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Best Water Heater Installation Companies in Colorado Ranked

Choosing a new water heater for your Colorado home is a significant decision that balances immediate needs with long-term efficiency, cost, and compliance with state and local regulations. Whether you're replacing a failing unit or upgrading for better performance, understanding the types of systems available, the specific codes that apply, and the factors that influence cost is essential. This guide provides clear, practical information to help you navigate the process, from selecting the right size and fuel type to understanding permitting and available rebates, so you can make an informed choice for your household.

High 5 Plumbing, Heating, Cooling & Electric

High 5 Plumbing, Heating, Cooling & Electric

15710 W Colfax Ave, Golden, CO 80401

High 5 Plumbing, Heating, Cooling & Electric is a full-service plumbing company serving Denver, CO. They provide a wide range of plumbing services including water heater installation and repair, drain cleaning, sewer line repair, leak detection, and gas line installation. The company uses advanced video technology for sewer camera inspections and offers trenchless sewer repair to minimize excavation. They also specialize in hydro jetting to clear blocked drains efficiently. High 5 Plumbing is licensed for gas plumbing and installs energy-efficient tankless water heaters. The company has received recognition such as the Angi Super Service Award and a BBB Torch Award for Ethics. They provide 24/7 emergency response for urgent plumbing needs.

5.0
1.7k Reviews
Big Apple Plumbing LLC - Broomfield, CO

Big Apple Plumbing LLC - Broomfield, CO

1022 Depot Hill Rd Unit 10, Broomfield, CO 80020

Big Apple Plumbing LLC - Broomfield, CO provides a wide range of plumbing services in Denver, CO, including drain cleaning, sewer line repair, water heater installation and repair (tank and tankless), leak detection, gas line installation, sump pump repair, and repiping. The company serves both residential and commercial clients, handling routine maintenance, emergency repairs, and new installations with licensed plumbers. They specialize in sewer line services and offer 24/7 emergency plumbing solutions to address urgent issues like burst pipes and leaks. Big Apple Plumbing is locally owned and operated, with a focus on safety and code compliance. Their team is experienced in gas line installations and water heater replacements, ensuring efficient and reliable service. The company is known for upfront pricing, timely arrivals, and clear communication, serving Broomfield and surrounding areas including Anthem, The Broadlands, and Interlocken/FlatIron Crossing.

5.0
490 Reviews
Walk on Water Plumbing LLC

Walk on Water Plumbing LLC

9994 Silver Maple Way, Highlands Ranch, CO 80129

Walk on Water Plumbing LLC is a family-owned plumbing business based in Highlands Ranch, serving the South Metro Denver area including Denver, CO. They specialize in water heater repair, installation, and tankless water heater services. The company is led by a licensed master plumber with over 15 years of experience, supported by a team with more than 35 years in plumbing. Their services cover a range of residential plumbing needs with a focus on tankless water heaters, which provide instant hot water without waiting. Walk on Water Plumbing LLC is a licensed and insured contractor with a multi-generation legacy in the plumbing industry.

5.0
480 Reviews
Enki Plumbing

Enki Plumbing

colorado springs

Enki Plumbing is a family-owned and operated plumbing company serving Colorado Springs, CO. They provide a range of services including water heater repair and installation, water softener installation, drain cleaning, and leak detection. The team consists of licensed and experienced plumbers who handle both residential and light commercial plumbing needs. Enki Plumbing offers 24/7 emergency services to assist customers whenever plumbing issues arise.

5.0
289 Reviews
Midwest Plumbing Co. LLC

Midwest Plumbing Co. LLC

8360 Auburn Ln, Westminster, CO 80031

Midwest Plumbing Co. LLC is a plumbing service provider based in Denver, CO, offering a wide range of plumbing solutions. Their services include water heater repair and installation, sump pump repair, sewer line repair with trenchless technology, leak detection, repiping, gas line installation, toilet and garbage disposal repair, and more. The company uses advanced equipment and techniques to address both simple and complex plumbing issues, aiming to provide long-term solutions. They serve residential customers and emphasize careful, tailored service for each home. Midwest Plumbing Co. LLC offers 24/7 emergency plumbing services to assist customers whenever needed.

5.0
260 Reviews
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Understanding Colorado's Water Heater Codes and Regulations

Installing or replacing a water heater in Colorado is not a simple DIY project; it's regulated to ensure safety, efficiency, and environmental protection. Compliance with state and local building codes is mandatory.

Permitting is Required: A building permit is required for all water heater replacements in Colorado, and the completed installation must pass an inspection by your local building department 1 2. This ensures the work meets safety standards. A reputable professional will always handle this process for you.

Model Codes: Installations must conform to the 2021 International Residential Code (IRC) and/or International Plumbing Code (IPC), along with any local amendments 2 3. These codes govern everything from proper venting and pressure relief valves to seismic strapping in certain areas.

