Water heater replacement: tank versus tankless
A standard 40 to 50 gallon tank water heater runs $1,200 to $2,800 installed. Gas units cost slightly more than electric but have dramatically lower operating costs in most climates. Installation includes the tank, new supply lines, T&P valve, drip pan, venting (gas), and a permit ($50 to $200). Code-triggered upgrades — earthquake straps, new pan drain to exterior, expansion tank on closed systems — can add $200 to $500.
Tankless (on-demand) water heaters run $2,800 to $6,500 installed. Gas tankless units require a larger gas line (often 3/4 inch from meter) and stainless steel venting — bring your wallet if you’re replacing a tank with a tankless cold. Electric tankless sometimes requires a 200-amp panel upgrade due to the 60 to 120 amp draw. Payback versus a tank is 8 to 15 years in typical households — worth it for endless hot water and wall-mounted space savings, but rarely cheaper over the life of the unit.
Heat pump water heaters (hybrid electric) are the dark horse: $2,400 to $4,500 installed, with operating costs 60 percent below resistance electric. Federal and utility rebates through the Inflation Reduction Act push real cost below standard electric in many cases. Downsides: they need 700+ cubic feet of surrounding space to pull heat from, and they cool the room they’re in.
Furnace and AC replacement
A standard 80% AFUE gas furnace runs $3,500 to $7,500 installed. A high-efficiency 95% AFUE unit runs $5,500 to $10,000 installed. The efficient unit saves roughly $150 to $400 per year in gas — payback is usually 8 to 15 years, but lifecycle cost often favors the cheaper unit. Air conditioner condensing unit and coil replacement runs $4,500 to $9,500 for standard single-stage units; variable-speed high-SEER units run $7,500 to $15,000.
A complete furnace and AC replacement done as a system (shared installation labor, new thermostat, new refrigerant lines) runs $8,500 to $18,000. Heat pump systems, which handle both heating and cooling, run $7,500 to $18,000 installed and deliver major operating cost savings in mild climates. Cold-climate heat pumps (Mitsubishi H2i, Fujitsu XLTH) now work to minus 15 F and below.
Electric panel upgrade
A 100-amp to 200-amp panel upgrade runs $2,500 to $5,500 in standard situations and $6,000 to $15,000 if the service drop from the utility needs to be upsized or the meter base has to move. Panel replacements without service upgrades (same amperage, new panel box) run $1,800 to $3,500. If you have a Zinsco, Federal Pacific Stab-Lok, or old Pushmatic panel, replacement is urgent — these panels fail to trip during faults and are fire hazards. Many insurers now refuse coverage on homes with them.
EV charging, induction cooktops, heat pump water heaters, and home office power draws are pushing many homes to 200-amp service. Some utilities offer rebates on panel upgrades done alongside electrification upgrades.
Dishwasher installation
Dishwasher replacement is one of the easier appliance swaps. Labor runs $150 to $400 for a straight swap. Budget an extra $100 to $300 if the water supply shutoff is old, the drain line needs an air gap added, or the cabinet opening needs trim work. Panel-ready dishwashers that match cabinet fronts cost $200 to $600 more at install due to cabinetry integration.
Dryer vent installation and repair
A new dryer vent run from laundry room to exterior costs $200 to $600 for a short run, $600 to $1,500 for long runs or awkward paths through finished walls. Vent cleaning runs $80 to $200 and should happen annually — clogged vents are the leading cause of dryer fires. If your dryer takes multiple cycles to dry clothes, the vent is the likely culprit.
Permits and code requirements
Most appliance replacements require a permit in most jurisdictions: water heater swaps ($75 to $250 permit), HVAC replacements ($150 to $500), and panel upgrades ($200 to $500). Permits include inspection, which protects you from unqualified work and is required for insurance claims if something fails later. Skipping permits on gas or electric work is a bad idea — code-compliant work is a requirement of most homeowners’ insurance and creates disclosure issues at resale.
Regional variation
HVAC and water heater installations run 20 to 40 percent more on the West Coast and Northeast. Panel upgrades vary less by region but are always higher in older urban neighborhoods where the service drop is complex. Extreme climates add cost — cold climates need more robust furnaces and deeper water heater locations; hot climates need higher-SEER AC units.
DIY versus hiring a pro
Dishwashers and dryer-hookup swaps are DIY-friendly. Gas water heaters, furnaces, AC units, and any panel work require licensed tradespeople in almost every jurisdiction — and permits require a licensed installer. Gas work DIY is especially risky: a missed connection causes CO poisoning or explosion. Electric work DIY on panels causes shock deaths every year.
When to replace versus repair
Rule of thumb: if the repair costs more than 50 percent of replacement and the unit is past 70 percent of expected life, replace. Water heaters last 8 to 15 years (tank) or 15 to 25 (tankless). Furnaces last 15 to 25 years. AC condensers last 12 to 18 years. Dishwashers last 8 to 12 years. Dryers last 10 to 15. Track install dates and plan proactively — emergency replacement costs 20 to 40 percent more than scheduled.