What is the Cost of Installing a Water Heater from Home Depot?

Water Heater Replacement Cost.jpg

Last Updated on July 25, 2023 By Emma W. Thomas

The cost of installing a water heater from Home Depot depends mainly on the type available and location. But, on average, one can spend between $1500 and $5000 depending on the style. This cost does not include the purchase price since the different units have varying costs.

What is the Cost of Installing a Water Heater from Home Depot?

A new water heater can significantly improve the numbers on your utility bill and the comfort of your home. Home Depot, being one of the nation’s prominent home improvement stores, offers a wide range of water heaters and professional installation services. Here is an approximation of how much the entire process might cast:

1. Type of Water Heater

  • Traditional Tank Water Heater: On average, these can cost anywhere from $500 to $800. The popular Rheem Performance 40 Gal. Natural Gas Short Water Heater, for instance, costs approximately $529.
  • Tankless Water Heater: These usually come with a higher initial cost, somewhere around $1000 to $3000. An example is the Rheem Performance Platinum 9.5 GPM Natural Gas High-Efficiency Indoor Tankless Water Heater, priced about $1,399.

2. Installation Cost

The cost of installing a water heater from Home Depot can fluctuate based on your location and the complexity of the job. Home Depot’s basic installation fees can range:

  • For traditional tank water heaters: Around $450 – $700
  • For tankless water heaters: Around $800 – $1450

3. Additional Charges

Depending on circumstances, there could be extra costs:

  • Delivery Fee: Home Depot typically charges a $79 delivery fee for new water heaters. However, this fee might be waived during promotional periods.
  • Removal and Disposal of Old Unit: This could cost around $15.
  • Required Permits: The price varies based on local laws. It could be around $50 – $200.
  • Enhancements and Upgrades: If you opt for additional features or services like extended protection plans, the total cost will increase.
Type of Water HeaterAverage Cost
Traditional Tank$900 – $1500
Tankless$1800 – $5000

What are the different types of water heaters and their costs?

There are different styles of water heaters, each having specific purchase and installation costs. The table below shows the estimated costs of this equipment;

Type of heater

Average price per unit

Average installation cost

Hybrid water heater

$700 to $3000

$150 to $600


$1000 to $6000

$2000 to $4000

Tank-less water heater

$250 to $2500

$400 to $1500

Condensing water heater

$300 to $1500

$150 to $450
cost of installing water heater

Hybrid water heaters (Heat pump water heater)

A Hybrid (also known as a heat pump) water heater does not generate heat, and it helps keep the electricity cost low. This appliance uses the heat in the ground and air to warm up the water. Although the heaters take up a lot of space, they can use up to 60 percent less electric energy than traditional water heaters. 

This appliance is suitable for people living in warmer areas like Arizona but may not be ideal for colder places such as Alaska or Minnesota. 

Tankless water heaters

A Tankless (on-demand) water heater is ideal for places with many people living together as it can supply hot water continuously. This appliance uses super-heated coils, which fill and heat water quickly. The water heaters come in varying sizes to choose from and are perfect for those using natural gas in their home. 

Although the heaters have a higher price tag and may be difficult to clean, they are environment-friendly. s

Conventional storage-tank water heater

This water heater is the most common and famous, and it features a central storage tank for holding water. Different capacities of this tank are available, and you can choose depending on your family size. This equipment is insulated and uses two valves, i.e., pressure control and temperature control valves. 

These valves become active upon reaching specific numbers. For example, when the water temperature in the tank reaches 120 degrees, it releases heat to cool down. The tank is among the most affordable and easy to install. For proper maintenance, the tank needs cleaning two times a year. 

Condensing water heater

Condensing water heater utilizes unused gas vapors to heat the water. It is ideal for those families that rely on natural gas for fuel as it does not use a lot of energy. This appliance comes in different sizes, and it also has a water tank like other options. 

Solar-powered water heater

This type of water heater is one of the most energy-efficient, especially for people who have solar panels in their homes. It is also an excellent option in places with much sun, but it may need a backup energy source for cooler days. 

What does water heater installation include?

The installation of a water heater includes;

  • Delivering the new unit and hauling away the old one
  • Disassembling and removing the existing unit
  • Assembling and securing the new water heater in the exact area as the old one
  • Linking the water heater to an available code-approved electrical, vent, water, and gas supply line. The cost does not include upgrading to meet new code regulations.
  • Testing the water heater for cycle and leak
  • Inspecting for proper operation and going through care instructions
  • Cleaning up any installation-related dust and debris

Does Home Depot Install Water Heaters?

