Water heater: when to repair it and when to replace it

You notice hot water when it’s gone: in the morning shower, washing the dishes or bathing the kids. This guide is for you if you own your home and your water heater is failing, leaking or getting old. It explains how long one usually lasts, how to care for it, how to decide between repairing and replacing it, which types use less energy and where to look for help if your income is low. Everything it says comes from official sources such as the Department of Energy (DOE) and ENERGY STAR.

How long most storage water heaters last, according to the DOE

10 to 15 years¹

How long a tankless one can last

Over 20 years¹

The temperature the DOE recommends

120 °F¹

Drain a little water from the tank to remove sediment

Every 3 months¹

How long a water heater lasts

According to the DOE’s Energy Saver Guide, most storage water heaters last 10 to 15 years, and tankless water heaters can last more than 20 years.¹ That is an average: yours may last less or more depending on your water, how much you use it and how you care for it.

ENERGY STAR says your water heater’s capacity, in gallons, is on its nameplate or on the yellow EnergyGuide sticker.² If you don’t know its age, look at your purchase papers. Write down both: you will need them when you ask for estimates.

If your water heater is past those years, it doesn’t mean you must replace it today. It means it’s time to plan. ENERGY STAR recommends thinking about your next water heater before it becomes an emergency, because the installer may need time to order the right model.² Buying in a hurry, with a cold shower, leaves little time to compare.

How to care for it so it lasts and costs less

The DOE names four main ways to cut what you pay to heat water: use less hot water, turn down the water heater’s thermostat, insulate the water heater and pipes, or buy a more efficient model.¹ Three of them don’t require replacing anything.

The care the DOE recommends

1. 1. Set it to 120 °F

   Once

   The DOE considers it a safe temperature for most people.¹

2. 2. Drain a little water from the tank

   Every 3 months

   A quart, to remove sediment. Follow the manufacturer's directions.¹

3. 3. Insulate the tank if it feels warm

   Once

   The DOE says it can save 7% to 16% a year. Follow the manufacturer's recommendations.¹

4. 4. Check the carbon monoxide alarms

   If it burns gas

   The CPSC calls for alarms on every level of the home and outside sleeping areas.⁴

Sediment collects at the bottom of the tank. According to the DOE, it gets in the way of heat transfer and lowers the heater’s efficiency; that is why it recommends draining a quart of water every 3 months, following the manufacturer’s directions.¹ If you have never done it, read the manual first or ask a licensed plumber.

Repair or replace: how to decide

There is no official rule that says when to replace it. What the DOE does say is this: a new energy-efficient water heater may cost more at first than repairing the old one or buying a less efficient model, but the energy savings continue over the life of the appliance.¹ In other words, today’s price is not the only cost: what you pay for gas or electricity every month counts too.

Repair or replace

Less money today

Repair

• Makes sense if the water heater is young and one part failed.
• Get the estimate in writing, with the part and the price.⁷
• It keeps using the same energy as before.

More money today

Replace

• Costs more up front, but an efficient model saves energy over its life.¹
• Look for the ENERGY STAR and EnergyGuide labels.¹
• Ask whether a permit is needed and who gets it.²

Get two estimates, one for each option, and compare them with what you pay for energy.⁷¹

The Federal Trade Commission (FTC) recommends getting multiple estimates. A written one should include a description of the work, the materials, the completion date and the price. Don’t automatically choose the cheapest, and ask for an explanation if there’s a big difference among them.⁷ The guide to what a repair quote must include explains each part.

Which water heaters use less energy

According to the DOE, heat pump, high-efficiency gas storage, gas tankless and solar water heaters carry the ENERGY STAR label. Electric storage and electric tankless models don’t, because they are already highly efficient and have little room for improvement.¹

Gas tankless water heaters heat water on demand, without storing it. The DOE says that in homes that use 41 gallons of hot water a day or less they can be 24% to 34% more efficient than a storage model. In homes that use a lot of hot water, around 86 gallons a day, the difference drops to 8% to 14%.¹ A big family that showers at the same hour gains less from this type than a couple does.

Heat pump models, also called hybrid, take heat from the air. ENERGY STAR says they should go in an indoor space that stays between 40 °F and 90 °F all year, with about 1,000 cubic feet of air around them, and that they can cool the room they are in.² A very cold garage or a small closet doesn’t always work.

Example with real numbers

How to compare two options, in words

An example without price figures: prices change with your area and your installer.

