A failing water heater is one of those problems that does not give much warning. One day, everything is fine, and the next, the water runs cold. Whether the issue is old age, corrosion, or a complete breakdown, replacing a water heater can feel like an unexpected expense that throws your whole week off. But it doesn’t have to.
If you live in London, Ontario, whether you’re in Oakridge, White Hills, Medway, Sunningdale, or River Bend and you are trying to understand how much replacing a water heater will cost, you are in the right place. This guide walks you through everything you need to know. From pricing breakdowns and cost influencers to your options for tank versus tankless systems. That way, you can make the most informed decision possible.
What’s the Average Cost to Replace a Water Heater in London?
Most homeowners in London can expect to pay between $1,200 and $3,000 to replace a water heater. The final cost depends heavily on the type of unit being installed, the complexity of the job, and whether the system is being upgraded or simply replaced with a similar model.
A standard 40-gallon tank water heater usually falls on the lower end of that range, especially when it is a straightforward replacement. On the other hand, installing a high-efficiency tankless unit or converting from electric to gas will typically push the cost more toward the higher end.
It is essential to note that these numbers typically include the removal and disposal of the old unit, basic installation, and system testing. However, additional plumbing work, permit fees, or upgrades may be required to bring the system up to code, which could lead to increased total cost.
What Impacts the Final Price of a Water Heater Replacement?
Type of Unit
One of the biggest factors affecting the cost is the kind of water heater being installed. Storage tank units are typically cheaper up front. Tankless water heaters, although more expensive initially, can last longer and reduce monthly energy bills due to their on-demand heating capabilities.
If you are staying with a storage tank setup, the costs will be relatively predictable. However, if you’re considering upgrading to a tankless system, budget for a higher investment to cover both the unit and the necessary changes to plumbing or venting.
Energy Source
The fuel source also plays a role. Electric water heaters tend to be more affordable to install, but they often incur higher long-term operating costs. Gas water heaters are generally more energy-efficient and cheaper to operate, but may require venting and connection upgrades that increase the installation cost.
Some households also explore hybrid systems or solar-assisted setups, but these options come with specialized pricing and are less common in residential settings.
Size and Capacity
Matching the water heater size to your home’s needs is critical. Undersized units will leave you without hot water, while oversized systems waste energy. A two-bedroom home may only need a 40-gallon tank, while a larger household may benefit from a 50-gallon tank or a tankless unit with multiple flow zones.
Installation Complexity
Straight swap jobs where the new unit fits exactly where the old one stood are generally affordable and straightforward. However, if the existing plumbing is outdated, if access is difficult, or if venting must be reworked, the cost increases.
Crawlspaces, tight basements, or code violations from older setups are common reasons for higher labor charges.
Local Permits and Code Requirements
London has its own building and safety regulations, and many plumbing projects require permits and inspections to be completed. While this ensures your system is installed safely and legally, it may also incur additional fees or necessitate work to bring older plumbing up to current standards.
Always ask your installer whether the quote includes permit costs and code-compliant materials.
How to Know When It’s Time to Replace Your Water Heater
Many of us wait until the water heater completely fails before taking action, but there are often signs that give you a head start. Recognizing them early can save you from an emergency call and allow time to explore options.
Here are common red flags:
- The water heater is over 10 years old
- Rust or corrosion appears around fittings or the tank
- Hot water runs out faster than usual
- Water smells metallic or discolored
- Rumbling or popping sounds come from the unit
- Energy bills have increased without explanation
If you notice any of these, it is worth having the unit inspected. Repairs may still be possible in the early stages, but replacement is often the most reliable solution for aging systems.
Comparing Tank and Tankless Water Heaters
The tank versus tankless debate often arises when replacing a water heater, especially when energy efficiency is a key goal.
Hot Water Tank units heat water continuously and store it until needed. They are simple, less expensive to install, and easy to service. However, they use more energy and do take up more room.
Tankless units heat water only when needed, making them far more efficient and ideal for homes with fluctuating hot water demand. They are compact, durable, and can reduce utility bills over time, though the upfront cost is higher.
To help you make the best choice for your use case consider:
- Budget now versus savings over time
- Available space in the home
- Size of the household and water demand
- Local rebate programs that reduce the cost of tankless systems
More Canadians are making the switch to tankless water heaters due to these long-term benefits, especially in newer builds or during larger home renovations.
Are There Any Rebates for Water Heaters in Ontario?
Ontario has introduced several rebate and incentive programs in recent years to encourage energy efficiency. Depending on the system you choose, especially if it is Energy Star certified or part of a broader home upgrade, you may qualify for savings through:
- Enbridge Gas Home Efficiency Rebate Programs
- Canada Greener Homes Grant (closed to new applicants)
- Seasonal promotions from manufacturers
Rebates can reduce total costs by several hundred dollars in some cases. It is always worth checking the latest offerings before you install.
A reputable plumbing contractor should also be able to guide you through available incentives and assist with any necessary paperwork for claims.
A Clear Path to Replacing Your Water Heater
Replacing a water heater does not have to be stressful. By understanding the typical cost ranges, knowing what drives the price up or down, and weighing your options carefully, you can approach the process with clarity and confidence.
Always get a clear, written quote, ask what is included, and be wary of vague pricing or companies that avoid discussing permits or code compliance. The lowest upfront price often leads to surprise costs later on.
The best results come from working with professionals who have been in the industry long enough to understand local homes, know the permitting process, and stand behind their work.
Why Locals Choose Plumbing for Life
We are a family-owned and operated plumbing company that has been serving London and its surrounding communities since 1997. Around here, people know each other by name, and we carry that same mindset into every job we do.
When someone calls us for help with their water heater, we treat it like we’re helping a neighbour, not just ticking off a service call. We arrive on time, clearly explain the options, and ensure there are no surprises regarding cost.
Our team is licensed, insured, and committed to doing the job right. Whether it’s a complete replacement, an emergency repair, or some honest advice, we’re proud to be the local plumbing team London can count on. Request your free estimate today.
Frequently Asked Questions
How much does it cost to replace a water heater in London, Ontario?
The average cost ranges from $1,200 to $3,000, depending on the type of heater, its size, the complexity of installation, and the fuel source. Tankless models and gas conversions typically cost more than simple electric replacements.
Is it worth switching to a tankless water heater?
Tankless water heaters are more efficient, save space, and last longer than traditional tanks. While the upfront cost is higher, they can lower your energy bills and provide continuous hot water.
How long does it take to install a new water heater?
Most installations are completed in 2 to 5 hours. Tank-to-tank replacements are faster, while tankless installations or conversions may take longer due to the added work required for plumbing and venting.
Can I install a water heater myself in Ontario?
Installing a water heater involves plumbing, electrical or gas work, and local code compliance. DIY installation is not recommended and may void warranties or lead to safety issues.
Are there any rebates available for new water heaters in Ontario?
Yes. Homeowners may qualify for rebates through Enbridge, the Canada Greener Homes Grant, or manufacturer incentives. These programs are subject to change; therefore, please verify the most current information before applying.
How do I know if I need a water heater replacement or just a repair?
If your system is over 10 years old, leaking, or delivering discoloured water, replacement is often the better option. A professional inspection can confirm whether repairs are viable.
