APPENDIX 8-A. INSTALLATION COST DETERMINATION 

TABLE OF CONTENTS 

8-A.1 INTRODUCTION .................................................................................................8-A-1


8-A.2 INSTALLATION COSTS.....................................................................................8-A-1


8-A.2.1 Water heaters .........................................................................................................8-A-1


8-A.2.1.1 Gas Water Heaters .........................................................................8-A-1


8-A.2.1.2 Basic Installation Costs..................................................................8-A-1


8-A.2.1.3 Venting...........................................................................................8-A-2


8-A.2.1.4 Drain Pan .......................................................................................8-A-3


8-A.2.1.5 Electricity.......................................................................................8-A-3


8-A.2.2 Electric Water Heaters ...........................................................................................8-A-4


8-A.2.2.1 Basic Installation Costs..................................................................8-A-5


8-A.2.2.2 Drain Pan .......................................................................................8-A-6


8-A.2.2.3 Space Constraints (adding Tempering Valve) ...............................8-A-6


8-A.2.2.4 Space Constraints (3 in. insulation) ...............................................8-A-8


8-A.2.2.5 Heat Pump Water Heaters..............................................................8-A-8


8-A.2.3 Oil Water Heaters ..................................................................................................8-A-9


8-A.2.4 Instantaneous Gas Water Heaters ........................................................................8-A-10


8-A.3 DHE .....................................................................................................................8-A-11


8-A.4 POOL HEATERS ................................................................................................8-A-11


LIST OF TABLES 

Table 8-A.2.1 Installation Costs for Installing Gas Water Heater (New Construction) ...8-A-1 

Table 8-A.2.2 Water Piping Installation Cost (New Construction) ..................................8-A-2 

Table 8-A.2.3 Gas Piping Installation Cost (New Construction)......................................8-A-2 

Table 8-A.2.4 Installation Costs for Installing Gas Water Heater (Replacement)............8-A-2 

Table 8-A.2.5 Installation Costs for Installing Gas Water Heater Adder (75 Gal)...........8-A-2 

Table 8-A.2.6 Baseline (Natural Draft) Venting Installation Cost (New Construction)...8-A-3 

Table 8-A.2.7 Plastic Venting Installation Cost (New Construction)...............................8-A-3 

Table 8-A.2.8 Drain Pan Cost Table.................................................................................8-A-3 

Table 8-A.2.9 Installation Costs for Adding an Electrical Outlet.....................................8-A-4 

Table 8-A.2.10 Installation Costs for Adding Grounding...................................................8-A-4 

Table 8-A.2.11 Electrical Outlet Installation Costs Calculation.........................................8-A-4 

Table 8-A.2.12 Installation Costs for Installing Electric Water Heater (New 

Construction)..............................................................................................8-A-5 

Table 8-A.2.13 Water Piping Installation Cost (New Construction) ..................................8-A-5 

Table 8-A.2.14 Gas Piping Installation Cost (New Construction)......................................8-A-5 

Table 8-A.2.15 Installation Costs for Installing Electric Water Heater (Replacement) .....8-A-5 

Table 8-A.2.16 Installation Costs for Installing Electric Water Heater Adder (66, 75 

Gal) ............................................................................................................8-A-6


Table 8-A.2.17 Drain Pan Cost Table.................................................................................8-A-6


Table 8-A.2.18 Installation Costs for Installing Space Constraints (3 in. insulation).........8-A-8


Table 8-A.2.19 Installation Costs Adder for Installing Heat Pump Water Heater..............8-A-8


8-A-i 

EE-2006-STD-0129 and EERE-2006-BT-STD-0129 COMMENT 32.2
Table 8-A.2.20 Installation Costs for Space Constraints (Heat Pump Water Heater) ........8-A-9 

Table 8-A.4.1 Installation Costs for Installing Pool Heater (New Construction)...........8-A-12 

Table 8-A.4.2 Installation Costs for Installing Pool Heater (Replacement, High 

Value).......................................................................................................8-A-12 

Table 8-A.4.3 Installation Costs for Installing Pool Heater Electrical Outlet Adder......8-A-12 

LIST OF FIGURES 

Figure 8-A.2.1 Space Constraints Flow Chart....................................................................8-A-7


8-A-ii 

EE-2006-STD-0129 and EERE-2006-BT-STD-0129 COMMENT 32.2
APPENDIX 8-A. INSTALLATION COST DETERMINATION 

8-A.1 INTRODUCTION 

This appendix contains the installation cost calculation methodology for Residential 

Water Heaters, Direct Heating Equipment, and Pool Heaters used in the analysis. 

