Water heaters are essential appliances and require a sizeable investment. They usually have a good lifespan of roughly eight to twelve years. However, if your water heater is showing signs of leakage, rusty water, making unusual sounds, or your energy bills are steadily increasing, it might be the right time to get it replaced. The costs of replacing a water heater can depend on a number of aspects. Some of these are listed below.

Type
For home use, there are two types of water heaters – tank and tankless. Tank models have an insulated tank to store hot water, while tankless models can heat water on demand.

Pros and cons of tank water heaters
This type of water heater is less expensive than the tankless models. Tank water heaters require lesser time for installation, and they can hold a larger amount of water. However, there are a few disadvantages. The cost of heating and maintaining the temperature in a tank water heater is higher. Moreover, installing one takes up more space.

Pros and cons of tankless water heaters
Tankless water heaters can heat water whenever you need it. This allows you to take a hot shower for as long as you feel like. Additionally, they are much more energy efficient. They take up less space and can even be installed outside. Tankless water heaters generally last longer than tank models. On the other hand, tankless water heaters are known to be expensive, and their installation can be a time-consuming process.

Fuel
The fuel source you already have at home should be considered before replacing your water heater. Both tank or tankless models can be fueled by gas or electricity. If you have an existing gas or electric source, you can buy either a gas-powered or an electric-powered water heater. The approximate price range of a gas water heater can be around $700 to $2700 while for electric water heaters, it may range between $600 to $3500. You can also consider using solar water heaters. They are much more energy efficient, and their average cost may range between $1700 to $5500. If you plan to switch your fuel source it may require additional installation costs.

Capacity
As a general rule, a larger tank size will cost more. The number of people at home is usually a good estimate for knowing which size to buy. For instance, a home with 2-3 persons generally will require a water heater that can hold 40-5o gallons.

Brand
The cost to replace water heaters will also depend on the brand you choose. Here are some of the popular brands of tank water heaters along with their approximate prices. Water heaters by Rheem can cost around $330-1450. Kenmore’s water heaters come with a slightly higher price tag of $350-2000. The cost of A.O. Smith’s water heaters can range between $300 and $2100, while Bradford White’s water heaters can cost around $500 to $2600. Most of these brands usually come with a warranty period of six, nine, or twelve years.

Installation costs
The installation cost of a water heater is also significant when it comes to replacing one. The charge varies depending on where you live and how long it takes to complete the job. Changing your tank water heater for a tankless one can be expensive, as it involves changes in your overall installation. The installation of a tank-style water heater takes less time than the tankless model. Considering all the above factors, the cost of replacing a tank-style water heater may range between $600 to $2500. For a tankless water heater, the price may vary between $1200 and $3500.