Water heater repair or replace? Leaks, costs, permits and getting bids (2026)

Chapters

1. 0:00 Should I repair or replace my water heater?
2. 1:55 How long does a water heater last, and what are the signs it's failing?
3. 3:24 Water heater leaking from the bottom: what does it mean, what do I do now?
4. 5:18 Why is my water heater not working?
5. 6:18 Why is my water heater making noise? (popping, rumbling, hissing)
6. 7:03 Why does my hot water smell like rotten eggs, or like gas?
7. 8:30 How do I flush or drain a water heater, and when should I call a pro?
8. 10:22 Tankless vs tank water heater (and heat pump): what changes when you replace?
9. 12:03 Water heater replacement cost: what drives it?
10. 13:33 Heat pump water heater tax credit 2026, and rebates
11. 15:00 Do I need a permit to replace a water heater? Can I replace it myself?
12. 16:23 How do I get bids for a water heater replacement?
13. 17:27 How InstaBids works

Transcript

0:00 Should I repair or replace my water heater?

Water on the floor by the water heater. No hot water. A rumble or a pop from the tank... or a smell like rotten eggs. This film takes the questions people type next: repair or replace, what it costs, do I need a permit...

and how to get bids. The answers come from the makers' manuals, federal agencies and city building departments... in their own words. Here's the short answer... the sources we read give no single official repair-or-replace rule. What they give are factors to weigh: the age, the leak and the cost.

Look at the simple things first, because many suspected leaks are not the tank at all. A flooded heater is the exception. And age matters... so if a replacement is coming, plan it before it fails. A. O. Smith's installation and care manual has a page called Leakage Checkpoints. It says: Use this guide to check a leaking water heater. Many suspected leakers are not leaking tanks. Often the source of the water can be found and corrected.

And then, in capitals... do not replace the water heater until a full inspection of all possible water sources is made and necessary corrective steps taken. The exception is a flood. The same manual says: Flood damage to a water heater may not be readily visible or immediately detectable.

Contact a qualified installer or service agency to replace a flooded water heater. Do not attempt to repair the unit! It must be replaced! On age... the Department of Energy's Energy Saver guide says: Most storage water heaters last 10-15 years, while tankless water heaters can last more than 20 years. That's a typical range...

not a promise for your heater, and the next chapter covers what shortens it. So timing matters... Energy Star says: Plan ahead if you can. To make your life easier, plan ahead for your next water heater replacement and you will have time to research and select the best technology for your situation before it's an emergency.

Waiting means choosing in a hurry... chapter nine shows what that can add. On InstaBids, you describe the job once, and it becomes one written scope. Contractors bid in writing on that... same scope. Short answer...

1:55 How long does a water heater last, and what are the signs it's failing?

ten to fifteen years for most tanks, by the Department of Energy's count, and yours depends on your water and where it sits. The Energy Department's guidance for federal buyers uses 13 years in its cost tables: Lifetime Energy Cost: The sum of the discounted values of annual energy cost with an assumed product life of 13 years.

That's an assumption for a table... not a promise for any one heater. A. O. Smith says: Water heater life depends upon water quality, water pressure and the environment in which the water heater is installed. And, in a caution box... All water heaters eventually leak.

Rheem points at the bottom of the tank: Tank water heaters can have sediment buildup at the bottom of the tank, which often leads to corrosion, leaks, or system failure. Then there's the anode rod. Rheem says: The anode rod attracts corrosion to protect the tank's interior lining. If it's worn or mostly coated with calcium, it's time for a replacement.

Checking it annually can add years to your water heater's lifespan. Rheem's electric manual gives a line to measure by... it's on screen. There's no single official checklist of warning signs in the sources we read... so here are the signs the manuals themselves name, each with its own chapter. Water around the base. A relief valve that discharges.

Rumbling or popping. A rotten-egg smell. And not enough hot water, or none. Homeowners anywhere in the US can post a job; once you send it, InstaBids finds contractors... to bid on

3:24 Water heater leaking from the bottom: what does it mean, what do I do now?

it. Short answer... water at the bottom isn't always the tank. A. O. Smith's leak checklist says: Water in the water heater bottom may be from condensation, loose connections, or the relief valve. On gas models it explains the condensation: Combustion products contain water vapor which can condense on the cooler surfaces of the tank. Droplets form and drip onto the burner. This is common at the time of start-up after installation and when incoming water is cold.

Two more from the same list. Water from a drain valve may be due to the valve being slightly opened. And: Small amounts of water from temperature-pressure relief valve may be due to thermal expansion or high water pressure in your area. That matters...

because the manual also says: Thermal expansion can cause premature tank failure (leakage). This type of failure is not covered under the limited warranty. Rheem's manual says what to do about a relief valve that discharges: If the temperature and pressure relief valve on the hot water heater discharges periodically, this may be due to thermal expansion in a closed water system.

