A new 40-gallon residential water heater typically costs between eight hundred and two thousand five hundred dollars for the equipment alone, depending on whether you choose a standard electric resistance tank, a standard gas unit, or an advanced hybrid heat pump model. Standard electric and gas tank units usually range from eight hundred to fourteen hundred dollars at retail, while high-efficiency hybrid heat pump models cost significantly more upfront due to complex inverter compressors. When factoring in professional installation labor and necessary code-compliance parts, total turnkey project expenses generally land between twelve hundred and three thousand dollars.
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