Electric Water Heater Replacement Cost

Electric water heaters are simpler to install than gas units: there is no gas line or exhaust vent. Angi puts an electric tank replacement at $600 to $3,500 installed.

Costs at a glance

When electrical work is needed

A straight swap of the same size electric tank usually reuses the existing circuit. Upgrading to an electric tankless unit or adding a heater where none existed may need a new circuit or panel. Angi puts a new line and sub-panel at $500 to $1,000, with total wiring up to $2,300, and electricians at $50 to $130 per hour.

Operating cost and lifespan

HomeGuide's annual operating costs:

Angi lists electric tanks at 10 to 15 years, a little longer than gas tanks.

Switching to gas

Converting from electric to gas costs $400 to $2,000 or more (HomeGuide). Going the other way, gas to electric, costs $250 to $1,000 or more. See gas water heater replacement cost.

Repair first?

Electric water heaters often fail at a heating element or thermostat, which costs $100 to $350 to fix (HomeGuide). See water heater element replacement cost.

What the job includes

Replacing an electric tank water heater is mostly a swap: the installer shuts off power and water, drains the old tank, disconnects the plumbing and wiring, sets the new unit, reconnects everything and fills the tank before turning the power back on. Haul-away of the old tank is often included, but it is worth confirming.

What changes the price

• Tank size. A larger tank costs more and may not fit through doors or into the same closet.
• Efficiency. Standard electric resistance tanks are the cheapest to buy. Heat pump water heaters cost more up front but use far less electricity to run.
• Code updates. Older installs may need a new expansion tank, a drain pan, updated shut-off valves or a correctly sized relief valve line.
• Location. An attic or tight closet install takes longer than a garage replacement.
• Electrical work. A higher-wattage unit may need a bigger breaker or new wire.

Electric vs. gas

If you already have electric, staying electric avoids running a gas line and a vent. If you have gas available, a gas heater recovers faster, which matters for large households. A heat pump model is the most efficient electric option, but it needs space and airflow around it, so it is not a good fit for every closet.

Repair instead?

Electric heaters have few parts. A failed heating element or thermostat is usually an inexpensive repair. A leaking tank, however, cannot be fixed; once the tank itself leaks, it needs replacing.

Questions to ask

1. Does the price include removal of the old heater and a permit?
2. Will you add an expansion tank or drain pan if code requires it?
3. What warranty comes with the tank and with your labor?

In Texas

Many Texas homes put water heaters in the garage or the attic. Attic installs should have a drain pan with a line that carries water outside, because a leak there can damage the ceiling below.

A replacement day, step by step

Most straight swaps of an electric tank are done in a few hours. The installer shuts off the breaker, confirms the power is off with a tester, closes the cold water supply and drains the old tank through the drain valve. The water and electrical connections are disconnected and the old heater is carried out.

The new tank is set in place, often on a new drain pan, and leveled. New flexible connectors or hard piping connect the hot and cold lines, and a new temperature and pressure relief valve is fitted if one does not come installed, with its discharge pipe run to a safe location. The tank must be completely full of water before the power is turned back on. Powering an empty tank burns out the elements within seconds, which is one of the most common mistakes in DIY installs.

Finally, the installer restores power, sets the thermostats, checks every joint for leaks and confirms the tank is heating.

Choosing the replacement

Same size or bigger? If your family regularly runs out of hot water, a larger tank or a higher-recovery model is worth considering. If the old tank was enough, replacing like for like keeps the job simple.

Standard tank or heat pump? A heat pump water heater uses far less electricity than a standard electric tank, but it costs more up front, needs space and airflow around it, and works best in a garage or utility room that stays warm. Some utilities offer rebates on heat pump models, so ask the installer or your electric provider what applies.

Warranty length. Tank warranties vary by model. A longer warranty usually comes with better components, such as a thicker anode or better elements.

Getting rid of the old tank

Most installers haul away the old heater as part of the job. Some list disposal as a separate line. If you are comparing quotes, check that disposal is included so the comparison is fair.

Signs your tank is near the end

• Rusty or discolored hot water.
• Water pooling around the base.
• Popping or rumbling as sediment builds up.
• Running out of hot water much faster than before.

A leak from the tank itself cannot be repaired. Leaks from fittings or the relief valve often can.

Permits and code items

Many cities require a permit to replace a water heater, even a like-for-like swap. The inspection checks the relief valve and its discharge line, the electrical connection and the water connections. A licensed plumber usually pulls the permit as part of the job. If a quote is noticeably cheaper than the others, ask whether it includes the permit.

Sources

1. Angi: How Much Does Water Heater Replacement Cost? (updated Jul 20, 2026)
2. HomeGuide: How Much Does Water Heater Installation or Replacement Cost? (Jan 2, 2026)
3. HomeGuide: How Much Does a Tankless Water Heater Cost? (Jan 2, 2026)