Need to Replace Your Building Water Heater? Here's the Cost Estimate – Sobieski Services | DE, NJ, PA, MD

Need to Replace Your Building Water Heater? Here’s the Cost Estimate

When the water heater fails in your commercial building, there is no choice but to replace the equipment. Replacing one or more water heaters in a commercial building can be expensive, but the need for hot water for cleaning and sanitation outweighs the cost. This is especially true if your business’s activities require a large and steady supply of hot water. Here are some factors to consider when you need to replace building water heater equipment, along with some general cost estimates for putting in a new water heater.

Water Heater Types

The two most common types of water heaters are electric and gas heaters.

  • Electric water heaters: Electric water heaters use electricity to power internal heating elements that heat the water.
  • Gas water heaters: Gas water heaters have internal burners that use natural gas as a fuel for producing heat that is transferred to the water.
  • Water heaters can be divided into two additional categories: Tank-based and tankless.
  • Tank-style heaters: These types of water heaters produce hot water and then store it in an internal tank until the water is used. These are currently the most common types of water heaters in residential and commercial applications. They usually provide sufficient amounts of hot water for home or business needs, but if the tank runs dry, it could take some time for a new supply of hot water to be created. They can also be inefficient and wasteful of energy and money since the water in the tank can cool off and need to be reheated.
  • Tankless heaters: Tankless water heaters, sometimes called on-demand systems, do not store hot water in a tank. Instead, they use electrical heating elements to produce hot water whenever it’s needed. Tankless heaters are very efficient since they use electricity and do not store hot water in a tank where it can lose heat energy.

Water Heater Longevity

Water heaters can typically be expected to last between eight and 12 years. This means that you will need to replace building water heater systems fairly frequently, typically twice as often as you may need to replace building HVAC equipment such as furnaces or air conditioners.

Water Heater Efficiency

High-efficiency water heaters can be purchased that will dramatically reduce monthly water heating costs, which is one of the highest regular energy expenses in a home or business. Look for a heater with a high energy efficiency (EF) rating. Higher EF numbers indicate better efficiency. You can also look for other indicators of efficiency, such as the government’s Energy Star label that indicates the equipment has been tested and certified to be as energy efficient as possible.

Replace Building Water Heater: Estimated Costs When you need to replace building water heater equipment, costs will vary based on the factors listed above, plus any plumbing system revisions that are needed. Installation may also add an additional amount above the cost of the equipment itself.

In general, water heaters can be replaced for around $700-$800 to $2,000 per heater.

Tankless water heaters will cost more, usually in a fairly wide range between $2,500 and $4,500. Tankless models, however, are more energy efficient and can save a significant amount on water heating costs each month. Water heater installation should be done only by a professional. The safe and effective installation of a water heater involves complex plumbing, gas connection, and electrical work that must meet local building codes.

Even if installation adds additional costs to the water heater replacement, it’s worth it to make sure the equipment functions correctly and safely. Contact your local HVAC expert for information on local discounts or other price incentives.

Our goal is to help educate our customers about Plumbing, HVACR, Fire Protection, and Alarm Systems in Mechanical, Commercial, and Residential settings. For more information on the cost to replace building water heater systems, or to view projects we’ve worked on, visit our website!

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