Water Heater Replacement Cost:
How Much Does it Cost to Replace a Water Heater in California?
The water heater replacement cost in California ranges from affordable to expensive depending on several factors. Installing a new water heater requires specialized tools, equipment, and technical expertise. Labor costs reflect this complexity. Another factor affecting water heater replacement cost is California’s strict code requirements for proper installation. The cost of materials for a new unit has also increased in 2025.
Getting multiple quotes from licensed contractors helps you compare pricing and services. Ask about current promotions or financing options to make your replacement more affordable.
If you’re like most California homeowners, you take your water heater for granted until it breaks down. O’Grady Plumbing helps you avoid emergency scenarios by providing water heater replacement services at competitive prices. We offer a wide range of options to choose from, so you can find the perfect water heater for your home. We also offer flexible financing options to make your water heater replacement more affordable.
What Does it Cost to Replace a Water Heater in California?
Average costs for water heater replacement in California range from $900 to $4,500 depending on tank size, type, and installation complexity. Most homeowners spend around $2,400-$2,800 for a standard 50-gallon gas water heater replacement.
Need a water heater replaced today? Call O’Grady Plumbing at (415) 985-0155 for same-day service and a free estimate.
What Size and Type Options Are Available for Water Heater Replacement?
How much does it cost to replace a 40-gallon gas water heater?
Standard 40-gallon water heaters range in price from $400 to $1,800 for the equipment alone, or from $950 to $3,000 when you include installation costs in 2025. A 40-gallon water heater easily accommodates the demands of a two-person household and proves sufficient if you’re looking for a cost-effective option.
How much does it cost to replace a 50-gallon hot water heater?
Hot water heaters with a 50-gallon capacity work well for homes with moderate hot water needs, typically 3 to 5 occupants. Electricity, gas, or propane all serve as viable fuel sources for these tank-style heaters. Gas or propane models come in various efficiency ratings, which lower operating costs but increase initial purchase price. Your total expenses depend on performance level, fuel type, and installation location.
The cost of replacing a 50-gallon hot water heater ranges from $850 to $3,600 nationally in 2025, with most homeowners spending approximately $2,700 to replace a 50-gallon gas hot water heater with the same type. Replacing a 50-gallon electric hot water heater in a visible and accessible location costs around $900. A high-efficiency 50-gallon gas hot water heater replacement project with upgrades and challenging installation access can reach $4,800.
What is the cheapest way to replace a water heater?
A standard tank-style unit remains the least expensive option to install. With supplies and labor included, this type of water heater ranges between $750 and $2,900. Compared to tankless models, traditional tank heaters offer an economical way to get reliable hot water while staying within budget. A standard tank-style also typically includes longer warranty coverage, reflecting its proven durability. With proper maintenance, this heater lasts approximately 12-15 years. If you’re looking for the most cost-effective replacement option, a traditional tank-style water heater delivers solid performance at the best price point. [1]
When you replace water heating equipment in your home, getting the best value matters. Standard heaters cost less upfront, but evaluating long-term energy savings helps determine the true value of your investment. Whether you choose tank-style or tankless, understanding how much different types of heaters cost allows you to budget appropriately.
Factors to Consider for Replacing a Water Heater
Products
There are many types of water heaters available, each manufactured by different companies. For example, Rheem, Bosch, A.O. Smith, and Bradford White represent popular brands, and each comes in a different price range. The energy source significantly affects your price range—gas and electric water heaters vary substantially in both equipment and installation costs.
Lifespan
Every heater has a different lifespan. A tank-style hot water heater lasts 10 to 15 years on average, while a tankless model often exceeds 20 years with proper maintenance.
Maintenance
Hot water heater maintenance typically involves draining the tank regularly to clear sediment from the bottom. While homeowners can handle this as a DIY project, extensive maintenance or repairs require a professional, so factor in potential maintenance costs over the unit’s lifetime.
Mounting
The size of some hot water heaters requires floor mounting, meaning you need adequate floor space for installation. Labor costs for a water heater requiring mounting differ slightly from wall-mounted or compact units.
