• Type of Heater: Traditional tank water heaters are generally less expensive than tankless models. Tankless heaters, however, offer long-term savings on energy bills and the lifetime value of the equipment.
  • Size and Capacity: Larger tank water heaters and higher-capacity tankless units cost more. The size needed depends on household water usage.
  • Fuel Source: Electric water heaters are usually less expensive upfront than gas models, but gas heaters can be more economical in the long run due to lower energy costs.
  • Energy Efficiency: Higher efficiency models, including those with better insulation and advanced heating technologies, tend to be more expensive but offer savings on energy bills.
  • Installation Complexity: The cost can vary based on the job’s complexity. Replacing an existing water heater is typically less expensive than installing a new type or relocating the unit, which may require additional plumbing, electrical, or gas line work.
  • Brand and Quality: Premium brands and models with advanced features or longer warranties can cost more but often provide better reliability and performance.
  • Permits and Regulations: In some areas, permits and inspections are required for installation, adding to the overall cost. Local building codes may also affect the installation process and expenses.