Major Regulatory Changes: Colorado is actively updating its energy and environmental policies, which directly impact water heater choices:

  • Ultra-Low NOx Mandate (Effective Jan 1, 2026): A new state law (HB23-1161) will prohibit the sale of new gas-fired water heaters and furnaces unless they meet strict ultra-low nitrogen oxide (NOx) emissions limits 3 4. This law aims to improve air quality, particularly along the Front Range. When considering a new gas water heater, it's wise to discuss with your installer whether an ultra-low NOx model is already available or required.
  • Evolving Energy Codes: The state's model energy codes are shifting to promote higher efficiency and a transition toward electric appliances, including heat pump water heaters 5 6. For new construction, "electric-ready" requirements often mandate that a dedicated 120-volt electrical receptacle and appropriate wiring be installed near the water heater location, even if a gas unit is initially installed 2 7. This future-proofs the home for an eventual switch to electric.

Location Safety Rules: Gas-fired water heaters have strict placement rules. They are generally not allowed in storage closets, sleeping rooms, or bathrooms unless installed within a sealed, dedicated enclosure that draws combustion air directly from outside 2.

Choosing the Right Type of Water Heater

The best water heater for your home depends on your fuel source, space, budget, and hot water needs. Here are the primary options available in Colorado.

Conventional Storage Tank Water Heaters

This is the most common type, featuring an insulated tank that stores and continuously heats a ready supply of water.

  • Pros: Lower upfront cost, simpler installation, and widespread familiarity among technicians.
  • Cons: Standby heat loss (energy wasted keeping water hot), finite hot water supply, and a shorter lifespan than some alternatives.
  • Fuel Types: Available in natural gas, electric, and propane models.

Tankless (On-Demand) Water Heaters

These units heat water directly as it flows through the device, eliminating the storage tank.

  • Pros: Virtually unlimited hot water, longer lifespan (20+ years), compact size, and higher energy efficiency (no standby losses) 8.
  • Cons: Higher purchase and installation cost, may require upgrades to gas lines or electrical service, and can have limitations on simultaneous hot water use if not properly sized.
  • Fuel Types: Available in gas (natural or propane) and electric models.

Heat Pump (Hybrid) Water Heaters

This highly efficient type of electric water heater uses a compressor and refrigerant to move heat from the surrounding air into the water, similar to how a refrigerator works in reverse.

  • Pros: Can be 2-3 times more energy-efficient than standard electric resistance models, leading to significant utility bill savings 7 9. Qualifies for substantial rebates and tax credits.
  • Cons: Higher initial cost, requires installation in a location with sufficient ambient heat and space (at least 1,000 cubic feet of air space, like a basement or garage), and may perform less efficiently in very cold spaces.
  • Note: Due to Colorado's shifting energy codes, heat pump water heaters are becoming an increasingly attractive and promoted option 5 6.

Sizing Your Water Heater Correctly

Choosing the correct capacity is crucial for comfort and efficiency. An undersized unit will run out of hot water; an oversized one wastes energy and money.

For Storage Tank Heaters: Size is based on tank capacity in gallons, which should match your household's peak demand.

Household SizeRecommended Tank Capacity (Gallons)
1-2 people30-40 gallons
2-3 people40-50 gallons
3-4 people50-75 gallons
5+ people75+ gallons

Source: Industry sizing guidelines 10 11.

For Tankless Water Heaters: Size is based on flow rate (Gallons Per Minute - GPM) and the required temperature rise (the difference between incoming groundwater temperature and your desired hot water temperature). Colorado's cold incoming water requires a unit with sufficient power. A common size for a whole-home gas tankless unit is a model with a 199,000 BTU input rating 12 13. A professional will calculate your home's specific needs based on the number of bathrooms and appliances.

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Fuel Type Considerations in Colorado

The available fuel sources in your home will largely dictate your options.

  • Natural Gas: The most common fuel for water heaters in existing Colorado homes, especially along the Front Range 14. It typically offers faster recovery (heats new water quicker) and lower operating costs compared to standard electric resistance models. However, it is subject to the new ultra-low NOx emissions rules.
  • Electric: Includes both standard resistance elements and highly efficient heat pump models. Installation can be simpler and less expensive if adequate electrical service is already in place, though operating costs for resistance models are generally higher than gas 14 15. Heat pump models change this equation with their high efficiency.
  • Propane: A common option for homes in mountain communities or rural areas without access to natural gas utility lines 16. It functions similarly to natural gas but requires an on-site storage tank.

Cost Breakdown for Water Heater Replacement

The total cost of a new water heater installation in Colorado varies widely based on the unit type, complexity of the installation, and any necessary upgrades. Labor often accounts for about half of the total cost 17 18. Below are estimated total installed costs for the Denver area, which can serve as a regional benchmark 17 19.

Water Heater TypeEstimated Total Installed Cost
Standard Tank (Gas or Electric)$1,200 - $3,500
Tankless (Gas or Electric)$3,000 - $6,000+
Hybrid (Heat Pump)$2,500 - $7,500

What Influences the Price?

  • Unit Cost: Higher efficiency models and tankless units cost more.
  • Installation Complexity: Relocating the unit, upgrading gas lines, installing new venting, or adding electrical circuits adds cost.
  • Permits & Fees: Your contractor should include the cost of the required building permit and inspection in the quote.
  • Disposal: Removal and disposal of the old unit.
  • Regional Variation: Prices may differ in mountain towns versus Front Range cities.