Piping
You may incur extra charges of between $10 and $13 per linear foot if you require additional plumbing to transport hot water from your heater throughout your home.
Permit
In most California locations, installing hot water heaters requires a permit. Always check with your plumber or local government for specific requirements, as this varies by city and county. Some insurance policies require proper permitting and professional installation to maintain coverage. Additionally, gas water heaters require proper vent installation to safely exhaust combustion gases. Confirm that your insurance provider approves any modifications before beginning work.
Carpentry Work
Carpentry work may be necessary for your water heater installation, such as removing or installing woodwork in your attic or utility closet to provide room for the heater. This increases both labor costs and project timeline.
Tank Removal and Relocation
Installations often include extra fees for removing and disposing of your old water tank before placing the new one. If you want a water heater moved or converted from one fuel type to another, costs vary substantially. A water heater relocation project ranges from $250 to $12,000 depending on complexity. Converting between fuel sources adds significant expense—changing from electric to gas requires new gas lines, increasing installation costs by $1,800 to $2,800 in 2025.
Materials
Water heater installation requires venting pipes, pressure valves, water and gas pipework, thread compound, solder, and other supplies. More complex installations need additional materials, affecting your total installation cost. The expansion tank represents another common expense. This tank accommodates water’s thermal expansion while reducing excessive water pressure. Expansion tanks range in price from $50 to $180 in 2025.
What is the average labor cost to replace an electric hot water heater?
Labor costs range from $200 to $1,200 or more, depending on the water heater type and size. The cost of replacing a 50-gallon hot water heater varies based on which heater type you choose. If you select a tankless model, expect to spend around $1,800 on the unit and installation. For a standard tank-style heater, you’ll pay between $700 and $1,200 for the unit itself, plus an additional $600-$800 for installation labor. The total unit cost varies based on efficiency rating and brand.
The cost of replacing a 40-gallon gas water heater runs lower than replacing a 50-gallon hot water heater. Tankless models are available for around $1,200, while standard tank-style heaters can be found for as little as $400. Installation costs remain similar to those for a 50-gallon hot water heater. [2]
If you have a tight budget, finding a used water heater for sale may be possible. However, remember that a used water heater may not have the same lifespan as a new unit and likely won’t be covered by a warranty. When shopping for a new water heater, compare the unit cost itself as well as installation labor. In some cases, purchasing a tankless unit and having it professionally installed may be more economical long-term. However, if you have the time and ability to install the unit yourself, you may save money on labor.
f you’re unsure which type of water heater works best for your home, or if you have questions about the installation process, contact a professional plumber. Call O’Grady Plumbing at (415) 985-0155 — we’re always ready to answer your questions and address your needs. We’ll help you select the perfect unit for your home and walk you through the installation process step-by-step.
How long does it take to install a water heater?
Installation time varies depending on your unit type, home size, and whether you’re handling it yourself. In most cases, professional installation takes no more than a few hours to complete. If you’re having trouble installing the unit yourself, contact a professional plumber. They’ll complete the job much quicker while ensuring everything is installed correctly. Our plumbers typically finish the job in two to three hours when there are no complications or obstacles.
You’ll need to make a few decisions to begin your water heater replacement process, whether you’re doing it proactively or you’re forced to act after extensive repairs and frustrating leaks. Here are the steps involved when purchasing and installing a new water heater with O’Grady Plumbing:
Consultation
Our service specialists will visit you to assess your current water heater condition and assist you in choosing the best water heater for your requirements and budget. This might involve replacing your outdated water heater with a similar conventional tank or choosing one of our tankless options. We also provide financing options.
Set a time for the appointment.
If it’s an emergency, we’ll schedule an appointment as quickly as possible. Even if it isn’t urgent, we recommend scheduling promptly to avoid any potentially expensive breakdown. You pick a date that works best for you once we finalize the installation agreement.
Clearing the area around the heater
To give our specialists easy access to the heater, clear the entire area of any boxes or other objects that may be nearby.
Taking Out The Old Heater
Removing an old water heater involves several steps, similar to installation. We empty the tank, disconnect the electricity and gas, then remove it. Because of this process’s complexity, our trained professionals handle everything completely.
