How Much Is A Tankless Water Heater

How Much Does A New Tankless Water Heater Cost?

We at Bankrate are dedicated to assisting you in making more informed financial decisions. Despite the fact that we adhere to stringent guidelines, this post may include references to items offered by our partners. An explanation forThere are few things more unpleasant than taking a hot shower only to be met with water that is so cold it seems like it came from a melting glacier. A tankless water heater is one method to assure that you never again take a frigid shower when it is not intended to be.

The entire cost is determined on the model selected as well as whether or not your home requires retrofitting.

Tankless vs. traditional

Understand the differences between tankless and regular water heaters may be easier if you look at this chart. A typical water heater warms and stores water in a tank with a capacity of 30 to 50 gallons, depending on the manufacturer. The heated water remains in the tank until it is required, and when it is consumed, the tank is refilled and the preheating process is repeated. A tankless water heater heats water on demand by using either electricity or natural gas as a fuel source. As a result, as soon as you switch on the dishwasher or step into the shower, the water that is required is heated at the source and is instantly available for use.

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Electric or gas?

It may be helpful to understand the differences between tankless and regular water heaters. Water is heated and stored in a tank, which typically has a capacity of 30 to 50 gallons, using a conventional water heater. The hot water remains in the tank until you require it, and when you do, the tank is refilled and the preheating process begins all over again. A tankless water heater heats water on demand by using either electricity or natural gas.

When making home upgrades such as installing a tankless water heater, a home equity line of credit (HELOC) is an excellent option.

  • There is a one-time fee. For $500-$700, you can have an electric model, while for $1,000-$1,200, you can get a gas model. Cost of installation: The cost of installing the device and upgrading utility hookups is between $1,000 and $2,000, depending on local expenses and the amount of work that has to be done. Gas versions require the installation of a safe ventilation system, whereas electric ones do not, making the installation of gas models more expensive. Cost of utilities: Gas may be less expensive to run than electricity depending on the cost of utilities in your location. Gas-powered machines require yearly maintenance, but electric-powered units are not required. An electric tankless water heater has no negative influence on the environment since it emits no greenhouse gases and is easy to recycle at the end of its useful life.

Benefits of a tankless water heater

A tankless water heater consumes 30 to 50 percent less energy than a traditional water heater, resulting in annual savings of more than $100 for the average household on heating bills. Instead of wasting 30 percent of its energy, a tankless water heater wastes just 5 percent, according to Energy Star. Although you may have to wait a few seconds for the water to heat up at the source, a tankless water heater ensures that you will never run out of hot water in your home. A tankless water heater is more compact and takes up less space than a standard water heater.

Lastly, a standard water heater has an average lifespan of eight to ten years, but the average lifespan of a tankless water heater is closer to twenty years. If a home equity line of credit (HELOC) is not an option for your remodeling expenses, consider taking out a personal loan.

Disadvantages of a tankless water heater

Compared to a traditional water heater, a tankless device consumes 30 to 50% less energy, resulting in annual savings of more than $100 for the average household. The energy wasted by a traditional water heater is 30%, but a tankless water heater wastes just 5%. When using a tankless water heater, you may have to wait a few seconds for the water to heat at the source, but you will never be without hot water. A tankless water heater is smaller and takes up less space than a standard water heater.

Lastly, a typical water heater has an average lifespan of eight to ten years, whereas a tankless water heater has a lifespan of closer to twenty years.

The final word

It is possible to use a tankless water heater when rebuilding your house or building a new one, or while staying at home on a part-time basis and do not want to be concerned about a leaky hot water heater while you are gone. Unless you have professional-level installation abilities, installing a tankless water heater is not a do-it-yourself effort. Despite the fact that they can be purchased online or at your local home improvement shop, it is better to leave installation to the professionals because it may be necessary to adapt your home in order for the water heater to function effectively.

It is possible that a tankless water heater will be less expensive in the long term when yearly energy savings and the fact that you will only have to replace it half as frequently as a standard unit are taken into consideration.

