How Much does it Cost to Replace a Water Heater?

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On average, the cost to replace a water heater is $1,000. Canadians use an average of 75 liters of hot water each in their homes. It goes on to show you the importance of a water heater in a home.

If your water heater is bad and you wish to know the replacement cost, especially if you’re in Vaughan, then you’re at the right place. This article contains the breakdown of water heater replacement costs, and it’ll help you know what to expect during the project.

What is the Cost to Replace a Water Heater?

A water heater is one of the most important appliances in every home. It makes people enjoy heating water for different purposes like bathing, cleaning, showering, and cooking. Water heaters come in different sizes and shapes. However, the features, size and type of a water heater all influence the cost to replace a water heater.

The national cost for replacing a water heater is between $600 and $2,000 if you’re trying to replace the same type of heater. But if you’re replacing the water heater with a different type, then it’ll cost you between $600 and $3,500.

However, most homeowners end up paying $1,000 for a 50-gallon water heater tank. A 50-gallon tank comfortably serves a household of 4 to 5 persons. You also need to know that there may be additional costs, including gas lines, plumbing, obtaining the necessary permits for construction, carpentry costs for a new space or wall, and finally, new wiring.

The cheapest water heater replacement project is a single-point tankless gas water heater which costs $500. However, a solar-powered tankless water heating system for a 5-people household may also cost you about $10,000, making it the highest cost of the project.

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Cost to Replace a Gas Water Heater

Depending on the size you’re replacing, a gas water heater costs from $550 to $2,000. But, of course, the cost also includes removing the previous water heater and installing a new one. So the major expense you’ll encounter depends on the size of the heater and its location, and not exactly the replacement.

But if the project requires another gas line, or if you’re moving the heater, it’ll cost you more. However, installing a gas water heater is pretty easy and isn’t a time-consuming process.

Cost to Replace a 40-Gallon Water Heater

It’ll cost you between $500 and $2,000 to replace a 40-gallon water heater, including the new water heater and the installation. However, most water heater installation services may take out the existing water heater at no cost, and that’s if you buy the new one from them.

But if you buy the new water heater from a different vendor, you may have to pay between $25 and $50 to pull out the old one. A 40-gallon water heater is small in size and suits a small home perfectly. It also means that the replacement process is quite cinched and rapid.

Cost of Moving Water Heater

If nothing is wrong with your water heater, but you just need to move it, it’ll cost you from $1,000 to $1,500. The cost includes moving the plumbing, gas line, and labor (disconnecting, moving, and reconnecting the heater).

However, the entire expense depends on the distance you’re moving the heater, as anything above 3 feet will increase the cost. For instance, if your heater is in the middle of a wall, you’ll spend more.

It’ll cost you more because you have to make sure the two walls are put back in order as soon as the movement is complete. So, you need to be careful when moving your heater because of its interior fragility. Also, when you get a new heater, the installation cost includes moving it to a new location. So you don’t need to make any additional payment for removing the previous one.

Factors Affecting Water Heater Installation Costs in Vaughan

There are several factors affecting water heater installation costs in Vaughan. Unfortunately, these factors make it impossible to have a matching price for installing a water heater. See the factors below.

Cost of Water Heater by Type

Cost Of Water Heater By Type

There are different water heaters, including a tankless tank, solar-powered, standard, and a hybrid heater. These water heaters have various functions and sizes. However, irrespective of the functionality and size of a water heater, it’ll serve its basic purpose of heating water.

Cost of a Tankless Water Heater

As the name implies, tankless water heaters don’t have big tanks to preserve the hot water. Alternatively, a tankless water heater heats the water as you use it. A tankless water heater is energy-efficient because it doesn’t have to heat up all the time.

However, an electric tankless water heater that will serve a whole house costs about $450 to $1,500. But it costs between $500 to $3,000 for a tankless gas heater on average. Many people prefer tankless water heaters because they’re smaller and don’t consume much space in the house. Tankless water heaters are also very easy to install.

Cost of a Tank Water heater

A tank water heater is the most common water in Vaughan. The cost of an electric tank water heater range from $350 to $1,000. Gas tank water heaters cost between $400 and 1,500. Tank water heaters have large tanks that preserve the water before heating it later.