8-A.2 INSTALLATION COSTS 

8-A.2.1 Water heaters 

8-A.2.1.1 Gas Water Heaters 

1, 2, DOE developed installation cost data for gas-fired water heater using several sources.

3, 4, 5 DOE divided the installation costs into 5 distinct components: 

• Basic Installation – Setting up and putting WH in place, removal of old WH (replacement 

only), trip charge (replacement only), gas and water piping (new construction only), and 

additional labor charge for 75 kbtu/h WHs 

• Venting Costs – Cost of Stainless Steel Vents vs. Plastic venting (power


vent/condensing) for various installation types


• Drain Pan Cost Derivation – Design options that include 2” insulation may incur an 

additional installation cost of adding a drain pan of a larger size 

• Electricity – Design options that require electricity may incur an additional installation 

cost for installing an additional electrical outlet near the WH 

• Condensate Filter – Condensing design options may incur an additional installation cost 

for adding a condensate filter 

8-A.2.1.2 Basic Installation Costs 

For new construction WHs, the basic installation cost includes adding a gas line branch, 

adding water piping, in addition to the cost of putting in place and setting up the new water 

heater. Table 8-A.2.1, Table 8-A.2.2, and Table 8-A.2.3 show the installation costs for new 

construction calculated using RS Means. 

Table 8-A.2.1 Installation Costs for Installing Gas Water Heater (New Construction) 

Description 

Crew PersonHours Unit 

2008 Bare Costs (2007$) 

Mat. Labor Equip. Total 

Total 

incl. 

O&P 

Gas, glass lined, 30 Gal Minimum 2 Plum 3.2 Ea. $25 $149 $0 $174 $252 

8-A-1 

EE-2006-STD-0129 and EERE-2006-BT-STD-0129 COMMENT 32.2
Table 8-A.2.2 Water Piping Installation Cost (New Construction)


Description Crew 

PersonHours Unit 

2008 Bare Costs (2007$) Total 

incl. 

Mat. Labor Equip. Total O&P 

3⁄4” diameter, schedule 40, threaded 

with coulings, and clevis hanger 1 Plum 0.65 5 L.F. $13 $31 $0 $43 $60 

Table 8-A.2.3 Gas Piping Installation Cost (New Construction)


Description Crew 

PersonHours Unit 

2008 Bare Costs (2007$) Total 

incl. 

Mat. Labor Equip. Total O&P 

Gas Piping Cost from Furnace and 

Boiler Installation Model 1 Plum Source* $46 

1 * Furnace Installation Model 

Table 8-A.2.4 shows the installation cost for replacement cases, which includes the labor 

costs for disconnecting and removing the old water heater, removal/disposal fees, permit fees, as 

well as the cost of putting in place and setting up the new water heater. 

Table 8-A.2.4 Installation Costs for Installing Gas Water Heater (Replacement) 

Description Crew 

PersonHours Unit 

2008 Bare Costs (2007$) Total 

incl. 

Mat. Labor Equip. Total O&P 

Trip Charge 2 Plum 1 Ea. $0 $47 $0 $47 $70 

Remove Old Heater 2 Plum 1.6 Ea. $0 $75 $0 $75 $112 

Installation 2 Plum 3.2 Ea. $25 $149 $0 $174 $252 

Totals 5.8 $25 $271 $0 $296 $435 

Table 8-A.2.5 shows the additional cost for 75 Gal water heaters, which takes into 

account one additional hour of labor for the extra time to install this larger equipment. 

Table 8-A.2.5 Installation Costs for Installing Gas Water Heater Adder (75 Gal) 

Description Crew 

PersonHours Unit 

2008 Bare Costs (2007$) Total 

incl. 

Mat. Labor Equip. Total O&P 

75 Gal Adder 2 Plum 1 Ea. $0 $47 $0 $47 $70 

8-A.2.1.3 Venting 

For natural draft venting in new construction, DOE accounted for both commonly vented 

WHs (together with a central furnace) and isolated water heaters (separately vented) (see Table 

8-A.2.6) 

8-A-2 

EE-2006-STD-0129 and EERE-2006-BT-STD-0129 COMMENT 32.2
Table 8-A.2.6 Baseline (Natural Draft) Venting Installation Cost (New Construction)


Description Crew 

PersonHours Unit 

2008 Bare Costs (2007$) Total 

incl. 

