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Best Water Heater Installation Companies in Arkansas Ranked

A reliable hot water heater is essential for daily comfort in any Arkansas home. Whether you're facing an unexpected failure or planning an upgrade for better efficiency, understanding your options for water heater installation and replacement is key. This guide provides clear, practical information on sizing, types, costs, and the critical state and local codes that govern this work in Arkansas, helping you make an informed decision and connect with qualified local professionals.

Understanding Arkansas Codes and Regulations

Installing or replacing a water heater in Arkansas is not a simple DIY project; it's regulated work that must comply with state and local safety codes. Adherence to these rules ensures your system is safe, efficient, and legally compliant.

The primary regulations are found in the Arkansas Plumbing Code and the Arkansas Energy Code, which are generally aligned with national model codes like the International Residential Code (IRC) 1 2 3. These codes cover everything from the placement of the unit to the specific safety devices required. For instance, all installations must include a properly sized and installed pressure and temperature relief (P&T) valve to prevent dangerous pressure buildup 1 4.

A critical code requirement in Arkansas involves thermal expansion control. If your home's plumbing system has a check valve, pressure-reducing valve, or backflow preventer, it creates a "closed" system. In such cases, the Arkansas Plumbing Code typically requires the installation of a thermal expansion tank to absorb the increased water pressure caused by heating, protecting your pipes, fixtures, and the water heater itself from damage 1 5.

Location is also strictly regulated. Fuel-fired water heaters (natural gas or propane) cannot be installed in bedrooms, bathrooms, or storage closets unless they are in a sealed, dedicated enclosure that prevents combustion air from being taken from the living space 2 6. Proper venting for gas units and correct electrical connections for electric units are non-negotiable safety items that a licensed professional will ensure are up to code.

Choosing the Right Type of Water Heater

Arkansas homeowners have several options when selecting a new hot water system. The right choice depends on your household's needs, available utilities, and budget-both upfront and long-term.

Storage Tank Water Heaters are the most common type. They store and continuously heat a reservoir of water (typically 40 to 80 gallons). In Arkansas, 40 to 50-gallon tanks are standard for an average family 7. They are available in natural gas/propane and electric models. Gas models often have lower operating costs but may have higher installation costs if new gas lines or venting are needed. Electric models are generally cheaper to purchase and install but can cost more to run 7 8 9.

Tankless (On-Demand) Water Heaters heat water directly as it flows through the unit, providing an endless supply of hot water. They are more energy-efficient for homes that use less than 41 gallons of hot water daily 10. However, they have a higher purchase price and may require upgrades to your home's gas line or electrical service to handle the high instantaneous demand 7.

Heat Pump Water Heaters (HPWHs), also called hybrid water heaters, are the most energy-efficient electric option. They work by moving heat from the surrounding air into the water, rather than generating heat directly. While they have a significantly higher upfront cost, they can cut water heating energy use by half or more, leading to substantial savings over time 11 12. It's worth noting that national energy trends are moving towards making HPWHs a standard, so planning for one (e.g., ensuring adequate space and electrical capacity) can be a smart future-proofing step 13.

Sizing Your Water Heater Correctly

Choosing the correct size is crucial for performance and efficiency. An undersized unit will run out of hot water quickly, while an oversized one wastes energy and money.

For storage tank water heaters, size is determined by tank capacity (in gallons) and is based on the number of occupants and peak hour demand:

  • 1-2 people: 30-40 gallons
  • 3-4 people: 40-50 gallons (electric) or 40 gallons (gas)
  • 5 or more people: 50-80+ gallons 14 15 16

For tankless water heaters, sizing is based on flow rate (gallons per minute, or GPM). You must calculate the total GPM needed if multiple fixtures (showers, sinks) are likely to run simultaneously. A general rule is to allow for 2-3 GPM for a shower and 1-2 GPM for a faucet 17 18. A professional can perform a detailed load calculation to specify the right unit for your home.

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Cost Breakdown for Installation and Replacement

The total cost for a new water heater in Arkansas varies widely based on the unit type, labor, and any necessary upgrades to meet current codes. On average, homeowners can expect total installed costs within the following ranges 7:

Water Heater TypeAverage Total Installed Cost in Arkansas
Standard Tank-Style (Gas or Electric)$600 - $2,500
Tankless (Gas or Electric)$1,400 - $3,900
Heat Pump (Hybrid)$1,600 - $5,000

Several key factors influence the final price:

  • Labor: Professional installation labor can account for up to 50% of the total cost. This includes removing the old unit, installing the new one, and ensuring all connections and safety devices are code-compliant 7 8.
  • Unit Price & Type: As shown above, a basic electric tank is the least expensive unit, while high-efficiency tankless and heat pump models command a premium.
  • Permits: Most municipalities in Arkansas require a permit for water heater replacement, typically costing between $25 and $300 19.
  • Code-Mandated Upgrades: This is often the most variable cost factor. Bringing an older installation up to current code may require adding an expansion tank ($150-$350), upgrading gas pipe sizing, installing new seismic straps, or improving ventilation. These necessary upgrades can add several hundred dollars to the project but are essential for safety and compliance 7 8.
  • Disposal: There is usually a fee for hauling away the old water heater.

