APPENDIX 8-A. INSTALLATION COST DETERMINATION
 

TABLE OF CONTENTS
 

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

8-A.2 GAS-FIRED STORAGE WATER HEATERS ..................................................... 8-A-1 

8-A.2.1 Basic Installation Costs.......................................................................................... 8-A-1 

8-A.2.2 Venting................................................................................................................... 8-A-2 

8-A.2.3 Drain Pan ............................................................................................................... 8-A-2 

8-A.2.4 Electricity Outlet.................................................................................................... 8-A-3 

8-A.2.5 Condensate Disposal.............................................................................................. 8-A-3 

8-A.2.6 Additional Costs Associated with Space Constraints ............................................ 8-A-3 

8-A.3 ELECTRIC STORAGE WATER HEATERS....................................................... 8-A-5 

8-A.3.1 Basic Installation Costs.......................................................................................... 8-A-5 

8-A.3.1.2 Drain Pan Incremental Costs .........................................................8-A-6 

8-A.3.2 Additional Costs Associated with Space Constraints ............................................ 8-A-8 

8-A.3.3 Incremental Installation Costs for Heat Pump Water Heaters ............................... 8-A-9 

8-A.3.3.1 Additional Labor Hours ...............................................................8-A-10 

8-A.3.3.2 Condensate Pump Cost ................................................................8-A-10 

8-A.3.3.3 Costs for Addressing Heat Pump Water Heater Space 

Constraints ...................................................................................8-A-10 

8-A.3.3.4 Drain Pan Incremental Cost.........................................................8-A-11 

8-A.3.3.5 Venting System Adder.................................................................8-A-11 

8-A.4 OIL-FIRED STORAGE WATER HEATERS .................................................... 8-A-11 

8-A.5 INSTANTANEOUS GAS WATER HEATERS................................................. 8-A-12 

8-A.6 DIRECT HEATING EQUIPMENT .................................................................... 8-A-13 

8-A.7 POOL HEATERS ................................................................................................ 8-A-13 

8-A.8 RS MEANS 2008 REGIONAL LABOR COSTS ............................................... 8-A-14 

LIST OF TABLES 

Table 8-A.2.1 Basic Installation Cost: New Construction................................................8-A-1 

Table 8-A.2.2 Basic Installation Costs: Replacement.......................................................8-A-2 

Table 8-A.2.3 Installation Adder for 66 and 75 Gal Gas-Fired Water Heaters or Attic 

Installation..................................................................................................8-A-2
 

Table 8-A.2.4 Drain Pan Cost for Increasing to 2 inch Insulation....................................8-A-3
 

Table 8-A.2.5 Installation Costs for Adding an Electrical Outlet (Replacement) ............8-A-3
 

Table 8-A.2.6 Installation Costs for Electricity Grounding (Replacement) .....................8-A-3
 

Table 8-A.2.7 Space Constraint Costs: Tampering Valve ................................................8-A-4
 

Table 8-A.2.8 Space Constraint Costs: Door Modifications – Door Jambs .....................8-A-5
 

Table 8-A.3.1 Average Basic Installation Costs: New Construction................................8-A-5
 

Table 8-A.3.2 Basic Installation Costs for Electric Storage Water Heater:
 

Replacement...............................................................................................8-A-5 

Table 8-A.3.3 Installation Adder (66, 75 and 119-gallon) or Attic Installation ...............8-A-6 

Table 8-A.3.4 Electric Storage Water Heater Diameter Fractions by Rated Volume ......8-A-6 

Table 8-A.3.5 Electric Storage Water Heater Drain Pan Diameter by Rated Volume .....8-A-6 

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Table 8-A.3.6 Electric Storage Water Heater Drain Pan Cost Table (2008$) ..................8-A-7 

Table 8-A.3.7 Drain Pan Incremental Cost for Wider Electric Storage Water Heaters....8-A-8 

Table 8-A.3.8 Space Constraint Costs: Tampering Valve ................................................8-A-9 

Table 8-A.3.9 Space Constraint Costs: Door Modifications – Door Jambs .....................8-A-9 

Table 8-A.3.10 Installation Adder for Heat Pump Water Heaters ....................................8-A-10 

Table 8-A.3.11 Space Constraint Costs: Closet Door Modifications – Louvered Door...8-A-10 

Table 8-A.3.12 Heat Pump Water Heater Venting Installation Cost Adder (Average)....8-A-11 

Table 8-A.7.1 New Construction Costs (Low Cost, 90% of Installations).....................8-A-13 

Table 8-A.7.2 Replacement Costs (Low Cost, 90% of Installations) .............................8-A-14 

Table 8-A.7.3 Electrical Outlet Adder ............................................................................8-A-14 

Table 8-A.8.1 2008 RS Means Labor Costs by Crew.....................................................8-A-14 

Table 8-A.8.2 2008 RS Means Labor Costs Markups by Trade .....................................8-A-15 

Table 8-A.8.3 Final Labor Cost Factors by Census Division and Four Large States .....8-A-15 

Table 8-A.8.4 Final Labor Cost Factors by Census Division and Four Large States .....8-A-16 

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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. 

The labor costs shown in the tables in this appendix are the national-average values. In its 

analysis, DOE used regional labor costs to more accurately estimate installation costs by region. 