Tankless Water Heaters Cost Breakdown & Buyer’s Guide

The most recent update was on February 21, 2022. When purchasing a new on-demand hot water system, the price will vary depending on a number of factors, including the fuel type, system size, and any extra wiring or piping improvements that may be necessary. While the initial cost of installing tankless hot water may appear high when compared to standard tanked water heating solutions, the long-term savings associated with installing tankless hot water may frequently more than compensate for the initial investment.

How much does a tankless water heater cost?

While tankless water heater prices can range anywhere from $170 to $2,000, on average, you should expect to pay something in the neighborhood of $1,000 dollars. In the case of small gas-fueled tankless water heaters, you may pay as little as $170, but for larger units that can deliver water to numerous appliances at the same time, you could pay as much as $2,000 or more. The type of fuel used in a tankless water heater has the greatest impact on the initial cost of the unit. As a general rule of thumb, gas-powered hot water systems are often two to three times more expensive than electric alternatives.

In order to purchase and install an entire home tankless water heater fueled by natural gas, you may expect to pay up to $3,000 in equipment and installation costs.

Electric units are normally around $600, while gas units are often around $1100.

When it comes to tankless water heaters, there are many various models to select from, each with its own set of features and perks that can have an influence on the overall cost. In this post, you will learn more about your tankless water heater alternatives as well as how to compare them.

Factors that determine your tankless water heater cost

There are several elements that influence the overall cost of installing a tankless hot water system, including the type of fuel you use, the size of your equipment, and its overall condition.

Fuel type

A tankless hot water system can be powered by either natural gas or electricity, depending on your preferences. Typically, gas-powered units are two to three times more expensive than electric units, although the price difference can vary depending on a variety of other factors. Consider the price of gasoline as one element to consider. It is true that electricity is a slightly more expensive fuel for a tankless hot water heater when compared to natural gas, but it is also true that regardless of the fuel type that you choose, you will most likely pay a similar amount for fuel throughout the lifetime of the system because the differences in fuel costs are small.

With one additional wrinkle: it is projected that the price of natural gas would rise at a faster rate than the price of electricity, implying that electric units will only become more economically beneficial over the long term.

System size

It is also vital to take into consideration the system size, which relates to how much hot water can be produced by a certain tankless water heater and hence how much it will cost. In order to evaluate system sizes amongst on-demand water heaters, the easiest method to do so is to look at their gallon per minute rating, also known as GPM. In general, the greater the GPM, the higher the expense of your equipment will be to operate. Your required gallon per minute is determined by the number of appliances you need to operate at any particular time period.

For two bathrooms, the flow rate is 8-9 GPM, and for three or more bathrooms, the flow rate is 9-11 GPM.

GPM ratings for tankless water heaters are provided by the manufacturers and are generally found on the box, however this is a best-case scenario statistic that should not be taken out of context without further investigation.

Continue reading our tankless water heater comparison post to learn more about how to choose the best tankless water heater for your needs based on the genuine GPM it produces.

Installation complexity and additional upgrades

In most cases, tankless water heater installation costs range from $800 to $3,500 on average. Additional installation expenses might raise the price of your initial purchase. For example, if you want an electrician to rewire your home systems in order to accommodate an energy-intensive electric equipment, you may be required to pay them up to $100 per hour for their services. For example, if you want the services of a home contractor to update your gas lines (which may cost as much as $750), the amount you pay up front will cover more than just the cost of water heater equipment and standard installation.

Using a point-of-use system against a whole-house system Tankless water heaters are available in a variety of sizes depending on whether the equipment is a “point-of-use” type or a “whole-house” one.

Point-of-use systems are more frequently fueled by electricity than by natural gas. Point-of-use solutions can be more effective in protecting against hot water shortages in some big homes with significant hot water use.

