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How much does it cost to have a gas water heater installed?

My 15+ year old water heater just started leaking and need to replace it. How much does a typical installation cost to replace a gas water heater?

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I recently had a new 40 gallon water heater installed, after my old gas water heater started leaking.

I first got an estimate from a reputable Heating company for $1149 to $1200. The water heater recommended was for a Rheem Professional Classic Series: Atmospheric 40 gallon short water heater that only had a 6 year warranty (Model # PROG40S-38N RH62)

I then decided I wanted a different water heater that was more efficient, with more features and a 12 year warranty sold at Home Depot (Rheem Performance Platinum 40 Gal. Short 12 Year 40,000 BTU ENERGY STAR Natural Gas Water Heater).

After evaluation, I ended up going with the In-Home Installation from Home Depot. They sent out a smaller Heating company that also had lots of positive reviews from customers, who did a decent job installing my water heater. They installed the water heater in just under 2 hours.

Here are the cost breakdowns, which I was able to see from the installer (Home Depot does not put these cost details on their Invoice):
- Reheem Water Heater (Model # XG40S12DM40U0) | Cost: $698 (didn't have water heater in stock at local store, so was more expensive)
- Delivery / Removal | Cost: $75
- Installation | Cost: $339
- 4" Vent upgrade | Cost: $125
Total Water Heater and Installation Cost: $1237
Energy Company Rebate: -$100
Total End Cost: $1137

I did buy an aluminum drain pan for my new water heater to sit on, which was around $10-$20 and was put in place by the guys who installed my new water heater.  My old water heater was just sitting on concrete ground, which is big reason why my old water heater starting leaking out the bottom. So hopefully, this drain pan will help preserve my new water heater for quite a bit longer.

My old water heater had 3" duct venting up to the ceiling in my basement, but due to new building codes, I needed 4" duct venting installed so that cost extra for the install.  If I tried to install everything myself, it might have cost me $100 to $200 in tools and supplies, and I wouldn't be eligible for the -$100 rebate. I also would have to pump out, and dispose of the old water heater (delivery and removal of tanks: tank weighs approx. 100lbs for 40 gal, 150lbs for 50 gal tank, which my installer said was the worst part of the job).  All in all, it may have cost me $200 more to have the new water heater professionally installed, the same day I contacted Home Depot.  So the hassle of doing it yourself, making multiple trips to HD for supplies, etc. is worth the price for the install.

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