Section 8-A.8 describes the derivation of regional labor costs. DOE then applied the appropriate 

regional labor cost to each RECS sample household. 

8-A.2 GAS-FIRED STORAGE WATER HEATERS 

DOE developed installation cost data for gas-fired storage water heaters using RS Means 

2, 5 1, 3 books, DOE technical support documents, and a consultant report prepared for this 

analysis.4 

8-A.2.1 Basic Installation Costs 

For water heaters installed in new construction, the basic installation costs include putting 

in place and setting up the new water heater, adding water piping, and adding a gas line branch. 

Table 8-A.2.1 shows the installation costs for new construction calculated using RS Means. 

Table 8-A.2.1 Basic Installation Cost: New Construction 

Description 

Crew Labor 

Hours Unit 

2008 Bare Costs (2008$) Total 

incl. 

Mat. Labor Total O&P 

Basic Installation Cost 2 Plum 2.5 Ea. 25.00 120.94 145.94 $209.40 

Water Piping (Schedule 40, 

threaded, with couplings, and clevis 

hanger, 3/4" diameter) 

2 Plum 0.131 5 L.F. 2.58 6.34 8.92 $44.43 

Gas Piping (1/2" diameter, Schedule 

40, threaded, with couplings, and 

clevis type hangars, 10' O.C., black) 

1 Plum 0.127 5 L.F. 2.18 6.14 8.32 $41.31 

Gas Piping (Ground-joint union, 

1/2") 1 Plum 0.571 L.F. 15.50 17.53 33.03 $43.41 

Totals 4.36 45.26 161.05 206.31 $388.03 

Table 8-A.2.2 shows the basic installation cost for replacement cases, which includes the 

labor costs for disconnecting and removing the old water heater, putting in place and setting up 

the new water heater. In addition, DOE included removal/disposal fees ($35) and permit fees 

($35). 

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Table 8-A.2.2 Basic Installation Costs: Replacement
 

Description Crew 

Labor 

Hours Unit 

2008 Bare Costs (2008$) Total 

incl. 

Mat. Labor Total O&P 

Trip Charge 2 Plum 1 Ea. 0.00 48.38 48.38 $72.76 

Remove Old Water Heater 2 Plum 1.25 Ea. 0.00 60.47 60.47 $90.95 

Installation 2 Plum 2.5 Ea. 25.00 120.94 145.94 $209.40 

Removal/Disposal and Permit Fees $70.00 

Totals 4.75 25.00 229.79 254.79 $473.10 

DOE included an additional cost for 66 and 75-gallon gas-fired water heaters or attic 

installation that takes into account one additional hour of labor for the extra time needed to 

install this larger equipment (Table 8-A.2.3). 

Table 8-A.2.3	 Installation Adder for 66 and 75 Gal Gas-Fired Water Heaters or Attic 

Installation 

Description Crew 

Labor 

Hours Unit 

2008 Bare Costs (2008$) Total 

incl. 

Mat. Labor Total O&P 

66 and 75-Gallon Adder 2 Plum 1 Ea. 0.00 48.38 48.38 $72.76 

8-A.2.2 Venting 

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

water heaters (together with a central furnace) and isolated water heaters (separately vented). 

DOE used a number of variables, including vent location, installation type, connection type, 

region, venting material, and chimney type to determine venting costs for both new construction 

and replacement installations. DOE also considered if the water heater would require a stainless 

steel vent connector. DOE calculated venting costs for each household in the sample. 

8-A.2.3 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. DOE used the approach 

applied in the 2001 water heater rulemaking3 to develop average drain pan prices for increasing 

to 2 inch insulation by tank size (Table 8-A.2.4). 

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Table 8-A.2.4 Drain Pan Cost for Increasing to 2 inch Insulation
 

Tank Size (gal) Average Price (2008$) 

30 0.75 

40 1.90 

50 3.77 

66 5.32 

75 6.87 

8-A.2.4 Electricity Outlet 

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 

electrical outlet and calculated the additional cost of the outlet using RS Means.5 DOE estimated 

that grounding for an electrical outlet is needed for houses built before 1960.6 

Table 8-A.2.5 Installation Costs for Adding an Electrical Outlet (Replacement) 

Description Crew 

Labor 

Hours Unit 

2008 Bare Costs (2008$) Total 

incl. 

Mat. Labor Total O&P 

Trip Charge 1 Elec 0.50 L.F. 0.00 14.97 14.97 $22.31 

Receptacle Devices 1 Elec 1.50 Ea. 29.50 44.94 74.44 $9.41 

Total 2.00 29.50 59.91 89.41 $121.71 

Table 8-A.2.6 Installation Costs for Electricity Grounding (Replacement)
 

Description Crew 

Labor 

Hours Unit 

2008 Bare Costs (2008$) Total 

incl. 

