Water heater replacement costs vary based on several factors, including what type you need and how big it is. In this guide, we will break down the costs associated with different types of water heaters so you can make an informed decision based on your needs and budget.
Get an instant, vendor-neutral estimate of Energy Efficient Water Heater options and costs in your zip code. Our cost guide has been updated for 2026 to reflect current fair market wages and material option costs for Energy Efficient Water Heaters.

Learn the average cost to replace a water heater, key pricing factors, and tips to save money. Compare tank vs tankless replacement costs before you decide.

Moving forward, it's essential to keep these visual contexts in mind when discussing Energy Efficient Water Heater Replacement Costs.
Total costs depend on unit type, capacity, fuel source, installation complexity, and regional labor rates, which commonly range from $45 to $150 per hour.
The cost to install an energy-efficient tankless water heater is $1,400 to $5,600. Water heater replacement costs depend on the heater type and size, fuel type, and if any plumbing or electrical upgrades are required.