Cost to Install a Water Heater in Colorado

In the chilly winters of Colorado, your water heater becomes an indispensable ally, ensuring you have warm water for showers, laundry, and more. Yet, like all appliances, water heaters have a finite service life — typically ranging from 6 to 20 years. This variance largely depends on the unit’s maintenance, build quality, and the type of heater. As such, many Colorado homeowners will find themselves needing a new water heater at some point.

The cost of installing a new water heater in Colorado can vary significantly, influenced by several key factors:

• Type of water heater
• Size and capacity
• Energy efficiency
• Installation complexity
• Labor costs

Given the complexity and potential safety risks involved, it’s wise to consult a licensed professional to find the most suitable and cost-effective water heater for your home. They can provide a tailored estimate that considers your unique needs and local conditions.

Type of Water Heater

One of the biggest factors determining the cost of a new water heater installation is the type of unit you pick. Generally speaking, a tankless water heater is more expensive than one that uses a tank. However, tankless water heaters tend to be more energy efficient and take up less space while providing near-instant access to unlimited hot water. In the long term, the tankless system usually costs less due to savings in energy bills.

A tank water heater is often easier to install and costs less to purchase, reducing the upfront installation cost.

Size and Capacity

How much a water heater costs to install depends a lot on its size and capacity. Generally speaking, tank water heaters with larger capacities are more expensive than their smaller counterparts.

Though tankless systems don’t have a tank to measure, they still have sizes in terms of how much they can output within a set period. Tankless water heaters with higher flow rates can keep up with greater demands for hot water. For example, if you intend to run laundry and the dishwasher while someone is showering, you’ll need a higher flow rate.

Before choosing a water heater, it’s a good idea to discuss your usage with a trained plumber to determine the correct size unit. After all, if you choose a unit that’s too small, you may end up contemplating whether to raise costs further by getting a larger one or whether you’re stuck adjusting to your newfound hot water limitations.

Energy Efficiency

Typically, the cost to install a high-efficiency water heater is higher than that of a less efficient unit. However, in the long run, a more efficient unit may be more affordable, as you may see significant savings on your power bill with a more efficient water heater.

Water heaters are rated for efficiency with the Uniform Energy Factor (UEF) rating. A higher UEF rating means the unit is more efficient. Most range from 0.64 to 2.0.

Installation Complexity

Time is money. A more complex job that requires more extensive work and longer hours will naturally cost more than one that can be completed relatively quickly.

Keep in mind that installation isn’t simply hooking a tank up to water lines. Sometimes, the fittings are worn out or incompatible with the new tank, requiring additional labor. Likewise, gas-powered water heaters are more complex to install than electric ones.

The cost of installing a tankless water heater is usually higher because of the complexity. Since there’s no tank, these water heaters are often mounted onto the wall. Further, a gas tankless water heater may require installing larger gas lines to support it. Any extra modifications needed to replace a tankless water heater can add up.

Labor Costs

Labor costs can vary a lot based on the plumber you hire. Some charge more per hour or per job due to their years of experience. While you may be able to find lower labor costs from another company, you also get what you pay for. If a company is charging a higher amount, they likely have the skills to warrant the cost and you have a better chance of having your water heater installed properly. This is especially true with more complex systems, like those running on gas. More experienced electricians are less likely to make mistakes that can cost you in the long run.