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You don’t have to replace expansion tanks at the same time as your hot water heater. You may be able to go six to 12 years or more before needing to replace your expansion tank. At $150 to $450, hot water heater expansion tanks are usually much more affordable than the cost of hot water tanks themselves, which average about $1,190.

Installing a water heater without a permit can result in high fines—as much as hundreds of dollars per day, in some areas. It can also void your homeowners' insurance and cause problems when selling your home because it violates local building codes and safety regulations.

Electric water heaters use a high amount of electricity, so they’re best for homeowners who subsidize their electric bill with solar or who live in an area with inexpensive electricity. For others, gas water heaters versus electric water heaters may be the more cost-effective solution, with the added bonus of heating water quickly and efficiently. No matter which you choose, you can lower your water temperature as low as possible to keep costs down.

Most standard residential water heaters, which are typically around 40 gallons and use 240 volts and between 3,500 and 5,500 watts, require a 30-amp, two-pole circuit breaker. For smaller, point-of-use water heaters using 120 volts and between 1,500 and 3,000 watts, a 30-amp breaker is also often adequate. However, some models may have different needs; units that use more watts than average may require a 40-amp breaker, while smaller units might only need a 20-amp breaker. Newer, tankless, or more energy-efficient models can also require a higher amperage. Having the correct breaker size is crucial for safe and efficient operation, so it's best to consult a licensed electrician to determine the specific needs of your water heater.