Contact the water supplier or your plumbing contractor on how to correct this. Do not plug the relief valve outlet. If you need to stop the water now... A. O. Smith's draining steps start like this. 1. Turn off the electrical supply to the water heater.

2. Turn off the gas supply at the Main Gas shut-off Valve if the water heater is going to be shut down for an extended period. 3. Close the cold-water inlet valve to the water heater. And its danger box says: Keep hands clear of drain valve discharge.

And for the next heater... the same manual says: Installation of the water heater must be accomplished in such a manner that if the tank or any connections should leak, the flow of water will not cause damage to the structure. In all cases, a metal drain pan should be installed under the water heater.

On InstaBids, you describe the job once, and it becomes one written scope. Contractors bid in writing on that... same scope. Short answer...

5:18 Why is my water heater not working?

start with the simple causes. Rheem's electric manual has a chart for not enough or no hot water. It lists: A fuse is blown or a circuit breaker tripped. The fix it gives: Replace fuse or reset circuit breaker. Then: Electric supply may be off.

And one more... Manual reset limit, E-C-O. But the same manual draws a line: For your safety do not attempt repair of electrical wiring, thermostats, heating elements or other safety devices. Refer repairs to qualified service personnel. For gas heaters, A. O.

Smith's troubleshooting chart lists eleven causes under insufficient hot water... all eleven are on screen. They include: Low gas pressure. Thermostat set too low. Sediment or lime in tank. Water heater too small. Wrong piping connections. And the manual says... These guidelines should be utilized by a qualified service agent.

On InstaBids, you describe the job once, and it becomes one written scope. Contractors bid in writing on that... same scope. Short answer... most of these

6:18 Why is my water heater making noise? (popping, rumbling, hissing)

noises have a named cause. Rheem says: Rumbling and popping are often caused by sediment buildup that flushing can remove. On gas units, A. O. Smith says: Condensation causes sizzling and popping within the burner area during heating and cooling periods and should be considered normal. On electric models...

Rheem says: If the hissing or singing sound level increases excessively, the electric heating element may require cleaning. Contact a qualified installer or plumbing contractor to inspect. But a relief valve that pops is different... Rheem's chart calls it an unacceptable condition, and its notice says do not plug the relief valve outlet.

Homeowners anywhere in the US can post a job; once you send it, InstaBids finds contractors... to bid on it.

7:03 Why does my hot water smell like rotten eggs, or like gas?

Short answer... a rotten-egg smell in the hot water and a smell of gas are two different things. For rotten eggs, A. O. Smith says: The most common complaint associated with the anode rod is one of a rotten egg smell in the hot water. Rheem explains: Water sometimes contains a high sulfate and/or mineral content and together with cathodic protection process can produce a hydrogen sulfide, or rotten egg odor in the heated water. Chlorination of the water supply should minimize the problem.

The fix A. O. Smith describes: Smelly water may be eliminated or reduced in some water heater models by replacing the anode(s) with one of less active material, and then chlorinating the water heater tank and all water lines. And a warning... Do not remove the anode leaving the tank unprotected.

By doing so, all warranty on the water heater tank is voided. A smell of gas is an emergency. A. O. Smith's manual for its direct-vent gas models prints this box. What to do if you smell gas. Do not try to light any appliance.

Do not touch any electrical switch; do not use any phone in your building. Immediately call your gas supplier from a neighbor's phone. Follow the gas supplier's instructions. If you cannot reach your gas supplier, call the fire department. Once everyone is safe and the gas supplier has the call... the next step is the repair, and for the smell...

ask the person doing the repair. Your contact details stay hidden until you pick a contractor and they... confirm the connection. Short answer...

8:30 How do I flush or drain a water heater, and when should I call a pro?

follow the manual for your model, because the makers don't agree on how often. A. O. Smith says: It is recommended that the tank be drained and flushed every 6 months to remove sediment which may build up during operation.

Rheem's article says: For most households, it is recommended to flush your water heater once a year to help prevent sediment buildup and performance issues. If you have hard water, it's recommended to flush your system every 6 months. Rheem's electric manual suggests a few quarts every month.

And the Department of Energy says: Drain a quart of water from your water tank every 3 months to remove sediment that impedes heat transfer and lowers the efficiency of your heater. Follow the manufacturer's directions. Before any of it...

Rheem says: Shut off power to the water heater before draining water. A. O. Smith warns... Water temperature over 125°F can cause severe burns instantly resulting in severe injury or death. And: Do not turn on power to the water heater unless the tank is full.