Mat. Labor Equip. Total O&P 

WH Commonly Vented with 

Furnace/Boiler Source* $414 

WH Isolated $829 

Average $622 

1 * Furnace Installation Model 

For plastic venting in new construction, DOE accounted for both average length from 

wall installations and close to wall installations (see Table 8-A.2.7) 

Table 8-A.2.7 Plastic Venting Installation Cost (New Construction) 

Description Crew 

PersonHours Unit 

2008 Bare Costs (2007$) Total 

incl. 

Mat. Labor Equip. Total O&P 

WH average length from wall Source* $443 

WH close to wall $221 

Average $332 

1 * Furnace Installation Model 

For natural draft venting in replacement installations, DOE did not add any additional 

cost. For plastic venting in replacement installations, DOE accounted for both average length 

from wall installations only (see Table 8-A.2.7) 

8-A.2.1.4 Drain Pan 

Some houses may require a replacement drain pan of a larger size when a wider, more 

efficient (due to increased insulation thickness) water heater is installed. Using the approach 

3 applied in the 2001 rulemaking Table 8-A.2.8 shows the average price for increasing to two 

inch insulation by tank size. 

Table 8-A.2.8 Drain Pan Cost Table 

Tank Size (gal) Average Price (2007$) 

30 $0.73 

40 $1.83 

50 $1.83 

75 $6.61 

8-A.2.1.5 Electricity 

For replacement installations, DOE added an additional cost for labor and wiring for 

installing an electrical outlet for houses that do not have electricity close to the water heater. 

DOE estimated that all households that do not have a gas furnace or boiler would require an 

5 electrical outlet and calculated the additional cost of the outlet using RS Means. This yields an 

8-A-3 

EE-2006-STD-0129 and EERE-2006-BT-STD-0129 COMMENT 32.2
average cost of $168 for adding an additional electrical outlet. DOE estimated that grounding for 

6 an electrical outlet is needed for houses build before 1960. This yields an additional average 

cost of $32 for grounding. See Table 8-A.2.9 and Table 8-A.2.10. 

Table 8-A.2.9 Installation Costs for Adding an Electrical Outlet 

Description Crew 

PersonHours Unit 

2008 Bare Costs (2007$) Total 

incl. 

Mat. Labor Equip. Total O&P 

Trip Charge 1 Elec 0.500 Ea. $0 $0 $23 $0 $34 

Receptable Devices (Type EMT & 

Wire cable) 1 Elec 1.501 Ea. $0 $30 $68 $0 $134 

Total 2.001 $0 $30 $91 $0 $168 

Table 8-A.2.10 Installation Costs for Adding Grounding


Description Crew 

PersonHours Unit 

2008 Bare Costs (2007$) Total 

incl. 

Mat. Labor Equip. Total O&P 

Clamp, bronze, 1/2" diameter 1 Elec 0.25 Ea. $4 $11 $0 $16 $22 

Bare copper wire, #14 solid 1 Elec 0.16 Ea. $1 $7 $0 $7 $11 

Total 0.41 $5 $18 $0 $23 $32 

For new construction installations of WHs with electronic ignition, DOE added an 

additional cost for labor and wiring for installing an electrical outlet (see Table 8-A.2.11). 

Table 8-A.2.11 Electrical Outlet Installation Costs Calculation 

Description Crew 

PersonHours Unit 

2008 Bare Costs (2007$) Total 

incl. 

Mat. Labor Equip. Total O&P 

Electrical Outlet Source* $49 

1 * Furnace Installation Model 

8-A.2.2 Electric Water Heaters 

DOE developed installation cost data for gas-fired water heater using several sources 2, 3, 

4, 5 DOE divided the installation costs into six components: 

• Basic Installation – Setting up and putting a water heater in place, removal of old WH 

(replacement only), trip charge (replacement only), gas and water piping (new 

construction only), and additional labor charge for 66 and 75 kbtu/h water heaters 