The Importance of Professional Installation

Given the complexity of codes and the risks associated with gas, electricity, and high-pressure water, professional installation is not just recommended-it's often legally required for the work to be permitted and inspected. A licensed, insured plumber or HVAC contractor will:

  • Ensure Code Compliance: They know the specific requirements of the Arkansas Plumbing Code and local amendments.
  • Guarantee Safety: Proper handling of gas lines, electrical connections, and pressure relief systems prevents hazards like gas leaks, carbon monoxide poisoning, or explosion risks.
  • Validate Manufacturer Warranties: Most water heater manufacturers require professional installation for their warranty to remain valid.
  • Handle Permits: A reputable professional will pull the necessary permits and schedule the required inspections, giving you peace of mind that the work is done correctly.

Planning for Your Replacement Project

If your water heater is over 10 years old, showing signs of rust, leaking, or not producing enough hot water, it's time to start planning. Begin by researching the types of units that fit your home's infrastructure (gas vs. electric). Consider your household's hot water usage patterns to decide between tank and tankless models. Get detailed written estimates from at least three licensed local professionals. These estimates should break down the cost of the unit, labor, permits, and any anticipated code upgrade work. A thorough estimate and a clear understanding of Arkansas's requirements will help you navigate your water heater replacement smoothly and successfully.

Frequently asked questions

Sources

Footnotes

  1. Chapter 5 Water Heaters: Arkansas Plumbing Code, 2018 - https://up.codes/viewer/arkansas/ar-plumbing-code-2018/chapter/5/water-heaters 2 3

  2. Chapter 20 Boilers and Water Heaters: Arkansas Residential ... - https://up.codes/viewer/arkansas/irc-2021/chapter/20/boilers-and-water-heaters 2

  3. Chapter 10 Boilers, Water Heaters and Pressure Vessels: Arkansas Mechanical Code 2010 - https://up.codes/viewer/arkansas/imc-2009/chapter/10/boilers-water-heaters-and-pressure-vessels

  4. 20 CAR § 880-805. Potable water heater/supply tanks - https://codeofarrules.arkansas.gov/Rules/Rule?levelType=section&titleID=20&chapterID=135&subChapterID=177&partID=802&subPartID=6952&sectionID=45125

  5. CHAPTER 20 BOILERS AND WATER HEATERS - https://codes.iccsafe.org/content/ARFPCVIIIR2021P1/chapter-20-boilers-and-water-heaters

  6. Residential Water Heater Installation | AR - https://www.servicesolutionsusa.com/residential-water-heater-installation

  7. How Much Does Water Heater Replacement Cost? [2026 Data] - https://www.angi.com/articles/how-much-does-water-heater-installation-cost.htm 2 3 4 5 6

  8. How Much Does Water Heater Replacement Cost in 2025? - https://www.homeadvisor.com/cost/plumbing/install-a-water-heater/ 2 3

  9. What Does an Electric Water Heater Installation Cost in 2025? - https://thefurnaceoutlet.com/blogs/hvac-tips/what-does-an-electric-water-heater-installation-cost-in-2025

  10. Which Saves More Energy: Tank or Tankless Water Heaters - https://majorenergy.com/which-saves-more-energy-tank-or-tankless-water-heaters/

  11. Selecting a New Water Heater | Department of Energy - https://www.energy.gov/energysaver/selecting-new-water-heater

  12. Ultimte Guide to Rheem Hot Water Systems | No Probs - https://noprobsplumbing.com.au/blog/ultimate-guide-to-rheem-hot-water-systems/

  13. 2025 Updates: Hot Water in Mixed Fuel Projects - 3C-REN - https://www.3c-ren.org/2025-updates-hot-water-in-mixed-fuel-projects/

  14. What Size Water Heater Do I Need? (Standards, Options...) - https://smockhvac.com/blog/what-size-water-heater-do-i-need/

  15. Residential Water Heater Sizing Guide - CenterPoint Energy - https://www.centerpointenergy.com/en-us/HSP/Pages/water-heating-sizing-guide.aspx?sa=mn&au=res

  16. What Size Water Heater Do I Need? - Total Home Supply - https://www.totalhomesupply.com/water-heater-sizes

  17. GUIDELINES FOR SIZING WATER HEATERS - https://www.ochealthinfo.com/sites/hca/files/2021-06/Water_Heater_Guidelines_Updated_2-6-2020.pdf

  18. Gas Tankless Water Heater - https://basc.pnnl.gov/home-improvement-expert/checklists/gas-tankless-water-heater

  19. What is a reasonable price for a licensed bonded plumber to ... - https://www.facebook.com/groups/397165520651572/posts/2324100057958099/