Tankless water heater rebates and incentives

Unfortunately, the federal tax credit for household energy efficiency measures (which included gas-powered tankless water heaters) expires in 2016, making tankless water heaters no longer eligible. Certain governments and utilities, on the other hand, have their own rebate and incentive programs for customers who switch to on-demand hot water. For example, the Mass Save program in Massachusetts provides a reimbursement of up to $700 for the installation of a tankless gas water heater that has been certified by the ENERGY STAR and meets specific efficiency requirements.

Financial benefits of tankless water heaters

On-demand water heaters, according to the Department of Energy, can be anywhere from 8 percent to 50 percent more efficient than typical storage tank water heaters, depending mostly on your water consumption patterns and system type (point-of-use vs. whole-house). This is due to the fact that, in contrast to tank storage systems, only a little amount of water is ever heated and left unused. When it comes to using on-demand hot water, the most effective method is to install separate point-of-use devices at each hot water faucet in your home.

With a tankless water heating system, you can always save money on water heating, regardless of how efficient your individual system is.

If you want to understand more about how tankless water heaters may effect more than just your money, see our article on the advantages and disadvantages of tankless water heaters.

Calculating your payback period with tankless hot water

How long does it take for a tankless hot water system to pay off its initial investment? While you will begin saving money on fuel expenses immediately after installation, the somewhat higher upfront cost of tankless water heaters as compared to storage tank systems means that it will take several years before you “break even” on your investment in a tankless water heater. An investigation by Consumer Reports found that the payback period for tankless water heaters can range from 12 years to 27.5 years, with electric versions at the lower end of the spectrum and gas units nearer to the top of the spectrum.

Environmental impact of tankless water heaters

Approximately how long does it take for a tankless water heater to pay for itself? In spite of the fact that tankless water heaters save you money on fuel right away, the somewhat higher initial cost of tankless water heaters compared to storage tank systems implies that it will take several years before you “break even” on your investment. An investigation by Consumer Reports found that the payback period for tankless water heaters can range from 12 years to 27.5 years, with electric versions at the lower end of the spectrum and gas units nearer to the top end of the spectrum.

Many factors, such as your climate and water consumption trends, can influence the exact payback period you observe.

How Much Does A Tankless Water Heater Cost?

Note from the editors: We receive a commission from affiliate links on Forbes Advisor. The thoughts and ratings of our editors are not influenced by commissions. If you are considering making the move from a regular water heater to a tankless water heater that is more energy efficient, your first inquiry is usually, “How much will it cost?” The total tankless water heater cost includes the purchase price of the device as well as installation fees. The pricing range for each item is shown in the chart to the right.

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Average Cost of Tankless Water Heaters

Choosing between installing a whole-house tankless water heater or one or more single-point units is an option when upgrading to a tankless water heater.

Whole house

Depending on the layout of your home’s plumbing system, a tankless water heater for the entire house may be the best option. With this configuration, a single unit meets all of the hot water requirements of your house on demand. A whole-house system will be more expensive up front than a smaller single-point system, but you will only have to pay for one installation and you may see a reduction in your energy bills.

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Single point

A whole-house tankless water heater may be the best option for your home, depending on the layout of your plumbing system. When you choose this configuration, a single unit meets all of your home’s hot water requirements on demand. Purchasing a whole-house system will be more expensive up front than purchasing a smaller single-point system, but you will only have to pay for one installation and you may save money on energy bills.

Tankless Water Heater Costs by Size

Tankless water heaters are available in a range of sizes to ensure that a sufficient amount of water is delivered while maintaining the required temperature rise. gallons per minute is the unit of measurement for water volume rating (GPM). Depending on whether the model is based on combustion or electricity, the heating capacity is expressed in either British Thermal Units (BTU) or kilowatts (kW). Do not attempt to save money by purchasing a tankless water heater that is too small.

GPM

Calculate the total GPM of all water outlets that will be used at the same time to determine the appropriate tankless water heater size for your property. In order to take a shower while doing laundry and running the dishwasher, add the GMP for the shower (2-2.5), washing machine (2-2.5), and dishwasher (2-2.5) and divide the total by three (1.5-2).

