Series water heaters, which are only offered via Lowes, are a source of great pride for us! For over a century, companies and customers have relied on A. O. Smith to supply their hot water requirements.

    Use the A.

    Smith product picker tool to choose the ideal one for you by answering a few basic questions about your lifestyle.

    Research many options to get the most appropriate one for your requirements.

    Youll discover a range of commercial water heaters for use in companies, schools, and restaurants in addition to household water heaters. The selection at Lowes is extensive and includes every type of water heater you could possibly need.

    Timeline Of Government Actions Against The Industry

    Since the early 2000s, the Bureau has taken significant enforcement action to address concerns relating to alleged anti-competitive conduct in this market, including filing applications and Registered Consent Agreements with the Competition Tribunal.

    • In 2002, the Competition Tribunal prohibited Enbridge Services from engaging in practices that intentionally suppressed competition and restricted consumer choice in a 10-year consent order. The investigation found that Direct Energy re-engaged in similar conduct after the consent order expired in February 2012.
    • Bureau determines that the companies had policies that intended to frustrate consumers, including:
    • a requirement to call to obtain authorization to return a rented tank
    • aggressive retention tactics during these calls
    • restrictions on when and where units can be returned and
    • unwarranted fees and charges.
  • The Bureau continues to monitor this market and to analyze the numerous complaints it receives from consumers and businesses. In three of the past four years, various rental water heater companies have generated the most complaints concerning abuse of dominance received by the Bureau.
  • Enercare acquires Direct Energys water heater portfolio and the Competition Bureau gets Enercare and Reliance to commit to:
  • Not requiring customers to obtain an authorization number before returning their unit
  • Allowing a new supplier to terminate a customers account on their behalf
  • Opening new return depots
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    Selecting Your Water Heater

    When choosing the right water heater for your home, keep these factors in mind:

    • Fuel type and availabilityBefore selecting a water heater for your home, consider the availability of the necessary fuel type. For example, if youre looking into a natural gas water heater, check to make sure your property has or can receive a natural gas line.
    • Size of your homeThe proper-sized gas tank should be purchased based on the size and amount of people in your home. For example, a household of two needs a 3040 gallon tank while a four person home needs a 5060 gallon tank.
    • Cost and energy savingsWeigh the cost of each water heater and its fuel source. While some heaters may have a higher upfront cost, their energy efficiency may save you money in the long run.

    Tankless Water Heater Replacement Cost Factors

    Gas Water Heater Installation

    Tankless water heater replacement costs $600 to $2,650 if replacing an old tankless unit with a new tankless model, or $800 to $3,500 if switching from a storage tank to tankless. Installing a tankless unit requires upgrading the gas supply line, replacing the existing vents, and installing a new electrical outlet.

    • Gas line installation costs$350 to $750 to upgrade to a larger diameter gas supply line.
    • Plumber hourly rates are $45 to $150 per hour to modify or insulate the pipes.
    • Replacing the vent for gas exhaust costs $100 to $600. The vent system from a tank water heater cannot be reused for a tankless water heater and requires replacing.
    • Electricians charge $40 to $100 per hour to install a new outlet or upgrade a circuit. Electric and natural gas tankless models both require a dedicated electrical outlet.
    • Upgrading an electrical panel costs is $850 to $2,500 and may be necessary to support a new electric unit.

    Read Also: How To Tell If Water Heater Is Gas Or Electric

    Labor Costs To Install A Water Heater By Energy Source

    The fuel source you use to heat your water is at least partially responsible for your costs. This is true of any heater you purchase, except for the indirect mode that gets its heat from your boiler or furnace. In general, electric heaters cost the least to install, while solar costs the most. Your total costs are also influenced by the heater location. For example, if you need to extend electrical wires to your new electric heater, your costs for labor and installation will be slightly higher than if you have wiring installed. Likewise with gas, running a gas line to the heater will increase your total costs, while simply hooking up an existing line can be much less expensive.

    Difficult-to-access areas, such as heaters located inside walls, and how far the heater will be from the homes piping also influence your total labor costs. Below are the average costs for labor for each of the different fuel sources.