Mat. Labor Total O&P 

Clamp, bronze, 1/2" diameter 1 Elec 0.25 Ea. 4.60 7.48 12.08 $16.21 

Bare copper wire, #14 solid 1 Elec 0.57 C.L.F. 8.30 17.10 25.40 $8.65 

Total 0.82 12.90 24.58 37.48 $24.86 

8-A.2.5 Condensate Disposal 

The installation cost for the condensing design includes the cost of the condensate 

disposal. The approach reflects the currently available condensing water heater design that 

utilizes a single pipe power vent design. The condensate disposal includes the cost of the 

condensate neutralizer filter, which is required by some codes. The condensate disposal includes 

the cost of the condensate neutralizer filter, which is required by some codes. DOE applied a 

condensate filter cost of $86 to 25 percent of the installations. 

8-A.2.6 Additional Costs Associated with Space Constraints 

In some houses, 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 1.5 or 2 inches. Based on the consultant report, an estimated 15-25% of all 

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replacement installations would require significant modifications in order to install a larger sized 

gas storage water heater with 2 in. insulation. DOE estimated that such constraints would apply 

to half of the above fraction for replacement water heater installations with 1.5 in. insulation. 

In situations where significant modifications would be required, there are a number of 

possibilities that might be applicable to the individual installation. These include: 

1) Choosing a water heater with different dimensions (e.g., going with a taller unit) 

2) Install a water heater with a smaller rated volume and adding a tempering valve to 

compensate for lower hot water delivery 

3) Modifications to the existing water heater installation location (primarily 

removing/replacing door jambs) 

4) Relocation of water heater 

5) Switching to an electric or gas instantaneous water heater or electric storage water heater 

After considering that some houses could choose a different dimension water heater 

(option 1), DOE assumed that, for non-manufactured homes, major modifications would be 

necessary for 20 percent of replacement installations with 2 in. insulation and for 10 percent of 

replacement installations with 1.5 in. insulation. DOE assumed that manufactured homes would 

encounter a higher fraction of space constraints, so for manufactured homes with major 

modifications are estimated to be necessary for 40 percent of replacement installations with 2 in. 

insulation and for 20 percent of replacement installations with 1.5 in. insulation. For those 

households facing major modifications, DOE estimated that half of the cases would choose 

option 2 (smaller water heater with tempering valve) and half would select option 3 (door jamb 

removal/replacement). For single-family and multi-family homes, DOE estimated that option 3 

would be selected only in cases where the water heater is installed in an indoor closet or attic 

(e.g., not in a garage or basement). 

For households choosing option 2, DOE adjusted the setpoint of the smaller water heater 

upward so that the total energy content of the water that can be delivered is equivalent to the 

content delivered by the original water heater at a lower temperature. DOE added the cost of 

tempering and check valves if the new setpoint is greater than 140 °F, estimated as shown in 

Table 8-A.2.7. 

Table 8-A.2.7 Space Constraint Costs: Tampering Valve 

Description Crew 

Labor 

Hours Unit 

2008 Bare Costs (2008$) Total 

incl. 

Mat. Labor Total O&P 

Trip Charge 1 Plum 0.5 Ea. 0.00 24.19 24.19 $36.38 

Tempering, water, sweat 

connections (3/4") 1 Plum 0.4 Ea. 79.50 19.35 98.85 $116.55 

Total 0.9 79.50 43.54 123.04 $152.93 

DOE estimated the cost for option 3 (door jamb removal/replacement) as shown in Table 

8-A.3.8. 

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Table 8-A.2.8 Space Constraint Costs: Door Modifications – Door Jambs
 

Description Crew 

Labor 

Hours Unit 

2008 Bare Costs (2008$) Total 

incl. 

Mat. Labor Total O&P 

Trip Charge 1 Carp 0.5 L.F. 0.00 19.73 19.73 $30.71 

Remove and replace interior door 

casing, jamb and stop 1 Carp 1.2 L.F. 0.00 47.36 47.36 $73.69 

Remove and replace interior slab 

door, on existing hinges (includes 

new door) 

1 Carp 2.0 L.F. 0.00 78.94 78.94 $122.82 

Total 3.7 0.00 146.03 146.03 $227.22 

8-A.3 ELECTRIC STORAGE WATER HEATERS 

DOE developed installation cost data for electric storage water heaters using RS Means 

2, 5 3 4 books, DOE technical support documents, and a consultant report prepared for this analysis.

8-A.3.1 Basic Installation Costs 

For new construction water heaters, the basic installation cost includes adding water 

piping in addition to putting in place and setting up the new water heater. Table 8-A.3.1 shows 

the installation costs for new construction calculated using RS Means. 

Table 8-A.3.1 Average Basic Installation Costs: New Construction 

Description 

Crew Labor 

Hours Unit 

Bare Costs (2008$) Total incl. 

Mat. Labor Total O&P 

Basic Installation Costs 2 Plum 1.5 Ea. $25.00 $60.96 $85.96 $119.18 

Water Piping (Schedule 40, 

threaded, with couplings, and clevis 

hanger, 3/4" diameter) 2 Plum 0.131 5 L.F. $2.58 $5.32 $7.90 $54.22 

Total 1.631 $27.58 $66.28 $93.86 $173.40 

Table 8-A.3.2 shows the basic installation cost for all replacement cases, which includes 

the costs for putting in place and setting up the new water heater disconnecting and removing the 

old water heater. In addition, DOE included removal/disposal fees ($35) and permit fees ($35). 