The GPM rate of a tankless water heater should be between 5.5 and 7.5, depending on the model. The flow rates for common household appliances are listed below on a typical basis.

  • Showerheads ranging from 2 to 3 GPM
  • Older or rain shower heads ranging from 4 to 6 GPM
  • Water faucets ranging from 1 to 2 GPM
  • Dishwashers ranging from 1.5 to 2 GPM
  • Washing machines ranging from 2 to 2.5 GPM

Temperature rise

The temperature increase is defined as the difference between the temperature of the entering water and the temperature at which you require the water to be. Tankless water heaters are rated based on the premise that the water is roughly 50 degrees Fahrenheit when it enters the system. For the majority of applications, water must be heated to around 115 degrees Fahrenheit. As a result, a temperature increase of 65 degrees is required (115 – 50 = 65). In cold or warm climates, the beginning temperature will be cooler or warmer, depending on the season.

With the GPM and temperature rise calculations, you may be confident in your selection of the appropriate unit.

  • 2 to 4 GPM range from $200 to $700
  • 5 to 7 GPM range from $425 to 900
  • 8-plus GPM range from $600 to $2500 or more

Tankless Water Heater Costs by Fueling Method

The typical cost of a tankless water heater varies depending on the kind of fuel used. The majority of users prefer either electric or natural gas (natural gas or propane). Models that are powered by electricity are the least expensive to acquire. Gas-powered units are slightly more expensive up front, but they are less expensive to operate on a monthly basis and have greater power. Consumers in areas where heating oil is common may find it to be a more cost-effective alternative. The use of solar energy may be preferable for those looking for an off-grid solution.

  • Electricity costs between $450 and $1,500
  • Natural gas or propane costs between $500 and $2,000
  • Oil costs between $600 and $3,000
  • And solar costs between $1,000 and $4,000

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Labor Costs For Tankless Water Heaters

After paying for the tankless water heater, the cost of installing it might easily quadruple the total bill. Installation prices vary depending on your present system, the type of unit being installed, the accessibility of the installation area, and a variety of other considerations.

Basic installation

Costs range from $100 to $2,000 or more on average. Installing a basic system presupposes that the site is generally accessible to the installer and that the power supply is available near the installation location. Some minor components and supplies may be included, but further pipe fitting or electrical work may be required, which will increase the overall cost. Speaking of disposal, consult with your installer on how to properly dispose of the old unit. It is possible that some installers will include this in their fee, while others will not.

Converting to a different power source

Costs range from $500 to $1000 on average. If your existing water heater is electric and you wish to replace it with a gas-powered tankless water heater, the cost of the installation will increase.

If you need to install an electric tankless water heater to replace a gas-powered conventional water heater, you will need to connect a new circuit to your home’s electrical circuitry.

Other/miscellaneous

Other installation expenses may include venting the system, treating hard water, adding an access panel, painting, and other touchup work. Average cost: $300 and up Some of these improvements may be doable on your own, but others may require professional installation, which can add hundreds of dollars to the overall cost.

Tankless Water Heater Maintenance Costs

Other installation expenses may include venting the system, treating hard water, adding an access panel, painting and other touchup work. The average cost is $300 and up. Depending on the job, some of them may be doable on your own, while others may require professional installation, which can add hundreds of dollars to the total cost.

Pros and Cons of Tankless Water Heaters

Even while tankless water heaters have significant advantages over traditional tank water heaters, they may not be suitable for all households. Let’s have a look at the advantages and disadvantages.

Pros

  • Energy-efficient
  • Reduces water use
  • Saves space
  • Has a long operating life

Cons

  • Tank heaters are more costly than space heaters. During power disruptions, there is no reserve
  • More yearly maintenance is required. More than one unit is required for larger dwellings.

How to Find a Pro to Install Your Tankless Water Heater

In comparison to tanks, they are more costly. During power outages, there is no reserve. Increasing the amount of annual upkeep. Houses with many units are required for larger dwellings.

Compare Quotes From Top-rated Water Heater Installers

Estimates are provided without obligation.

