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This Is How Much It Costs to Replace a Water Heater in Indiana


Whether you have a tankless water heater or a tank-style water heater, there will come a point where water heater repairs are no longer practical or cost-effective for keeping your water heater running. When water heater repair isn’t an option, water heater replacement is your solution.

When it’s time to replace a water heater, you have many types of water heaters to choose from. Both tank-style heaters and tankless heaters can be energy-efficient choices. Choose from electric water heaters or natural gas water heaters. You can upgrade your old conventional water heater to a new tankless unit, or make the switch from an electric water heater to a natural gas water heater if you already have gas lines in your home or plan to connect to the utility gas line and install gas piping throughout your residence.

The cost to replace water heater units varies depending on the type of hot water heater you select and other work necessary to install a water heater correctly in your home. Water heater prices are affected by the type of water heater, as generally, a tankless water heater costs more than tank water heaters. Energy efficiency of new electric water heaters or gas water heaters also impacts water heater installation cost, as a high-efficiency water heater has a higher average cost to buy than a standard efficiency unit.

While water heater replacement cost is different for every Central Indiana homeowner, Williams Comfort Air is happy to help you determine your budget for water heater installation. Our licensed plumbers answer any questions you may have about different hot water heater types so you can select between tankless water heaters and conventional water heaters or standard tank heaters. We’ll also provide you with an estimate for the installation costs to purchase new water heaters and have water heaters installed.

To learn more about water heater replacement, read on to find out when a hot water heater should be replaced. Also, learn about the different types of equipment available for water heater installation and how your choices will affect the final water heater replacement cost you’ll pay.

When to Replace a Hot Water Heater

It isn’t always easy to determine the right time for water heater replacement in your home. Here are some signs to look for that will tell you that your existing hot water heater is probably due for replacement.

  • Tank water heaters have an average service life of between 8 to 12 years; tankless water heaters average around 20 years of useful life. If your current hot water heater is nearing, at, or beyond this age, be proactive and start investigating options for water heater replacement now.

  • Water leaks from tank-style heaters are a likely sign that water heater replacement is necessary. If the leak is coming from the water heater tank itself rather than leaking pressure release valves due to excessive water pressure that can be fixed through water heater repair, new water heater installation is necessary to stop those leaks.

  • When water heaters aren’t able to heat water to the desired temperature or produce enough hot water for the household, water heater replacement is typically recommended. If the issue isn’t caused by a bad heating element or other malfunction that can be corrected through water heater repairs, the water heater is likely wearing out or isn’t large enough to serve the hot water needs of your household. In either case, a new water heater installation will correct these issues and heat water to your desired level.

No matter your reason for pursuing water heater replacement, it’s best to have a new water heater installed before the old system experiences a catastrophic failure. When water heaters fail, there is a significant risk for major water damage in the home. Replace tank water heaters and tankless water heaters before this point to avoid the potential for serious damage and additional costs.

Types of Water Heaters for Indiana Homes

When it’s time for water heater replacement in your Central Indiana home, decisions must first be made regarding the type of water heater you wish to install. There are many options to choose from but before you can select a new hot water heater, you must first determine the style of water heater you’d like, a tankless water heater or a tank water heater, and the fuel type it will use, an electric water heater or gas water heater.

Tankless Heaters vs. Tank Heaters

Tank-style installation is the most common in Central Indiana, as the tank water heater has been around for decades. Tank water heaters heat water ahead of use, storing hot water in a tank so it’s ready when needed. Some space is needed to install a water heater of this style, as the tank will take up some room on the floor. In terms of average cost, generally, a tank water heater costs less to purchase than tankless systems.

Tankless water heaters have become increasingly popular over the last few decades, as these water heaters are promoted as a more energy-efficient option versus tank models. Tankless hot water heaters do not heat water before use – instead, they heat water on demand, as soon as a hot water tap turns on to call for it. These hot water heaters are also called on-demand water heaters for this reason. Without a tank, water heater installation for tankless heaters doesn’t require much space at all as units can be installed upon a wall. Water heater installation cost for tankless units is typically higher than installation costs for tank units due to the difference in equipment price.

Electric Water Heaters vs. Gas Water Heaters

When selecting the right fuel type for a new water heater, it’s important to consider the power sources already available in your home and ongoing water heater costs over the lifespan of the unit.

In homes that do not have a gas line installed, homeowners typically choose electric heaters for water heater replacement. This is because the cost to run gas lines can add several thousands of dollars in equipment and labor costs, exceeding one’s budget for water heater replacement. If you have gas piping installed at home, you can choose between an electric water heater or a natural gas water heater.

Your choice between a hot water heater powered by natural gas or electricity will impact water heater replacement cost as well as your ongoing expenses. Gas water heaters that use a gas pilot light tend to be slightly more expensive than electric heaters in terms of the purchase price. Labor costs to install either type are generally about the same unless you are having new gas lines installed to accommodate the unit. Because the cost of natural gas is usually cheaper than electricity, choosing a water heater that uses natural gas results in lower water heater costs over time so you save money in the long run.

Other Equipment Factors

Water heater replacement cost is impacted by the equipment factors above and more. Capacity and energy efficiency also play a role in the average cost of a new unit.

  • Capacity for a tank water heater is measured by the number of gallons of hot water the tank can store. Capacity for tankless systems is measured by flow rate, which is the number of gallons of hot water the unit can produce in one minute.

  • How energy efficient a water heater is also impacts the total installation cost. High-efficiency water heaters are generally more expensive than lower-efficiency units. While the average cost to purchase high-efficiency water heaters is higher initially, these units help you save money over time with lower utility costs versus standard-efficiency water heaters.

How Much Does It Cost to Install a Water Heater?

Water heater replacement cost will be different in every household. The water heater installation cost you pay when you have a plumber replace your water heater includes the cost of the new water heater unit as well as labor costs to install the water heater correctly. If additional work is needed in your home, such as installing gas pipes, these expenses are included in the installation costs you pay.

The best way to determine water heater replacement cost in your home is to work with a licensed Indiana plumber. Your plumber can help you choose the right hot water heater for your home and provide you with an estimate covering all installation costs.

Water Heater Replacement in Central Indiana

If your Central Indiana home is due for a new water heater, you’re probably wondering how much does it cost to complete such a project. Williams Comfort Air replaces water heaters of all types in homes throughout the Indianapolis area and will be happy to provide you with a quote for water heater installation. Whether you choose tankless heaters or tank models, electric water heaters, or natural gas, we can help! Call us today to request an estimate for water heater replacement.

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