The price for replacing a hot water heater is actually pretty comparable to the price of a new installation. There may be a slight difference in the labor required for each of the jobs, but you can expect the range of replacing a hot water heater to be close to the overall cost of installation. Most people will spend between $811 and $1,566 to replace their hot water heater. Keep in mind that this applies to more traditional hot water heating systems and not to more expensive solar heating systems.