FAQs

Estimates are provided without any obligation.

Is one tankless water heater enough for a whole house?

In many circumstances, a tankless water heater for the entire house is sufficient. The installation of a supplementary point-of-use water heater in bigger homes, or in homes where hot water demands are dispersed throughout the house, may be essential.

Can you run out of hot water with a tankless water heater?

A tankless water heater that has been appropriately sized provides hot water on demand. It never runs out of hot water since it doesn’t store it.

How long does a tankless water heater last?

Compared to standard tank water heaters, tankless water heaters have a lifespan of around 20 years, which is up to double that of a tank heater.

Is a tankless water heater worth the expense?

The initial cost of purchasing and installing a tankless water heater is much higher than the cost of purchasing and installing a conventional water heater. However, the lower energy expenses translate into monthly savings that accumulate fast. Furthermore, because of the longer lifespan of the tankless water heater, it is significantly more cost-effective in the long term.

A Tankless Job? Decide Whether a Tankless Water Heater Works for Your Home

Compared to a tank water heater, the initial cost of purchasing and installing a tankless water heater is substantially higher. Energy savings, on the other hand, translate into monthly savings that can rapidly build up to significant sums. The tankless water heater also has a longer lifespan than a traditional water heater, making it significantly more cost-effective over time.

Why Go With a Tankless Water Heater?

In the casing of a tankless water heater, there are networks of coils that heat the water as soon as it is turned on at the tap or in the shower. They employ heat exchangers to turn energy into practically instantaneous hot water, whether they are powered by gas or electricity. Tankless water heaters do have certain advantages over traditional types that rely on holding water in a reservoir, as previously stated. Compared to tankless solutions, tank-based systems demand much more floor area. In addition to the space required for the tank itself, most building and construction rules stipulate that water heaters must have a minimum of 12 inches of clearance on all sides before they may be installed.

Tankless models, on the other hand, are often mounted to the wall, which allows for more useable area to be created.

Gas and electric tankless alternatives may either be vented up and out, or the surplus heat can be expelled through the sidewalls of your home, depending on your preference. Because of this adaptability, it may be possible to convert certain older homes with a tankless natural gas system.

Gas Vs. Electric Water Heaters: Which is Better?

Water heaters that are electric or hybrid are the most energy-efficient solutions available on the market today. These models have minimum efficiency ratings of 90 percent, while certain hybrid versions that make use of solar technology can achieve efficiency ratings of 95 percent or more. Gas water heaters, on the other hand, often have an efficiency rating ranging between 67 and 80 percent, depending on the model. However, because natural gas is substantially less expensive than electricity, these water heaters can be significantly less expensive to operate when compared to an electric counterpart.

Choosing Between Condensing and Non-Condensing Types of Water Heaters

Water heaters that are electric or hybrid are the most energy-efficient solutions available on the market today, according to industry experts. These models have minimum efficiency ratings of 90 percent, while certain hybrid versions that make use of solar technology can achieve efficiency ratings of 95 percent or more. Gas water heaters, on the other hand, often have an efficiency rating ranging between 67 and 80 percent, depending on the manufacturer. In contrast to electric water heaters, natural gas water heaters can be substantially less expensive to operate because of the significantly lower cost of natural gas compared to electricity.

Should You Consider Point-of-Use Water Heaters?

Some people have expressed frustration with tank-based water heaters, claiming that they need a long period of time before the water is heated enough to use for dishwashing or taking a shower. The amount of time required varies based on how far away the faucet is from the water heater is located. Many tankless water heater manufacturers promote their products as giving virtually limitless hot water on demand. Despite the fact that these types frequently provide hot water more rapidly, they still need heating the water as it enters your home.

  • These point-of-use devices may be installed immediately in the room where you want hot water.
  • Each type has its own heating element, which can quickly heat water to a desired temperature.
  • If you use a point-of-use water heater for each shower or faucet, you may save up to 50% on your energy bills when compared to using a whole-home water heater, according to Energy.gov.
  • First and foremost, point-of-use models must be smaller in order to fit under a sink or next to a shower.

