You might have an old and outdated hot water system that doesn't work as efficiently as it should, or you might have a faulty unit that will be very expensive to repair. Because of these types of issues, you could be wondering if now is the time for you to replace your old hot water system. Of course, before you make this decision — or before you make this major investment, if you have already decided that you do need to swap out your old hot water system — you might be curious about how much you're going to have to spend. There are a few things that can impact the cost of replacing your system, including these things.

The Size of Your New System

First of all, you should know that hot water systems can vary in cost due to a few things, including the size of the system. If you need a bigger water heater — such as if you have a big family and want to make sure that your hot water system can provide enough hot water for all of your family members to take showers — then you should know that the bigger water heater is probably going to be more expensive than a smaller model.

The Type of System That You're Installing

If you are installing a traditional hot water system, then you might find that it will be more affordable than a tankless unit. Therefore, if you're replacing your hot water system on a budget, then a traditional unit might be what you will want to look for. Because of the long-term benefits of a tankless unit, however, those who can fit one in their budget might want to check them out. Just be prepared for potentially higher costs in the beginning if you choose this.

Additional Components That Have to Be Replaced

In some cases, you can simply have your old hot water system swapped out. In other cases, however, some of the plumbing pipes or wiring have to be replaced, too. Of course, this adds to the cost of installation because there are additional material costs and because the installer has to do more work and therefore might charge more for labor.

Whether You're Changing to a Different Type of System

Lastly, if you are changing to a completely different type of hot water system — such as if you are switching from a gas-powered unit to an electric unit — then retrofitting work will have to be done. This can get quite costly, but you will probably find it to be worth it if you are hoping to make this type of change for some reason or another.