Calculating Energy Usage. An average water heater runs three hours daily. A 50-gallon, 5,500-watt water heater with a .90 EF and an electricity rate of $.16 per kilowatt hour will cost $781 to operate each year. Most water heaters include a label listing the annual operating cost.
Considering this, how much does it cost to have an electric hot water heater installed?
Average cost with installation: Tank – $889.00 (40 to 50 gallon tank) Tankless – $3,000.00.