Signs it's time to replace your water heater
- Water leaking from the tank itself, not from a valve or fitting
- The heater is more than about 10 years old and needs repeated repairs
- Rusty or discolored hot water
- Loud rumbling that flushing no longer fixes
- Hot water no longer keeps up with your household
If you're not sure whether to repair or replace, start with water heater repair and ask the contractor for both options.
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Choosing between tank, tankless and heat pump water heaters
| Feature | Tank | Tankless | Heat pump |
|---|---|---|---|
| How it heats | Keeps a tank of water hot | Heats water on demand | Moves heat from the surrounding air into the tank |
| Upfront cost | Lowest | Higher | Highest |
| Running cost | Higher | Lower | Lowest for electric homes |
| Typical lifespan | About 8 to 12 years | Often 20 years or more | Often 13 to 15 years |
| Space needed | Floor space for the tank | Wall mounted, compact | Taller unit and open air around it |
Tankless water heater installation
Tankless heaters take up less space and last longer, but they cost more up front and may need a larger gas line, new venting or an electrical upgrade. Ask the contractor to confirm your gas supply and venting can support the unit before you commit, and whether the price includes permits. In hard water areas, plan for regular descaling or a water softener.

Heat pump water heaters
A heat pump water heater (also called a hybrid water heater) works like a refrigerator in reverse, pulling heat from the surrounding air. It can cut electricity use for hot water substantially compared with a standard electric tank. It needs a space that stays reasonably warm, plenty of air around the unit and a condensate drain, so a basement or large utility room usually works best. Ask the contractor about any utility rebates or federal tax credits that currently apply.
What a water heater replacement includes
- Draining and removing the old heater, and disposing of it
- Setting the new heater, with a drain pan where needed
- Connecting water lines, gas or electrical, and venting
- Installing or replacing the temperature and pressure relief valve and expansion tank
- Pulling a permit where required, then testing for leaks and correct temperature
How this works: Plumbers in Indianapolis Today is a referral service. When you call 317-314-8486, we connect you with an independent, licensed plumbing contractor who serves your area. The contractor quotes, performs and stands behind the work, not us.
Related plumbing services
How much does water heater installation cost in Indianapolis?
Cost depends on the type and size of heater, whether gas, venting or electrical work is needed, and permit requirements. The contractor will quote the complete job, including removal of the old heater, before starting.
Is a tankless water heater worth it?
It's usually worth it if you plan to stay in the home for many years and your gas line and venting can support it without major changes. If upgrades are needed, a high efficiency tank or heat pump model can be better value.
How long does water heater replacement take?
A like for like tank replacement is often finished in a few hours. Switching to tankless or a heat pump model can take longer because of gas, venting, electrical or drain changes.