• Drain Pan Cost Derivation – Design options that include 2” and 3” insulation may incur 

an additional installation cost of adding a drain pan of a larger size 

• Adding a tempering valve 

• Space constraints cost for 3” insulation 

• Heat Pump Water Heater (HPWH) Design Option–Additional installation cost for 

installing a HPWH 

8-A-4 

EE-2006-STD-0129 and EERE-2006-BT-STD-0129 COMMENT 32.2
• Space constraint cost for adding a heat pump water heater 

8-A.2.2.1 Basic Installation Costs 

For new construction WHs, the basic installation cost includes adding a gas line branch, 

adding water piping, in addition to the cost of putting in place and setting up the new water 

heater. Table 8-A.2.12, Table 8-A.2.13, and Table 8-A.2.14 show the installation costs for new 

construction calculated using RS Means. 

Table 8-A.2.12	 Installation Costs for Installing Electric Water Heater (New 

Construction) 

Description Crew 

PersonHours Unit 

2008 Bare Costs (2007$) Total 

incl. 

Mat. Labor Equip. Total O&P 

Gas, glass lined, 30 Gal Minimum Crew L-1 2.7 Ea. $25 $148 $0 $173 $211 

Table 8-A.2.13 Water Piping Installation Cost (New Construction)


Description Crew 

PersonHours Unit 

2008 Bare Costs (2007$) Total 

incl. 

Mat. Labor Equip. Total O&P 

3⁄4” diameter, schedule 40, threaded 

with coulings, and clevis hanger 1 Plum 0.65 5 L.F. $13 $31 $0 $43 $60 

Table 8-A.2.14 Gas Piping Installation Cost (New Construction)


Description Crew 

PersonHours Unit 

2008 Bare Costs (2007$) Total 

incl. 

Mat. Labor Equip. Total O&P 

Gas Piping Cost from Furnace and 

Boiler Installation Model 1 Plum Source* $46 

1 * Furnace Installation Model 

Table 8-A.2.15 shows the installation cost for replacement cases, which includes the 

labor costs for disconnecting and removing the old water heater, removal/disposal fees, permit 

fees, as well as the cost of putting in place and setting up the new water heater. 

Table 8-A.2.15	 Installation Costs for Installing Electric Water Heater (Replacement) 

Description Crew 

PersonHours Unit 

2008 Bare Costs (2007$) Total 

incl. 

Mat. Labor Equip. Total O&P 

Trip Charge 2 Plum 1 Ea. $0 $46 $0 $46 $69 

Remove Old Heater 2 Plum 1.35 Ea. $0 $62 $0 $62 $93 

Installation 2 Plum 2.7 Ea. $25 $125 $0 $150 $214 

Totals 5.05 $25 $271 $0 $296 $376 

Table 8-A.2.16 shows the additional cost for 66 or 75 Gal water heaters, which takes into 

account one additional hour of labor for the extra time to install this larger equipment. 

8-A-5 

EE-2006-STD-0129 and EERE-2006-BT-STD-0129 COMMENT 32.2
Table 8-A.2.16 Installation Costs for Installing Electric Water Heater Adder (66, 75 Gal)


Description Crew 

PersonHours Unit 

2008 Bare Costs (2007$) Total 

incl. 

Mat. Labor Equip. Total O&P 

75 Gal Adder 2 Plum 1 Ea. $0 $47 $0 $47 $69.05 

8-A.2.2.2 Drain Pan 

Some houses may require a replacement drain pan of a larger size when a wider, more 

efficient (due to increased insulation thickness) water heater is installed. Using the approach 

3 applied in the 2001 rulemaking Table 8-A.2.17 shows the average price for increasing to two 

inch insulation and 3 inch insulation. 

Table 8-A.2.17 Drain Pan Cost Table 

Tank Size 

(gal) 

2” Insulation 

Average Price (2007$) 

2.5-4” Insulation 

Average Price (2007$) 

30 $0.57 $2.01 

40 $1.44 $4.30 

50 $1.44 $4.30 

75 $2.86 $8.06 

8-A.2.2.3 Space Constraints (adding Tempering Valve) 

In some households, the original water heater location may be too small to accommodate 

a replacement water heater of the same rated volume when the new water heater’s insulation 

thickness is 2.5, 3 or 4 inches. When such space constraints exist, some households are assumed 

to use the next smaller standard-size water heater, and increase the water heater setpoint to 

compensate for the lower storage volume. If the new setpoint is too high it may require a 

tempering valve. DOE used RECS 2001 to identify which households would have such space 

constraints. DOE estimated that such constraints would only exist in cases where (see Figure 8­

A.2.1): 

$

$

the water heater is installed in conditioned space, e.g., not in a garage or an 

unconditioned basement, and 

the water heater is in a small house or apartment with a floor area of less than 1,000 ft2 . 

