How Much It Typically Costs To Buy A New Electric Water Heater

Water heaters are an important home appliance; they give both convenience and practicality, making it easy to clean, do laundry, wash dishes, and take showers. By providing a steady supply of hot water, a water heater also makes a home safer and more sanitary by removing germs and bacteria; it can even add to the property's value. Depending on the features and inclusions, water heaters can range from $200 to as much as $3,600.

There are different types of water heaters available, varying in heating method and power source, including gas, LPG, and electricity. Electric water heaters are among the most popular, and their cost varies depending on whether it's a tankless or conventional version (which vary in size and heating capacity), and if it utilizes direct or indirect heating, such as heat pumps or solar panels. Additionally, the Energy Factor (EF) rating of the electric water heater also impacts its pricing, as a higher rating means it is more expensive because it is more efficient and uses less electricity. 

Along with the water heater pricing, another significant cost to consider is its installation. For the United States, the first step in installing a water heater is to determine the permit and compliance requirements, which, depending on the area, may require separate permits for plumbing and electrical work. Water heater installation costs factor in labor and materials, the size and type of the heater, and the work to be done, which could include removing an old heater, installing new wiring and switches, and new piping and fittings. Additional costs may come from masonry work, including wall or floor modifications to run the piping or wiring, as well as repairs or replacement of any damage to the concrete or other surfaces in the house. 

The most expensive type of electric water heater is the tankless version, which can cost from $400.00 to as much as $18,000.00, compared to conventional tank models, which start at $400.00 to just $830.00 for a 40-gallon model. At the opposite end, the cheapest electric water heaters are point-of-use models, which can be as low as $162.00 to $410.00. Another consideration is its power source; solar-powered versions, which utilize solar panels to raise the water temperature, may cost from $1,000 to $4,000. 

Installation costs for electric water heaters can range between $600.00 and $3,000.00, which is again determined by the type, particularly if it is tankless versus one that comes with a tank. Additionally, the heater's power source can also impact pricing, as installing a solar water heater could cost between $1,800 and $5,500, as it entails more work to position and connect the solar panels to the heating system. Alongside this, while minor, is the cost of the permit, which is often mandatory for plumbing works, and its fee will vary based on the type of electric water heater and the state, and can cost between $50.00 and $400.00.

Selecting the right water heater is essential, as it affects not only the household's users, but also directly impacts the energy use and long-term expenses. Depending on the use case, budget, and even location, a simpler installation and easier operation of an electric water heater may be the best option. It is, however, important to remember that, like any appliance, whether gas or electric, it also needs to be appropriately maintained, including regularly draining the water heater to ensure it continues to work correctly, prolong its usable life, and avoid costly repairs.