As a result, the flow rate of a tankless POU is normally restricted to two to five gallons per minute at most. Furthermore, there is no system in place to accommodate increased demand. Additional Related Articles:

  • Some people have expressed frustration with tank-based water heaters, claiming that they need a long period of time before the water is heated enough to do dishes or shower. According on how far away the faucet is from the water heater, the amount of time required will vary. Many tankless water heater manufacturers promote their products as producing virtually limitless hot water on demand, which is not always the case. Despite the fact that these types frequently provide hot water more rapidly, they must still heat the water as it enters your home. A tankless water heater that can be used at the point of use (POU) might be a viable solution to this issue. These point-of-use devices can be installed immediately in the room where hot water is required. Installing a POU unit near your shower or right under your kitchen sink, for example, might be a good choice. There is a heating element in each model, which can quickly heat water to the appropriate temperature. Combined with their close proximity to the showerhead or faucet, high-end POU tankless versions can provide hot water quickly and efficiently, resulting in approximately 100 percent efficiency in most cases. In comparison to a whole-house water heater, having a point-of-use water heater for each shower or faucet can save you up to 50% on your energy bills, according to Energy.gov. It is important to note, however, that depending on point of use devices rather than a centralized model for your house has significant disadvantages as well. First and foremost, point-of-use models must be smaller in order to fit under a sink or next to a shower stall or toilet. Therefore, the maximum flow rate for a tankless POU is generally two to five gallons per minute (depending on the model). In addition, there is no mechanism in place to accommodate increased demand for the product or service. Articles that are related:

How to Find the Right Hot Water Heater Capacity

Traditional water heaters are often equipped with a tank that holds at least 50 gallons of hot water. Larger residences, on the other hand, will have tanks with capacities ranging from 80 to 100 gallons. The tank is used to store hot water so that it is available when you want it. This additional capacity will allow you to operate the dishwasher and the washing machine simultaneously while someone else showers. Tankless water heaters, on the other hand, do not have a storage mechanism. The majority of tankless devices have a capacity of two to twelve gallons of water per minute.

An HVAC professional should be consulted in order to guarantee that your tankless system is properly sized.

  • Showerhead flow rates range from 2 to 3 gallons per minute
  • Washing machine flow rates range from 2 to 2.5 gallons per minute
  • And faucet flow rates range from 1 to 2 gallons per minute.
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Things to Know About Tankless Water Heater Costs

Tankless water heaters are connected with a number of extra expenditures in addition to the purchase price of the system itself. It is possible that specialized pipes and connections may be required, which will increase the overall cost. You will also require the services of a qualified HVAC professional to assess your home and establish the minimum flow rates required depending on the number of bathrooms, sinks, and anticipated water use. Comparing tankless water heaters to tank-based water heaters, tankless water heaters feature more complicated connections, regulators, and other critical components.

Water heaters that run on natural gas are also more complicated to install since they require specific three-quarter-inch pipe to ensure that they have adequate natural gas supply to meet the demands of your home’s hot water needs.

Water heaters that run on electricity normally require at least 120 amps to work efficiently.

If you intend to install an electric tankless system, you may need to hire an electrician to run larger energy lines and construct a new electrical panel in order to complete the installation.

Is It Worth It?

So, is a tankless water heater preferable to a conventional tank-based system in this instance? It all boils down to how much money you’re willing to put out as a down payment. Tankless versions have the potential to be substantially more energy efficient than their predecessors. It is possible to get virtually immediate hot water if you install many POU units around your home. As an added bonus, tankless water heaters have a service life of up to 20 years when used continuously, which is more than double the estimated service life of a tank-based water heater.

Tankless designs are frequently more complicated and have a greater number of connections, regulators, and components than traditional water-storage systems.

The importance of being prepared for unexpected repairs with a HomeServe plan cannot be overstated. The knowledge that you can easily call our 24-hour repair hotline in the event of a covered breakdown provides you with peace of mind. Check to see what options are available in your area.

