Water Heater Installation Cost

Compare installation costs and 10-year total ownership for tank gas, tank electric, tankless, and heat pump water heaters.

Results

Visualization

How It Works

Water heater total cost of ownership includes the unit, installation, and 10+ years of energy. Heat pump water heaters have the highest upfront cost but lowest operating cost. Gas tankless units last 20 years but need annual flushing.

The Formula

10-Year Total = Unit + Install + Permits + Conversion + (Annual Energy x 10)

Variables

  • UEF — Uniform Energy Factor — higher = more efficient
  • Conversion — Extra cost when switching fuel types (gas to electric or vice versa)

Worked Example

Gas tank to heat pump: $2,200 unit + $800 install + $150 permits + $600 conversion = $3,750 upfront. $200/yr energy. 10-year total: $5,750 vs $5,550 for gas tank.

Practical Tips

  • Heat pump water heaters qualify for $2,000 federal tax credit (2024-2032)
  • Gas-to-electric conversion requires a new 30A or 40A circuit
  • Tankless units need annual vinegar flush to prevent scale buildup
  • Electric tank is cheapest upfront but most expensive to operate

Last updated: March 11, 2026 · Reviewed by the PlumbCalcs Editorial Team