The major advantage of a tank water heater is that it can provide a large quantity of water supply straight away. Then, you simply have to switch on the faucets and use the quantity of hot water you need. But a fly in the ointment is that you need to refill the tank once it’s empty.

Cost of a Hybrid Water Heater

Another name for a hybrid water heater is a hybrid heat pump heater, and it’s one of the most economical water heaters. A hybrid water heater is large and costs about $1200 to $2500.

A hybrid heat pump heater is energy-efficient. It doesn’t require much power to heat your water. Instead, the unit uses a heat pump to suck air and convert it to heat through a compressor and coils.

Cost of an Indirect Water Heater

An indirect water heater is one of the costliest waters to buy and inexpensive to run. The cost of a new indirect water heater range from $1,500 to $3,000 on average. Indirect water heaters are economical because they heat your water using the heat from the boiler or furnace. So, you don’t have to pay extra heating bills as a result.

An indirect water heater is large, so you need adequate space close to the furnace before you install it. However, you may decide to overlook the high cost of purchasing an indirect heater because it pays off in the long run.

Cost of Water Heater by Source of Power

Water heaters are powered by different fuels like other appliances such as stoves, furnaces, etc. You can choose between solar, electric or gas water heaters considering where you live and the utilities in your house. The power source also affects the cost to replace a water heater. See the different types of water heater power sources.

Cost of Gas-Powered Water Heater

Gas water heaters cost between $400 to $3000. Gas heaters function off natural gas, heating oil, propane and regular gas. You can select from the various types of gas depending on its availability in your area.

Running a gas water heater is not very eco-friendly, but it’s quite economical. Lastly, the cost of a gas water heater depends on its size.

Cost of an Electric Water Heater

Normally, water heaters are fueled by either electricity or gas. Electric water heaters usually cost lesser than gas heaters. If you’re replacing your electric water heater, you need to budget from $200 to $2,000 for a new one.

Electric water heaters are eco-friendly and easy to maintain but aren’t very efficient. Also, installing an electric water heater comes with many complications. However, your electric water heater replacement expenses depend on its type and size.

Cost of Solar Water Heater

Solar heaters are the most expensive heaters you can purchase and install in your home, with its cost ranging from $2,800 and $9,800. Solar water heaters take energy from the sun to heat your water.

The unit is eco-friendly and becomes economical with time. The system type determines the cost of a solar heater.

Cost of Water Heater by Gallon

Tan water heaters have different sizes ranging from a small 30-gallon model to an 80-gallon model. Small models are appropriate for small homes of about one or two people. Homes with more people can use bigger models to provide hot water for their daily needs sufficiently.

Cost of 30-Gallon Water Heater

A 30-gallon water heater is suitable for a house with just 2 to 3 individuals, but it’s perfect for people staying alone. A 30-gallon water heater cost from $300 to $900 on average.

Cost of 40-Gallon Water Heater

40-gallon water will likely cost you between $350 to $1,500. Tank heaters with 40-gallon is a perfect choice for a home of 3 to 4 people. It can make enough hot water for the small household.

Cost of 50-Gallon Water Heater

The cost of a 50-gallon water heater is between $400 and $2,300. Therefore, a 50-gallon tank water heater can comfortably serve a family of 4 to 5 people.

Cost of 75-Gallon Water Heater

Tank water heaters with a 75-gallon capacity are a better option for a home with over five people. The cost of a 75-gallon water heater ranges from $800 to $3,000.

The size of a 75-gallon water heater can control many faucets and showers running concurrently.

Cost of 80-Gallon Water Heater

An 80-gallon water heater is the best option for big homes of 6 people and above. The cost of an 80-gallon heater is between $1,000 and $3,200. Experts recommend 80-gallon heaters to make your shower function better because of their ability to serve multiple showers instantly.

If you need hot water in large quantity, it’s a better idea to select a single big unit than depend on two smaller ones. Two smaller tanks will only increase the cost of the project.

