How Much Do Water Heaters Cost?
Water heaters are an essential component of homes, providing the comfort of hot water for various daily activities. Water heater replacement costs vary based on several factors, including what type...
Plumbing
Average Cost: $700 - $3,500
Here’s an in-depth review of AO Smith water heaters, including top models, pricing, customer feedback, and how the brand compares to competitors.
Our Verdict: AO Smith is a strong choice for homeowners seeking reliable, energy-efficient water heaters with advanced features. With a wide range of tank, tankless, hybrid, and heat pump options, the brand suits both budget-conscious households and those willing to invest in premium systems. However, higher upfront costs and complex installations may make other brands more attractive for those prioritizing lower initial expenses.
AO Smith has been a leader in water heating technology for more than 150 years. Founded in 1874, the company shifted focus to water heaters in the 1930s and has since become a trusted global manufacturer.
Today, AO Smith produces a wide range of models, from traditional gas and electric tanks to advanced hybrid and tankless systems. Known for energy efficiency, innovative features, and durable construction, AO Smith is recognized as one of the top names in residential and commercial water heating.
| Best For | Top Model | Cost Installed | Standout Feature | Warranty |
|---|---|---|---|---|
| Energy Efficiency | Voltex Hybrid Electric | $2,500 to $4,500+ | Hybrid heat pump technology | 6 to 12 years depending on model |
At Modernize, we appreciate AO Smith for its balance of durability, efficiency, and variety. The company offers everything from budget-friendly electric models to cutting-edge hybrid and tankless systems, giving homeowners flexibility to choose a unit that fits their needs.
We also value AO Smith’s emphasis on long-term savings through energy efficiency. Many models are ENERGY STAR® certified, and some qualify for rebates and incentives, making them a smart investment for reducing utility costs over time.
AO Smith water heaters come with a mix of advantages and potential drawbacks. Here’s a closer look:
Pros
Cons
AO Smith’s product lineup includes multiple water heating options designed for different budgets and household needs:
AO Smith’s most popular water heaters showcase its range of technologies and price points:
Homeowners share a wide range of experiences with AO Smith water heaters. Many point to reliable performance, steady hot water supply, and the convenience of professional installation as reasons they trust the brand. At the same time, some reviews mention challenges such as shorter lifespans on certain electric units, isolated issues with leaks, or mixed experiences with customer service. Gas models tend to earn stronger praise for durability, while electric units receive more varied feedback. Here’s a closer look at what real customers are saying.
“2nd AO Smith heater in my home, first was 14 years old and only changed out due to updating of homes heating plant. Have used AO Smith for over 40 years, propane, natural gas & electric, in my homes and have NEVER had a issue. Quality products which is why you see farmers with AO Smith Silo’s.” — Lowes Review
“I have an AO Smith in my house that is pushing 30 years old and still works perfectly” — Reddit Review
“I had a water heater from a different brand that lasted 17 years without any issues. Three years ago, my contractor installed an AO Smith water heater, and unfortunately, it broke down already. While I appreciate that the unit was still under warranty and AO Smith provided a replacement, I was surprised to learn that the company does not cover the replacement costs, which came to $500. This raises a serious concern for me—if this new unit breaks again in a few years, I’ll be forced to pay another $500 out of pocket. That’s not acceptable, especially given the reliability I experienced with my previous water heater. It makes me question the quality and longevity of AO Smith products.” — Consumer Affairs Review
The cost of an AO Smith water heater depends on the type, size, efficiency rating, and installation complexity. On average, most homeowners pay between $700 and $3,500 total, including both the unit and professional installation. Entry-level electric tank models start as low as $300 for the heater alone, while high-capacity or hybrid heat pump units can exceed $3,000 before labor. Tankless systems have the widest range, running from $600 for basic electric units up to $5,500+ installed for advanced gas models with complex venting.
