Hot Water Replacement
Replacing a hot water tank is a significant home upgrade, and understanding your options is key to making the right choice. Hot water tanks typically last 6–12 years, depending on water quality, usage habits, and unit placement. Whether you’re replacing your current tank with a similar model, upgrading to a larger capacity, or switching to a tankless unit, factors such as household size, energy source, efficiency, recovery rate, and location should all be considered. For example, a family of 3–4 may benefit from a 40–50-gallon tank, while households with 5+ members might consider a 50–80-gallon tank or tankless system. Placement matters, especially in Texas where many tanks are installed in attics above bedrooms, which adds weight and risk in the event of a leak or failure. When you’re ready, Bluebonnet Waste and Water’s licensed professionals are here to help select the right system for your needs.
The cost of hot water tank replacement varies widely, typically between $2,500–$6,000, depending on tank size, installation complexity, removal of the old unit, permits, and whether you’re choosing electric or gas. Gas units tend to have faster recovery and lower energy costs but require venting and higher upfront installation expenses. Electric tanks are more budget-friendly to install but usually cost more to operate long-term. Leaks are one of the first signs it’s time for a replacement, often caused by corrosion, a worn anode rod, a faulty drain valve, or excess pressure. To avoid future issues, Bluebonnet’s certified technicians ensure every job meets code, includes leak-prevention measures, and is backed by our 2-year labor warranty and 5-year worry-free extended protection. We even offer a Same-Day Replacement Guarantee to get your home back to normal—fast.
Key considerations:
Hot water tank replacement. Hot water tanks have a lifespan of 6 – 12 years. The time may vary based on water conditions, family lifestyle, and location of the hot water tank. A hot water tank can be replaced by a similar or larger hot water tank or converting it to a tankless hot water unit. When selecting a hot water tank replacement, consideration should be given to you household size, energy source and energy efficiency. If your household is 3-4 people, we recommend a 40–50-gallon tank and for households greater than 5+ people, we recommend a 50-80+ gallon tank or converting to a tankless hot water unit. An important consideration of hot water tank replacement is the recovery rate of a hot water heater. The recovery rate is especially important for families that take back-to-back to back showers or high water demand. When replacing a hot water tank, it also gives thought to location and the dimension of the hot water tank replacement. In Texas, many of the units are in the attic above a bedroom. Although the placement provides minimal pipe run to the bedrooms and showers, it also puts a 500-pound weight above a bed. When you are ready to replace the hot water tank, make sure you consult with Bluebonnet Waste and Water. Consult our expert team of technicians to ensure the correct unit is selected for your household.
Water heater replacement costs. There are several variables when estimating the cost to replace a hot water tank. Removal of the old tank, pipe rerouting, replacement complexity, permits, power source (gas vs electric), and tank model are all factors that help determine the cost of replacing a hot water tank. Broadly speaking, hot water tank replacement can cost between $2,500 – $6,000. The wide range is due to the size of the tank, installation complexity and cost of the tank. A high-efficiency or hybrid model can cost 2-3X the price of a base model, but the homeowner is able to recapture the cost with lower utility bills over time.
We are frequently asked if a gas hot water tank or an electric hot water tank is better. Gas hot water tanks have faster recovery times and lower energy bills but will require venting and have higher installation costs. Electric hot water tanks have lower upfront costs and are less expensive to install but have slower recovery times and cost more over several years of usage. Bluebonnets expert technicians can assist in providing you with an estimate and a review of what hot water tank is best for your household.
Hot water tank leaks. One of the first visual indications that it is time to replace your hot water tank is that you notice the hot water tank leaking. There are several reasons when a hot water tank may leak. First, the tank is old and starts to corrode from the inside out or from the outside in. All hot water tanks have an anode that help reduce the corrosion rate inside the tank. If the anode is worn out and not replaced, then the water starts to corrode the tank. Inside of eating away at the anode, corrosion will start eating through the metal which can cause leaks from the body itself. All hot water tanks have a drain valve. If the drain valve accumulates sediment, is loose or worn, it can be a leading factor to a leaking hot water tank. Frequently a slow drip from the drain valve can lead to a larger problem. We recommend frequent inspection of the hot water tank drain valve to ensure it is not leaking. If the hot water tank has excessive pressure or temperature, it can cause the temperature relief value (TPR) to malfunction which can cause the hot water tank to leak. To help mitigate a faulty pressure relief value, an expansion tank can be installed which helps to regulate the pressure and temperature.
How to replace a hot water heater. When considering everything that is involved with replacing a hot water heater, there are several points to consider when determining how to replace a hot water heater. First, code compliance and safety should be a top consideration. Ensure the plumbing company meets local plumbing codes, venting rules and safety standards. Safety is especially important for gas lines, pressure relief valves and expansion tanks. As many hot water tanks in Texas are in the attic, ensure that connections are properly made and their leak prevention and water shutoff devices installed to prevent costly repairs. A professional plumber from Bluebonnet will ensure the water, gas and electrical hookups are correct to minimize leaks, back drafting and future failures of the hot water tank replacement. Lastly, a professional plumber can provide a efficient and hassle-free experience. Bluebonnet technicians have the tools, training and experience to remove the old tank, install the new one and ensure everything is running smoothly. The team at Bluebonnet has decades of experience getting your hot water tank replaced typically less than a day. Be sure to ask Bluebonnet about our Same-Day guarantee when considering a plumbing company to replace your hot water heater.
Extended Warranty. Most plumbing companies provide a 1-year labor warranty. We are so confident in our technicians and workmanship that we provide a 2-year labor warranty, and a 5-year extended worry-free warranty program.
