How to Pick a Money-Saving Water Heater Replacement

A water heater is an important appliance that is just as essential as your stove or refrigerator. When yours is on the fritz, you'll need a water heater replacement, so make sure you've budgeted appropriately for a speedy repair. According to HomeAdvisor, the typical price range is $880-$1,769 for a water heater replacement installation. The final price tag could be very different depending on where you live and the tank you choose.

What to Do If You Need A Water Heater Replacement

Determine If You Need a Replacement ASAP

If your current water heater is over ten years old but still working, you should start saving for a replacement. A tank water heater typically lasts eight to 12 years, while a tankless heater can last 15 to 18 years. When it starts to be unreliable or finicky, it's likely on its last leg.

How will you know when it's time for a water heater replacement? You'll become aware that the water doesn't get nearly as hot or the water pressure isn't right. Some people notice a change in the smell or color of hot water in their tap. These are all signs that a water heater is nearing the end of its life expectancy.

Of course, you could call a specialist to do a repair. It's possible the tank needs cleaning, or you need a new thermostat. But if the heater is already well beyond its expected years, most people find a water heater replacement is more cost-effective than repairing an old one.

Find the Right Technician

Ask neighbors to recommend a reputable and reliable plumber or HVAC technician. Search online for a contractor in your zip code. Reach out to the available servicepeople and share a photo of the label on the outside of your heater.

The pros will be able to do some research before they even drop by your home; they'll likely know if parts for your appliance have been discontinued or are difficult to find. And they usually know if there's been a recall on faulty brands or models. This could be the simplest way to estimate costs.

Remember that your hot water heater could malfunction for several reasons: the water source, appliance, or a plumbing issue behind the walls. If you see leaks or dripping around the shower or sinks, the problem might require more than one fix. You may need both a plumber and an HVAC tech.

Ask the Right Questions

These are questions to ask the water heater replacement company.

• How long have you been in business? How long has the person who's doing my water heater replacement been working there?
• Is your company licensed, bonded, and insured?
• What are your operational hours? Is there an emergency line if something goes wrong overnight or on weekends?
• For my space, is there a more energy-efficient tank available to replace this one?
• Will you dispose of the old heater? Will I have to pay extra for that?
• Would it be easier/ less expensive if you told me the model to purchase, and I bought it myself and had it here for you to install? Are there any other parts or supplies I would have to buy?

Ask for a quote in writing to replace or repair the heater, separate from the cost of the new heater itself.

Decide If You're Going Tankless

When you inquire about water heater replacement costs, you must also factor in the long-term energy costs. The contractor will likely give you the option between a tank and a tankless water heater, so it's essential to know the difference.

A tank water heater comes with a container that stores a limited volume of heated water, generally 30-120 gallons. Even when you're not in the shower, water is heated and held in the tank until you need it. Most Americans use a tank water heater because it costs less, but these models may also drive up your energy bills.

On the other hand, the technology behind the tankless models allows for an endless supply of hot water. The U.S. Department of Energy website explains that "tankless water heaters, also known as demand-type or instantaneous water heaters, provide hot water only as it is needed... When a hot water faucet is turned on, cold water flows through a heat exchanger in the unit, and either a natural gas burner or an electric element heats the water. As a result, tankless water heaters deliver a constant supply of hot water." This is ideal for big families and multi-unit residences.

For those living on solar, there are two active solar water heating systems to consider for your home. The initial installation cost tends to be significantly higher than costs associated with a conventional tank heater, but over time, years of low energy bills make up the difference.

How to Save Money on This Big-Ticket Repair

There are three simple ways to avoid a costly and untimely bill.

• Identify minor problems early and don't put them off. Take note of signs of disintegration on the bottom of the tank, especially any rusting or leaking.
• Have a professional service on speed dial, preferably the one who did your water heater installation. After-hours calls for emergency repairs are costly and difficult to schedule, but some companies jump into action quickly for a loyal customer. (Pro tip: Ask if they can tell if your current heater is still under warranty. If so, follow up with the company to get the repair or water heater replacement costs reimbursed.)
• Ask your contractor if you have hard water. Mineral deposits can wreak havoc on your water heater, and consistent treatment can prolong the life of your current (or new) device.