Cost of Replacing a Water Heater: What to Expect

Cost of Replacing a Water Heater: What to Expect

When your water heater starts to show signs of failure, whether it’s no longer heating water properly or it’s simply become outdated, replacing it is often the most practical solution. However, one of the biggest concerns homeowners have when faced with replacing a water heater is the cost. The cost of replacing a water heater can vary significantly depending on a variety of factors, including the type of unit, installation complexity, and additional components that may need to be replaced.

In this article, we’ll break down the different costs associated with replacing a water heater, what factors influence the price, and how to ensure you’re getting the best value for your investment.

Factors That Affect the Cost of Replacing a Water Heater

The cost of replacing a water heater can range from a few hundred dollars to a few thousand, depending on several factors. Let’s take a closer look at what influences the cost.

1. Type of Water Heater

The type of water heater you choose will be one of the biggest determining factors in the overall cost of replacement. There are several types of water heaters, each with its own advantages and price points:

• Traditional Tank Water Heaters: These are the most common and typically the most affordable option. They store hot water in a tank and keep it heated until needed. On average, you can expect to pay between $700 and $1,500 for the unit and installation.

• Tankless Water Heaters: These units heat water on demand, providing hot water as needed without storing it in a tank. While tankless water heaters tend to have a higher upfront cost, they are more energy-efficient and can save you money in the long run. The cost of replacing a traditional water heater with a tankless model can range from $1,500 to $4,500, depending on the size and complexity of the installation.

• Heat Pump Water Heaters: These energy-efficient units use electricity to move heat from the air or ground to heat water. They can be more expensive upfront but offer long-term savings on energy bills. Replacement costs typically range from $2,000 to $4,000, including installation.

• Solar Water Heaters: If you’re looking for an eco-friendly option, solar water heaters use solar panels to heat water. These systems can be costly, with installation prices ranging from $3,000 to $7,000 or more, depending on the size of the system and any required upgrades to your home’s electrical or plumbing systems.

2. Size and Capacity of the Unit

The size of your new water heater is another key factor influencing cost. Larger water heaters are more expensive than smaller ones, as they have higher heating capacities and may require additional installation work. For instance:

• A standard 50-litre tank water heater might cost around $700–$1,200 to replace.

• A larger, high-capacity 100-litre unit could cost anywhere from $1,000 to $2,000.

• Tankless water heaters are often rated by flow rate, with larger models capable of heating more water at once. A higher capacity tankless unit can cost upwards of $3,000–$4,500.

3. Installation Complexity

The complexity of installing a new water heater can significantly impact the overall cost. If your plumbing or electrical systems need to be modified to accommodate the new water heater, this can add to the installation cost. Some factors that could increase installation complexity include:

• Upgrading Electrical Systems: Tankless and heat pump water heaters often require more power than traditional tank units. If your home’s electrical system needs to be upgraded to support a more powerful water heater, this could add several hundred dollars to the cost.

• Changing Plumbing Configuration: If the existing plumbing setup needs to be altered to fit a new model, especially with tankless units, additional labour and materials may be required.

• Access to the Installation Area: If the water heater is in a difficult-to-reach location or requires extra work to access (such as being in a cramped attic or crawl space), installation costs can rise.

4. Removal and Disposal of the Old Unit

Most plumbers will charge an additional fee to remove and dispose of your old water heater. The cost for this service can range from $100 to $300, depending on the location and the size of the unit. If your old water heater is particularly large or difficult to remove, this fee may be higher.

5. Additional Components

In some cases, you may need to replace or upgrade additional components when replacing your water heater, which can add to the overall cost. Some of these components include:

• Expansion Tanks: In some systems, especially with tankless water heaters, an expansion tank may be needed to prevent pressure buildup in the plumbing system. This can cost anywhere from $100 to $300 to install.

• Water Softener: If you live in an area with hard water, you might need a water softener to prevent mineral buildup inside your new water heater. Installing a water softener can cost anywhere from $300 to $1,000, depending on the system.

• Valves and Piping: If any valves or pipes are damaged or need to be replaced during the installation process, this will increase the total cost. For example, replacing a pressure relief valve could cost $150–$300.

Average Cost of Replacing a Water Heater in Australia

To give you a better idea of what to expect, here’s a general price range for replacing a water heater in Australia:

• Standard Tank Water Heater: $700–$1,500 (for unit and installation)

• Tankless Water Heater: $1,500–$4,500 (for unit and installation)

• Heat Pump Water Heater: $2,000–$4,000 (for unit and installation)

• Solar Water Heater: $3,000–$7,000 (for unit and installation)

Keep in mind that these costs may vary based on your location, the plumbing and electrical requirements, and the specific brand or model of water heater you choose.

How to Save Money on Water Heater Replacement

While replacing a water heater can be a significant investment, there are several ways to reduce the overall cost:

• Shop Around for Quotes: Contact multiple licensed plumbers and request quotes to compare prices for both the unit and installation. This can help you find the best deal for your budget.

• Consider Energy-Efficient Models: Although energy-efficient models tend to have a higher upfront cost, they can save you money in the long run through reduced energy bills.

• Choose a Reliable Brand: When selecting a water heater, choose a well-known, reliable brand. While some brands may be more expensive upfront, they often offer better warranties and reliability, reducing the risk of needing costly repairs in the future.

• Look for Rebates or Incentives: In some cases, you may be eligible for rebates or incentives for choosing energy-efficient water heaters, particularly if you opt for a heat pump or solar model. Check with your local government or utility provider to see if any rebates are available.

The cost of replacing a water heater can vary based on several factors, including the type and size of the unit, installation complexity, and any additional components that need replacing. While traditional tank water heaters tend to be the most affordable option, more energy-efficient models like tankless or heat pump water heaters can save you money in the long run.

If you’re unsure about the best option for your home, it’s a good idea to consult with a professional plumber who can provide expert advice tailored to your needs and budget. Redland City Plumbing is always ready to assist you with expert water heater installation and replacement services. Contact us today for a quote and to learn more about your options!