Labor Cost to Install Water Heater in 2024

How Much is The Labor to Install a Hot Water Heater? The average labor cost is between $40 and $150 per hour, with an hourly rate of $95 on average. However, the labor cost to install a water heater varies greatly depending on factors like size and type.

Like a traditional tank, some water heaters can be installed in a few hours and cost between $150 and $500. But, solar or indirect water heaters take an entire day with an installation cost of up to $3,000.

Labor Cost to Install Water Heater by Type

Below are the estimated labor costs for different types of heaters.

TypeEstimated Labor CostsTotal Costs
Tank$140 – $400$450 – $2,000
Tankless$400 – $1,200$750 – $2,800
Hybrid$300 – $900$1,200 – $3,500
Indirect$1,200 – $3,000$2,000 – $6,000

1. Tank Water Heater Installation Cost

These traditional water heaters are relatively simple to set up. The water supply, water output, and energy source are linked to the tank, making it ready to install at the minimum cost.

Although these models have a low installation cost, they may be increased if your gas line or electric source needs to be changed to connect the heater.

The cost of installing a tank water heater ranges from $140 to 400, with a total cost between $450 and $2,000.

2. Tankless Water Heater Installation Cost

Tankless water heaters are perfect for compact spaces while being energy and water-efficient.

However, the installation of this type can be costly and complex compared to tank heaters. This type may require an additional gas line or energy connection, ultimately increasing the installation cost.

The cost of tankless water heaters ranges from $400 to $1,200, with an overall cost between $750 and $2,800.

3. Hybrid Water Heater Installation Cost

The hybrid units are large, which makes the installation cost expensive. Along with the other types, a hybrid water heater’s cost is also partly dependent on the gas line or electric source’s viability to connect with the heaters.

If your connections are in the right place, you will save a decent amount of labor costs.

Furthermore, these units occupy more space than the traditional heaters and are difficult to move.

So, you need to determine the right place before installation to avoid extra costs. The estimated labor cost of these units is between $300 and $900.

4. Indirect Hot Water Heater Installation Costs

The indirect water heaters have the most expensive labor cost because of their size and complex setup methods.

Since these units don’t have their energy sources, they depend on the boiler or furnace to heat your water.

Hence, the furnace or boiler must be connected to the heater during installation.

Also, the cost depends on the distance between the hot water tank and the heater. Therefore, the estimated labor cost ranges from $1,200 to $$3,000.

Labor Cost to Install Water Heater

Labor Costs to Install a Water Heater by Energy Source

In terms of energy sources, there are three types: electric, gas, and solar. All of them have different labor costs to install a water heater.

However, electric units cost the least to install, whereas solar units are costly to set up. The following table shows the average labor cost by energy source.

Energy SourceEstimated Labor CostTotal Cost
Electric$140 – $900$400 – $4,000
Gas$400 – $1,300$650 – $4,800
Solar$1,200 – $3,000$2,000 – $6,000


The size and type of water heater significantly impact the installation labor cost and the total price of a new water heater. Traditional tank models are less costly because of lower installation costs.

On the contrary, if you want to buy a solar or indirect water heater, you’ll have to pay an extra $3,000 in installation charges.

Buying from a reliable brand can solve hundreds of problems. Before making a purchase, you need to determine the worst water heater brands to avoid and their expected lifespan.

Steven Settles Author

Steven Settles is an ISCET-certified master in appliance repair. He has aced the National Appliance Service Technician Certification Exam, showcasing his exceptional diagnostic and repair skills. With an in-depth understanding of the latest repair technologies and a keen eye on evolving industry standards, Steven is a go-to expert for any appliance issue.

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