How Much does it cost to Install a Water Heater?

If you are wondering how much the average homeowner can expect to pay for a new water heater in New Mexico, you’ve come to the right place. You can expect to pay anywhere from $2,500 to $10,000, depending on various factors. 

A water heater has become one of the most essential appliances in your home; for the most part, it is out of sight, out of mind but when it goes out, all you think about is a hot shower. Not to mention it can cause severe damage if things really go wrong and it starts to leak. That’s why it is good to know what kinds of water heaters there are, and what goes into the cost of a new one. There are a few things we are going to go over. What kinds of water heaters are there, tank vs tankless, and what fuel do they use: propane, electric, or natural gas? Finally, what else goes into the cost, like permits, and upgrades. 

Water Heater Costs at a Glance

Tank Gas Install	$2,500
Tankless Direct Replacement	$5,000-$7,000
Tankless Upgrade	$5,000-$7,000
Electric Tank	$2,700

*All of these prices are estimates and can vary

Different Kinds of Water Heaters

The most common types of water heaters are tank and tankless. Tank water heaters are just like they sound; they use a tank to hold and heat the water inside and keep it warm throughout the day. Most are only about 80% efficient. That means about 20% of the energy used to heat the water goes out through the venting. You can expect them to last anywhere from 10-15 years, depending on how hard your water is and if they are maintained each year.

Tankless water heater systems heat the water as you use it, giving you endless hot water. That means no more banging on the door when someone is in the shower for too long. The hot water can just keep on flowing. They are also about 33% more efficient than tank heaters, making them the most efficient water heater which saves $$$ over time.  Not to mention, they have a longer lifetime, increasing the savings even though they may cost more up front. 

Size of the Water Heater

The size of the water heater needed depends on the number of appliances in your home and the number of people in the house. For tank water heaters, the sizes may vary from 30 to 80 gallons. If you want to see what size water heater you need, don’t worry, we have a calculator for that. 

Then, for tankless water heaters, even though there is no tank limitation, the tankless heater needs to be able to heat and push enough hot water through the house. Don’t worry our plumbers can help you find the right size for your home. First, you need to know the max flow rate. This is added up by finding the number of showers and appliances you have. Next, we can help make sure that it can heat all that water up to the desired temp. Once we know these things, we can help make a recommendation. 

Different fuel types

Three different kinds of fuel are commonly used for water heaters: gas, electric, and propane. 

Gas: is the most common fuel here in New Mexico. It is cheap, which makes it easier on your wallet over the lifetime of your water heater. Most existing heaters are also gas, making replacement simpler without additional material or labor costs, especially for a tankless gas water heater.

Electric: Electrical water heaters use an element with an electrical current to heat the water. The up-front installation is cheaper, but you can pay more because electricity is generally more expensive than gas over the unit’s lifetime. We do not recommend tankless electric water heaters here in New Mexico. 

Propane: Propane is more expensive than gas or electricity. A propane water heater is commonly used in rural or remote areas, where a service tank is refilled and directly connected to the home. Due to the price of propane and the need for a service tank, propane also increases the cost of operation. 

Other aspects of price. 

Other than the price of the appliance itself or the fuel used inside, the cost of the installation can vary based on several factors. Are you upgrading? What kinds of permits are needed? Are there any specialty materials required for the installation? Is the water heater in a hard-to-reach spot? All these things can add to the cost of installation.

At a glance, other factors of total install price 

Category	Description	Estimated Range
Permits	Required municipal or state permits depending on job scope	$75 – $200
Code Upgrades	Includes venting, gas line, or water line modifications required for code compliance	$100 – $1,500
Optional Upgrades	Add-ons such as recirculation pumps, water heater blankets, or leak detectors	$100 – $1,000

*All of these are range estimates price may vary bases on situation. 

How long should it take

Nobody wants to wait too long for hot water, so we do the job as quickly as possible. A standard gas tank install can take as little as 4 hours, while a tankless upgrade in a difficult spot can take an entire day and sometimes (rarely 2). We will always keep you updated if anything goes wrong and the installation takes longer than expected.

We have been installing water heaters here at TLC for over 30 years. If you need an expert to help you make sure you have hot showers, clean dishes, and overall hot water, we are happy to help you out. Whether it’s a direct replacement or you want to go tankless, we are here for you. Schedule online here or call us at (505) 761-9644