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The average cost to install a new water heater is approximately $1,300, with a typical price range between $880 and $1,800. The final cost depends on several factors, including the type and size of the unit, its location and accessibility, and the amount of labor required. For example, installing a unit in a tight space like a crawl space can increase labor costs. The type of water heater significantly impacts the price: while a conventional gas heater might cost less than $1,000, tankless models can cost around $2,600 to install (and up to $3,500), and solar heaters can cost upwards of $3,700. Other factors that can affect the total price include the fuel type, vent system requirements, permits, and whether any additional plumbing work or repairs from previous water heater damage are needed.

If your water heater is about to celebrate the big 2-0, you may want to consider sending it off to greener pastures. While the water heater may seem to be working well, any conventional, tanked water heater over 10 years of age is at risk of failure. If your water heater is 20 years or older, your best move is to replace your aging heater before it completely breaks down.

If your gas water heater is over 20 years old, it should be replaced. Gas water heaters can last up to 12 years and while they can exceed this expectancy if well-maintained, a heater that's 20 years old would require replacement. The heater is unlikely to run as efficiently as a new model and could be more expensive to do so.

You should replace your gas water heater when it’s reached the end of its lifespan, which is a maximum of 12 years in most cases. If your unit is over a decade old and showing signs of inefficiency, leaks, or frequent malfunctions, it may be time to replace your water heater. Research how to best maintain your gas water heater to help extend its lifespan.