Installation
The time required depends on the unit’s location and accessibility. We bring the new heater inside your house and move it into the proper location. An electrical or gas source must be connected to the tank. Due to extra venting and safety concerns, gas heaters typically take a bit longer. The plumber checks everything and makes any necessary adjustments once installation is finished and the tank is full.
How much does it cost to replace a tank water heater with a tankless one?
The cost of replacing a tank water heater with a tankless model varies depending on unit size, type, and installation complexity. Generally, expect to pay somewhere in the range of $2,400 to $4,200 for the entire project in 2025. This includes the unit cost itself as well as all necessary installation costs. If you have a particularly complex installation, or if you need to purchase additional hardware to accommodate the new unit, your total costs could be higher. However, in most cases, the savings you’ll enjoy from having a tankless water heater more than offset the initial investment.
One of the main benefits of tankless water heaters is their superior energy efficiency compared to traditional storage tank water heaters. Tankless water heaters only heat water when you need it, rather than keeping a large tank of hot water on standby at all times. This leads to significant savings on your energy bills while reducing your carbon footprint.
Another benefit of tankless water heaters is their much longer lifespan than traditional storage tank water heaters. With no internal parts that can rust or corrode over time, and without the thermal stresses of storage tank water heaters, tankless models can last 20+ years.
If you’re considering switching to a tankless water heater, consult with a qualified plumbing or HVAC professional to confirm your home’s electrical and plumbing systems are compatible with this type of water heater. O’Grady Plumbing offers a free consultation—call us at (415) 985-0155.
Why Choose Us?
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- Full-service plumbing company serving California for 25+ years
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- Services range from simple repairs to complete system replacements
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✓ Reliable Service
- Licensed and insured company
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- 24/7 emergency service available
- Always arrive on time for scheduled appointments
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✓ Competitive Prices
- Transparent, competitive pricing for all services
- Free estimates for any job, big or small
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✓ Experienced Professionals
- 25+ years serving California homeowners
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O’Grady Plumbing Services is your best choice for water heater replacement in California. We offer quality workmanship, affordable prices, and a 100% satisfaction guarantee.
Ready to Replace Your Water Heater? Contact O’Grady Plumbing Today
Don’t wait until your water heater fails and leaves you without hot water. Whether you need emergency replacement or want to proactively upgrade to a more efficient model, O’Grady Plumbing has you covered.
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Frequently Asked Questions About Water Heater Replacement Costs
How much does it cost to replace a water heater in California?
Water heater replacement in California costs between $900 and $4,500 in 2025, with most homeowners spending $2,400-$2,800. Your final cost depends on tank size, fuel type, efficiency rating, and installation complexity. Call O’Grady Plumbing at (415) 985-0155 for a free estimate.
How much does it cost to put in a 40-gallon water heater?
Standard 40-gallon water heaters range in price from $400 to $1,800 for the equipment alone. When you include installation costs, the total price typically falls between $950 and $3,000 in 2025. A 40-gallon water heater is usually sufficient for a two-person household and can be a cost-effective option for those on a budget.
Can I replace my 40-gallon water heater with a tankless water heater?
Yes, you can replace your 40-gallon tank with a tankless model for $2,400 to $4,200. Tankless heaters are more energy-efficient and last longer than traditional tanks. Consult with a qualified plumbing professional to confirm your home’s systems are compatible.
Why is installing a water heater so expensive?
Water heater installation may feel expensive until you consider that costs reflect complex work requiring specialized tools, technical expertise, and strict code compliance. Materials including the unit itself, expansion tanks, and connection supplies add up quickly. Additional expenses include mounting, piping, tank removal, and potential carpentry work.
How much does it cost to replace a 50-gallon water heater?
Replacing a 50-gallon hot water heater typically costs $850 to $3,600 in 2025. Most customers spend around $2,700 for a gas model. Electric models in accessible locations cost approximately $900, while high-efficiency gas models in difficult locations can reach $4,800.
How long does it take a plumber to replace a water heater?