Table 8-A.3.2 Basic Installation Costs for Electric Storage Water Heater: Replacement 

Description Crew 

Labor 

Hours Unit 

Bare Costs (2008$) Total incl. 

Mat. Labor Other Total O&P 

Trip Charge 2 Plum 1 Ea. 0.00 40.64 0.00 40.64 $61.12 

Remove Old Heater 2 Plum 0.75 Ea. 0.00 30.48 0.00 30.48 $45.84 

Installation 2 Plum 1.5 Ea. 25.00 75.32 0.00 91.68 119.18 

Removal/disposal and permit fees - - Ea. 0.00 0.00 70.00 70.00 $70.00 

Total 3.25 25.00 132.07 70.00 227.07 $296.13 

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DOE added an additional cost for installation of 66, 75, and 119-gallon electric water 

heaters, which takes into account one additional hour of labor for the extra time to install this 

larger equipment (Table 8-A.3.3). The same additional cost is added to all attic installations. 

Table 8-A.3.3 Installation Adder (66, 75 and 119-gallon) or Attic Installation 

Description 

Crew Labor 

Hours Unit 

2008 Bare Costs (2008$) Total 

incl. 

Mat. Labor Total O&P 

Installation Adder 2 Plum 1 Ea. 0.00 40.64 40.64 $61.12 

8-A.3.1.2 Drain Pan Incremental Costs 

DOE assumed that all electric storage water heater installations require a drain pan. 

When a wider (due to increased insulation thickness) water heater is installed, a larger and more 

expensive drain pan is required. DOE used the same approach as applied in the 2001 rulemaking 

to derive incremental drain pan installation costs. DOE first derived average tank widths for each 

efficiency level as shown in Table 8-A.3.4. Tank widths at each rated volume vary, so DOE used 

the largest tank diameter for each size to determine the average drain pan diameter. 

Table 8-A.3.4 Electric Storage Water Heater Diameter Fractions by Rated Volume 

Tank 

Diameter 

Rated Volume (gal) minimum 

drain pan 

diameter <30 30 40 50 65 80 

12 60% 16 

14 40% 80% 18 

16 20% 80% 70% 20 

18 20% 30% 90% 22 

20 10% 90% 24 

22 10% 26 

24 28 

Table 8-A.3.5 shows the selected average drain pan diameter for the baseline water heater 

with 1.5 inch insulation and for units with larger insulation thicknesses. 

Table 8-A.3.5 Electric Storage Water Heater Drain Pan Diameter by Rated Volume 

Insulation Thickness 

Rated Volume (gal) 

30 40 50 65 80 

baseline (1.5") 20” 22” 22” 24” 26” 

2" 22” 24” 24” 26” 28” 

2.5-4" 24” 26” 26” 28” 30” 

Table 8-A.3.6 shows the drain pan costs by diameter as gathered in 1998 during the 2001 

water heater rulemaking. 

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Table 8-A.3.6 Electric Storage Water Heater Drain Pan Cost Table (2008$)
 

Nominal 

Size 

radius Price Material Source 

Manufacturer 

22 11 $18.23 Aluminum Grainger PLASTIC ODDITIES 

24 12 $20.39 Aluminum Grainger PLASTIC ODDITIES 

26 13 $12.96 Aluminum Grainger PLASTIC ODDITIES 

30 15 $27.53 Aluminum Grainger PLASTIC ODDITIES 

36 18 $43.99 Aluminum Grainger PLASTIC ODDITIES 

24 12 $18.61 Aluminum Home Depot Oatey 

24 12 $9.98 Aluminum Lowes Plastic Oddities Inc. 

18 9 $15.75 Aluminum Plastic Oddities Inc. Plastic Oddities Inc. 

20 10 $16.80 Aluminum Plastic Oddities Inc. Plastic Oddities Inc. 

22 11 $17.85 Aluminum Plastic Oddities Inc. Plastic Oddities Inc. 

24 12 $18.90 Aluminum Plastic Oddities Inc. Plastic Oddities Inc. 

26 13 $27.26 Aluminum Plastic Oddities Inc. Plastic Oddities Inc. 

30 15 $62.16 Aluminum Plastic Oddities Inc. Plastic Oddities Inc. 

36 18 $65.73 Aluminum Plastic Oddities Inc. Plastic Oddities Inc. 

24 12 $11.19 Plastic Ace Hardware Plastic Oddities Inc. 

22 11 $9.00 Plastic Grainger PLASTIC ODDITIES 

24 12 $8.96 Plastic Grainger PLASTIC ODDITIES 

26 13 $12.60 Plastic Grainger PLASTIC ODDITIES 

30 15 $14.86 Plastic Grainger PLASTIC ODDITIES 

19 9.5 $7.37 Plastic Home Depot Oatey 

24 12 $7.27 Plastic Home Depot Oatey 

26 13 $8.97 Plastic Home Depot Oatey 

22 11 $5.06 Plastic Hughes Supply Inc 

24 12 $5.70 Plastic Hughes Supply Inc 

26 13 $7.04 Plastic Hughes Supply Inc 

30 15 $13.52 Plastic Lowes Plastic Oddities Inc. 

18 9 $8.02 Plastic Plastic Oddities Inc. Plastic Oddities Inc. 

