A new water heater installation isn’t as inexpensive as replacing a faucet or toilet, however, it’s also not as “scary” as replacing something like a roof or AC system.
The cost to replace your hot water heater will vary, as you will have several options available. These will range from electric units, to gas units, as well as hybrid water heaters. These are very energy efficient, utilizing a heat pump which will dramatically lower monthly energy costs.
Generally speaking, the more energy efficient your new water heater is the more it will cost upfront while being recouped over time. The cost of a new water heater including installation can range from $1000 to as much as $2000 if gas line upgrades are needed. The size of the tank will also impact price, as a 60-70 gallon water heater will cost more than a 40-50 gallon unit.