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You have probably noticed that the cost of using your current water heater has gone up repeatedly. You know you need to update your water heater, but you’re probably wondering, what is the cost of installing a new water heater?

Providing better energy efficiency at lower costs are distinct features of today’s new models. The initial cost of purchasing a new water heater will eat into your budget a bit, but in the long run you will be able to reduce your energy costs.

When you are ready to replace your old water heater, you should consult with a local, licensed plumber on the type of water heater that will consume less energy and operate more efficiently. A couple of things to consider when figuring out the approximate cost of installing a new water heater are the price of the unit itself, and the cost of the labor needed to install it.

Here are some considerations to keep in mind when determining the cost of installing a new water heater:

  • The Size of the Water Heater – The size of the heater depends on how large your home is. A residential plumber will tell you that a 50-gallon water tank is adequate to heat a three-bedroom house. The 2012 average cost to install an electric water heater was somewhere between $607 and $795. This cost excludes plumbing, venting and updating, but includes the removal of the old tank.


  • Consult with a Local, Licensed Plumber to Help you Decide on Options – The tank itself is only one-third of the total cost; the rest are charges for installation and plumbing. A tankless water heater will range in price from $844.54 to $1,103.40; however, a solar thermal water heater will be more than $4000. Both types of water heaters will save you money down the line.


  • Labor Costs for a Licensed Plumber  – Water heater installation, exclusive of demolition and extra venting, will take a licensed plumber two hours, at the very least, for labor. You can request estimates from several plumbers to give you a better of what you will end up paying. The cost of the entire project can depend on the several things:
  • Local labor
  • Kinds of materials used
  • Job complexity
  • Level of preparation
  • Finish quality
  • Upgrading from 30 gallons to 50 gallons
  • Disposal cost of the old water heater


You can contact any licensed New Orleans plumber for assistance in selecting the right water heater for you home and determining how much it will cost to install a new water heater.