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Writer's pictureYeung Kay

Cost Guide of Water Heater Installation in Toronto

Updated: Dec 20, 2023

The average cost for installing a new water heater in the U.S. is approximately $870, with most homeowners spending between $690 and $1,100. High-end installations can reach about $1,200. The total cost varies depending on factors such as the heater type and size, and the energy source it uses. 

Types of Water Heaters and Installation Costs: 

  • Tank Water Heaters: $600 - $1,100 

  • Tankless Water Heaters: $900 - $1,200 

Energy Sources for Water Heaters: 

  • Electric Water Heater: $600 - $1,200 

  • Gas Water Heater: $700 - $1,100 

  • Solar-Powered Water Heater: Generally more expensive, but can lead to long-term energy savings. 



Factors Influencing Cost: 

  • Heater Size: Larger heaters (e.g., 50-gallon tanks) cost more than smaller ones. 

  • Type of System: Tankless systems typically cost more than tank systems. 

  • Energy Source: Gas heaters can handle high-demand use but may have higher installation costs than electric heaters. Solar-powered heaters have higher upfront costs but are more energy-efficient. 

Considerations: 

  • Household Size: Larger households generally require larger water heaters. 

  • Usage Patterns: High-demand households benefit from larger tank water heaters or gas-powered systems. 

  • Energy Efficiency: Solar-powered and electric tankless water heaters are more energy-efficient and can lead to long-term savings. 

  • Installation Complexity: Tankless systems may involve more complex installation processes, impacting labor costs. 

Maintenance and Longevity: 

  • Regular maintenance can extend the lifespan of the heater and ensure efficient operation. 

  • Tank water heaters generally have a shorter lifespan compared to tankless models. 

When planning for a new water heater, it's important to consider both the initial installation costs and the long-term operating costs. Consulting with a professional installer can provide a clearer understanding of the best options for your specific needs and household. 

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