Water Heater Replacement: Signs, Options and Costs

Water Heater Replacement: Signs, Options and Costs

Most people do not think about their water heater until it stops working. Knowing the warning signs and your options ahead of time can help you avoid a cold shower and make a smart choice.

Signs it is time to replace

  • The tank is more than 8 to 12 years old. Check the serial number or label for the manufacture date.
  • Rusty or discolored hot water
  • Rumbling or popping sounds from sediment buildup
  • Water pooling around the base of the tank
  • Hot water that runs out faster than it used to

A leak from the tank itself usually means replacement, not repair.

Tank water heaters

Tank models store and heat a fixed amount of water, commonly 40 to 50 gallons for a family home.

  • Lower upfront cost
  • Simple installation when replacing an existing tank
  • Can run out of hot water during heavy use
  • Use energy to keep stored water hot

Tankless water heaters

Tankless models heat water only when you need it.

  • Endless hot water, within the unit’s flow rate
  • Smaller footprint and often a longer lifespan
  • Higher upfront cost, and installation may require new gas lines or electrical upgrades
  • Can be more energy efficient

Heat pump water heaters

Heat pump models move heat from the surrounding air into the water. They can use much less electricity than a standard electric tank but need space and work best in warmer areas of the home.

How to save on a replacement

  • Get at least three quotes that include removal of the old unit, permits and code-required parts.
  • Look for seasonal promotions and installer discounts.
  • Check your utility company for rebates on high-efficiency models.
  • Ask about the warranty on both the tank and the labor.

Maintenance tips

  • Drain a few gallons from the tank once a year to remove sediment.
  • Test the temperature and pressure relief valve.
  • Set the temperature to about 120 degrees Fahrenheit for safety and savings.

Keep reading: HVAC maintenance checklist and how to hire a contractor. Find licensed pros in our home service provider directory.