How Much Does a Tank Water Heater Installation Cost in Denver?

Homeowners in Colorado looking to install a traditional tank water heater can expect the installation cost to vary.

The actual price will depend on 2 main factors:

1. The water heater unit
2. The labor required to install the unit

Let’s dive a bit deeper into both of these price factors so that you’re prepared for your water heater installation bill.

Price factor #1: The water heater unit itself

When choosing a water heater, you’ll first want to determine:

• What size/capacity you need
• Which kind of water heater you want
• The efficiency rating you want

Let’s take a look at how these water heater features affect pricing…

Water heater size/capacity

A water heater’s size/capacity is measured by the amount of gallons the tank can hold when full.

To determine how many gallons of hot water your water heater should hold, follow our general guidelines in the chart below:

Type of water heater (electric vs gas)

Typically, a gas water heater costs more to install than an electric water heater.

However, it’s important to remember that gas water heaters will offer lower monthly energy bills compared to an electric water heater. So, homeowners will usually opt for the higher upfront cost of a gas water heater in exchange for its lifetime savings.

To learn more, check out our blog, “Are Gas Water Heaters Worth It in Denver?”.

Water heater efficiency

The higher a water heater’s efficiency rating, the more expensive it will be.

You see, every water heater has an “EF” (Energy Factor) rating that determines how efficient the unit is. These EF ratings can be anywhere from 0.50 to 0.80. We suggest that you find a unit with an EF rating that’s at least 0.60 or higher.

Price factor #2: The labor

The bulk of the price you’ll pay comes from the labor required to install your water heater.

2 factors that affect your labor costs include:

• Time and effort required to install the unit
• The quality of the contractor you hire

Let’s take a closer look…

Time and effort required

The longer it takes and the more effort that’s involved in the installation, the higher the overall price.

Some issues that could increase the amount of time/effort of a water heater installation include:

• Switching from an electric water heater to a gas water heater
• A water heater that’s difficult to access (tight enclosure)
• Removing and disposing of the old water heater
• Upgrading/replacing old water heater pipes

Quality of the contractor

As with most things in life, you get what you pay for when it comes to your water heater installation. So, if you choose to go with a contractor who offers surprisingly low prices, be prepared for a shoddy installation job that will cost you more in future repairs.

Higher quality plumbers typically charge more to install a water heater, but they’ll often get the job done correctly and quickly—the first time.

Not sure how to “vet” a potential water heater installer? Start by making sure they:

• Are licensed and insured in the state of Denver. Not sure if a professional is actually licensed and insured? Just plug in their license information here to find out if they’re “legit” or not.
• Have been in business for at least 10 years. Make sure the company you hire is still going to exist in the future in case you need repairs.
• Operates out of a physical location—not a van.
• Can offer a free estimate—in writing—before any work is done. If the contractor can’t offer a free estimate beforehand, chances are, you’re in for a nasty surprise once the bill comes. So, make sure they put that estimate in writing so that you know they’ll stick to that price no matter what.
• Has experience in water heater installations and repairs.
• Has good reviews on legitimate review sites such as Yelp, Google+ and BBB.

Want more tips on finding a plumber? Check out our full blog, “How to Find the Best Plumber in Denver, CO”.

We offer fair estimates in writing before we do any work. And, if you choose us, we can usually install your gas or electric water heater that same day!