For households with space constraints, DOE adjusted the setpoint of the smaller water 

heater upward so that the total energy content of the water that could be delivered is the same as 

could have been delivered by the original water heater at a lower temperature. DOE added the 

cost of a tempering valve if the new setpoint is >140oF. The details of the space constraint 

approach as well as the tempering valve costs are described in Appendix H, Installation Cost 

Determination. DOE used an average cost of $22 for adding tempering and check valves. 

8-A-6 

EE-2006-STD-0129 and EERE-2006-BT-STD-0129 COMMENT 32.2
recalculate 

setpoint 

for each RECS house 

water heater 

in house? 

Yes 

No 

house too 

small? 

Yes 

select next smaller 

size water heater 

setpoint > 

140 oF? Yes 

No 

Add tempering 

valve. 

recalculate 

hot water use 

calculate 

energy use 

calculate equpment & 

installation cost 

calculate LCC & 

payback 

next RECS house 

Less than 1000 sq. ft. 

See Equation E-5.3 

To avoid scalding. 

Space 

Constraints 

No 

Figure 8-A.2.1 Space Constraints Flow Chart 

8-A-7 

EE-2006-STD-0129 and EERE-2006-BT-STD-0129 COMMENT 32.2
8-A.2.2.4 Space Constraints (3 in. insulation) 

Design options that include 3-in. insulation require an additional cost in some 

replacement applications to account for certain installation impacts (e.g., to disassemble and 

reassemble doorjambs). DOE added a $219 installation cost for removal and replacement of door 

jambs for 50 percent of all water heaters located in the conditioned space (See Table 8-A.2.18). 

Using RECS 2001, DOE determined that 54 percent of water heaters are located in a conditioned 

space. DOE used the calculated average cost of $36 for all design options that include 3-in. 

insulation. 

Table 8-A.2.18 Installation Costs for Installing Space Constraints (3 in. insulation) 

Description Crew 

PersonHours Unit 

2008 Bare Costs (2007$) Total 

incl. 

Mat. Labor Equip. Total O&P 

Trip Charge 1 Carp 0.5 Ea. $0 $19 $0 $19 $30 

Remove and replace interior door 

casing, jamb and stop 1 Carp 1.2 Ea. $0 $46 $0 $46 $71 

Remove and replace interior slab door, 

on existing hinges (includes new door) 

1 Carp 

2.0 Ea. $0 $76 $0 $76 $119 

Total 3.7 Ea. $0 $141 $0 $141 $219 

8-A.2.2.5 Heat Pump Water Heaters 

For heat pump water heater installation, DOE applied additional labor and materials 

costs. The labor cost to install a heat pump water heater takes into account one additional hour of 

7 labor for the extra time to install this equipment. (see Table 8-A.2.19). 

Table 8-A.2.19 Installation Costs Adder for Installing Heat Pump Water Heater 

Description Crew 

PersonHours Unit 

2008 Bare Costs (2007$) Total 

incl. 

Mat. Labor Equip. Total O&P 

Installation Adder 2 Plum 0.5 Ea. $0 $23 $0 $23 $35 

For one-fourth of the replacement installations, DOE included the cost for adding a 

condensate pump and longer water line to the drain at an average cost $153. 

For indoor replacement installations, DOE added the cost for making adjustments to 

accommodate the heat pump water heater in the case of space constraints (including adding 

ventilation using a fully-louvered closet door). DOE estimated that this cost, which averages 

$346, occurs in half of indoor replacement installations. See Table 8-A.2.20. 

8-A-8 

EE-2006-STD-0129 and EERE-2006-BT-STD-0129 COMMENT 32.2
Table 8-A.2.20 Installation Costs for Space Constraints (Heat Pump Water Heater)


Description Crew 

PersonHours Unit 

2008 Bare Costs (2007$) Total 

incl. 