    Energy Source
    $3,000 – $8,000

    Ao Smith Gas Water Heater Price

    The price of an A.O. Smith unit averages $800 to $1,500 for a tankless unit. The price of a tank-style heater is $600 to $1,200. Their heaters are designed for whole-house use. Their tankless models have high flow capacity, meaning they can have outputs above 9 gallons per minute. Their tank-style heaters come in several sizes, allowing you to find a model that fits your needs. Their units have several options for venting, condensing, and installation style.

    Drain The Tank Until It Runs Clear

    Once a year, or once every time you think of it while youre in your utility room, open the drain at the bib at the bottom of the tank and let a water drain out until it runs clear and ideally empty it out completely. You want to drain and rinse the sediment off the bottom of the tank, and exercise your hose bib because they get seized up.

    Over time, minerals and sediment in the water collects in the bottom of the tank and a layer builds up. This makes it harder for heat to transfer from the burner to the water through the tank bottom, leading to longer burner run times, a hotter tank bottom and increased risk of the tank splitting. It can also compromise its energy efficiency, lead to clogs in fixtures throughout the house as well as:

    • Less hot water available
    • Tank corrosion and eventually leaks or failure

    Here is another tutorial:

    Is A Leaking Water Heater A Severe Problem

    Water Heater Installation Idaho

    Leaks from water heaters are seemingly insignificant most of the time, usually resulting in just a small puddle on the floor around your tank.

    Some homeowners find water leaking directly from the tank, while others may notice trickling from the connections on the top of the heater. Any kind of leak should be taken very seriously, as it can cause significant property damage if left unrepaired.

    Throughout the countless heating cycles and pressure changes your tank goes through, the metal encasing the water expands slightly over time.

    As the metal expands, it changes how the connections and interior equipment fit and becomes more prone to leaking. If you find leaks from the connections themselves, the plumbing repair may be as simple as tightening them, or you could need a total replacement.

    Its near impossible for an untrained individual to confirm whether the issue is with the tank itself or the connections, so an experienced plumber should assess the heater if any leaking occurs.

    A leak from a water tank usually starts small and progressively worsens with the heat and pressure cycles. Seemingly minor leaking could eventually cause significant leaks, leading to extensive water damage, rotting of your construction material, and an increased risk of mold growth and the resulting poor air quality.

    How To Cancel A Reliance Home Comfort Water Heater Contract

    For agreements started after November 5, 2014 and until November 5, 2024, the 2014 Competition Tribunal orders to Reliance Home Comfort applies, which state:


    • Reliance shall permit a Customer or its Agent to terminate a Rental Agreement at any time


    Reliance shall permit a Customer or its Agent to:

    • drain, disconnect, remove and/or return to Reliance the water heater that is the subject of the Rental Agreement or
    • request that Reliance drain, disconnect, remove and/or pick up at the Installed Address the water heater that is the subject of the Rental Agreement


    Other than any outstanding rental payments and interest charges owed, Reliance may not charge any Exit Charges other than a:

  • Maximum termination charge of $200 and a maximum of $40 .
  • Maximum pick-up charge of $65 in respect of a natural gas, a maximum of $125 for an electric.
  • Maximum pick-up charge of $125.
  • Any cost to repair damage to Reliance units only when the following two conditions are met:
  • the damaged unit is less than seven years old and
  • the damage was caused by a Person other than Reliance, the proof of any such damage being caused by a Person other than Reliance resting with Reliance.
  • Purchase price voluntarily agreed to by a Customer to purchase the unit outright.
  • Solar Water Tank Heaters

    These water heaters use natural sunlight to heat water. A solar water heater system consists of a storage tank that holds water and solar collectors that generate heat. Typically, a solar water heater relies on a traditional water tank in case of an emergency.

    Solar water tank systems can be broken down into two types: active systems and passive systems. An active system uses a pump to supply homes with water, while a passive system uses natural convection to circulate water throughout the home. Homeowners can expect to pay around $2,000 for a passive system and $3,000 for an active system. The higher cost is due to the extensive labor and need for a back-up water heater.

    What About Issues With Gas Heaters

    So far, weve primarily focused on water heaters that are powered by electricity. However, gas water heaters can present their own issues and concerns.

    When gas heaters have issues, they are usually related to the power source. Specifically, a gas heater may run into issues with any of the following components:

    • Thermocouple
    • Pilot light
    • Gas control valve

    Gas water heaters can be a little more difficult to assess than electric water heaters. If your gas heater is not working, you may want to hire a professional plumber. Your plumber will be able to accurately diagnose the underlying issue.