| Type | Unit Cost Range* | Installed / Total Cost Range** | Notes |
|---|---|---|---|
| Gas (tank) | $400 to $1,800 | $800 to $2,500 | 40 to 75 gallon units; high-efficiency models near top of range. |
| Electric (tank) | $300 to $900 | $700 to $1,800 | 30 to 55 gallon units; lower upfront cost but higher lifetime energy costs. |
| Tankless (gas/electric) | $600 to $3,500 | $1,200 to $5,500+ | Wide range due to fuel type, flow rate, and venting requirements. |
| Heat Pump / Hybrid | $1,500 to $3,000+ | $2,500 to $4,500+ | Includes Signature and Voltex hybrid lines; 80-gallon smart models around $2,800 unit-only. |
| Premium Condensing (gas) | $2,000 to $4,500 | $3,500 to $7,500+ | Specialized, ultra-efficient units; not typical for most homeowners. |
* Unit cost = water heater only
** Installed = unit + labor, permits, venting, and materials
| Region | Typical Installed Range | Notes |
|---|---|---|
| Northeast | $1,200 to $4,500 | Higher labor and permit costs; older housing may require retrofits. |
| Midwest | $900 to $3,500 | Moderate labor rates; gas models widely available and cost-effective. |
| South | $800 to $3,200 | Lower labor costs; electric heaters more common in some areas. |
| West Coast | $1,500 to $5,000+ | High labor and permit fees; stricter efficiency standards drive up costs. |
| Mountain States | $1,000 to $3,800 | Installation varies by rural vs. metro; propane tankless common in off-grid areas. |
| Home Size | Recommended System | Average Installed Cost | Notes |
|---|---|---|---|
| Apartment / Condo (1–2 people) | Electric Tank (30–40 gal) | $700 to $1,500 | Compact, affordable, best for light usage. |
| Small Home (2–3 people) | Gas Tank (40–50 gal) or Electric Tank (40–55 gal) | $1,000 to $2,000 | Reliable, cost-effective, fits typical small households. |
| Medium Home (3–5 people) | Gas Tank (50–75 gal) or Hybrid Heat Pump | $1,800 to $3,500 | Hybrid offers energy savings; gas provides strong recovery rates. |
| Large Home (5+ people) | Gas Tankless or High-Capacity Tank (75+ gal) | $3,000 to $5,500+ | Tankless ensures continuous hot water; tank requires larger footprint. |
| Luxury / High Demand Household | Premium Condensing Gas or Hybrid Heat Pump (80 gal) | $4,000 to $7,500+ | Best for households with multiple bathrooms and high usage needs. |
| Cost Component | Typical Share of Total | Example ($2,000 install) |
|---|---|---|
| Unit (heater) | 50% to 70% | $1,000 to $1,400 |
| Labor | 25% to 40% | $500 to $800 |
| Permits, venting, extras | 5% to 15% | $100 to $300 |
Many AO Smith models qualify for federal tax credits, utility rebates, or state incentives. Hybrid heat pump units and ENERGY STAR® certified systems are especially likely to be eligible. These rebates can save homeowners hundreds of dollars, helping offset higher upfront costs.
Homeowners often compare AO Smith to other leading tankless and tank water heater brands. While competitors may offer lower upfront pricing or simpler installation, AO Smith stands out for its advanced technology, wide product range, and consistent reliability.
Buying a water heater is a major investment, and it’s normal for homeowners to have questions about cost, installation, warranties, and maintenance. To help you make an informed decision, we’ve gathered answers to the most common questions about AO Smith water heaters, covering everything from efficiency and lifespan to available rebates.
Most AO Smith water heaters cost between $700 and $3,500 installed, though prices vary based on type, size, and efficiency. Tankless models can reach $5,500+ installed, while hybrid heat pumps often cost $2,500 to $4,500+.
DIY installation is not recommended. AO Smith units often require professional installation to meet local codes, ensure proper venting, and protect warranty coverage. Complex systems like tankless and hybrid models especially require professional setup.
Yes. Many AO Smith models, including gas, electric, hybrid, and tankless systems, carry ENERGY STAR® certification. These units are designed to reduce energy use and may qualify for rebates or tax credits.
With proper maintenance, most AO Smith water heaters last 10 to 15 years. Hybrid and high-efficiency models may last longer, while standard electric models sometimes have shorter lifespans.
AO Smith warranties vary by model, typically ranging from 6 to 12 years. Some premium models offer extended coverage for tanks and parts. Always review warranty details with your installer.
Yes. Hybrid heat pumps and ENERGY STAR® certified models often qualify for federal tax credits and local utility rebates, which can reduce upfront costs by several hundred dollars.
AO Smith is a top-tier water heater brand offering durable, energy-efficient, and innovative products across a wide range of models. It is an excellent choice for homeowners willing to invest in long-term performance and savings.
While installation and upfront costs can be higher than some competitors, the brand’s reliability, strong warranties, and rebate-eligible options make it a smart investment. If you’re seeking advanced features, efficiency, and lasting value, AO Smith is worth considering.
Looking beyond AO Smith? The Modernize Review Hub gives you a clear look at other water heater brands as well as alternative water treatment options like water softeners, whole-home filtration, and reverse osmosis, so you can make the right choice for your home.
Read real homeowner reviews, explore qualifications, and view promotions. Modernize makes it easy to browse professionals and find one that will be perfect for your project.