Mat. Labor Equip. Total O&P 

Trip Charge 1 Carp 0.5 Ea. $0 $19 $0 $19 $30 

Remove and replace interior door 

casing, jamb and stop 

1 Carp 

1.2 Ea. $0 $46 $0 $46 $71 

Remove and replace interior slab door, 

on existing hinges (includes new door) 

1 Carp 

2 Ea. $115 $76 $0 $191 $245 

Total 1 Carp 3.7 Ea. $115 $141 $0 $256 $346 

DOE also applied an additional drain pan cost of $2 to account for the larger 2-in. 

insulation for this product. The average total additional cost to install a heat pump water heater is 

$181 in replacement installations, and $71 in new home installations. 

One major concern with heat pump water heaters is the increased heating load that it can 

create when it is installed in a conditioned space during the heating season. This is a significant 

effect that is well documented in various studies and reports. To address this issue DOE 

calculated the extra energy required to compensate for the additional heating load for 

replacement installations (see Appendix E for details). For new construction, the HPWH is 

assumed to be installed in a space where this problem will not be an issue. 

Another potential solution is to consider adding the cost of duct work to vent the cold air 

8 to the outside. A HPWH designed in Europe uses this kind of strategy. DOE calculated that on 

average this would require a similar cost to the added venting costs for installing a condensing 

gas water heater in replacement situations ($425) plus a venting kit, which might include vent 

termination and fan ($100). The effect of adding these costs into the LCC analysis is less than the 

method used by DOE. Furthermore, DOE’s method provides more variability by calculating the 

potential effect for each individual household. 

8-A.2.3 Oil Water Heaters 

DOE developed installation cost data for the baseline oil-fired water heater using 

3 information from the 2001 water heater rule. An oil-fired water heater installation requires hot 

and cold water connections, oil supply, electrical power connection, a vent connection and an 

oil-burner that consists of oil pump, blower, ignition device, and controls. All design options that 

have 2 and 2.5 in. insulation and that require specialized venting at higher energy efficiency may 

incur an additional installation cost. The average installation costs for oil-fired storage water 

heaters are shown in Table 8.2.10. 

Residential oil-fired water heaters are typically sold and installed by local residential 

heating oil dealers. For the 2001 rule, PNNL gathered installation cost information from seven 

dealers in the northeastern U.S. These data show a very wide range of installation costs, which 

vary significantly in different areas depending on the size of the markets. The typical installation 

8-A-9 

EE-2006-STD-0129 and EERE-2006-BT-STD-0129 COMMENT 32.2
cost for a new oil-fired water heater ranges from $462 to $981 (2007$). The average installation 

cost is $625. 

In the 2001 water heater analysis, DOE estimated that there is an additional cost 

associated with oil-fired water heaters with 2 and 2.5 in. of insulation. For replacement 

installations, DOE added a cost to account for installing a burner kit, which consists of a longer 

air tube and a longer nozzle assembly to fit the existing burner to the new wider tank. DOE 

estimated that 50 percent of the installations will require an oil burner modification kit. DOE 

applied an average additional installation cost of $23 for 2 and 2.5 in. insulation. For new 

construction, DOE estimated that there will be no additional incremental installation cost. 

1 Similarly to the analysis performed for residential oil-fired furnaces and boilers (which 

considered NFPA 31 recommendations), the installation cost for oil-fired water heaters assumes 

that, depending on the energy efficiency, oil-fired water heaters would be vented using Type L 

vents or using 316-grade stainless steel vents. All installations using oil-fired water heaters at 

0.62 energy factor or lower that are vented are assumed to use type “L” vents. Following the 

assumptions for oil-fired furnaces and boilers, this analysis assumes that 50 percent of the 

installations at 0.66 energy factor and 75 percent of the installations at 0.68 energy factor will 

require 316-grade stainless steel vent systems. Based on the furnace and boiler oil equipment 

analysis, DOE determined that the 316-grade stainless steel installations cost about 85 percent 

more than the baseline installations. 

8-A.2.4 Instantaneous Gas Water Heaters 

DOE developed installation cost data for the gas-fired instantaneous water heater using several 

sources. 1, 2, 4, 5 There are three design options considered for instantaneous water heaters that 

increase the installation cost relative to the baseline: forced draft, electronic ignition, and 

condensing design. The average installation cost for gas-fired instantaneous water heaters is 

shown in Table 8.2.11. 

