Water heater prices are based on many different factors. Some of these factors include type of fuel, first hour rate, size, quality, brand, type of water heater (storage or tankless), warranty period among other things. However, it’s no secret that as the cost of energy (fuel) increase on a daily basis, water heating may soon become a luxury, few maybe able to afford as water heater contributes towards 25% of the total energy consumed in your home.

For those of you who are interested in making a purchase of a new water heater, it’s important to understand the difference in prices for one brand’s models as compared with other brands of the same type. Water heaters have come a long distance in the past few years and today hybrid models are almost 60% more energy efficient than their traditional counterparts. So spend more time in understanding the fundamental and most important differences between the various types of water heaters to get the best water heater prices.

NOTE: Average years a water heater lasts = 12-13 years

Comparing Fuel Costs

Since money saved is money earned, by comparing the cost of using different types of fuels, you can better understand which water heater to invest in. The below fuel comparison chart will help you with the relevant information.

Natural Gas Propane Electricity
Price per therm Yearly Cost Price per gallon Yearly Cost Price per kilowatt-hour Yearly Cost
$0.50 $136 $0.95 $283 $0.08 $390
$0.60 $163 $1.05 $313 $0.10 $488
$0.70 $190 $1.15 $343 $0.12 $585
Ref: www.consumerenergycenter.org| all prices in approximation

NOTE: Even a dollar saved/month = $12/year or $156 for a life span of 13 years

Water Heater Prices Based On Fuel Type

Electric water heater – Electric water heaters price vary based on size, technology, and whether it has storage capacity or not, besides energy efficiency. However, tankless electric water heaters are the best for most homes as they are low-cost, easy to install, low maintenance, and offer you almost silent operation, ease in troubleshooting, enhanced safety and flexibility. However, if you face power outages, you may need to have a backup solution to ensure continuous supply of hot water during these times. The electric storage or tank water heater prices are lower than those for tankless units. Depending on your need and space available in your home, you can opt for either of the two.

Electric Water Heater Models

Bosch AE125 PowerStar 4 GPM Indoor Electric Tankless Water Heater, White

Price: $615.95


  1. Electric tankless water heater
  2. EF = 94
  3. 4 gallons/minute hot water supply
  4. Solid copper heat exchanger
  5. 10years limited warranty on heat exchanger
  6. 1year on parts
  7. Size: 15.6 X 15.3 X 4.6 inches

Ariston 4.0 Gallon Point of Use Electric Water Heater

Price: $224.00

  1. 4.0 gallon mini-tank
  2. Mount on wall or floor
  3. 6-years warranty
  4. Glass lined mini tank for longevity
  5. Easy installation
  6. Energy efficient

Gas Water Heaters – Gas water heater prices are cheaper as compared to some electric water heater models. Some of the best water heating units use gas as fuel. Broadly there are two types of gas water heating units, one which uses natural gas and other which uses propane gas or liquid propane to heat water. Look for high energy factor rating as that means more energy efficiency. If you have high demand of water in your home, opt for a gas water heater. Gas units are also good options of RV or mobile home owners as they are easy to install and you can always find gas stations almost everywhere.

The Paloma Whole Home 7.4 GPM Natural Gas Outdoor Tankless Water Heater With Remote Control

Price: $999.00

  1. Top-selling model at stores such as Lowes and Home Depot
  2. Sizes available from 30 to 50 gallons
  3. 7.4 gallons/minute hot water output
  4. High quality parts
  5. Remote control operation

Polaris Water Heater PG10-50-150-2PV Propane Gas

Price: $3,101.60

  1. Energy Efficiency: 95%
  2. Water heater uses Propane gas as fuel
  3. 50-gallon tank capacity
  4. 10-year limited warranty on tank and 1-year on parts
  5. 166 GPH with 90 degree rise
  6. Wicker metal burner

Solar Hot Water Heaters – Use the sun’s heat as an energy source to heat water for your daily home needs. You can use solar water heaters for heating your swimming pool as well. The water heater prices for a pool unit ranges from $200 to $700 or more and residential solar power water heater prices ranges from $600 to $3000 or more depending on the features. By using a solar water heater you can save at least $500 in the 1st year over your electric water heater. With use, solar water heater helps you save a lot more because electricity and gas rates are bound to increase. While the initial cost of buying and installing a solar water heater are more, the unit can pay for itself in just 4 to 5 years time.

Bosch 1600PS LP Aquastar 4.7 GPM Indoor Solar Whole-House Tankless Water Heater

Price: $630.66

  1. 4.7 gallons/minute supply
  2. Unlimited hot water
  3. Compact, light-weight
  4. Wall mountable
  5. Save up to 50% on utility bills p.a.

Stiebel Eltron SBB 300Plus Dual Heat Exchanger Solar Storage Tank

Price: $2,366.00

  1. Low standby heat loss
  2. Made from heavy gauge SS
  3. Porcelain-enamel coating
  4. Long and maintenance free life
  5. Excellent quality
  6. Dual large heat exchangers

Heat Pump Water Heaters – One of the best ways to save money without comprising on use of hot water. Heat pump water heater prices range from $1000 to $3000 and the savings can range from 50% to 70% on your electricity or gas bills. A HPWH not just uses ambient air as an energy source; it also cleans up the air and dehumidifies it at no additional cost. All HPWHs EnergyStar rated and while they may have a higher initial price tag as compared with traditional storage electric or gas water heaters, their low annual operating costs offset the high purchase price.

GE 50 Gal. Heat Pump Electric Hot Water Heater (GEH50DNSRSA)

Price: $1599.99

  1. EnergyStar® qualified
  2. EF = 2.35
  3. Can reduce operating cost by almost 62%
  4. Saving of $320/year or more
  5. Capable of handing spike in hot water demands
  6. Environment friendly
  7. Easy to install and replace old water heater
  8. Can be fixed to use in-place water and electrical points

A.O. Smith VOLTEX Hybrid Electric Heat Pump Water Heater PHPT-80

Price: $2,499.00

  1. More than 2-times more efficient than a regular electric water heater
  2. Dehumidifies and cools ambient air
  3. Large tank capacity of 80 gal, results in higher savings
  4. Easy to use LCD display screen
  5. EF rating 2.3
  6. Eligible for tax credit up to $1,500
  7. EnergyStar® qualified

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