Installation of Water Heater by Vent Type

Installation Of Water Heater By Vent Type

There are two categories of water heaters, namely the power vent and direct vent, affecting the cost to replace a water heater. The simple difference between the two types of heater vents is their manner of dealing with the exhaust gas from the fuel. See the explanation of the vent types below.

Cost of Power Vent Water Heater Installation

The cost of installing a power vent water heater ranges between $1,050 and $5,000. It’s costly because it has more components that move and needs electricity to vent. So, even if your water heater is gas-powered, it still needs electricity to function properly.

If there’s an interruption in the power supply, a power vent heater can’t work. But, on the other hand, the power vent is quite effective in moving exhaust when there’s a power supply. So, it’s safe to site your water heater far from an outside wall and have zero worries about the exhaust extending outdoors.

Cost of Direct Vent Water Heater Installation

A direct vent water heater installation will cost about $350 to $4,000. Direct vent water heaters cost lesser than a power vent water heater, and they’re easier to install. A direct vent heater has many parts that need to be moved, so it doesn’t require many repairs or replacements as time passes.

Gas water heaters work properly with direct vents. So a direct vent will function better if you place it close to an exit. It means that the gas will not need a long travel time to get out of the chimney.

Cost of Labor for Installing Water Heater

Replacing your water heater requires the service of water heater installation experts. The labor cost for installing a water heater is different due to the energy source and type of vent. It also affects the cost to replace a water heater. Have a look at the different costs of labor for replacing a water heater below.

Cost of Labor for Installing a Gas Water Heater

It costs about $350 to $1,500 on average for gas water heater installation in Vaughan. It’ll cost you more if you need a new gas line for your heater and vice versa. The cost of installing a new water heater differs due to the location and type of heater.

Installing a gas heater isn’t difficult. But the process of gas heater installation is lengthier than fixing the same type of electric heater.

Cost of Labor for Installing Electric Water Heater

The cost of installing an electric water heater is between $270 to $1,000, and it depends on the type of heater and its location. However, the total costs are from $470 to $4,500. One advantage of electric water heaters is that they’re already connected to the electrical system in your home.

But it’s cheaper if you already have make-do wiring close to the installation area. The type of heater and its location also impact installation costs which generally affect the cost to replace a water heater.

Labor Cost for Installing Solar Water Heater

Sola water heater installation is the most expensive among the other types of heater installation. It costs between $2,000 and $4,000 for labor, and it costs about $4800 to $13,800 to complete the project.

Solar heater installation requires installing different solar tubes on the roof of your house. So, water has to pass through these tubes to heat up. The more tubes you have to run increases the installation cost. But it’s a good investment in the long run. However, it also affects the cost to replace a water heater generally.

Selecting a Water Heater for your Home

To fully enjoy the efficiency of a water heater, you need to ensure you get the right type that’s suitable for your home.  However, several homeowners in Vaughan don’t know the size of the water heater to choose.

There are lots of water heater options to select from, depending on their capacities. So it can be confusing when trying to get the right water heater for your home. To also think about choosing between a tankless and tank heater further complicates it. See some guidelines below to help you select the right water heater for your home.

Tank Size

One of the basic things you need to understand about selecting the right water heater for your home is getting the right size. You need to have the size of your household and the number of people in it. The tank size also affects how much it’ll cost you to replace a water heater.

For instance, a one-person household requires a tank size of 20-30- gallons. Therefore, 2-3 people can comfortably use a heater of 30-40 gallon tank size. In contrast, a 4-5 people household will need a 40-50-gallon size. Finally, a large household with over six people needs a 50+ gallon-size water heater.


For your water heater replacement project to be successful, you need to plan for it financially. Replacing a water heater may cost you as low as $500 and as high as $10,000. So, you need to know how much it’ll cost to buy a new heater and install it. By doing so, you can start saving or budgeting towards it.

Final Thoughts

A water heater is an essential home appliance, especially during the coldest seasons of the year. So you don’t need to hesitate to replace your water heater.

If you reside in Vaughan or around, check out our water heater installation professionals for a quality and affordable service. Our team of competent professionals will make your water heater function at its best. So reach out to us today!

To Install a Water Heater Call Or Email Us now:
Request A Quote

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