It can be difficult to use instantaneous water heaters as a replacement technology in many 

existing homes as the cost of physically accommodating their installation can add considerable 

9 expense. DOE’s derivation of installation cost does not consider extreme installation 

configurations. In the analysis, all replacements are a conversion from gas-fired storage water 

heaters (this reflects the small number of instantaneous water heaters installed during the 1980s 

and 1990s and the long lifetime of these products). 

The baseline represents an instantaneous water heater with a pilot light and natural draft 

venting. For new construction applications, the installation cost includes adding a gas line branch 

(since in most cases it is not possible to connect the water heater to the existing house gas line, 

which is too small), installing a vent system, adding water piping, as well as the cost of putting in 

place and setting up the new water heater. For replacement cases, the installation cost includes 

the labor for disconnecting and removing the old water heater, removal/disposal fee, permit fee, 

as well as the cost of putting in place and setting up the new instantaneous water heater, 

8-A-10 

EE-2006-STD-0129 and EERE-2006-BT-STD-0129 COMMENT 32.2
including the venting system. The analysis for both new construction and replacements assumes 

Category I vertical venting using non-stainless steel vents. 

For replacement or new construction installations of gas-fired instantaneous water heaters 

with electronic ignition, DOE added an additional cost to account for labor and wiring for 

installing an electrical outlet for houses that do not have electricity close to the water heater. 

DOE used the same approach applied to gas-fired storage water heaters. See section 8-A.2.1.5 

for further details. 

The incremental installation cost for the forced draft/power vent design includes the cost 

of the electricity outlet and the required venting. For new construction and replacement 

applications, the cost reflects Category III horizontal venting using stainless steel vents. For 

replacement installations, DOE estimated that half of the installations will use vertical vents and 

half will use horizontal vents. The venting systems are configured to exit a side wall of a 

dwelling and are composed of plastic vent pipes. For replacement installations, DOE accounted 

for the installation of a new vent system, and for the commonly vented water heaters, for 

disconnecting from the existing common system. 

The installation cost for the condensing design utilizes plastic vents (in addition to the 

forced draft and electronic ignition) and includes the cost of the condensate disposal. 

8-A.3 DHE 

DOE derived baseline installation costs for direct heating equipment using the approach 

10 from the 1993 TSD. For gas wall gravity DHE, gas floor DHE and gas room DHE, DOE added 

an additional installation cost for the design options that require electricity. This was done for the 

replacement market only, since in new construction the wiring is considered part of the general 

electrical work. This yields an average cost of $168 for adding an additional electrical outlet and 

an average cost of $32.28 for grounding. See section 8-A.2.1.5 (Table 8-A.2.9 and Table 8­

A.2.10) for installation cost calculation details. 

8-A.4 POOL HEATERS 

5 DOE derived installation cost data for the baseline pool heater using RSMeans and 

11 information in a consultant report. There are two design options considered for this analysis 

that increase the installation cost relative to the baseline: electronic ignition and condensing 

design. 

The baseline unit represents a pool heater with a pilot light. For new construction 

applications, the installation cost includes adding a gas line from the gas meter to the pool heater 

(in most cases it is not possible to connect the pool heater to the existing house gas line as it is 

too small). It also includes adding PVC lines from the pool pump to the inlet and outlet water 

headers of the pool heater (thermal isolation - non - PVC pipe is usually part of this line to 

prevent pool pump overheating). The installation cost also includes setting, connection and startup fees. DOE assumed that the installation cost varied between a high and a low value it 

generated using a uniform distribution. (See Table 8-A.4.1) For the replacement applications, the 

8-A-11 

EE-2006-STD-0129 and EERE-2006-BT-STD-0129 COMMENT 32.2
installation cost includes disconnecting and removing the old pool heater, putting in place the 

new unit and reconnecting the gas and PVC lines. DOE assumed that 20% of the time the 

installation will require more labor due to a more complex installation (e.i. high value). (See 

Table 8-A.4.2) 

Table 8-A.4.1 Installation Costs for Installing Pool Heater (New Construction) 

Description Crew 

PersonHours Unit 

2008 Bare Costs (2007$) Total 

incl. 

Mat. Labor Equip. Total O&P 

High Value (250 Mbtu/h pool heaters, not 

incl wiring, external piping, base/pad) Q-6 34.286 Ea. $512 $1,507 $0 $2,2019 $2,830 

Low Value (250 Mbtu/h pool heaters, not 

incl wiring, external piping, base/pad) Q-6 25.98 Ea. $379 $1,142 $0 $1,521 $2,135 

Average $2,482 

Table 8-A.4.2 Installation Costs for Installing Pool Heater (Replacement, High Value)


Description Crew 

PersonHours Unit 

2008 Bare Costs (2007$) Total 

incl. 

