3 Ways To Save Money When Installing A New Water Heater In Your Home

Installing a new water heater is a costly project for most homeowners. Besides buying a new unit, you have to budget for the labor costs, which depend on the size of the appliance and complexities that may arise during the project. Therefore, the installation can end up costing you several thousands of dollars. If you are trying to save money, you can lower the installation costs without compromising system quality and efficiency. Below are three ways you can save money on water heater installation.

Choose a Similar Heater Type

Buying a new water heater allows you to explore different hot water systems. Besides the conventional tank water heaters, there are modern heating solutions such as tankless and hybrid water heaters. Although these options come with numerous benefits, they can significantly increase the installation costs. Switching to a different water heater configuration requires some retrofits and upgrades to meet the current regulatory standards for energy efficiency. 

For example, when moving from a tank heater to a tankless system, you need additional electrical wiring and dedicated circuitry. You may also require fresh permits before installing the system. If you are trying to save money, go for the same heater configuration you had. Alternatively, if you replace a tank hot water system with a similar but more efficient one, you won't need to carry out extensive retrofits and upgrades. 

Use the Same Fuel Source

Most homes use gas or electricity for hot water heating. If you previously had a gas water heater, replace it with a gas one. Switching from one fuel source for another will also call for retrofits that can be costly. If, however, you decide to switch from gas to electric, you will need to install electrical wiring and circuitry for the water heating system. 

Conversely, when switching from electricity to gas, you need to install a gas line, new flue, and new water lines. All these purchases and upgrades can be costly. Therefore, if you don't have any efficiency or reliability issues with your previous fuel source, stick to what style you already have to save money. Alternatively, you can ask your contractor for estimates and they will assess how much you will spend if you change your fuel source.

Consider the Running Costs

Running costs can determine how affordable your water heater is over time. Therefore, besides looking at the initial installation costs, project your annual running costs as well. What is the cost of the fuel you intend to use? Does your water heater have any significant maintenance expenses? In general, natural gas is cheaper than electricity; therefore, gas water heaters are a better choice for annual energy savings.

Consider the above tips if you want to save money on your new water heater. For more information, contact a hot water tank installation company.