Buying Guide

What Should You Expect To Pay For A New Home Hot Water System?


The hot water system is one of the most expensive yet valuable investments for any house. Whether you’re using gas, electricity, wood, or any other source, you want to choose practical and long-lasting water heating equipment. It’s also beneficial if the system is simple to install and requires just a little maintenance.

If you want to purchase one, there are many advantages. A water heating system produces energy to heat the water, which passes through the radiator network of the home and warms the tap water in each room. When the hot water faucet is turned on, the water becomes hot within 5-10 seconds. This saves a lot of time, and you’re not going to wastewater until it warms up. In this article, you’ll be guided on what to expect from your money when you purchase a new home hot water system.

Factors To Consider When Buying A New Hot Water System

When you purchase a new water heater, certain things must be considered to know the hot water system installation prices. The key factors determining the price of your new water heater include:

1. Water Consumption

You have to consider when buying a new hot water system is the number of family members. Estimate the liters of hot water you consume daily. Also, the FHR or first-hour rate helps establish how well the unit operates throughout a busy period. The number of gallons per minute or GPM is also essential to determine. The more gallons of hot water consumption, the higher the temperature of the water is needed.

2. Space For the Hot Water System

A primary water heater of 40 gallons is available. Although the unit itself doesn’t require much space to operate, you have to ensure that there’s enough room for it. Note that you need to clear your water heater area.

Sometimes house owners wish to relocate the heater to save space or create a way for other improvements. If you choose a tankless unit, you may also alter the installation site. This may include extra expenses to properly house the water heater for new ventilation, plumbing, or minor construction work or you can just shift the whole system to the outdoor storage.

Since electricity or fuel heaters like propane or gas are running, it’s essential to ensure that your water heater is well ventilated. If your water heater is placed in a warehouse or laundry room, make sure that it remains clean.

In general, always maintain space around your water heater where you can do routine maintenance easily. Lastly, keep things at a suitable distance from the unit so that there’s no risk of fire and for safety reasons.

3. Types of Hot Water System

It’s a good idea to know the various water heaters before you buy one.

  • The conventional water storage heaters provide a ready hot water storage tank.
  • Tankless spindle and indirect water heaters utilize an indoor heating system to heat water.
  • The tankless water heaters immediately heat water without using a tank.
  • Solar water heaters use the sun to provide hot water.

Solar Water Heater System: Comprises a storage tank with heat-generating water and solar collectors for energy-efficient storage. It’s usually depending on a conventional water tank in the event of an emergency.

Indirect Water Heater: Utilize existing furnace or boiler energy to the heat tank water. Water from the boiler is cycled into the coils of the tank to heat the water. This type of water heater is energy-efficient, based on heat generated by a boiler or oven.

Conventional Water Storage Tank Heater: These are a popular option for homes to continuously keep and heat gallons of water. The common installation of water heaters is placed in a garage, basement, or utility closet. The tank water heaters usually utilize electricity or natural gas to heat the water.

Tankless Water Heater: This is operated by heating water as required. The system utilizes a combustion gas or power to heat the water pipe and provide water on demand. Like a hot water storage tank, a tankless device may be kept in a basement or cabinet.

Average Costs For New Home Hot Water System

Wall hung gas boiler and electric water heater in boiler room

The kind of heater you select will also have an impact on your heating expenses. One type of water heater may utilize a fuel type more effectively than another.

For example, an electric pump water heater is usually more energy-efficient than a standard electric water storage heater. Furthermore, a water heater with an electric heat pump may have lower energy expenses due to its greater effectiveness than a traditional gas storage water heater. However, the local gas cost could be cheaper than electricity.

Electric storage systems heat a tank of water using heating elements, which vary in size from about 25L at a lower end to over 400L. Large versions which utilize two heating elements for quicker warming, start at about USD$450 and increase to around USD$1900.

On the other hand, tankless systems work by pulling high electricity on demand to heat water. These versions are becoming more popular since they offer unlimited hot water and, in certain instances, may save electricity. This is particularly true if you’re using very little hot water. These systems cost from USD$680 to USD$1600.

There are other essential factors to consider in purchasing your home hot water system, such as:

  • Household needs
  • Installation cost
  • Delivery cost
  • Fuel cost

It’s essential to examine what kind of fuel or source of energy you’ll use, including availability and costs when choosing a new water heater. Fuel used by the water heating system affects yearly operating expenses and the size and energy efficiency of the water heating system.

If you have more than one kind of fuel in your area, it’s essential to compare fuel prices. Even if you replace a water heater or use a different power or energy source, you may discover that you can save more money in the long term. Contact your company for current pricing or rates of water heater fuel.


Selecting a new home hot water system may be a daunting task. It’s essential to evaluate both your home’s hot water requirements, the types of water heating system, and the availability of fuel sources. Additionally, your budget dictates the kind of water heater you choose. Make every effort to avoid compromising on quality. A water heater is an excellent long-term investment that you’ll benefit from for an extended period.

Lauren Miller
Lauren Miller, who holds a degree in Consumer Sciences from Colorado State University, has been an authoritative voice in product analysis and consumer advice for over 15 years. Joining our team in 2020, Lauren elevated our buying guides with meticulous research and practical insights. She specializes in crafting detailed buying guides and reviews. Previously, she worked in product development and consumer advocacy. Lauren is a gourmet cook and a passionate advocate for sustainable living.

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