20 10 $8.48 Plastic Plastic Oddities Inc. Plastic Oddities Inc. 

22 11 $8.72 Plastic Plastic Oddities Inc. Plastic Oddities Inc. 

24 12 $8.66 Plastic Plastic Oddities Inc. Plastic Oddities Inc. 

24 12 $10.21 Plastic Plastic Oddities Inc. Plastic Oddities Inc. 

26 13 $12.31 Plastic Plastic Oddities Inc. Plastic Oddities Inc. 

30 15 $14.18 Plastic Plastic Oddities Inc. Plastic Oddities Inc. 

24 12 $12.50 Plastic Whitehead Plumbing Supply 

26 13 $12.50 Plastic Whitehead Plumbing Supply 

20 10 $11.37 Battelle 

22 11 $11.79 Battelle 

24 12 $16.68 Battelle 

30 15 $27.98 Battelle 

Combining the above data, Table 8-A.3.7 shows the average incremental price for the 

drain pan for units with 2 in. insulation and 2.5 to 4 in. insulation for each rated storage volume. 

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Table 8-A.3.7 Drain Pan Incremental Cost for Wider Electric Storage Water Heaters
 

Tank Size 

(gal) 

2” Insulation 

Average Price (2008$) 

2.5-4” Insulation 

Average Price (2008$) 

30 0.75 2.65 

40 1.90 5.68 

50 1.90 5.68 

66 3.77 10.64 

75 6.87 17.86 

119 18.22 42.49 

8-A.3.2 Additional Costs Associated with Space Constraints 

A certain fraction of households could incur additional installation costs when installing a 

water heater with a larger size due to increased insulation. Based on a consultant report, DOE 

estimated that 30-50% of all replacement installations would require significant modifications in 

order to install an electric storage water heater with 3 in insulation. DOE estimated that such 

constraints would apply to half of the above fraction (i.e., 15-25%) for electric water heater 

installations with 2 in. insulation. 

In situations where significant modifications would be required, there are a number of 

possibilities that might be applicable to the individual installation. These include: 

1.	 Choosing a water heater with different dimensions (e.g., going with a taller unit) 

2.	 Install a water heater with a smaller rated volume and adding a tempering valve to 

compensate for lower hot water delivery 

3.	 Modifications to the existing water heater installation location (including 

removing/replacing door jambs) 

4.	 Relocation of water heater 

5.	 Switching to an electric or gas instantaneous water heater or gas storage water heater 

After considering that some houses could choose a different dimension water heater 

(option 1), DOE assumed that major modifications would be necessary for 40 percent of 

replacement installations with 3 in. or greater insulation and for 20 percent of replacement 

installations with 2 in. or greater insulation. For these cases, the most common solutions would 

be installing a water heater with a smaller rated volume and adding a tempering valve (option 2) 

or removing/replacing door jambs (option 3). The other installation possibilities have a much 

lower probability of occurring. DOE estimated that half of the cases where major modifications 

would be necessary would choose option 2 (tempering valves)a and half would select option 3 

(door jamb removal/replacement). DOE estimated that option 3 would be selected only in cases 

where the water heater is installed in an indoor closet or attic (e.g., not in a garage or basement). 

a Tempering valve was applied to water heaters with 2.5 in. or greater insulation to match what was used in the 2001 

water heater rulemaking. 

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For option 2, DOE increased the water heater setpoint to compensate for the lower 

storage volume. DOE adjusted the setpoint of the smaller water heater upward so that the total 

energy content of the water that can be delivered is equivalent to the content delivered by the 

original water heater at a lower temperature. DOE added the cost of a tempering valve if the new 

setpoint is greater than 140 °F (Table 8-A.3.8). 

Table 8-A.3.8 Space Constraint Costs: Tampering Valve 

Description Crew 

Labor 

Hours Unit 

2008 Bare Costs (2008$) Total 

incl. 

Mat. Labor Total O&P 

Trip Charge 1 Plum 0.5 Ea. 0.00 20.32 20.32 $30.56 

Tempering, water, sweat 

connections (3/4") 1 Plum 0.4 Ea. 79.50 16.25 95.75 $111.90 

Total 0.9 79.50 36.57 116.07 $142.46 

DOE estimated the cost for option 3 (door jamb removal/replacement) as shown in Table 

8-A.3.9. 

Table 8-A.3.9 Space Constraint Costs: Door Modifications – Door Jambs 

Description Crew 

Labor 

Hours Unit 

2008 Bare Costs (2008$) Total 

incl. 

Mat. Labor Total O&P 

Trip Charge 1 Carp 0.5 L.F. 0.00 16.58 16.58 $25.79 

Remove and replace interior door 

casing, jamb and stop 1 Carp 1.2 L.F. 0.00 39.78 39.78 $61.90 

Remove and replace interior slab 

door, on existing hinges (includes 

new door) 

1 Carp 2.0 L.F. 0.00 66.31 66.31 $103.17 

Total 3.7 0.00 122.67 122.67 $190.87 

8-A.3.3 Incremental Installation Costs for Heat Pump Water Heaters 

Current heat pump water heaters (such as the GE hybrid water heater and Rheem heat 

pump water heater) or discontinued models (such as the ECR’s WatterSaver) are designed to be 

drop-in replacement models to current electric storage water heater models. Given their larger 

size compared to current electric storage water heater models and additional installation 

requirements for the heat pump component, DOE considered several additional costs for heat 

pump water heaters on top of the other basic installation costs described in section 8-A.3.1. 

