How Much Does a Hot Water Tank Cost in Ontario?

The cost of a new hot water tank can range from about $1,000 to $3,500 installed. A tankless water heater can cost between $3,000 and $6,500 or more. Actual costs will depend on the type of water heater you choose, the size of the unit and whether any plumbing, venting, gas or electrical work is required during the installation.

For planning purposes for Ontario homeowners, professionally installed water heaters generally fall within the following price ranges:

Disclaimer: Pricing ranges in this guide were compiled from current Canadian public-market estimates reviewed in September 2026, and may exclude Ontario's 13% HST, removal and disposal of the existing water heater, repairs, additional materials or other installation work. These are not Enbridge Sustain installation quotes. Your final cost may be different depending on the type of water heater, the contractor, your location and what is included in the quote.

When looking at water heater prices, it's important to understand the difference between the purchase price, installation cost and total replacement cost. A water heater may be listed for $1,500 online, but this price may only include the equipment itself. Professional water heater installation, removal of the existing unit and other potential upgrades required during the installation process can increase the total cost.

Water-heater purchase price

The purchase price of a water heater refers to the cost of the equipment itself. Prices listed online or in-store may only include the water heater and may not include professional installation services.

Depending on where you purchase your water heater, delivery may also be an additional cost. Removal of your existing unit and any changes required before the new water heater can be installed may also be charged separately.

Water-heater installation cost

Professional installation costs include the labour and materials needed to install your new water heater. However, your current home setup may not accommodate the new water heater as is. In this case, plumbing, venting, gas or electrical updates may be required, which can increase installation costs.

Removal and disposal of your old water heater may also be included in the installation price or charged separately.

The cost of a new water heater will depend on the type of system you choose for your home. Equipment type, capacity, fuel source and the amount of installation work required can all impact upfront costs.

Electric hot water tank cost

An electric storage tank generally costs about $1,000 to $2,500 installed in Ontario. If you're replacing an existing electric tank with a similar model, your current electrical supply and plumbing may already be suitable for the new equipment.

A larger tank or different type of water heater may require electrical upgrades. In this case, changes to the wiring or electrical panel may be needed before the new unit can be installed, which can increase installation costs.

Natural gas hot water tank cost

A conventional natural gas hot water tank can cost about $1,200 to $2,900 installed based on current public Ontario pricing. Power-vent models are usually higher in price, with installed costs ranging from about $1,700 to $3,500.

A conventional gas water heater uses its venting system to move combustion gases outside the home. A power-vent model uses a fan to move these gases through the venting system, which can require a different setup.

If you're installing a natural gas water heater, changes to the existing venting or gas line may be required. Technicians may need to replace or reroute the venting or make changes to the gas connection, which can increase installation costs.

In Ontario, this work must be completed through a Registered Fuels Contractor. The Technical Standards and Safety Authority has a contractor lookup you can use to confirm whether a company is registered.

Tankless water heater cost

Tankless water heaters generally cost about $3,000 to $6,500 or more installed based on current public pricing. When replacing a storage tank with a tankless system, your current home setup may not be set up to accommodate the new equipment as is. In this case, technicians may need to make changes to the home, which can increase installation costs.

Depending on your current setup, technicians may need to:

• Modify the gas line if the new unit requires greater gas capacity

• Replace or reroute the existing venting

• Install a condensate drain for a condensing model

• Extend water lines or venting if the unit is being installed in a different location

According to Natural Resources Canada, ENERGY STAR-certified tankless water heaters use about 30% less energy on average than storage-tank models. Tankless systems heat water as it is needed rather than keeping a full tank heated throughout the day. They are also wall-mounted, which can free up floor space in your utility area.

Tankless water heaters usually have a higher upfront cost compared to storage tanks. How much you save on energy over time will depend on your hot-water usage, local energy rates, the efficiency of the equipment and how long you keep the system.

Electric tankless water heater cost

Electric tankless water heaters can require more electrical capacity than electric storage tanks, especially for whole-home use. If your current electrical panel or service cannot support the new equipment, required upgrades can add to the labour and installation costs.