Getting an Accurate Quote: Always obtain 3-4 detailed written estimates from licensed, insured, and bonded plumbing professionals. Ensure the quote includes the cost of the unit, all labor, materials, permits, and disposal.

Incentives, Rebates, and Efficiency

Investing in a high-efficiency water heater can be offset by financial incentives, reducing the payback period.

  • Utility Rebates: Colorado utilities, such as Xcel Energy, often offer rebates for installing high-efficiency appliances, including ENERGY STAR certified heat pump water heaters and certain gas models 20. Check your local utility's website for current offers.
  • Federal Tax Credits: The federal government offers tax credits for qualified energy-efficient home improvements, which can include heat pump water heaters 7. Consult the IRS website or a tax professional for details.
  • Long-Term Savings: While high-efficiency models like heat pump hybrids have a higher upfront cost, their significantly lower operating costs can lead to substantial savings on your monthly energy bills over the 10-15 year life of the unit 9.

The Importance of Professional Installation

Given the complexities of code compliance, gas and electrical safety, and proper sizing, professional installation is non-negotiable. A qualified plumber will:

  • Perform a load calculation to correctly size the unit.
  • Ensure the installation meets all 2021 IRC/IPC and local code requirements.
  • Handle the permitting and inspection process.
  • Install necessary safety devices like temperature and pressure relief valves.
  • Confirm proper venting for gas units to prevent carbon monoxide hazards.
  • Provide a warranty on both parts and labor.

Frequently asked questions

Sources

Footnotes

  1. Colorado's New Model Low Energy and Carbon Code Will Cut ... - https://energyoffice.colorado.gov/press-releases/colorados-new-model-low-energy-and-carbon-code-will-cut-energy-costs-improve-indoor

  2. Water Heater Installation and Replacement - Sheridan, CO - https://ci.sheridan.co.us/539/Water-Heater-Installation-and-Replacemen 2 3 4

  3. Colorado Furnace & Water-Heater Mandate 2026 - What ... - https://thewirenut.com/furnace-mandate/ 2

  4. New Colorado law requires lower-emission furnaces and ... - https://www.kkco11news.com/2025/12/12/new-colorado-law-requires-lower-emission-furnaces-water-heaters-starting-january-1/

  5. Colorado's New Model Low Energy and Carbon Code Will Cut ... - https://energyoffice.colorado.gov/press-releases/colorados-new-model-low-energy-and-carbon-code-will-cut-energy-costs-improve-indoor 2

  6. Colorado board approves energy-efficient building codes that ... - https://tsscolorado.com/colorado-board-approves-energy-efficient-building-codes-that-favor-electric-heating-over-gas-powered-appliances/ 2

  7. How much does water heater installation or replacement cost? - https://homeguide.com/costs/water-heater-installation-cost 2 3

  8. Tankless vs Traditional Water Heaters in Colorado - https://www.easybreezyplumbing.com/plumber-tips/tankless-vs-traditional-water-heaters-colorado

  9. Residential Water Heating in the 2022 Energy Code - 3C-REN - https://www.3c-ren.org/residential-water-heating/ 2

  10. What Size Water Heater Is Right for You? | A. O. Smith - https://www.hotwater.com/info-center/what-size-water-heater-do-I-need.html

  11. How To Choose A Water Heater: A Money-Saving Guide For Homeowners - https://westernrooter.com/how-to-choose-a-water-heater-a-money-saving-guide-for-homeowners/

  12. Sizing a Whole-Home Tankless Water Heater in Denver-Boulder | Blog - https://savehomeheat.com/sizing-a-whole-home-tankless-water-heater-in-denver-boulder/

  13. All About Water Heaters: Types, Parts and How They work - Blue Bear Services - https://bluebearplumbing.com/blog/all-about-water-heaters-types-parts-and-how-they-work/

  14. Gas vs. Electric Water Heaters in Denver Homes - https://www.calljimnow.com/gas-vs-electric-water-heaters-which-is-best-for-denver-homes/ 2

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

  16. Gas Water Heater - Essential Guide from Aaron Services - https://www.chooseaaronservices.com/professional-tips/gas-water-heater-essential-guide/

  17. How Much Does It Cost to Replace a Water Heater in Denver? - https://floworksplumbing.com/learning-center/how-much-does-it-cost-to-replace-a-water-heater-in-denver 2

  18. How Much Does Water Heater Replacement Cost? [2026 Data] | Angi - https://www.angi.com/articles/how-much-does-water-heater-installation-cost.htm

  19. How Much Does Water Heater Replacement Cost in Denver ... - https://www.angi.com/articles/how-much-does-water-heater-installation-cost/co/denver

  20. Water Heating - Xcel Energy - https://www.xcelenergy.com/staticfiles/xe-responsive/Company/Rates%20&%20Regulations/Regulatory%20Filings/Water-Heating-Write-up-redlined.pdf