A. O. Smith's flushing steps, all eleven, are on screen. In short... power off, a hose run to a drain, flush until it runs clean, make sure the heater is full... and only then power back on. Rheem adds a yearly test: At least once a year, lift and release the lever handle on the temperature pressure relief valve, located near the top of the water heater, to make certain the valve operates freely. When should you call a pro?

Rheem says: Older systems or tanks that haven't been flushed in a while may have hardened sediment that's difficult to remove without specialized tools, and attempting to flush these units yourself could lead to leaks or further damage. If you're unsure, it's always safer to bring in a professional. And for tankless...

Tankless water heaters, however, require periodic descaling instead of flushing. Homeowners anywhere in the US can post a job; once you send it, InstaBids finds contractors... to bid on it. Short answer... a replacement doesn't

10:22 Tankless vs tank water heater (and heat pump): what changes when you replace?

have to be the same type, but each type changes the job. The Department of Energy says: On-demand or tankless water heaters (gas) heat water directly without using a storage tank. And: If you tend to use hot water in multiple locations in your home at the same time, you may find you need two or more tankless water heaters to keep up with demand.

These systems require unique installation specifications; consult with a certified technician before purchasing. Then heat pump water heaters. The same guide says: Heat pump water heaters can be two to three times more energy efficient than conventional electric water heaters.

But they need room... Energy Star says: HPWHs should be installed in interior spaces that remain between 40° to 90° F year-round, and provide 1,000 cubic feet of air space around the water heater. That's why a heat pump swap... takes more planning. Energy Star's guide says: Installing HPWHs sometimes requires more planning than installing standard gas or electric water heaters. A contractor must consider the installation's electrical capacity, adequate air supply, drainage, noise, and other factors. And on timing...

Your installer may need time to order the proper model, and it may take longer to install than a standard water heater. For size, Energy Star says: Use the gallon capacity of your current storage water heater, if you already have one, as a starting point. You can find the water heater's capacity or volume on its nameplate or yellow Energy Guide sticker. So when you weigh a tank, a tankless and a heat pump...

you're comparing three different jobs. On InstaBids, you describe the job once, and it becomes one written scope. Contractors bid in writing on that... same scope. Short answer... the heater

12:03 Water heater replacement cost: what drives it?

is only part of the price, and the official sources we found give equipment prices, not installed prices. Energy Star's guide says: As of spring 2024, the per-unit cost of a unitary 50-gallon 240-volt electric heat pump water heater ranged from $1,500 to $2,000, whereas the cost of a standard electric storage water heater ranges from $400 to $900. A comparable gas storage water heater ranged in price from $400 to $1,000 (several hundred dollars more for power vent models). So what moves the installed number? The sources name the factors. For heat pumps, Energy Star lists electrical capacity, air supply, drainage and noise, and adds: Sometimes, these items may require upgrades to facilitate the operation of a HPWH, which can take multiple contractor trips or occur over several days. Timing counts too... the same guide warns that waiting until the heater fails can mean extra fees for weekend or overnight replacement.

And the permit is a cost... Geneva, Illinois, says: Water heater permit fee: $55.00 to be paid when the permit is issued. So the installed cost depends on those factors: the type of heater, including power vent models, the electrical work and the space, the permit, and the timing.

A chart can't give you your number... so ask for written bids on the same scope so you can compare them. On InstaBids, you describe the job once, and it becomes one written scope. Contractors bid in writing on that...

same scope. Short answer...

13:33 Heat pump water heater tax credit 2026, and rebates

under the I-R-S rule, a water heater placed in service after December 31, 2025 does not qualify for the 25C credit. The I-R-S says it plainly: The credit will not be allowed for any property placed in service after December 31, 2025.

And its instructions for Form 5695 say: You can't claim energy efficient home improvement credits for expenditures or property placed in service after December 31, 2025. Energy Star's tax credit page gives the same end date: This tax credit is effective for products purchased and installed between January 1, 2023, and December 31, 2025. So a water heater placed in service in 2026 does not qualify for the 25C credit...

even though people still search for one. Rebates are separate. The Department of Energy says: Your state, territory, or Tribe manages rebates for energy efficiency and appliance upgrades. They will determine which products are eligible for rebates. Its guide to one federal rebate, the Home Electrification and Appliance Rebate, says: Check your state's website for program details. This program is only available to low- and middle-income households.

So availability varies by state... check your state's program. Energy Star says: Use the Rebate Finder to determine whether there are rebates available for Energy Star certified water heaters in your zip code. Homeowners anywhere in the US can post a job; once you send it, InstaBids finds contractors...

to bid on it. Short answer...

