
If you’re a homeowner in the DMV area (Washington D.C., Maryland, or Virginia) and your water heater is on its last legs, you’re likely curious about the water heater installation cost for replacing or installing a new unit in 2025.
With rising labor costs, evolving technology, and regional factors like local permit fees and climate, understanding the expenses involved is crucial.
This guide compiled by Sid Hameed and Brickfront Properties and Construction breaks down everything you need to know about water heater installation costs in 2025, specifically tailored for the DMV area.
Average Water Heater Installation Costs in 2025
The national average cost to install a water heater in 2025 ranges from $800 to $2,500, depending on the type of unit, labor, and additional materials. However, in the DMV area, prices can vary due to higher labor rates and local regulations.
DMV-Specific Costs:
- Washington D.C.: $900–$2,800
- Maryland (e.g., Baltimore, Bethesda, Rockville): $850–$2,600
- Virginia (e.g., Arlington, Alexandria, Fairfax): $800–$2,500
Factors Influencing Costs:
- Type of Water Heater: Tankless, storage tank, heat pump, or solar.
- Labor Costs: Plumbers in the DMV area typically charge $50–$150 per hour.
- Permits: Local permit fees can add $100–$300 to the total cost.
- Additional Materials: Piping, fittings, and disposal of the old unit may increase expenses.
Types of Water Heaters and Their Costs

Choosing the right type of water heater is essential for both performance and cost efficiency. Here’s a breakdown of the most common options in 2025:
- Storage Tank Water Heaters:
- Cost: $800–$1,500 (installation included).
- Best for: Homes with consistent hot water needs.
2. Tankless Water Heaters:
- Cost: $1,200–$3,500 (installation included).
- Best for: Energy-conscious homeowners who want on-demand hot water.
3. Heat Pump Water Heaters:
- Cost: $1,500–$3,000 (installation included).
- Best for: Homes in warmer climates like Virginia and Maryland.
4. Solar Water Heaters:
- Cost: $2,000–$5,000 (installation included).
- Best for: Eco-friendly homeowners with access to ample sunlight.
Cost Breakdown by DMV Region
Washington D.C.
- Average Cost: $900–$2,800
- Factors: Higher labor rates and permit fees in urban areas.
Maryland (Baltimore, Bethesda, Rockville)
- Average Cost: $850–$2,600
- Factors: Suburban areas may have slightly lower labor costs than D.C.
Virginia (Arlington, Alexandria, Fairfax)
- Average Cost: $800–$2,500
- Factors: Competitive pricing among local plumbers and contractors.
Hiring a Professional vs. DIY Installation
While DIY installation might seem like a way to save money, it’s not recommended unless you’re experienced with plumbing. Here’s why:
Pros of Hiring a Professional:
- Expertise: Licensed plumbers ensure proper installation and compliance with local codes.
- Warranty: Many manufacturers require professional installation to maintain warranty coverage.
- Safety: Professionals handle gas lines, electrical connections, and permits.

Average Labor Costs in the DMV:
- Hourly Rate: $50–$150
- Total Labor Cost: $300–$1,000
DIY Risks:
- Improper installation can lead to leaks, inefficiency, or even safety hazards.
- Lack of permits may result in fines or issues when selling your home.
Tips to Save on Water Heater Installation
- Choose Energy-Efficient Models: Look for ENERGY STAR-certified water heaters to save on utility bills and qualify for rebates.
- Take Advantage of Rebates: Check for local DMV programs offering incentives for energy-efficient upgrades.
- Get Multiple Quotes: Compare prices from at least three licensed plumbers in your area.
- Schedule Off-Season: Installation costs may be lower during warmer months when demand is lower.
Best Water Heater Installers in the DMV Area
Here are some top-rated, licensed, and insured water heater installation companies in the DMV region:
- Brickfront Properties & Construction (D.C., Maryland, Virginia): known as a top real estate expert in everything home construction, installation, and repairs.
- Michael & Son Services (D.C., Maryland, Virginia): Known for fast, reliable service and competitive pricing.
- My Plumber Heating & Cooling (Virginia): Offers a wide range of water heater options and excellent customer reviews.
- BGE HOME (Maryland): Specializes in energy-efficient water heaters and provides financing options.
- PlumbCrazy (Maryland): Highly rated for professional installation and transparent pricing.

Conclusion
Understanding the cost of water heater installation in 2025 is essential for homeowners in the DMV area. With prices ranging from $800 to $2,800 depending on the type of unit and your location, it’s important to plan ahead and budget accordingly. Whether you’re in Washington D.C., Maryland, or Virginia, hiring a licensed professional ensures a safe and efficient installation.
Ready to upgrade your water heater? Click the image below to contact the top-rated installer in the DMV area, Brickfront Properties and Construction, today for a free quote!