Tankless Hot Water Units
Converting to a tankless hot water heater offers a variety of advantages that make it an attractive upgrade for many homeowners. These systems provide endless hot water, improved energy efficiency, and a compact space-saving design—making them especially ideal for larger or growing households. Because tankless units heat water only on demand, they reduce standby energy loss and can result in substantial utility savings over time. Additionally, tankless units can be installed outside the home, reducing the risk of water damage from leaks often associated with attic-installed traditional tanks. When properly maintained, tankless systems can last 15–20 years, nearly doubling the lifespan of a conventional tank.
While tankless systems come with a higher initial installation cost, their long-term value is substantial. Installation may involve upgrades to gas lines, venting, or plumbing layout, but these are easily managed by experienced technicians like the team at Bluebonnet Waste and Water. Not only does a tankless system offer lower lifetime energy costs, but it also boosts home value as more buyers are looking for modern, energy-efficient upgrades. These systems function by instantly heating water as it flows through a coil system, meaning there’s no stored hot water and less wear on the system. Thanks to robust construction, on-demand operation, and serviceable components, tankless water heaters deliver long-lasting, efficient performance. Plus, Bluebonnet’s 2-year labor warranty and 5-year extended warranty ensure peace of mind for years to come.
Key considerations:
Benefits of converting to tankless units: We are frequently asked about why someone would want to convert to a tankless hot water unit. The benefits of converting to a hot water unit are numerous but the top 3 benefits include endless hot water, improved energy efficiency and space saving design. For large or growing households, a tankless hot water heater cannot be beat. A tankless hot water unit is designed to heat the water on demand, which means you never run out. Cold water is instantaneously heated when someone turns the hot water faucet on. Because the hot water is heated only when the demand is needed, a tankless hot water unit is more energy efficient. A hot water tank maintains a constant hot water source regardless of whether the homeowner is home or on vacation. A tankless hot water unit only heats the water when needed which results in lower energy bills. A tankless hot water is a small, robust design that can be installed inside or outside. Frequently a hot water tank is installed in the attic above the bedrooms. A tankless unit can be installed outside near the gas main. This provides two advantages; first removes 50-80 gallons of water leak in the attic (reduce the risk of thousands of dollars of damage) and second, it is installed next to the gas source minimizing the length of gas piping inside the house. Finally tankless water heaters have a longer lifespan compared to hot water tanks. With proper maintenance, a tankless hot water unit can have a lifespan of 15-20 years.
Tankless water heater installation. Installing a tankless hot water heater can be a more complex installation than compared to a direct hot water tank replacement. When converting from a traditional hot water tank, an evaluation will need to be completed to determine if the gas lines need to upgrade and if additional venting will need to be required. Additionally, some piping modifications may need to be performed to ensure fast hot water to various parts of the house. At Bluebonnet, our expert team of technicians can assess your household needs and requirements to ensure we are sizing the tankless hot water heater correctly, considering the ideal location to minimize installation costs and disruptions. Lastly, ensure your installation company is properly licensed to meet all building codes and requirements. Bluebonnets team of technicians are expertly trained and supervised to ensure they are installing all necessary safety features and precautions such as pressure relief valves and shutoff systems to minimize risks and provide years of endless hot water.
Are tankless water heaters worth it? Great question and it really is a case-by-case answer. The long-term energy savings is undeniable. Tankless hot water units cost more to install compared to a direct replacement, but as tankless units heat on the water required, there is potentially a yearly savings of $100 – $300+ / years of savings on the utility bills. Given the longer longevity of a tankless system compared to a traditional hot water tank, the utility savings over the 15–20-year lifespan makes the lifetime investment, or return of investment (ROI), favor a tankless hot water unit. Many homebuyers today are looking for homes that already have tankless hot water upgrades already completed. Homebuyers perceive the conversion to a tankless hot water unit as a home upgrade which leads to increased home value and a modern upgrade.
How do tankless hot water heaters work? This is one of our most frequent questions. When a person turns on the hot water, such as a shower or dishwasher, the line pressure is reduced which causes cold water to enter the tankless unit. A heat exchanger instantly heats the cold water as it passes through the unit. As the cold-water snakes its way through the coils, it heats it to a predetermined level. Hot water exists the unit and uses the existing hot water piping network in the house. When the faucet is shut, the unit shuts down. No storage of hot water.
How long do tankless water heaters last. Due to tankless hot water units being a robust system utilizing a high efficiency heat exchanger, they last longer than traditional hot water tanks. The increased lifespan of the unit is due to several key factors such as no standing water, on-demand operation and serviceable components. A leading factor of leaking hot water tanks is due to the corrosion of hot water tanks due to the long period of stagnant water causing corrosion internally of a tank. Tankless units operate with an on-demand operation which reduces the wear and tear of components compared to hot water tanks which are constantly keeping the water warm. Finally, most of the internal components of tankless hot water units (heating elements and sensors), are easily serviceable by a trained technician, resulting in extended useful life of the water heater.
Extended Warranty. Most plumbing companies provide a 1-year warranty on labor. Bluebonnet Waste and Water believes this is too short. We provide a standard 2 year warranty on labor and an extended 5-year warranty. Bluebonnet Waste and Water is committed to providing everyone customer with peace of mind knowing their tankless hot water unit will be installed correctly and provide many years of uninterrupted service.
Bluebonnet Waste and Water is a locally owned and operated company dedicated to providing Houston with the best waste and water upgrade services. Founder and President Kara is committed to every installation and ensuring every customer is satisfied with their experience. Please contact us for your next hot water replacement, tankless conversion and the next restroom trailer event.