The cost of installing a water heater depends on what you install and where. A gas tank in a basement is a different job from a heat pump unit in a garage or a tankless unit on a wall. This guide compares the main types by what each adds to the installation, not by price tag.
We leave out dollar figures because the right number depends on your home. Use this guide to understand why quotes differ and which choice fits.
Gas tank
A gas tank needs a gas line, a shutoff, a sediment trap and a vent. If the vent and gas line are already there, a swap is straightforward. If the vent needs a liner or a new route, labor rises.
Electric tank
Electric tanks need a dedicated circuit and the right wire size. No venting is required, which simplifies installation. They can be placed more freely. Running cost is often higher than gas.
Heat pump (hybrid) water heater
A heat pump unit pulls heat from the surrounding air. It needs space, air flow and a condensate drain. It can cool and dry the room. The installation is more involved than an ordinary electric tank, and it costs more up front.
Tankless
Tankless gas units need a larger gas line and special venting. Electric tankless units need heavy electrical capacity. Both mount on a wall and need isolation valves for flushing. Our tankless service covers the details.
| Type | What it adds to the install | Watch for |
|---|---|---|
| Gas tank | Gas line, vent, sediment trap | Vent condition |
| Electric tank | Dedicated circuit | Panel capacity |
| Heat pump | Air space, condensate drain | Room temperature, noise |
| Tankless gas | Larger gas line, special vent | Gas supply capacity |
| Tankless electric | Heavy electrical service | Panel upgrade |
Deciding between types?
Call and tell us your fuel and space. We outline each option.
Where it goes matters
A basement utility room with a floor drain is the easiest spot. A closet upstairs needs a drain pan with a pipe, because a leak damages the floor below. A garage needs protection from freezing and from impact. An attic is the hardest, because of weight and access.
Timeline
A like-for-like swap takes a few hours. A fuel change, a venting change or a move to a new location may take a day or more and may require other trades. Ask for a schedule with the quote.
Upgrades that change the bill, and the ones worth it
- A drain pan with a pipe to a floor drain, worth it nearly always
- A water leak sensor with an alarm, a small cost with big upside
- An automatic shutoff valve tied to a leak sensor, worth it in finished spaces
- A recirculation pump, worth it where fixtures are far from the heater
- A water softener upstream, worth it where hardness is high
None of these is required for the heater to work. Each one protects the house or the heater. Ask your installer which they recommend for your layout.
What to do before the installer arrives
- 1
Clear the area
Move boxes and shelves from around the heater.
- 2
Locate the shutoffs
Find the water, gas and electric shutoffs.
- 3
Plan the water outage
Fill a few jugs for drinking and washing.
- 4
Confirm parking and access
A heavy tank needs a clear path.
- 5
Decide on the old tank
Confirm it leaves with the installer.
Planning around the weather and the calendar
Water heater failures cluster in cold snaps, when incoming water is coldest and the tank works hardest. Installers are busiest then, and wait times grow. If your heater is more than ten years old, replacing it on a mild week costs less in stress and often in price than replacing it in an emergency.
Ask the installer how much notice they need. A planned job may be done within days. A special-order unit may take longer.
Comparing quotes by type
When one quote is for a gas tank and another for a heat pump unit, you are comparing different products. Ask each bidder to price the same size and type as well, so you can see the difference in the install and not just the equipment.
Ask each for the annual running cost estimate for your fuel prices too. A higher install price can pay back, and a lower one can cost more over the years.
What to know in Savage
Minnesota winters can freeze a heater in an unheated garage or on an exterior wall. Choose a location in conditioned space, or use the freeze protection the manufacturer specifies.
Savage's water is hard. The City buys about 71.5 percent of its distributed water from Burnsville, whose 2025 report states hardness of 25 to 26 grains per gallon. Plan for scale protection with any type. Ask the City of Savage building department about permits for your job.
Source type: City water report and manufacturer guidance
Code and sources
Minnesota Rules chapter 4714 is the state plumbing code and the standard a licensed plumber works to. The Department of Labor and Industry states that it incorporates the 2018 Uniform Plumbing Code with Minnesota amendments. Your city building department decides when a permit or inspection is needed, so check with them before work begins.
Questions to ask
- Is my existing vent suitable, or does it need replacing?
- Is my panel big enough for the unit?
- Where will the drain pan discharge?
- What is the warranty on the unit and the labor?
- Is the old unit removal included?
If your tank has already failed, see water heater replacement. We install in Savage and in Lakeville and Burnsville.
Questions Savage homeowners ask
Often a like-for-like tank swap. Changes in fuel or venting raise the cost.
Yes, with a circuit and panel check. Running cost may change.
They work best in spaces that stay above a minimum temperature. Ask about local conditions.
A few hours for a swap, longer for changes.
It affects all types. Plan scale protection regardless.
Still have a question about your situation? The line is open around the clock. Call (952) 866-9120