I have an all electric 80 gal. HW tank no big issues and not sure what a hybrid would get me . I live where it is usual to have electric not gas for HW so probably a regional thing. I guess a lot depends on how much electricity you produce with the solar panels and how long to get pay back if you go this route.

There is some additional work to do a gas to electric conversion:

1. Capping the gas line

2. Capping the vent

3. Running the electric circuit

4. Slightly different plumbing - the inlet is usually low on hybrid heaters, for example.

5. Hybrid heaters are heavier - more difficult to get into a basement than gas.

The only one of these things that is significant is the 30 amp / 240 volt circuit.

Note: Gas water heaters in older homes were located near the flue so they could vent. That vent was usually a separate flue - but still part of the fireplace. The fireplace is located in the living room - which is generally NOT where hot water is being used. Once untethered from the flue, consider if you can relocate the water heater closer to where hot water is actually being used. When I've relocated my water heaters, it's been part of a replumb on a 100 year old house and I was able to get the heater much closer to the points of use.

What's more, changing the furnace to a condensing type that vents with PVC can trigger the need to line a masonry chimney to vent a standard atmospheric water heater. The point being is that for older homes with masonry flues, changing out the water heater to something that doesn't vent using the flue is part of a plan that includes eventually modernizing the furnace as well. In my homes, I've installed a gas tankless heater to avoid having to line the flue. In the future it would be a hybrid electric. Avoiding the cost of lining the masonry flue changes the economics of converting to a different type of water heater. Do not go with a standard resistance electric water heater though.

Labor rates vary by market, but assuming that you don't relocate the heater I think there's price gouging, frankly. It's still "exotic" for many installers who have been very used to a very fast and easy "exact replacement". I don't know your location, but you may be able to find a skilled handyperson who can do this work.

I think you are being smart about this and coming up with a replacement plan for major appliances instead of just stumbling through. And although I applaud you for being proactive on your heater replacement, I also think you do have time to do it on better terms. The cost for plumbers is unreasonable right now in many areas. You can wait a year (or two) until things settle down. There may also be additional incentives in the recent energy bill.

Just a note: There really are some additional costs and considerations for a homeowner to making some of these conversions. You really want an outline of a plan, understand how projects are related, and do some of the work proactively. Also look for rebates and incentives. The only time most of these make sense is when you are replacing an existing unit that's end-of-life. But waiting until your furnace or water heater goes out isn't the time to redesign your plumbing, for example. Not planning ahead or working proactively insures that you will do the expedient thing to get the immediate problem resolved and miss the opportunity to reduce energy usage for another 12-20 years.

For example, I just wired my detached garage for a class II charger. It was about $700 in materials with me doing the work myself. The actual charger will be another $800 - 1000. But I ran the circuit now because I plan to build a patio that would have made trenching a line much more difficult and expensive. Even if I don't get an electric vehicle, having it prewired will be a selling point. It's good to make a plan on some of these things so you can incorporate them into other projects.

@Patricia Colwell Consulting

Standard resistance electric water heaters use a lot of electricity, and that isn't negated by solar PV. The incremental cost of the solar panels to power an electric resistance water heater is more than the incremental cost of a hybrid electric heater and install.

A 50 gal electric water heater has an estimated energy cost of ~$420-500 a year at the average cost of electricity of $0.12 per kwh. There's no doubt in my mind that electricity rates will go up.

A hybrid electric works very well with solar PV and a 65 gal has an estimated energy cost of $155 per year. There are currently significant rebates and incentives available also. If you are going to convert from gas to electric, make it a hybrid electric.

These costs were based on DOE energy tags pulled from Rheem water heaters.

I am in the same boat. Only replacing 80 gallon electric with 50 gallon heat pump water heater. One place quoted me $4k after $700 rebate, another $3K, Home depot was $3500. My old plumber would just charge time and materials. So the units i'm looking at are around $1600-1800. Does that mean they are charging $1200-2500 for labor? I know some plumbing pipe needs to go from top to bottom and 30 amp breaker is already there. Is it really that much labor?

That does seem excessive. A few years ago we replaced a ”regular” electric water heater with a Rheem hybrid and it didn't seem to be any more work than replacing with a resistance type. In our mostly hot climate we do love how it blows cool air!

@HU-363929881

Yes, they are charging $1200-2500 for labor and markup if you are changing out a standard electric for a hybrid electric. That's excessive.

Hybrid electric heaters do remove the heat (and humidity) from the surrounding air to heat the water. This is ideal in basements, attics, and garages. Because they make some sound (like a refrigerator) you do not want them in a bedroom closet, for example. If they are in an enclosed space you can get vent kits to vent them to enable the air exchange.

I am a fan of the Rehem units, but pull up an install manual on the unit that you are considering before you buy it to make sure it's a good match for your installation.

The point of sale rebates under the new Inflation Reduction Act may be worth waiting for if you don't need to replace immediately. In CT the 2022 current rebate is up to $750. The IRA 2023 rebate program may not be in place until well into 2023 but the rebate for hybrid water heaters is up to $1750. States have to apply for the money and put the program in place. There are income limits:

from an NPR article

• Fully eligible: your household income is less than 80 percent of your state’s median household income.
• Eligible for 50 percent of the rebates: your household income is 80 to 150 percent of your state’s median income.

HUD area median income chart 2022 This has drop downs including towns/county and number of people in household. Not sure how the IRA looks at family size or 'state median income' versus 'area median income' but I believe it's AIM, as stated by other sources.

As an aside, my latest electric bill was effectively $ .26 per kWh here up 30% from one year ago, combining use plus delivery cost divided by kWh used. Per my electric water heater energy tag it costs about $100/month to run. I'll be looking for a hybrid replacement despite the climate here.