Yes, Home Depot does provide installation services for water heaters. The company offers a comprehensive service which includes the delivery, installation, and haul away of old units. Here are several details about Home Depot’s water heater installation service:

  1. Types of Water Heaters They Install
    • Tankless Water Heaters: These are energy-efficient and heat water only when it’s needed. Home Depot professionals can install these in compact spaces in a home.
    • Tank Water Heaters: These traditional units store a large amount of water, which is kept hot until needed. Home Depot provides installation services for both gas and electric models.
    • Heat Pump Water Heaters: They transfer heat from the air around the unit to the water stored inside it. Home Depot can handle their unique installation requirements.
  2. Cost of the Service
    • The cost of a water heater installation from Home Depot varies. It is influenced by factors such as your location, the type and size of the water heater, and the difficulty of the installation. It’s best to contact Home Depot’s installation service for an accurate quote.
  3. Professional Installation
    • Home Depot uses local, licensed, and insured professionals for its water heater installations. They adhere to all local codes, use high-quality parts, and dispose of your old water heater responsibly.
    • Their installation service also includes a final inspection of the installed unit to check for leaks or issues.
  4. Warranty & Customer Service
    • Home Depot provides a minimum one-year warranty on labor. The water heaters they sell also come with a manufacturer’s warranty.
    • Their customer service is available to address any issues or concerns. You can also schedule a free in-home consultation.
Installation Service FeaturesHome Depot
Different Types of Water HeatersYes
Cost EstimateVaries
Professional InstallationYes
Customer ServiceYes

What is the cost of replacing a water heater?

The cost of replacing a water heater with a new one ranges between $811 and $1566. But, the national average is $1176, although this price depends on the size and type of the water heater. The overall water heater replacement cost will also be affected by labor and installation costs. But, the labor cost for installing an average replacement water heater ranges from $150 to $800 but most plumbers give a flat-rate quotation that includes labor and materials. 

If you hire a professional plumber, it may cost between $45 and $200 per hour, while an electrician charges between $50 and $100 per hour. 

What are the factors that affect the water heater replacement costs?

Water Heater Replacement Cost Home Depot

Several factors influence the cost of water heater replacement, including;

The style of the tank

There are two main styles of water heaters, namely tankless and tank styles. 


A water heater with a container (tank) holds about 30 to 80 gallons of hot water. Most water heaters installed in the US (about 90%)are tank-style heaters. Tank-style water heaters’ cost ranges from $700 to $2000 (including materials and labor).


This type of water heater supplies a continuous stream of hot water using a series of super-heated coils. These tanks are hard to install and, therefore, cost more in labor and purchasing than their tank-style counterpart. The average cost for this type of tank ranges from $1000 to $3000, including materials and labor. 

Differences between tank and tankless water heaters



Replacement cost

From $700 to $2000

$1000 to $3000




Water supply

Stores hot water in large volume

Endless hot water supply


Last between 8 and 15 years

It can last more than 20 years.

The home’s geographical location

A home’s geographical location impacts significantly the overall fuel and water heater replacement cost. Climate change can affect the amount of energy that the appliance uses. For example, in cooler regions, a lot of energy is used to heat water to a suitable temperature. On the other hand, in a warmer area, less energy will be used. 

Size of water heater

The size of the water heater you are replacing also affects the cost of this process. Tank water heaters come in different capacities ranging from 20 gallons to 100 gallons, but the most common are 40-gallon capacities. A 30-gallon tank water heater costs between $270 and $900, while an 80-gallon one will cost from $1000 to $3000. 

Venting system

Water heaters are vented in two ways, i.e., a power vent and a direct vent. In the direct vent heaters, exhaust gases pass through the chimney or an exhaust pipe above the unit to the outside. This type of venting system may increase the replacement cost by about $500 to $1000 if one switches from electric to gas. 

On the other hand, a power vent uses a fan or blower to push out the gases from the home. This kind of vent heater will increase the replacement cost from $300 to $600 and an additional $300 to $500 for electrical and wiring tasks. 

Type of water heater

All water heater types use either electricity or natural gas. Electric heaters are cheaper than those that use gas by about $100 to $200. While natural gas water heaters are highly-priced and not energy efficient, they are preferred due to the high cost of electricity. However, for those living in small apartments or confined areas, electric water heaters are ideal. 

Materials used

 Materials such as fittings, discharge pipes, pressure release valves, venting pipes, pipe thread compound, water, and gas piping will influence the replacement cost. Depending on which materials are used, the price may go up or remain low. 

Location of the system

The site of the appliance within your home will also affect the cost of replacing it. For instance, if the water heater is in a hard-to-reach location such as a basement or attic. If the installers have to move the appliance a flight of stairs up or down, it may attract additional charges. 

Removing the old water heater

It may cost between $100 to $500 to remove an already existing water tank. This cost depends on the size and location of the unit and the rate per hour of the contractor. A heater that is hard to access will cost more to remove than one which is easily accessible. 


Depending on the type of water heater and the amount of work involved, replacement permits range from $100 to $500. You may ask your contractor to get the license for you or obtain it yourself. 

Electrical work

You may be required to part with $500 to $1500 for electrical wiring fees. If you change from a gas to an electric water heater, it will add an extra $200 to $500. Electric appliances cannot use existing lines and require their circuit. 

Gas and water line installations

Water heater replacement costs can also go up if one is changing from one fuel source to another. Installing a water line may cost between $350 and $1000, while a gas line installation cost can range from $250 to $800. These costs may even be higher if you prefer the gas line to reach the water heater location. 

Replacing the plumbing system

During a water heater replacement, it is necessary to consider the current state of the plumbing system. If there are pipes that need replacing or moving to a different location, it will increase the cost. 


The cost of installing a water heater from Home Depot depends on various factors such as the type, size, location, and venting system. These charges may be low or high, depending on the location of the appliance. Whether the plumbers and electricians charge a flat rate hourly basis will also impact the cost.  

One must look at their budget and the number of people in the household to decide what is best for them.