Home Repair

Water heater problems: what to check, and when to repair or replace

Cold showers, rusty water or a puddle by the tank usually mean something is wrong with the water heater. Here’s what you can safely check yourself, what a plumber should handle, and how to keep the next one running longer.

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Smell gas? Leave the house right away, don’t touch light switches or anything that could spark, and call your gas utility or 911 from outside. Nicor Gas customers can see Nicor Gas emergency information. If a carbon monoxide alarm goes off, get everyone outside and call 911.

Water heater leaking or out?

If the checks below don’t fix it, call a local plumber to ask about a repair or a replacement quote.

Call a plumber

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Quick checks before you call

Turn off power to an electric heater, or set a gas heater to “pilot,” before you look closely at anything near the controls.

Electric: check the breaker

A tripped breaker is a common reason an electric heater stops making hot water. Reset it once. If it trips again, stop and call a pro.

Gas: check the pilot or ignition

Follow the lighting instructions on the label on the tank. If you aren’t comfortable, or it won’t stay lit, call a licensed plumber. Gas controls and venting are jobs for a pro.

Source: UMD Extension

Find where water is coming from

Water near the tank can come from a loose fitting, the relief valve’s discharge pipe, condensation or the tank itself. A leak from the tank body usually means it’s time to replace it, so ask a plumber.

Check the temperature setting

DOE, CPSC and the EPA point to 120°F as a good setting. Test with a thermometer at the faucet closest to the heater.

Source: DOE, CPSC, PNNL

Signs you need a plumber

Water pooling under the tank, or rust on the tank itself.
The temperature and pressure (T&P) relief valve keeps releasing water.
Rumbling or popping noises along with less hot water than you used to get. Sediment can build up at the bottom of a tank.
Rust-colored or smelly hot water when the cold water is clear.
A gas smell, scorch marks near the burner, or a CO alarm. Leave and call for help first.

In Illinois, plumbers are licensed by the Illinois Department of Public Health. You can check a license with the IDPH plumber license search. Ask whether a permit is needed for a replacement in your town.

Repair or replace?

Parts like heating elements, thermostats, igniters and valves can often be replaced. A leaking tank can’t be fixed. If your heater is older, needs repeated repairs or no longer keeps up, get a replacement quote alongside the repair quote so you can compare.

Plan ahead if you can. ENERGY STAR suggests planning a replacement before the old heater fails, since an emergency swap leaves little time to compare options. See ENERGY STAR and its water heater guide.

Choosing a new water heater

Heat pump water heaters. University of Maryland Extension says they can use up to 60 to 70 percent less energy than standard electric models. ENERGY STAR says they need a space that stays between 40°F and 90°F with at least 1,000 cubic feet of air around them. See ENERGY STAR heat pump water heaters.
Tankless (on-demand) units must be sized for how much hot water you use at once, and may need gas line or electrical upgrades. Ask the installer to include those in the quote. See UMD Extension.
Standard tank models are often the simplest swap. Compare efficiency ratings, not just the price.

Look for rebates with the ENERGY STAR Rebate Finder and ask your electric or gas utility. The federal energy efficient home improvement credit applied only to improvements placed in service by December 31, 2025, according to the IRS, so don’t count on it for a 2026 install.

Cut your water heating bill

DOE says water heating is a big part of home energy use. These steps come from UMD Extension and DOE:

Set it to 120°F. UMD Extension says this can cut water heating energy use by 6 to 10 percent, and it lowers the risk of scalds.
Insulate the first 3 to 6 feet of hot water pipe coming out of the heater.
Insulate an older tank in an unheated space, but check the manufacturer’s instructions first.
Drain a little water from the tank once or twice a year to remove sediment, following the manual.
Test the T&P valve once a year as the manufacturer directs.

Help paying for a repair

Income-eligible Illinois households can apply to the Illinois Home Weatherization Assistance Program, which can help with water heater repair or replacement. Chicago homeowners can also check the City of Chicago Home Repair Program.

Get it in writing

Illinois law requires a written contract or work order with the total cost for home repair work over $1,000 (815 ILCS 513). Get more than one written quote, and read the FTC’s tips on avoiding home improvement scams.

Ready for a quote?

Call a local plumber to compare the cost of a repair with a new water heater.

Call a plumber

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MegaSavings may be paid when you call a provider through this page, at no cost to you.

Common questions

What temperature should my water heater be set to?

120°F is the setting recommended by DOE and CPSC. It saves energy and lowers scald risk. Check with a thermometer at the tap.

Can a leaking water heater be repaired?

It depends on where the leak is. A loose fitting or valve can often be fixed, but a leak from the tank itself usually means you need a new heater.

Why is my hot water running out fast?

Common causes include sediment in the tank, a failed heating element on electric models, or a heater that’s too small for your household. A plumber can tell which.

Is there a federal tax credit for a new water heater in 2026?

Not the energy efficient home improvement credit. The IRS says it applied to improvements placed in service through December 31, 2025. Check the ENERGY STAR Rebate Finder and your utility for current rebates.

Does MegaSavings get paid?

MegaSavings may be paid when you call a provider through this page, at no cost to you. It doesn’t change the tips on this page, and you’re never obligated to hire anyone.

Sources

More guides: Home repair · Plumbing · Frozen pipes · Home warranties

Last reviewed: October 28, 2026