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How much does a tank water heater cost to install?![]() Jupiterimages/Photos.com/Thinkstock Tank water heaters cycle on and off to maintain the water within the tank at the temperature setting. Each tank water heater contains an outer jacket of insulation, minimizing (but not completely eliminating) heat loss. Tank water heaters usually won't have a 100 percent reserve of hot water available, because the unit doesn't keep the entire water tank hot for usage. Most tank water heaters can last 10-15 years, yet they are considered to be less energy efficient than tankless water heaters. See "How do tankless and tank water heaters compare?" Typical Costs for Buying a Tank Water HeaterLow-End Estimate: About $200High-End Estimate: $3,000 or more Gas and propane tank water heater units are more expensive than those that use electricity, and price also depends on tank size. Be sure to look for a tank water heater unit with a higher Energy Factor. Your money savings over the life of the unit will make up for the higher price when you buy it. Learn more about energy savings at EnergySavers.gov. Typical Costs for Installing a Tank Water HeaterLow-End Estimate: $205High-End Estimate: $275 Installation costs always depend on local labor and material costs. If you're having an older tank water heater hauled away, be sure to ask if the estimate includes this removal/disposal cost. What to Expect from InstallersInstallers will:
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