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When Its Time for a Water Heater Replacement

July 28th, 2021



Water heaters are non-issues UNTIL you get hit with that first icy shower or giant puddle in the basement. Then you have to think fast: Repair or replace?

If its a conventional storage-tank water heater nearing the end of its 10 to 13-year life, replacement is obvious: New models are up to 20% more efficient and can save up to 700 in energy costs over the life of the unit. However, if your water heater is only a few years old, repair may be the way to go. Not sure whether to repair or replace? Heres how to decide.

How to Diagnose Water Heater Woes

Conventional water heaters are simple. Cold water enters the tank and is heated by an electric element or gas burner. A thermostat regulates the temperature, usually 120 to 140 degrees. As the water heats, pressure builds inside the tank. When you turn on a tap, pressure sends hot water out the faucet.

Because water heaters contain few moving parts, only a few things can go wrong.

  • Pilot light on gas water heater flickers out.

  • Circuit breaker for an electric heater trips.

  • Burner or heating element fails.

  • Theromostat breaks.

  • Valve sticks.

Repairing or replacing any of those parts is relatively inexpensive: A plumber can do the job for 150 to 300. But if the tank is more than 10 years old, or if its leaking, a new water tank likely is in your future.

Over time, water minerals react with steel, corroding water heater tanks. When water heaters spring a leak, repair isnt an option.

On the bright side, modern water heaters are far more energy-efficient than older models. Manufacturers now inject foam insulation between the tank and its outer shell, resulting in higher heat retention. New glass liners make tanks less prone to corrosion.

Youll pay 500 to 1,500 to purchase and install a new conventional storage unit. A high-efficiency model that meets Energy Star standards saves up to 20% in energy costs.

Tankless, heat pump, and solar water heaters offer even bigger savings and also qualify for a federal tax credit. These products could cost three to five times more to buy and install, so consider payback carefully.

Factor in Hidden Costs of Water Heaters

Even with conventional water heaters, replacement might not be as simple as hauling out the old and hooking up the new. Many local building codes now require you to upgrade the following:

  • Water heater mount

  • Size or type of venting system

  • Drain pan underneath the heater

  • Supply pipes

  • Before starting work, ask your installer to outline all costs.

If you know your way around plumbing tasks, you may be able to install the new unit yourself. Most manufacturers provide detailed instructions, and youll need to check your local building codes. Turn off the water and gas or electric before you begin, and take particular care to vent gas models properly.

Maintain Your Water Heater

Whether you repair or replace, water heaters will perform better and last longer if you flush the tank once a year to remove sediment. A bonus: Without all that gunk inside, your water heater will operate more efficiently, saving you money.

Also, check the anode rod -- sometimes called the sacrificial rod -- every three years. An aluminum or magnesium probe inside the tank, it collects corrosive elements and should be replaced when caked or eaten away. A new one costs about 30.

Stay on top of these simple maintenance tasks and you can avoid thinking about water heaters again for a long time.


Joe Bousquins work has appeared in the Wall Street Journal, Kiplingers Personal Finance, and Mens Journal. He owns a 79-year-old home in Sacramento, Calif.


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Disclaimer : The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official policy or position of the Houston Association of REALTORS®

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