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How Much Does a Water Heater Cost?

The cost of a new water heater is a major factor in a homeowner’s decision to upgrade their hot water system in Indianapolis. While there are other factors to consider when deciding between a tank and tankless water heater, such as comfort and installation space, for many people, the cost of the water heater is the most important factor.

When it comes to determining the cost of a new water heater for your Indianapolis home, there are a lot of variables to consider! Water heater style, efficiency, capacity, fuel type, and installation concerns all factor into the final cost of a water heater. To help you avoid any sticker shock when it comes to water heater prices, we’ve outlined how these factors affect water heater prices and given you a better idea of what to expect.

Midwest Plumbing Indianapolis can assist you with your water heater replacement project. With the help of our water heater experts, you can get a cost estimate for a water heater and find the right model for your needs. To ensure that your new water heater performs as expected, our licensed plumbers provide a safe and effective installation. Request a water heater cost quote from Midwest Plumbing today to get started on your next plumbing project!

Cost of a Water Heater: Tank vs. Tankless

Tank water heaters and tankless water heaters are the two most common types of water heaters in Indianapolis homes. There are two distinct types of hot water systems that can be used in your home:

Tank water heaters heat water and store it in a tank, where it is ready to use when your hot water faucets and appliances demand it.

Tankless water heaters heat water only when it’s needed, or on demand. This means that the water is not preheated; instead, when a hot water tap or appliance activates, the tankless water heater kicks in to warm the water that is sent out your spouts.

Because these are two different systems, the prices of tank and tankless water heaters will differ. Tank water heaters and their installation are generally less expensive than tankless water heaters and their installation.

The cost of a water heater is divided into two parts: equipment and installation. The cost of equipment is determined by the fuel source, features, energy efficiency, and capacity. The water heater cost for equipment is simple once you know what type and model of equipment you want. Because each home’s installation requirements differ, the total cost of a water heater varies from one to the next, even if you choose the same model as your neighbor.

The average cost of a tank water heater, including equipment and installation, is around $900. The average cost of a tankless water heater, including equipment and installation, is around $3,000. Remember that these figures are just averages to give you an idea of how much a water heater will cost; your actual water heater cost will vary depending on the equipment you choose and the installation requirements of your home.

Cost of a Water Heater: Fuel Source

The type of fuel used to heat water has an impact on the final cost of a water heater, both in terms of equipment and installation. Gas water heater prices are typically higher than electric water heater prices, both for tank and tankless models. The water heater cost for equipment compatible with liquid propane or oil is typically higher than natural gas or electric water heaters if your home uses these fuel sources for water heating.

Even though the initial cost of a gas or oil or liquid propane water heater is higher than that of an electric model, gas and even oil or liquid propane water heaters are typically less expensive to operate. This is due to the lower cost of these fuel sources compared to electricity, as well as the fact that these units are usually more efficient than electric water heaters.

Cost of a Water Heater: Features

Different water heater models, like other household appliances, offer a variety of features to homeowners. Many features are intended to improve the user experience, improve the functionality of the water heater, and protect the equipment.

There are basic models of water heaters and models with all the bells and whistles, just as there are basic models of other appliances and even things like vehicles. The cost of a water heater with upgraded features is higher than the cost of a basic model. Some of the features found on different models that raise the cost of a water heater include:

A digital display makes it easier for a homeowner to adjust water heater settings and monitor system function and usage.

Models that capture gas exhaust and use its energy to heat cold water are known as condensing gas models. Exhaust gases from a standard gas water heater are vented through the system’s flue, wasting the energy contained in the exhaust.

Anti-scale components reduce sediment and mineral scale buildup in a hot water tank, increasing efficiency and service life.

Brass valves are more durable and long-lasting than plastic valves, and they make draining the tank for routine maintenance easier.

Glass tank lining, which protects the tank from corrosive effects of water and helps to prevent leaks by reducing cracks.

Water heater warranties typically range from three to twelve years.

Cost of a Water Heater: Energy Efficiency

Many homeowners prefer tankless water heaters because they save energy – approximately 24 to 34 percent more than a tankless water heater if your home uses 41 gallons or less of hot water per day. Because a water heater is the second largest energy consumer in the average home, the more energy efficient your water heater is, the lower your water heating bills will be.

The higher the cost of a water heater, the more efficient it is. Many of the features mentioned above, as well as others, are used in high efficiency units to provide more water heating per unit of energy consumed. The efficiency of a water heater is measured using an EF rating, which stands for energy factor; the higher the EF, the more efficient the unit is, and the higher the water heater cost.

Cost of a Water Heater: Installation Requirements

Tank water heaters take up more room to install, whereas tankless water heaters are slim and can even be mounted on the installation. Of course, space is an issue when it comes to water heater installation, but there are other factors to consider as well.

Fuel lines: If you want to upgrade to a gas water heater but don’t have gas lines in your home or that aren’t long enough to reach the proper installation area, the cost of the water heater will be higher because your plumber will have to run new lines or extend existing lines to accommodate installation.

Wiring: Depending on the unit you choose, you may need to have your circuit breaker panel wiring upgraded to accommodate the new water heater. Alternatively, a dedicated circuit must be installed to ensure that the unit is powered safely and adequately.

It’s referred to as a retrofit when you go from a tank to a tankless water heater. The cost of a retrofit water heater is typically higher because plumbing lines must be changed to accommodate the new unit, whereas this issue is less likely to occur if you simply replace one style with a new unit of the same type.

Cost of a Water Heater: Capacity

The capacity of a tank water heater is measured in gallons. Residential water heaters range in size from 20 to 80 gallons, though most Indianapolis homes have tank water heaters that are 30 to 50 gallons. The higher the capacity of your new water heater, the higher the associated costs, both in terms of equipment purchase and operation. Because they heat more water, higher capacity units use more energy than lower capacity units.

Because they don’t work that way, tankless water heaters aren’t measured by their capacity to hold hot water. Instead, we consider the rate of flow and the required temperature rise. We consider the number of applications that can run at the same time and their total collective flow rate in gallons per minute when sizing a tankless water heater. The temperature rise required for comfortable hot water is calculated by subtracting the desired output temperature from the temperature of the incoming water. The higher the water heater cost is associated with your new equipment, the higher the flow rate and temperature rise your home requires.

Get a Water Heater Cost Estimate from Midwest Plumbing.

All of the factors we discussed earlier play a role in the total cost of your water heater installation project. Each home and household has distinct requirements that must be taken into account when determining the appropriate equipment and total water heater cost – simply looking up equipment prices online does not reflect the true water heater cost when professional installation is required.

Fortunately, Indianapolis residents have Midwest Plumbing to turn to for accurate water heater cost estimates and quality installation of water heaters. Contact us today to talk about your upcoming plumbing projects and to get a water heater cost estimate.