Replacing a hot water heater is an undertaking that many homeowners dread. While it may seem simple, there is more to the process than just turning it off and turning a new one on. So before you start removing your old water heater, take some time to familiarize yourself with the basics of replacing the heater itself as well as preparing for installation.

Hot Water Heater Replacement – What You’ll Need to Know? Several factors will need to be considered before you make your purchase. What type of heater do you have installed in your home now? Do you know what size and BTU (British Thermal Units) model it is? If not, this information may be available on the label or tag located somewhere on the heater. If you are currently shopping for a replacement, the information will be listed in the product specifications found in many online stores today.

Note: You should have your old water heater disconnected and removed before you go to purchase your new hot water heater replacement. Remove any old insulation that may be wrapped around it or behind it. You should also have any tools you will need on hand before starting the process.

Before removing your old water heater, begin planning for the installation of the replacement. Take measurements in your home to know how much space is available to install a new tank-style water heater. Select a location that provides easy access to the faucet and drain valves as well as your breaker box (if you plan on connecting it to your home’s electrical system).

Hot Water Heater Replacement Costs (Estimated)

If you install a tank-style water heater, expect to pay around $300-$500 for the replacement. Depending on the costs of your current model, you may be able to find a better deal.

If you install a tankless heater, it will cost around $1,200-$2,000 for this type of hot water heater replacement (prices vary). You can expect to pay more for an electrical unit as opposed to a gas or propane-powered unit.

If you have an electric water heater that has reached its life expectancy, it may be cheaper to install a tankless hot water heater replacement. The electricity required for a tankless system is only used when the hot water is being used, so this method can save you money on your energy bill.

If your home currently has a gas heater installed, it may be cheaper for you to replace an electric water heater instead of converting it to gas. The cost of converting the unit will not be recouped right away. If you plan on staying in your home for several years, this may be a more economical choice.

Hiring a professional can save you money on hot water heater replacement costs. You can also make sure that you are doing everything correctly and safely.