Hot Water Ottawa are Ottawa’s expert hot water tank installers. We make it our mission to help you make an informed and confident decision. If you’re ready to take the next step, we can discuss your home and situation, help you understand the best options, and recommend the perfect solution.
Before you make a decision, it’s important to consider the types of water heaters available, renting versus buying, and up-front costs compared to long-term costs. Being familiar with the costs of installation, maintenance, and operation of different types of water heaters will help you choose a cost-effective solution for your home.
In this post, we’ll break down the water heater replacement costs, discuss the benefits and tradeoffs of each, and explain why the costs can vary widely.
1. Types of Water Heaters
There are three main types of water heaters. Tank water heaters, tankless water heaters, and hybrids.
Tank Water Heater: Storage tank water heaters are the ones most houses have traditionally had in Ottawa. You’ve seen the big tanks in many basements. This type has a large storage tank that holds hot water.
They are typically more affordable upfront but use more energy and cost more to run as they have to keep a tank of water heated at all times. Once you run out of hot water, you need to wait for your unit to heat up another tank.
Tankless Water Heater: Tankless water heaters (usually just referred to as water heaters, or sometimes on-demand water heaters) are built without the storage tank, and instead heat and start to provide hot water at the moment you turn on the shower or hot water tap.
So, what about the tankless pros and cons? They are more energy-efficient and compact than tank heaters and cost less to run, though they are often more expensive to buy, and have higher installation costs. You will never run out of hot water, and this water heater will last longer.
Hybrid (Heat Pump) Water Heater: Hybrid water heaters, also known as heat pump water heaters, combine the technology of an electric tank heater with a heat pump. They pull heat from the surrounding air to heat water in a hot water tank (instead of using gas or electricity), providing energy efficiency and lower utility bills over time.
However, they are more expensive upfront. Like tank water heaters, they will run out of hot water after a few family members have long showers.
2. Detailed Cost Breakdown
Let’s get right into the costs of each option, including installation and maintenance.
Tank Water Heater Costs
Natural gas water heaters can range from $2100 and $3100, including installation. The best gas water heaters are more complex and expensive to install (including infrastructure for venting) but often have lower operating costs compared to electric models.
This electric water heater costs between $1900 and $2,200, including installation. Electric vs. gas water heater models tend to have lower installation costs since they don’t require venting and have simpler hookup requirements.
Maintenance and inspection costs for both are around $100-200. This can include flushing the tank and inspecting the anode rod.
Tankless Water Heater Costs
A natural gas tankless water heater can cost anywhere from $3900 to $5,500, including installation. Installation for tankless heaters usually includes additional plumbing, venting, and sometimes electrical work.
Maintenance, which includes descaling and flushing the system to prevent mineral buildup, typically costs CAD $150 to $200 annually. Even with higher maintenance costs, tankless water heaters will save money with less energy requirements over time.
Hybrid / Heat Pump Water Heater Costs
As with water heaters, natural gas hybrid (or heat pump) water heaters cost more than electric hybrids, but the affordability of natural gas can help you save money in the long run. Including water heater installation costs, these can cost anywhere between $5800 and $7500. Installation can be complex and require ventilation. A natural gas hybrid also requires a carbon monoxide detector nearby.
Maintenance for both ranges from CAD $100 to CAD $200 per year. Regular tasks include cleaning filters and ensuring the heat pump system is functioning correctly.
3. Cost Comparison: Buying vs. Renting
If you’re not ready to buy, renting can be a great option. Let’s look at both buying and renting a water heater unit.
Buying means you won’t be tied to monthly rental fees for the life of your water heater. For most homeowners, this means savings over the long run. Buying also lets you choose and customize a model that best fits your home, instead of choosing from the models available for rent. It can increase the value of your home as well. Buying is, however, a big commitment. Owners are also responsible for water heater maintenance and repairs, although our models come with great warranties.
Renting is much cheaper upfront and includes maintenance and repair services as part of the rental agreement. At Hot Water Ottawa, we include the first month free and have buyout options that let you purchase your water heater rental at any time without penalty. If you’re not ready to make the investment or you prefer not worrying about service and upkeep, renting is a great option. The downside is that renting does add up over time, and limits you in your model choices and customization.
If you know what model you want and you’re ready to make that commitment, buying makes a lot of sense. While the initial expense is higher, the flexibility in your choice of heater and the increase in home value should be part of your consideration. From a cost analysis perspective, renting is less expensive initially and removes the maintenance and servicing downsides, and by allowing you to buy at any time, can be a great worry-free option.
Your decision should be based on your financial situation, long-term plans for your house, and personal preferences.
4. What Impacts the Cost of a Water Heater?
The size of your water heater will usually have the most impact on the final cost. Bigger homes require a bigger and more expensive heater with a larger tank, higher energy bills, and possibly a more expensive installation.
The brand and model are also a factor. Premium brands and higher-end models come with higher price tags but often provide better efficiency and longer warranties.
The type of water heater you choose will also impact the cost. Electric water heaters are often cheaper, with gas being a bit more expensive to purchase (but less expensive to run). Hybrid water heaters are usually the most costly but can also provide the greatest energy savings over time.
Complex installations requiring additional plumbing or electrical work will also increase overall costs. Some installations require venting added as well.
Additionally, Ottawa does have location-specific factors. Local building codes and labour costs in Ottawa can influence the cost of installation.
5. Why Choose Hot Water Ottawa?
Hot Water Ottawa offers a full range of services, including hot water heater, tankless, and hybrid sales, expert installation, reliable maintenance, and flexible rental options. Our team is dedicated to giving you the best customer service we can and making sure you’re happy with your water heater.
From our first conversation to installation and beyond, we’re here to make your home water heating as easy and stress-free as possible.
Contact us today to request a quote and discover how we can help you find the perfect solution for your home.
To request a water heater installation quote, call us at 613-729-5052 or fill out our online form.