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The average cost to replace a water heater is around $1,325, with a typical range of $900 to $1,800 for a standard replacement. The final price depends on the type of heater (tank vs. tankless), its size, fuel source (gas or electric), and the complexity of the installation. A simple one-to-one replacement will be on the lower end of the cost spectrum. However, if you are switching from one type of heater or energy source to another, you can expect labor costs to be significantly higher due to the extra work involved. It's also worth considering that while gas and electric heaters may have similar upfront costs, their long-term operating costs can differ based on local utility prices.

It is very difficult and dangerous to install your own water heater, so we strongly recommend against tackling this as a DIY project. Not only will you need to wire your water heater, but you’ll also need to connect plumbing to the intake and outlet. Sweating copper pipes and connecting wiring properly are skills most DIYers don’t have, and even if you do feel confident you can do it, working with water and electricity always leaves the potential for electrocution. Hiring a local water heater installer is well worth the investment.

No, boilers and water heaters are not interchangeable because they serve different primary functions. Boilers are used for central heating systems, providing hot water or steam to heat your home. In contrast, a water heater's purpose is to supply hot water for daily household use, such as for faucets and showers. A water heater alone cannot supply the warm water or steam needed for a central heating system.

While they are not interchangeable, it is common to have both a boiler and a water heater. In fact, a conventional boiler often works best when a water heater system is already in place. The two systems can be combined to provide both heating and hot water, either by pairing a boiler with an indirect water heater or by installing a premade combination boiler-water heater unit. For home heating, some homeowners may also opt for a furnace instead of a boiler.

Several things can void the warranty for your water heater. Many water heater manufacturers state that installing your own will void the warranty. However, even if you get away with performing the task yourself, incorrect installation, lack of a building permit, and improper repair work, regardless of licensing status, can all render your water heater unprotected by both the manufacturer's warranty and any installation warranties.