Professional plumbers typically complete water heater installation in two to three hours without complications. The process includes removing your old heater, positioning the new unit, connecting electrical or gas sources, and making final adjustments. Complex installations may require additional time.
What is the life expectancy of a water heater?
The lifespan of a water heater varies by type. A traditional tank-style hot water heater typically lasts 10 to 15 years with proper maintenance. Tankless water heaters generally have a longer lifespan, often exceeding 20 years. Regular maintenance, such as draining the tank to clear sediment, can help extend the life of your water heater.
Should I get a 40-gallon water heater or a 50-gallon water heater?
Choose a 40-gallon tank for 1-2 person households and a 50-gallon tank for 3-5 people. Consider your daily routines and whether multiple hot water activities occur simultaneously. If you consistently run out of hot water, size up. Have a professional assess your specific needs.
References
- How Much Does It Cost to Repair or Replace a Water Heater In California? https://www.homeserve.com/en-us/blog/cost-guide/california-water-heater-costs/
- How Much Does Water Heater Installation And Replacement Cost? https://www.forbes.com/home-improvement/plumbing/water-heater-installation-replacement-cost/
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How much does it cost to replace a 50-gallon water heater?
The cost of replacing a 50-gallon hot water heater typically ranges from $850 to $3,600 nationally in 2025. Most customers spend around $2,700 to replace a 50-gallon gas hot water heater with the same type. For a 50-gallon electric hot water heater in an accessible location, you're looking at approximately $900. If you want a high-efficiency 50-gallon gas model with upgrades installed in a difficult-to-access location, costs can reach up to $4,800.
What is the life expectancy of a water heater?
The lifespan of a water heater varies by type. A traditional tank-style hot water heater typically lasts 10 to 15 years with proper maintenance. Tankless water heaters generally have a longer lifespan, often exceeding 20 years. Regular maintenance, such as draining the tank to clear sediment, can help extend the life of your water heater.
Should I get a 40-gallon water heater or a 50-gallon water heater?
This decision depends primarily on your household size and hot water needs. Generally, a 40-gallon tank works well for households with 1-2 people and is more cost-effective and energy-efficient for smaller families. A 50-gallon tank is better suited for households with 3-5 people where multiple hot water activities might occur simultaneously. Consider your daily routines—if family members take consecutive showers while running the dishwasher or washing machine, the larger tank would be beneficial. Also consider physical space constraints and energy costs. If you're consistently running out of hot water with your current tank, sizing up is usually wise. For the most accurate recommendation, have a plumbing professional assess your specific hot water demands.
How much does it cost to put in a 40-gallon water heater?
Standard 40-gallon water heaters range in price from $400 to $1,800 for the equipment alone. When you include installation costs, the total price typically falls between $950 and $3,000 in 2025. A 40-gallon water heater is usually sufficient for a two-person household and can be a cost-effective option for those on a budget.
How long does it take a plumber to replace a water heater?
The installation time varies depending on the type of unit, the size of your home, and any complications that arise. Generally, professional plumbers can complete a water heater installation in two to three hours if there are no problems or obstacles. The process includes consultation, removing the old heater, and installing the new one, which involves connecting it to electrical or gas sources and making necessary adjustments.
Why is installing a water heater so expensive?
Water heater installation is expensive due to several factors. The process is complex and requires special tools and equipment. Labor costs are high because of the technical expertise needed. California has numerous code requirements that must be met for proper installation. Additionally, the cost of materials, including the water heater itself, can be substantial. Other factors that affect cost include mounting requirements, piping needs, tank removal, potential carpentry work, and the possible need for an expansion tank, which ranges from $50 to $180.
Can I replace my 40-gallon water heater with a tankless water heater?
Yes, you can replace your 40-gallon tank water heater with a tankless model. The cost typically ranges from $2,400 to $4,200 for the entire project, including the unit and installation. Tankless water heaters are more energy-efficient because they only heat water when needed, which can lead to significant savings on energy bills. They also tend to have a longer lifespan than traditional tank water heaters. However, consult with a qualified plumbing professional to ensure your home's electrical and plumbing systems are compatible with a tankless water heater.