These additional installation costs include: 

1) Additional labor hours required 

2) Condensate pump 

3) Costs for addressing space constraints 

4) Space Constraints venting adder 

5) Drain pan 

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8-A.3.3.1 Additional Labor Hours
 

In 2004, the CEC conducted 20 installations of heat pump water heaters in California.7 In 

this report it was estimated that heat pump water heaters would take on average 1 to 1.5 hours 

longer to install than standard electric storage water heaters. Similar results were found in 

installations done in the eastern U.S. The additional labor accounts for $61.12 (labor to add a 

condensate removal, larger size, etc.) DOE applied a distribution of additional labor hours from 

zero to two hours, with an average of one additional labor hour, to all heat pump water heater 

installations (Table 8-A.3.10). 

Table 8-A.3.10 Installation Adder for Heat Pump Water Heaters 

Description 

Crew Labor 

Hours Unit 

2008 Bare Costs (2008$) Total 

incl. 

Mat. Labor Total O&P 

Installation Adder 2 Plum 1 Ea. 0.00 40.64 40.64 $61.12 

8-A.3.3.2 Condensate Pump Cost 

DOE assumed that most electric storage water heaters are installed near a drain, so it 

estimated that only one quarter of all heat pump water heater installations would require addition 

of a condensate pump and longer water line to the drain. For replacement installations requiring a 

condensate pump, DOE included a distribution of costs from $84.53 to $222.63. 

8-A.3.3.3 Costs for Addressing Heat Pump Water Heater Space Constraints 

DOE assumed that the space constraints encountered when installing heat pump water 

heaters would be similar to those encountered when installing electric storage water heaters with 

3 in. insulation. Therefore, as explained in section 8-A.3.2, DOE assumed that 40% of 

replacement installations would be affected, and that half of the cases would choose a smaller 

water heater with tempering valves and half would choose door jambs removal/replacement. In 

addition, heat pump water heaters are required to be in well-ventilated spaces, so the households 

that encounter door jamb modifications also encounter the additional cost of adding a louvered 

door. DOE estimated that the cost for removing the door jambs and installing a louvered door as 

shown in Table 8-A.3.11. The 20% of households encountering this cost are half of all indoor or 

attic replacement installations. 

Table 8-A.3.11 Space Constraint Costs: Closet Door Modifications – Louvered Door 

Description Crew 

Labor 

Hours Unit 

2008 Bare Costs (2008$) Total 

incl. 

Mat. Labor Total O&P 

Trip Charge 1 Carp 0.5 L.F. 0.00 16.58 16.58 $25.79 

Remove and replace interior door 

casing, jamb and stop 1 Carp 1.2 L.F. 0.00 39.78 39.78 $61.90 

Remove and replace interior slab 

door, on existing hinges (includes 

new louvered door) 

1 Carp 2.0 L.F. 115.00 66.31 181.31 $229.67 

Total 3.7 115.00 122.67 237.67 $317.37 

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8-A.3.3.4 Drain Pan Incremental Cost
 

For installation of heat pump water heaters, DOE also applied an additional drain pan 

cost to account for the larger insulation for this product. The costs are shown in Table 8-A.3.7. 

8-A.3.3.5 Venting System Adder 

Heat pump water heaters can increase heating loads when installed in a conditioned space 

during the heating season. DOE estimated that about 35 percent of households in the subsample 

for electric water heaters would experience significant indoor cooling due to operation of the 

heat pump water heater in the heating months. For some of these households, DOE added costs 

to install a venting system to exhaust and supply air. (A heat pump water heater designed in 

Europe uses this strategy.8 For new construction, the unit is assumed to be installed in a space 

where this is not an issue.) DOE estimated that those households for which the heat pump 

cooling load is greater than 10 percent of the household heating load would have a venting 

system installed. Using calculations specific to each household in the subsample for electric 

water heaters, DOE estimated that 40 percent of households with cooling effect would incur this 

cost (Table 8-A.3.12).b This cost varies depending on the length of the PVC venting, which is 

determined by assuming that the water heater is installed in the middle of the house and then 

calculating the average distance from the middle to the nearest wall. This length is then doubled 

so that the system takes in the supply air from the outside, as well as venting out the cold air. On 

average DOE calculated that the vent length required would be a total of 50 feet. 

Table 8-A.3.12 Heat Pump Water Heater Venting Installation Cost Adder (Average) 

Description Crew 

Labor 

Hours Unit 

2008 Bare Costs (2008$) Total 

incl. 