Today's water heater

Storage tank, 14 years old, leaking at the bottom

What the DOE says about age

Most last 10 to 15 years

Option A

Repair: a written estimate with the part and the labor

Option B

Replace it with an ENERGY STAR model: estimate with model, permit and date

What to ask

How much energy each option uses a year and what warranty it has

The age comes from the DOE.¹ What an estimate should include comes from the FTC.⁷ Add the cost to your family budget.

Run it with your numbersFamily budget

Who installs it and what upkeep it needs

ENERGY STAR says that ideally you will find a local contractor who can assess the spot where the water heater goes, give you recommendations, install it and then maintain it.² Ask at the first visit whether they will get the local permit, since ENERGY STAR recommends confirming it when one is needed.²

A new water heater also needs care. According to ENERGY STAR, heat pump models may need yearly maintenance, such as changing air filters. And in colder places, where the incoming water is colder, they may switch for a time to an electric back-up mode in the cold months, which raises energy use in those months.² If your winters are hard, ask the contractor how long it would run in that mode and what it would cost.

When the work is done, keep the manual, the warranty and the receipt together. You will need them if the water heater fails early or if you sell the house one day.

The federal tax credit has ended

For a few years, the IRS gave a tax credit for energy-efficient home improvements that covered water heaters. The IRS says that credit could be claimed for improvements made through December 31, 2025.³ If someone sells you a water heater today saying “the government pays you back part of it,” ask them to show you the rule in writing.

If you replaced your water heater in 2025 or earlier and did not claim the credit, the guide to free tax filing explains where to get help. For a new water heater, ENERGY STAR says its partners sponsor rebates on certified products, and it has a rebate finder by zip code.²

Public help with the repair

The Weatherization Assistance Program (WAP) is federal help run in each state. According to the DOE, income is a main factor: households at or below 200% of the federal poverty guidelines, or that receive SSI, qualify under its rules, and each state may use LIHEAP’s limit of 60% of state median income. Homeowners and renters can apply, and if you qualify you are placed on a waitlist.⁶

Not every program covers the same things. Nevada’s program, for example, says on its page that it includes water heater upgrades or repairs, and that for approved homeowners and renters all services are provided at no cost.⁵ For yours, read the weatherization guide and look up your state’s agency in our list of repair-help programs. If your problem is paying the gas or electric bill, the LIHEAP guide explains that other help.

If this is you

You live alone and your water heater is old

Plan the replacement before it fails; ENERGY STAR says the installer may need time to get the model.²

Your income is low

Your state's weatherization program may help; there is almost always a waitlist.⁶

Your family uses a lot of hot water

A tankless water heater saves less in homes that use a lot of hot water, according to the DOE.¹

Someone feels dizzy near the gas water heater

Get outside and call 911, as the CPSC recommends.⁴

Costly mistakes

• Mistake: Waiting for the water heater to break before shopping for a new one.

  Instead: Plan the replacement as it nears 10 to 15 years.¹²

• Mistake: Taking the first price you are quoted over the phone.

  Instead: Get several written estimates with the work, materials, date and price.⁷

• Mistake: Choosing on today's price alone.

  Instead: Also compare how much energy each option uses.¹

• Mistake: Putting a heat pump water heater in a small or very cold closet.

  Instead: Check the space ENERGY STAR calls for: 40 °F to 90 °F and about 1,000 cubic feet of air.²

• Mistake: Counting on the federal tax credit for a replacement made in 2026.

  Instead: The IRS says it covered improvements made through December 31, 2025.³

What to do this week

1. Look at your water heater’s nameplate: write down its capacity in gallons, and its age if you know it.²
2. Check that it is set to 120 °F, as the DOE recommends.¹
3. If it burns gas, test the carbon monoxide alarms on every level.⁴
4. If it is more than 10 years old, get two written estimates: one to repair it and one to replace it.¹⁷
5. If your income is low, call your county’s weatherizationweatherizationWeatherization means improvements that make your home more energy efficient, such as sealing doors and windows or making the furnace work better. The U.S. Department of Energy's Weatherization Assistance Program (WAP) makes these improvements in low-income homes to lower their energy costs while protecting their health and safety. States and local organizations run it. Both homeowners and renters can apply; if you rent, the provider gets your landlord's permission before work begins. If you are income eligible, you are placed on a waitlist.See the full definitionClose agency and ask whether there is a waitlist.⁶
6. Add the cost to your family budget and read the contractor scams guide before you sign.