Tankless Water Heater Cost: Installation & Unit Prices

The price of a tankless water heater ranges from $250 to $6,500 dollars. Get quotations from as many as three professionals! Enter your zip code below to get matched with top-rated professionals in your area. In the event that you’ve ever had to take a chilly shower throughout a frigid winter, you’ll understand how terrible it might be to go into the shower. Many households have switched to tankless water heaters in order to avoid this unpleasant experience. Although tankless water heaters are expensive up front, with a national average cost of $2,200, the energy savings and convenience they provide may make them a worthwhile investment in the long run.

How Much Does It Cost to Install a Tankless Water Heater by Size?

The entire cost of your new tankless water heater is influenced by the size of your tankless water heater. To give you a ballpark estimate, plan to spend roughly $150 on a low-performance electric tankless water heater with a single point of failure. Single-use water heaters, such as those used for sinks or appliances, will only supply hot water for that specific purpose. Meanwhile, for whole-house systems that heat all of the water in your whole home, you can expect to pay around $1,500 for a gas-fired tankless water heating system.

How Much Does It Cost to Install a Tankless Water Heater Near You?

Installation of a tankless water heater might be quite expensive depending on where you reside in the United States. The following table shows the average cost for ten popular cities in the United States:

  • Among the most expensive cities to live in are Austin ($2,360), Boston ($2700), Chicago ($2,100), Denver ($2,600), Miami ($1,040), Nashville ($2,400), New York ($2,200), San Francisco ($2,600), Salt Lake City ($3,600), and Seattle ($2,180).

Other elements that may influence your overall expenditures include whether you reside in a rural or urban region, as well as the natural rise and decrease of average going rates over a certain time period.

What Tankless Water Heater Can I Get on My Budget?

Not all tankless heaters are suitable for every household’s financial situation. Here is a list of what you can receive for your money:

$300

With this price, you may buy a single-point tankless system, also known as point-of-use heaters, which heats just the water that is being used. This system is designed to function in tiny places, and it is frequently used to provide hot water for specific appliances or sinks. They are typically priced between $100 to $300, and they are simple to install.

$1,000

A single-point tankless system, also known as point-of-use heaters, can be purchased for this price range. In limited locations, this technique is commonly used to provide hot water to individual appliances or sinks. They are typically priced between $100 to $300, and they are simple to set up and maintain.

$3,000

Both natural gas and propane water heaters are priced between $1,000 and $1,500, but you must also consider the expense of operating these heaters on a year-round basis. Natural gas costs around $200 per year, whereas propane costs approximately $350 per year.

$5,000

Solar panel water heater installation is the most expensive form of tankless water heater, with costs ranging from $1,700 to $5,000 for a typical installation. The good news is that, according to Energy Star, the Consolidated Appropriations Act of 2021 will provide you with a 30 percent tax credit for owning a renewable energy system.

Even with this credit in mind, it’s a good idea to set aside some money for the up-front expenditures before making a purchase.

$10,000+

While the majority of tankless water heaters cost less than $6,500, there are some circumstances where the installation procedure necessitates additional time and effort. Price increases might be significant if your property requires a basement renovation or other substantial rebuilding in order to accommodate the heater. Especially if you’re intending on installing a high-quality solar heater, you’ll want to account for any unexpected charges, since additional installation fees can push your budget into the $6,000 to $13,000 area.

How Much Does It Cost to Install a Tankless System Yourself?

While it is possible to install a tankless water heater yourself, you must have prior knowledge in order to save money and do so in a safe and efficient manner. It is strongly recommended that you should not attempt to accomplish this job on your own. This might result in significant harm or property damage to you or your loved ones. An inexperienced handyperson may cause an explosion or discharge carbon monoxide into the air if a tankless water heater is installed or repaired. Not to mention that if a system is not installed by a professional, many warranties will be worthless, and your house will be at a higher risk of not being up to code if you ever decide to sell your property.