Mat. Labor Equip. Total O&P 

High Value (250 Mbtu/h pool heaters, not 

incl wiring, external piping, base/pad) Q-6 14 Ea. $0 $616 $0 $616 $926 

Low Value (250 Mbtu/h pool heaters, not 

incl wiring, external piping, base/pad) Q-6 5 Ea. $0 $220 $0 $220 $331 

Average $450 

For units with electronic ignition, DOE included an additional installation cost to account 

for adding an electrical line (115V) and a separate junction box. These are needed since the pool 

heater requires lower amperage than the pool pump. (See Table 8-A.4.3) 

Table 8-A.4.3 Installation Costs for Installing Pool Heater Electrical Outlet Adder 

Description Crew 

PersonHours Unit 

2008 Bare Costs (2007$) Total 

incl. 

Mat. Labor Equip. Total O&P 

Motor Connections (Flexible conduit and 

fitting, 115 volt, 1 phase, up to 1 HP motor) 1 Elec 1.00 Ea. $9 $46 $0 $54 $78 

Lighiting outlets (Box (4") and wire (for 

fixture), Type NM cable) 1 Elec 0.32 Ea. $17 $15 $0 $31 $40 

Totals 1.32 $26 $61 $0 $85 $118 

The incremental installation cost of $100 for the condensing design includes the cost of 

the condensate drain piping that goes from the pool heater to a P-trap devicea located at the sewer 

11 line entrance.

a A “P-trap” is required by many city codes. It helps to isolate the condensate from back-flowing into the pool water 

and prevents the sewer gas from back-flowing. 

8-A-12 

EE-2006-STD-0129 and EERE-2006-BT-STD-0129 COMMENT 32.2
REFERENCES


1.	 U.S. Department of Energy - Energy Efficiency & Renewable Energy, Technical Support 

Document: Energy Efficiency Standards for Consumer Products: Residential Furnaces 

and Boilers, 2007. Washington, DC. 

2.	 RS Means Company Inc., Facilities Maintenance & Repair Cost Data 2005. 2004. 

Kingston, MA. 

3.	 U.S. Department of Energy - Energy Efficiency & Renewable Energy, Technical Support 

Document: Energy Efficiency Standards for Consumer Products: Residential Water 

Heaters, 2001. Washington, DC. 

4.	 Smith, D., Consultant Report - Water Heater Installation Costs, 2008. 

5.	 RS Means Company Inc., 2008 Mechanical Cost Data - 31st Annual Edition. 2007. 

Kingston, MA. 

6.	 Dini, D. A., Some History of Residential Wiring Practices in the U.S., 2006. Underwriters 

Laboratories Inc. 

7.	 California Energy Commission, Consultant Report: Design Refinement and 

Demonstration of a Market-Optimized Heat-Pump Water Heater, April, 2004. California 

Energy Commission - Public Interest Energy Research Program. 

<http://www.energy.ca.gov/reports/500-04-018/2004-05-21_500-04-018.PDF> 

8.	 Inventum BV, Ecolution Optima Brochure, Inventum BV. (Last accessed April 24, 

2008.) <http://www.inventum.nl/folders/en/Ecolution.pdf> 

9.	 Hewitt, D., Jeff Pratt and Gary Smith, Tankless Gas Water Heaters: Oregon Market 

Status: Final Report, December 6, 2005. Energy Trust of Oregon. 

10.	 U.S. Department of Energy-Office of Codes and Standards, Technical Support 

Document: Energy Efficiency Standards for Consumer Products: Room Air Conditioners, 

Water Heaters, Direct Heating Equipment, Mobile Home Furnaces, Kitchen Ranges and 

Ovens, Pool Heaters, Fluorescent Lamp Ballasts & Television Sets, 1993. Washington, 

DC Vol. 1 of 3. Report No. DOE/EE-0009. 

11.	 Hamos, R., Consultant Report - Pool Heater Installation Costs, 2008. 

8-A-13 

EE-2006-STD-0129 and EERE-2006-BT-STD-0129 COMMENT 32.2