Intro: How Much Does Home Depot Charge to Install a Water Heater?

Home Depot is among the largest home improvement and hardware stores in the United States. You likely know that the retailer has a large inventory of home improvement materials, but you may not know they also offer services like water heater installation and repair.

Water heaters need to be replaced every eight to ten years but can break earlier. Because of this fact, it is important to make sure that your water heater installation is not only affordable but also going to last as long as possible. Having an expert install your water heater can prove invaluable.

The following sections break down the cost of a Home Depot water heater installation from the materials down to the contractor.

How Much Does Home Depot Charge to Install a Water Heater?

The cost of installing a water heater through Home Depot will be $2,000 on average for a water heater tank and $3,500. On the low end, an installation will cost $1,200 and can be up to $5,000 on the high end, with these costs including the unit, labor, and permits.

Nationally, the cost of labor to install a water heater can range from $200-$1,000. Additionally, the water heater itself will cost between $330-$2,000. Together, the cost of installing a brand-new water heater will typically be around $600 – $3,000 dollars. Additionally, you will need to pay for a building permit, which will vary by locality.

Other home improvement retailers such as Lowe’s also offer installation services. For a basic installation, not including the cost of the unit, Lowe’s will charge between $275 – $600 for installation and delivery. With Lowe’s budget an additional $228 – $2,500 for the water heater itself. In total, a water heater installation through Lowe’s will cost between $500 – $3,100.

Given the range for this project, the next two sections examine what features contribute to the cost of installing a water heater.

What Features Affect’s the Cost Home Depot’s Water Heater Service?

There are many variables that account for the cost of installing a water heater. Primarily, there are four main considerations that will impact the cost of an installation job:

  1. Cost of the Unit
  2. Basic Installation
  3. Permit Charges
  4. Bringing the System Up to Code

In terms of the cost of a unit, a water heater can cost as low as $300 and as high as $2,000. The cost will depend on the size and type of water heater. For example, a large tank water heater will be more expensive, and tankless water heaters tend to be more expensive overall.

For larger families and households with 6 people, 55-gallon tanks are recommended while a smaller, 23 gallon tank can be used for couples. Tankless water heaters tend to be more expensive but are more energy-efficient over the long term. A Home Depot consultant can help you select the right water heater for your house.

For some installations, you will need a permit due to the electrical and plumbing work involved in a water heater installation. The cost of the permit will vary on the type of permit required and the city or town issuing the permit. Additionally, the contractor will need to ensure the installation is up to code.

In the next section, we will look at how the type of water heater will impact your short-term and long-term costs.

How Much Does Home Depot’s Competitors Charge to Install a Water Heater?

The key to any home improvement project is to shop around to get the best price possible. To do so, you will want to get quotes from multiple vendors. In the meantime, here is a breakdown of how much it will cost to have your water heater installed by various parties.

Cost of Water Heater Installation by Company

InstallerLow-EndAverageHigh-End
Home Depot$1,000$2,000$3,000
Lowe’s$500$1,150$1,800
Local Contractor$800$2,000$2,200
DIY$800$1,900$3,000

This table demonstrates that on average, the cost of an installation will fall between $1,000-$2,000 across all contractors. While it may be tempting to cut costs through DIY, installing a water heater involves electrical and plumbing work that may be dangerous. Additionally, having a properly installed water heater can save money in the long term by ensuring the job is done right.

To that end, Lowe’s and local contractors are generally cheaper than Home Depot, but ultimately you will want to ensure the job is done right. Be sure to properly vet your contractor to make sure the job is completed satisfactorily.  Beyond that, large companies like Lowe’s and Home Depot may have promotional rates that can save money – so be sure to get a quote.

How Does a Home Depot Water Heater Installation Work?

After setting up a free consultation to set up a quote and plan, the consultant will schedule the installation date. The installation will include the following features

  1. Delivery of new unit
  2. Disconnect and removal of old unit
  3. Set up the new unit
  4. Connect new heater and ensure it is up to code
  5. Leak and cycle testing
  6. Final Inspection
  7. Clean up of all debris and installation materials

Home Depot also offers same-day consultation and installation if you live within 30 miles of Home Depot. To schedule a same-day installation, you’ll need to call by 12 pm during the work week (Monday-Friday). The work completed by Home Depot comes with a three-year labor warranty.

How Much Does Home Depot Charge to Install a Water Heater?

On average, a water heater installation from Home Depot will cost $2,000. With a cheaper unit, the cost can be cut to $1,000, and on the flip side, a more expensive unit can bring the cost up to $3,000. These prices include labor and the unit itself, and Home Depot notably offers a satisfaction guarantee.

It may be tempting to take the cheapest up-front installation cost, yet ensuring the job is done right is safer and can save money over the long term. Shop around and get multiple quotes to ensure you get the best possible price in your local market.