Mat. Labor Total O&P 

PVC, couplings 10' O.C., hangars 3 

per 10', schedule 40 (2" Diameter) Q1 0.081 L.F. 1.25 2.96 4.21 $289.17 

PVC, schedule 40, socket joints, 90" 

elbow, 1/2" (2" diameter) Q1 0.44 EA 2.18 16.09 18.27 $53.20 

Exhaust Fan Q1 0.5 EA 50.00 18.28 68.28 $82.50 

Knockouts to 8' high, metal boxes & 

enclosures (With hole saw, 2" pipe 

size) 

1 Elec 0.296 EA 115.00 81.93 196.93 $34.96 

Total 3.7 115.00 151.57 266.57 $459.83 

8-A.4 OIL-FIRED STORAGE WATER HEATERS 

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. DOE developed installation cost data for baseline oil-fired 

b For the remainder of homes experiencing a cooling effect, the extra cost for space heating is accounted in the 

energy use calculations, as described in chapter 7. 

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waters heater using information from the 2001 water heater rulemaking.3 All design options are 

assumed to have the same installation costs. 

8-A.5 INSTANTANEOUS GAS WATER HEATERS 

DOE developed installation cost data for gas-fired instantaneous water heaters using RS 

2, 5 1 Means books, DOE technical support documents, and a consultant report prepared for this 

analysis.4 

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 

expense. 

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

configurations. The analysis assumes that 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, putting in place and setting up the 

new instantaneous water heater, adding a vent system, and removal/disposal and permit fees. The 

analysis for both new construction and replacements assumes Category I vertical venting using 

non-stainless steel vents. 

For 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 it 

applied to gas-fired storage water heaters (see section 8-A.2.4). 

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

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

and the required venting. The cost reflects Category III 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. 

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8-A.6 DIRECT HEATING EQUIPMENT 

DOE derived baseline installation costs for direct heating equipment (DHE) using the 

approach from the 1993 TSD.10 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. The average cost is $168 for adding an additional electrical outlet 

and $32.28 for grounding. See section 8-A.2.4 for cost calculation details. 

DOE added an additional installation cost for the design options requiring stainless steel 

venting (e.g. 83% gas room DHE efficiency level). This yields an average cost of $67. For gas 

hearth DHE at condensing efficiency level, DOE did not add any cost adder. DOE considered 

that the additional replacement installation cost is offset by the decreased installation costs for 

new owners and new construction. 

8-A.7 POOL HEATERS 

DOE derived installation cost data for the baseline pool heater using RS Means5 and 

information in a consultant report.11 The baseline unit represents a pool heater with a pilot light 

or electronic ignition. 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 set-up, connection and start-up fees. For the replacement applications, the 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 10% of the time the installation will 

require more labor due to a more complex installation. Tables 8-A.7.1 and 8-A.7.2 shows the low 

installation costs for new construction and replacement installations, which are applicable to 

90% of installations. 

Table 8-A.7.1 New Construction Costs (Low Cost, 90% of Installations) 

Description Crew 

Labor 

Hours Unit 

2008 Bare Costs (2008$) Total 

incl. 

Mat. Labor Total O&P 

Setting, connecting, start-up Q6 8 Ea. 0.00 417.49 417.49 $627.91 

Water Piping (Schedule 40, 

threaded, with couplings, and clevis 

hanger, 1" diameter) 

Q6 0.122 L.F. 1.09 6.36 7.44 $537.67 

Gas Piping 1" diameter (Schedule 

40, threaded, with couplings, and 

clevis type hangars, 10' O.C., black) 

Q6 0.128 L.F. 3.22 6.70 9.92 $1,361.76 

Connection to P-Trap PVC lines Q6 1 Ea. 35.00 52.19 87.19 $116.99 

Total 3.7 39.30 482.73 522.03 $2,644.32 

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Table 8-A.7.2 Replacement Costs (Low Cost, 90% of Installations)
 

Description Crew 

Labor 

Hours Unit 

2008 Bare Costs (2008$) Total 

incl. 

Mat. Labor Total O&P 

Trip Charge Q1 1 Ea. 0.00 49.88 49.88 $75.02 

Setting, connecting, start-up Q1 2 Ea. 0.00 99.76 99.76 $150.04 

Remove old pool heater Q1 1 Ea. 0.00 49.88 49.88 $75.02 

Connection to P-Trap PVC lines or 

redo condensate Q1 1 Ea. 35.00 49.88 84.88 $113.52 

Total 5 35 249.40 284.40 $413.61 

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

for adding an electrical line (115V) and a separate junction box (Table 8-A.7.3). These are 

needed since the pool heater requires lower amperage than the pool pump. 

Table 8-A.7.3 Electrical Outlet Adder 

Description Crew 

Labor 

Hours Unit 

2008 Bare Costs (2008$) Total 

incl. 

Mat. Labor Total O&P 

Motor Connections (Flexible conduit and 

fitting, 115 volt, 1 phase, up to 1 HP motor) 1 Elec 1.00 Ea. 9.00 54.07 63.07 $90.46 

For the condensing design, DOE added an incremental installation cost of $100 that 

includes the cost of the condensate drain piping that goes from the pool heater to a P-trap devicec 

11 located at the sewer line entrance.

8-A.8 RS MEANS 2008 REGIONAL LABOR COSTS 

DOE used regional labor costs to more accurately estimate installation costs by region. 

RS Means provides average national installation costs for different trade groups as shown in 

Table 8-A.8.1. Bare costs are given in RS Means, while labor costs including overhead and 

profit (O&P) are the bare costs multiplied by the RS Means markups by trade shown in Table 8­

A.8.1. 

