💧 How Much Does a Water Heater Installation Cost in the GTA?

A reliable water heater is essential for everyday comfort—from hot showers to dishwashing and laundry. If you're considering a replacement or new installation in the Greater Toronto Area, you're probably wondering:"How much does a water heater installation cost in the GTA?"

In this blog, we’ll break down the average costs, types of water heaters, and what affects the total price—so you can plan your budget confidently.

🏷️ Average Water Heater Installation Cost in the GTA (2025)

Here’s what you can expect to pay for unit + professional installation in the GTA:

Type of Water Heater	Total Installed Cost (CAD)
Tank (Electric or Gas)	$1,200 – $2,500
Tankless (On-Demand)	$2,800 – $4,800+
Heat Pump (Hybrid Electric)	$3,500 – $5,500+

These prices include:

• The water heater unit

• Professional installation by a licensed technician

• Standard plumbing and electrical connections

🔧 Key Factors That Affect Water Heater Installation Costs

Several variables can impact your final price:

1. Type of Water Heater

• Tank models are more affordable upfront but less energy-efficient.

• Tankless models cost more to install but offer long-term savings and unlimited hot water.

• Heat pump water heaters are highly efficient but have higher initial costs and space requirements.

2. Size & Capacity

• Common tank sizes: 40, 50, or 60 gallons.

• Larger households need larger units, which cost more.

3. Fuel Type

• Electric units are usually cheaper to install but more costly to operate long-term.

• Natural gas units have a higher upfront cost but lower monthly energy bills in Ontario.

• Switching fuel types (e.g., electric to gas) increases installation costs due to venting and line upgrades.

4. Installation Complexity

If your home requires:

• New venting

• Electrical upgrades

• Relocation of the unit…expect additional labour and materials costs—typically $300 to $1,000+ extra.

5. Permit & Inspection Fees

In the GTA, installing or replacing a water heater may require plumbing permits or gas inspections, depending on the scope of work and your municipality.

Permit-related costs can range from $100 to $300.

💰 Do Rebates or Incentives Apply?

Yes! In Ontario, rebates may be available for:

• ENERGY STAR®-certified high-efficiency models

• Heat pump water heaters

• Water heating as part of a home energy upgrade bundle

Check with Enbridge Gas, Canada Greener Homes Initiative, or local rebate programs for potential savings.

🧰 What's Included in a Professional Installation?

A typical water heater installation in the GTA includes:

• Delivery and installation of the new unit

• Removal and disposal of your old heater

• Connecting water lines, venting, and gas or electrical supply

• System testing and safety checks

• Warranty documentation and registration

📌 Final Thoughts

If your water heater is over 10 years old or no longer performing efficiently, replacing it with a new, energy-efficient model can save you money over time—and keep your hot water flowing without interruption.

In the GTA, installation costs typically range between $1,200 and $4,800, depending on the model, complexity, and your home’s existing setup.

✅ Need a Quote?

If you're ready to install or upgrade your water heater, contact AeroFusion at +1-(289)-306-0542 for a free quote. Our licensed HVAC and plumbing professionals serve homeowners across the GTA with honest pricing, expert service, and fast installations.