15:00 Do I need a permit to replace a water heater? Can I replace it myself?

it depends on where you live, so ask your city or county building department before work starts. Some places want a permit every time. Geneva, Illinois, says: A building permit is required prior to replacing a water heater. Moorhead, Minnesota, answers the question directly. Do I need a permit to install a replacement water heater? A plumbing permit is required to install a water heater.

Nevada's State Contractors Board says: Permits and inspections are required for both the installation of new water heaters as well as replacement of old water heaters. Glenwood Springs, Colorado, covers emergency swaps too... its guide says to call before starting work, and adds: A permit is still required. Required Inspections: Three total. In other places, who does the work changes the answer.

Phoenix is one... its exact wording is on its residential permits page, linked below. Can you do it yourself? That depends on who does the work... and your city's permit page says which, like Geneva's, linked below. But gas and venting carry real risk.

Geneva says: Improper venting may lead to carbon monoxide poisoning. A. O. Smith warns: Breathing carbon monoxide can cause brain damage or death. And if you hire it out... Energy Star suggests you see if the company will obtain a local permit if necessary and understands local residential building codes and other regulations.

On InstaBids, you describe the job once, and it becomes one written scope. Contractors bid in writing on that... same scope. Short answer... get

16:23 How do I get bids for a water heater replacement?

more than one, get them in writing, and make them describe the same job. The F-T-C says: Get multiple estimates. A written estimate should include a description of the work to be done, materials, completion date, and the price. And: Don't automatically choose the lowest bidder. For a water heater, the sources point to what that description should name. The size, from the old heater's nameplate. A drain pan...

A. O. Smith says: In all cases, a metal drain pan should be installed under the water heater. The permit, and who gets it... the F-T-C warns: “Scammers ask you to get any required building permits.” Then two items from the F-T-C's contract list, each on its own.

The dates... an estimated start and completion date. And the money... and the cost of labor and materials. And on paying, the F-T-C says: Don't pay the full amount for the project up front. It also notes: “Contract requirements vary by state.”

Even if your state doesn't require a written agreement, ask for one. On InstaBids, you describe the job once, and it becomes one written scope. Contractors bid in writing on that... same scope. So how does InstaBids work?

17:27 How InstaBids works

On InstaBids, you describe the job once, and it becomes one written scope. Contractors bid in writing on that same scope. Your contact details stay hidden until you pick a contractor and they confirm the connection. Homeowners anywhere in the US can post a job; once you send it, InstaBids finds contractors to bid on it.

InstaBids is a written-bid marketplace for home jobs: you, or your AI assistant, describe it once; contractors bid in writing on that scope; you choose who gets your number. Start your project today at instabids.ai... or have your AI assistant...

start it for you.

Sources quoted in the video

• Source: A. O. Smith, Residential Gas Water Heaters (Power Vented) manual, March 2021, read 3 November 2026.
• Source: A. O. Smith, direct-vent gas water heater manual, October 2025, read 3 November 2026.
• Source: Rheem, Electric Residential (Side Connect Lowboy) Use & Care Manual AP23124, read 3 November 2026.
• Source: Rheem, How Often To Flush Your Water Heater (May 29, 2026), read 3 November 2026.
• Source: Rheem, How to Keep Your Tank and Tankless Water Heaters Running at Peak Performance (Dec 22, 2025), read 3 November 2026.
• Source: U.S. DOE, Energy Saver guide (2022), read 3 November 2026.
• Source: U.S. DOE FEMP, Purchasing Energy-Efficient Residential Water Heaters, read 3 November 2026.
• Source: U.S. DOE, Home Upgrades, read 3 November 2026.
• Source: U.S. DOE, How to Get a Home Electrification and Appliance Rebate (2024), read 3 November 2026.
• Source: ENERGY STAR, Heat Pump Water Heaters, read 3 November 2026.
• Source: ENERGY STAR, Heat Pump Water Heater Market Acceleration Guide, read 3 November 2026.
• Source: ENERGY STAR, Heat Pump Water Heaters Tax Credit, read 3 November 2026.
• Source: IRS, FAQs on Public Law 119-21 changes to 25C and other credits (FS-2025-05), read 3 November 2026.
• Source: IRS, Instructions for Form 5695, read 3 November 2026.
• Source: FTC, How To Avoid a Home Improvement Scam, read 3 November 2026.
• Source: City of Geneva IL, Water Heater Replacement Permit Information, read 3 November 2026.
• Source: City of Glenwood Springs CO, Water Heater Permit Guide, read 3 November 2026.
• Source: City of Moorhead MN, Building and Home Improvement, read 3 November 2026.
• Source: Nevada State Contractors Board, permits for water heaters, read 3 November 2026.
• Source: City of Phoenix AZ, residential permits, read 3 November 2026.
• Source: Google search suggestions, "repair or replace water heater", read 3 November 2026.