Table 8-A.8.1 2008 RS Means National Average Labor Costs by Crew 

Crew Type Crew Description 

Laborers 

per Crew Cost per Labor-Hour 

Bare Costs Incl. O&P* 

2 Plum (Crew L-1) 

1 Elec 

Q1 

1 Carp 

2 Plumbers 

1 Electrician 

1 Plumber, 1 Plumber 

Apprentice 

1 Carpenter 

2 

1 

2 

1 

$46.70 $70.24 

$45.55 $67.87 

$42.03 $63.21 

$38.10 $59.28 

*Q&P includes markups in Table 8-A.2.2 

c 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. 

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Table 8-A.8.2 2008 RS Means Labor Costs Markups by Trade
 

Trade 

Workers 

Comp. 

Aver 

Fixed 

Overhead Overhead Profit Total 

Plumber 8.1% 16.3% 16.0% 10.0% 50.4% 

Electrician 6.7% 16.3% 16.0% 10.0% 49.0% 

Carpenter 18.3% 16.3% 11.0% 10.0% 55.6% 

RS Means also provides labor cost factors for 295 cities and towns in the U.S. To derive 

average labor cost values by State, DOE weighted the price factors by city or town population 

size using 2007 census data. Since RECS 2005 household location is identified by the nine 

census divisions and 4 large States, DOE then population weighted the State data using 2007 

Census data into the appropriate nine census divisions and 4 large States. Table 8-A.8.3 shows 

the final regional price factors used in the analysis. 

Table 8-A.8.3 Final Labor Cost Factors by Census Division and Four Large States 

Census Division 

and 4 large states Census Division Name States Labor Cost 

Factor 

New England Connecticut, Maine, Massachusetts, New 

1 Hampshire, Rhode Island, Vermont 1.19 

2 Middle Atlantic* New Jersey, Pennsylvania 1.28 

3 East North Central Indiana, Illinois, Michigan, Ohio, Wisconsin 

West North Central Iowa, Kansas, Minnesota, Missouri, Nebraska, 

1.12 

4 North Dakota, South Dakota 

South Atlantic** Delaware, District of Columbia, Georgia, 

Maryland, North Carolina, South Carolina, 

0.99 

5 Virginia, West Virginia 0.73 

6 East South Central Alabama, Kentucky, Mississippi, Tennessee 0.75 

7 West South Central*** Arkansas, Louisiana, Oklahoma 

Mountain Arizona, Colorado, Idaho, New Mexico, 

0.66 

8 Montana, Utah, Nevada, Wyoming 0.82 

9 Pacific**** Alaska, Hawaii, Oregon, Washington 1.08 

10 New York 1.66 

11 California 1.23 

12 Texas 0.66 

13 Florida 0.73 

* Includes New York, which is separated out as a large state. 

** Includes Florida, which is separated out as a large state. 

*** Includes Texas, which is separated out as a large state. 

**** Includes California, which is separated out as a large state. 

The distribution of each RECS 2005 product class sample is different, so the average 

labor cost weighted by RECS 2005 sample weights is different from the RS Means national 

average (i.e., labor cost factor of 1.00). Table 8-A.8.4 shows the fraction of households in each 

division and four large states each product class sample and the resulting average labor cost. 

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Table 8-A.8.4 Final Labor Cost Factors by Census Division and Four Large States
 

Census Division 

and 4 large states 

Labor 

Cost 

Factor 

Fraction of Households in RECS 2005 Sample 

GSWH ESWH OSWH GIWH PH WF FF RH Hearth 

1 1.19 3.6% 2.9% 44% 3.7% 4% 1.2% 0.6% 2.7% 1.0% 

2 1.28 8.3% 4.7% 24% 8.2% 6% 2.6% 2.8% 1.5% 5.3% 

3 1.12 20.2% 12.0% 0% 20.2% 13% 8.1% 8.6% 9.1% 17.2% 

4 0.99 9.1% 5.4% 0% 9.1% 2% 5.9% 5.2% 5.5% 9.6% 

5 0.73 7.9% 22.4% 2% 7.9% 10% 6.5% 7.0% 16.6% 12.9% 

6 0.75 3.7% 11.5% 0% 3.7% 3% 1.7% 1.9% 17.0% 9.3% 

7 0.66 4.1% 4.3% 0% 4.0% 0% 5.7% 6.1% 13.5% 0.0% 

8 0.82 9.4% 4.6% 0% 9.5% 7% 15.0% 12.8% 3.3% 14.5% 

9 1.08 2.7% 6.6% 0% 2.6% 3% 2.9% 3.1% 2.3% 9.8% 

10 1.66 4.8% 1.3% 31% 4.8% 5% 0.0% 0.0% 2.5% 1.2% 

11 1.23 17.4% 2.0% 0% 17.3% 20% 50.4% 51.9% 16.4% 12.3% 

12 0.66 7.6% 7.7% 0% 7.6% 12% 0.0% 0.0% 9.7% 4.5% 

13 0.73 1.3% 14.8% 0% 1.3% 13% 0.0% 0.0% 0.0% 2.3% 

Average Labor Cost Factor 1.04 0.87 1.35 1.04 1.00 1.07 1.07 1.07 0.90 

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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. 

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