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How Much Does Home Depot Charge to Install a Water Heater? Price, Signs & FAQs

Water heater Pump

Not only does Home Depot sell high-quality water heaters, but they also provide qualified contractor installation of the heaters. And the best part about it is the service starts before you even make the purchase, because they send a licensed installer to help you choose the best replacement for your water heater.

In addition to going over the pricing of a Home Depot water heater installation, we’ll talk about a few of the perks of having them do it and a few tips on taking care of your new water heater.

divider 7 Signs You Need to Replace Your Water Heater

Unfortunately, water heaters are one of those things that eventually need replacement. If you’re a homeowner, this expense falls on you, so it’s good to be prepared for the added costs.

One of the best ways to save money is to know the signs your water heater is failing before it fails. This could potentially save you hundreds or thousands of dollars in damage if the bottom rusts out, for example.

These are a few of the signs that it might be time to explore getting a new one:
  • Its age is a key indicator—typically, water heaters over 10 years are on their last leg
  • Leaks on the fittings or the bottom anywhere
  • Water is no longer clear—often, it becomes cloudy or rust-colored
  • More efficient models are available—especially applicable if yours is 10 years or older
  • Water isn’t heating as fast as it used to—or not at all.

How Much Does Home Depot Charge for Installation?

There is no standard price because several things contribute to different costs. One of the biggest things that change the price is the type of heater being installed. So, we’ll look at the average prices for a few different types.

Tank Water Heater

A tank water heater is the cheapest option available for these appliances. Typically the price for installation ranges from $1,300 to $2,000. This includes a basic water heater, materials, and time.

If you go with a bigger or smaller tank water heater or one that is ENERGY STAR rated, the price may be higher or lower. Also, if extra repairs are needed before the new water heater can be installed, that will add to the overall cost.

Tankless Water Heater

Tankless water heaters are great because there is no wait for the hot water. Keep in mind that they typically cost more to install upfront. However, the Department of Energy estimates that if you use less than 41 gallons of water daily, you’ll save 24% to 34% on your monthly energy bill.

The average price for a tankless water heater is $1,200 to $5,000. You’ll be at the lower end if you’re replacing an existing tankless water heater. But if you’re changing the location or switching from a tank water heater, the cost will be in the $5,000 neighborhood.

There are more components to a tankless water heater, like different plumbing and fuel sources, so that’s where the extra cost comes from.

tankless water heater in the wall
Image Credit: Volodymyr Shtun, Shutterstock

What is Home Depot’s Installation Process?

The process is incredibly simple. Rather than deciding on a water heater, finding a contractor, and arranging all the details, you can contact your local Home Depot, and they take care of everything.

Once you contact them, they will send out a licensed installer to look at your existing water tank. This professional will help you decide on the best water heater for your needs.

Then you’ll book a time with Home Depot to have the water heater installed. They only use qualified professionals who’ve received background checks and are licensed to perform the installation.

After the water heater is installed, your installer will ensure that you know everything there is to know about your new water heater as far as its features and maintenance go. They’ll also ensure that everything is working correctly.

Things to Consider in a New Water Heater

Purchasing and having a water heater installed is not a cheap process. You certainly don’t want to have to repeat it right away. So, it’s important to consider your options before taking the leap.

The nice thing about having a licensed installer sent from Home Depot is that they can walk you through all these considerations and give you any other information you need to make an informed decision.

tankless water heater
Image Credit: Narah, Shutterstock

Tankless or Tank Water Heater

There is usually a significant upfront cost between tankless or tank water heaters. So, if the initial cost is a big factor, then you’ll probably want to consider a traditional tank water heater.

On the other hand, if you have the extra budget upfront. A tankless water heater is more efficient and provides a more reliable source of hot water. Say goodbye to running out of hot water halfway through a shower.

Gas or Electric

The power source is another big consideration. Which one is cheaper depends on your home. For example, a gas water heater is much more cost-efficient to run, but it needs a gas line. This is a significant extra cost if you don’t already have a gas line run where you’re installing the heater.

On the other hand, an electric water heater is typically a bit cheaper and doesn’t take much extra to install. However, they are not as efficient in the long term.


We’ve gathered that water heaters aren’t cheap. And if something goes wrong, the last thing you want is to pay out of pocket for repairs or replacement. So, the length and quality of the warranty are important factors to consider.

In addition to the manufacturer warranty, most water heaters bought from Home Depot can be purchased with additional coverage supplied by the store. This is typically reasonably priced and worth it in most cases.

Condensing Water Heater_shutterstock_Alhim
Image Credit By: Alhim, shutterstock

Construction Permits

Every city governs itself when it comes to permits. In most cases, if you’re hiring a professional installer, you won’t have to worry about this because they take care of it. However, it’s worth considering how the permit will affect the cost.

FAQ: Cost to Install Water Heaters At Home Depot

Does insurance cover a water heater replacement?

Typically homeowner insurance doesn’t cover a water heater replacement. However, you’d have to refer to your particular policy because there may be circumstances in which it’s covered.

Is it actually a professional that installs water heaters for Home Depot?

Each contractor that installs any product on behalf of Home Depot is subjected to criminal record checks to ensure the safety of their customers. Also, they are licensed and qualified to be performing whichever installation they are doing.

Water Heater
Image Credit: neotemlpars, shutterstock

How long will it take to install the new water heater?

There is not really a concrete answer for timing because anything construction-related has the potential for unforeseen things coming up. However, most experienced installers can have a new heater up and running in 2–3 hours if everything goes exactly as planned.

divider 7 Closing Thoughts

Getting a new water heater isn’t cheap. But Home Depot offers some incredible deals on new heaters and offers the convenience of affordable installation by a professional. The time savings alone help to add because you don’t have to worry about tracking down a contractor yourself.

You might also be interested: How Much Does Home Depot Charge to Install a Door?

Featured Image Credit: akiragiulia, Pixabay


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