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How To Save On Your Next Water Heater Installation

Water Heater Installation
Reading Time: 3 minutes

There are plenty of things to consider when installing a new water heater in your home. Factors ranging from its size, fuel source, and the amount of water your household uses, can greatly impact your finances and future maintenance needs. Art Plumbing, Air Conditioning & Electric is here to bring you up to speed on how to consider the best options for your next water heater installation. Any problem large or small, Art is here to fix it!

Technology Has Changed

The last time you needed a water heater was probably years ago. Tanks and other equipment are constantly being enhanced to not only increase efficiency but also to comply with the latest EPA standards.

Replacing It With The Same Thing

You may decide to replace the water heater with the same model you had before. This can be a good option especially if your heater effectively meets your needs. But it’s important to consider the added cost for permits and other regulatory issues faced by older models.

In many cases, replacing your heater with an outdated model can be nearly double the price of what you would expect.

Don’t be discouraged, in many cases, the best option is to replace your old water heater with the same model and fuel source.

Tankless or Traditional Heaters?

Depending on what your current saving needs are, a tankless water heater might be a serious option to consider.

Tankless water heaters, also referred to as on-demand water heaters, are becoming more popular among homeowners. These heaters work by quickly heating water through an exchanger and delivering it directly to where it’s needed. This is all done without needing to store the water in a tank.

More Savings Over Time

Homeowners typically experience more energy efficiency with a tankless water heater over a traditional model. Studies estimate that tankless heaters that use around 40 gallons of hot water per day experience between 24% and 34% more efficiency than traditional water heaters.

The drawback to owning a tankless water heater is its initial purchase price. Tankless water heaters could save you more money over time, but you’re likely to spend between $2,000 and $4,500 just to buy and install your new heater. If you’re willing to wait a couple of years to recoup your investment, then this may be a decent option for you. Also, tankless water heaters are fairly new and likely to already be within current EPA and other regulatory guidelines.

Savings With Traditional Water Heaters

If you opt for a traditional water heater, you’ll most likely be saving on the initial cost of installation. Traditional water heaters cost on average between $500 to $800 to install compared to the $2,000 to $4,500 bill you’ll have for installing a tankless heater.

Traditional water heaters lead to higher utility bills on average compared to tankless heaters. Regardless of what your hot water needs are, a traditional heater will always increase your utility bills because of how stored water is heated in the system. Also, if you have limited space, finding an appropriate area to install the heater could be a challenge.

Size Matters

Although the amount of water your tank can hold is important, also consider your tank’s “first-hour rating.” The first-hour rating is the number of gallons your heater can distribute every hour. This value can be found on the tank’s energy guide.

In addition, retrofitting is important to consider since many tanks require permits to install. Fully assess how much space you’ll need in order to make your heater fall within guidelines and building codes.

In order to find the best option, carefully weigh your water heating needs with your financial needs. Also, consult with one of our Home Comfort Specialists to prepare for any regulatory costs that may come with installing a traditional water heater.


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