    As for the average cost of gas heater assessment, heres a brief rundown.

    How Much Does It Cost To Rent A Water Heater

    Install a Tankless Water Heater

    Ontario homeowners often find that their hot water tank is rented from from Reliance Home Comfort or Enercare for $30 to $40 per month depending on the size of the tank. Tankless water heater rentals are commonly found in new builds and cost $35 to $50 per month.

    The average lifespan of a hot water is 16 years according to Enercares annual reports, so after an average lifespan, rental payments made during the agreement would add up to $5760 to $9600.

    It costs $600 to $1000 to buy a new hot water tank and $400 to $600 to have it professionally installed for a total of $1000 to $1600.

    So it costs 4.5 to 9 times more to rent than buy over a 16 year period and for most homeowners, owning is financially better than buying after about 3 to 4 years.

    In addition, the agreements stipulate that these charges are increased every year by the greater of 3.5% and Ontario CPI and CPI + 2% .

    Choosing A Replacement Water Heater

    In some instances, it doesnt make financial sense to repair your unit. Weve mentioned this already: If your heater is close to the 15 year mark, it may be smart to replace it.

    As you consider a new water heater, youll have several decisions to make. Not all water heaters are created equal. one decision youll need to make is whether you get a tankless water heater or one with a tank.

    Both types of heater perform the same basic function. Namely, they supply your household with hot water. They go about it in different ways. A heater with a tank will store a certain capacity of hot water. Usually, this is 40 or 50 gallons. A tankless water heater doesnt store water. Instead, it quickly heats water on demand, though a system of heating coils.

    The average cost of tank-style installation is $1100 for a 40-50 gallon unit. Of course, this can change if you opt for a much larger size. The average cost of a tankless installation is closer to $3,500.

    When thinking about your new water heater, there are several considerations to keep in mind.

    Tank Heaters

    Tankless Heaters

    Water Heater Installation Cost By Type

    The most basic way to categorize water heaters is based on whether they have tanks or are tankless. Water heaters can also be categorized based on their fuel type. For standard tank water heaters, the possible types based on fuel source include gas, electric, propane, oil-fired, indirect, hybrid, and solar. For tankless water heaters, however, the possible types based on fuel source include gas, electric, and propane.

    To have a general comparison between tank and tankless water heaters, tankless water heaters could have 25% to 50% higher unit price and a labor cost of 50% to 150% higher than their standard tank counterparts. In other words, your water heater installation cost could go 20% to 100% higher when you choose tankless water heaters. Tankless water heaters, on the other hand, have the advantage of being more energy efficient, able to supply unlimited hot water on-demand, and last up to 35% longer than their standard tank counterparts.

    Water heater installation cost could also be affected by the venting system of fuel-fired water heaters . The gaseous products of combustion in these water systems can be exhausted via atmospheric, direct, or power vent configurations. In terms of costs, consider the fact that your water heater installation cost would be $350 to $1,000 more than direct vent and atmospheric vent installations while using a power vent configuration.

    Why Do Ontario Residents Rent Water Heaters

    Since the 1950s, rental companies have provided home builders with subsidized water heaters which they would pre-install into new homes and the rental companies would receive a monthly rental fee from the homeowner in exchange. Initially, the purpose was to stimulate the adoption of natural gas, but over time became an aggressive, highly profitable, rent-collecting business model.

    Home buyers are often surprised to find out theyre on the hook for a contract. During the final review and signing process of the big stack of legal agreements it is often not made clear what the terms and conditions of the agreement are. The only indication that an agreement even exists are the words hot water heater listed under the Rental Items section.

    Buyers of new builds are also surprised as they assume that it is part of the homes purchase price. When they try to get the builder to let them opt-out of the rental, they find that many builders have agreements with the rental companies and that including a rental unit in the home is non-negotiable.

    Those who are aware dont have the leverage to deal with it during the buying process in a sellers market .

    Once the contract is in place, the cost of buying out the contract is made to be exorbitant and the process challenging to the point where the rental companies and their predecessors have been investigated, fined and made to make commitments numerous times over the past 20+ years by the Competition Bureau.

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