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I will also note that the water heater I had was 20 years old at the time and well due for a replacement, making some of this 1600 expenditure an actual necessity and not just a thriftiness move.
Take that into consideration when you are taking my advice.
Water heaters are also stupidly easy to install.
For some reason, in my locale you have to apply for a permit to replace a water heater. I strongly suspect the compliance rate with this asinine scheme is very near to zero. (For anyone reading this, yes, I will totally pay the state for the privilege of installing my own water heater in my own home when I switch mine to hybrid. Scout's honor.)