Start here

Quick, low-risk steps

  1. Gather your current water heater model, fuel type, and age.
  2. List your household's simultaneous hot-water needs.
  3. Research local energy rates and available rebates.
  4. Use the worksheet to compare equipment, installation, and operating costs.
  5. Get at least three quotes from licensed professionals.

How to Use This Cost Comparer

This tool is a private checklist you fill out on your own. It helps you think through the major cost factors for different water heater types, such as tank, tankless, and heat pump models. The worksheet does not calculate a final number because your actual costs depend on local labor rates, permit fees, and site conditions.

Start by entering your current water heater details and your household's hot-water needs. Then, research local energy prices and any available rebates. As you get quotes, you can compare them side by side using the same categories.

  • Record your current water heater's fuel type, capacity, and age.
  • List all simultaneous hot-water uses (showers, dishwasher, laundry).
  • Check ENERGY STAR resources for heat pump water heater considerations.
  • Contact your utility company for current electric and gas rates.
  • Look up local rebates and tax credits for efficient models.

Upfront Cost Factors to Compare

Upfront costs include the equipment itself, installation labor, and any necessary upgrades to your home's electrical, gas, or venting systems. A heat pump water heater may need a dedicated circuit or a condensate drain. A tankless unit might require larger gas lines or a new vent.

Permits and inspections are another upfront cost. In Denver, requirements vary by exact jurisdiction. Always ask your contractor which permits are needed and whether they are included in the quote.

  • Equipment price for each model you are considering.
  • Installation labor, including any subcontractors.
  • Electrical or gas line upgrades required.
  • Venting or condensate drain modifications.
  • Permit and inspection fees.

Operating Cost and Efficiency Considerations

Operating costs depend on your local energy rates and the water heater's efficiency. Heat pump water heaters can be more efficient than standard electric models, but site conditions like ambient air temperature and space requirements matter. ENERGY STAR notes that savings depend on your current water heater type and local rates.

To estimate operating costs, you need to know your household's hot-water usage and the unit's energy factor or uniform energy factor. Your contractor can help you calculate this based on your specific situation.

  • Compare energy factors or uniform energy factors between models.
  • Check your electric and gas rates per therm or kilowatt-hour.
  • Consider the impact of your usage patterns on efficiency.
  • Ask about maintenance costs for each type.
  • Factor in the expected lifespan of each model.

Getting Accurate Quotes

Once you have completed the worksheet, share it with at least three licensed plumbers. Ask them to provide itemized quotes that break down the costs using the same categories. This makes it easier to compare apples to apples.

Be sure to ask about warranties, both for the equipment and the labor. A longer warranty might reduce future repair costs. Also, confirm that the quote includes removal and disposal of your old water heater.

  • Request itemized quotes with the same cost categories.
  • Ask about equipment and labor warranties.
  • Confirm removal and disposal of the old unit is included.
  • Verify that the contractor will handle permits and inspections.
  • Check that the quote covers all necessary upgrades.

Private worksheet

Water Heater Cost Comparison Tool: private worksheet

Check items as you confirm them. Your selections and notes stay in this browser and are not submitted to us. This worksheet does not diagnose the problem or replace an on-site professional.

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Items to confirm

Common questions

What homeowners ask next

Does this tool give me an exact cost?

No. It is a worksheet to help you organize cost factors. Actual costs depend on local rates, site conditions, and contractor pricing.

Can I install a water heater myself to save money?

We do not recommend DIY installation. Improper installation can be dangerous and may void warranties. Always use a licensed professional.

How do I find local rebates?

Check with your utility company and the ENERGY STAR website. Your contractor may also know about current incentives.

Evidence

Sources used for this guide

Research checked July 31, 2026

Optional next step

Need an on-site professional?

Use the guide and worksheet first so you can describe the situation and compare the full scope. A referral is optional; you can also contact a licensed local provider directly.

Referral matching is not enabled yet.

We have not enabled a provider route for this site. Use the checklist to contact and verify local providers yourself; urgent hazards should go to the appropriate emergency or public service.