The cost of installing a new water heater can vary depending on the equipment and the work required in your home. Factors that can affect installation costs include:

Capacity and household hot-water demand

A water heater should be sized according to how much hot water your household uses. If several people shower around the same time or multiple hot-water fixtures are often used together, you may need a larger tank or a model that can reheat water more quickly.

A tank that is too large for your needs can also use more energy to keep water heated. An Enbridge Sustain HVAC partner will consider your household size and typical hot-water use when recommending a suitable tank size.

With a tankless water heater, the amount of hot water needed at one time is also essential to consider. If a shower and another hot-water fixture, such as a dishwasher or washing machine, are being used at the same time, the unit must be able to supply both.

Access and installation location

The location of your water heater can also impact installation costs. A unit in an open, easily accessible utility room is typically easier to disconnect, remove and replace compared to one in a tight space.

Narrow basement stairs or limited access can add more time to the installation. Technicians may also need to work around finished walls, flooring or other parts of the home, depending on the location.

Permits and inspections

Depending on the work being completed and where you live, permits or inspections may be required. These requirements can add to the overall installation cost.

Any permit or inspection fees may be included in your installation quote or charged separately.

Before replacing your water heater, comparing quotes is important for understanding the costs and what's included in the final price. Speak to at least two or three companies before moving forward. Make sure to ask for a detailed breakdown of what is included in each quote.

Check whether the water heater quote includes:

• Removal and disposal of the old water heater

• Any plumbing or venting changes needed for the new unit

• Gas or electrical work, where required

• Permit or inspection costs

• Manufacturer and labour warranty coverage

• Ontario's 13% HST

• How any additional work will be priced if something comes up during installation

If one quote is noticeably lower, check whether any of those costs are being charged separately.

It depends. Not every water heater needs to be replaced right away. If your water heater is older, the tank is leaking, corrosion is becoming more extensive, or repairs are becoming more frequent, a replacement should be considered. On the other hand, if your unit is newer and a technician finds a specific issue that can be repaired at a reasonable cost, opting for the water heater repair route may help you get more use out of your existing equipment.

Age can also help with the decision. Conventional storage tanks generally have a shorter service life than tankless systems, which can last around 20 years with proper maintenance. You may also want to consider replacement if your current water heater can no longer keep up with your household's hot-water needs.

A licensed technician can inspect the water heater, identify what has failed and help you compare the repair cost with the cost of replacement.

When it's time to replace your water heater, you may want to consider which payment and ownership option works best for your home and budget.

Buying a water heater

Buying a water heater means you pay for the equipment and installation upfront. Once the water heater is installed, you own the equipment. Any maintenance or repairs that come up after the warranty period will also be your responsibility, so these costs should be considered when comparing buying with other options.

Renting a water heater

With a rental water heater, you make monthly payments rather than paying the full equipment and installation cost upfront. Depending on the rental contract, maintenance and repairs may be included as part of your monthly cost. That said, the rental company continues to own the water heater throughout the agreement.

Renting can make the initial upfront costs (and potentially repair costs) more affordable, but you may end up paying significantly more over the years in monthly payments.

Rental agreements can also include cancellation or buyout costs. Before moving forward, make sure you understand what the agreement includes and what you may need to pay if you decide to end the rental or purchase the water heater.

Lease-to-own

With lease-to-own, the cost of the water heater and installation is spread out through monthly payments over a fixed term. Enbridge Sustain's standard lease-to-own term is typically 15 years. Maintenance, repairs and warranty coverage are included during the agreement.

Enbridge Sustain owns the water heater during the lease term. Ontario homeowners can choose to buy the equipment earlier. Otherwise, ownership will transfer to them once the agreement ends.

Ontario's Home Renovation Savings Program currently offers a $500 rebate for qualifying ENERGY STAR-certified heat pump water heaters. The rebate is available through the program stream that requires a home energy assessment and at least two eligible upgrades.

Note that eligibility will depend on your existing water heater and other program requirements.