How Much Does It Cost to Install a Tankless Water Heater by Type?

While it is possible to install a tankless water heater on your own, you must have prior knowledge in order to save money and do so in a safe manner. Making an attempt to accomplish this project on your own is strongly discouraged! Your property or yourself might be severely damaged if this occurs. In the hands of an unskilled handyperson, tankless water heaters can explode or emit carbon monoxide into the air. To top it off, if you do not have your system installed by a professional, many warranties will be cancelled, and your house will be at a higher risk of not being up to code if you ever decide to sell your property.

1. Electric Tankless Water Heaters

Installing an electric model is the most economical alternative, with costs typically ranging between $800 and $1,500. Keep in mind that, unlike other more expensive solutions, you will not be required to spend additional funds on ventilation systems or upkeep.

2. Natural Gas Tankless Water Heaters

The flow rate of natural gas heaters is higher than that of electric heaters. Additionally, these tankless water heaters are a little more expensive, with installation costs ranging between $1,000 and $1,500, as well as an extra cost of roughly $200 per year to operate the gas itself.

3. Propane Tankless Water Heaters

When compared to electric heaters, natural gas heaters have a higher flow rate. Additionally, these tankless water heaters are a little more expensive, with installation costs ranging between $1,000 and $1,500, as well as an extra cost of roughly $200 per year for the gas used to power the heater.

4. Solar Tankless Water Heaters

Solar heaters are the most expensive choice, with prices ranging from $1,800 to $6,000, though some may cost more than $13,000.

Keep in mind that solar water heaters provide a larger return because they qualify for a 30% tax credit as well as a 50 percent to 80 percent reduction in your water heating bills due to the 30 percent tax credit.

What Factors Influence the Cost of a Tankless Water Heater?

Adobe Stock / Wavebreak3 / Wavebreak3 The cost of a typical tankless water heater is influenced by a variety of factors, including:

  • Kind: The type of tankless water heater you choose has an impact on the cost, with electric being the most economical option, followed by gas and finally solar, in that order. These expenses range from $800 to $6,000, depending on the situation. The cost of a single point or whole-house point system can range from as low as $100 to as much as $6,000, depending on the size of the system you pick. Number of heaters: If you are purchasing a single-point tankless water heater, you may find yourself having to purchase numerous heaters to fit different rooms. These heaters are typically priced between $100 to $300 per unit. Quality: You get what you pay for
  • If you want to use the heater on a regular basis, it is worthwhile to invest a little extra money on a higher-quality model. Expect to pay $1,000–$3,000 more for a high-quality tankless water heater than you would for a lower-quality tankless water heater. On-site issues: If you have a bathroom that is too tiny for a plumber and a helper to work side by side, your installation expenses may increase. Expertise of the installer: An experienced HVAC expert or plumber and his or her assistant will do the task fast, but they will charge more than a handyman service.

Labor Costs

Tankless water heaters are installed by plumbers and HVAC specialists in your neighborhood. The cost of labor will range from $40 to $175 per hour for your project. Local supply and demand, as well as any discounts or offers offered by a contractor or plumber, all have an impact on how much you will pay for services. Removal and installation of a typical tankless water heater, with no hidden issues, takes around three hours. As a result, total labor rates to remove an old water heater and install a new tankless system might range from $120 to $525.

Hidden Costs to Consider

When calculating the price of a tankless water heater, remember to include any hidden costs associated with the equipment, installation, and use. Example: If you require accessories to connect the tankless water heater to your plumbing system, the cost of the equipment may increase. If your home’s water pressure is inadequate, one regular and unexpected expense is the cost of adapting it. If your house pressure is low, a plumber may be required to repair a pressure regulator, clean clogged pipes, or install a bigger pressure tank (if you are on a well) in order to restore proper pressure.

This also helps to avoid disappointment if you anticipate that the tankless heater would save you a significant amount of money on fuel expenditures, which it will not.

FAQs About the Cost of a Tankless Water Heater

To figure out how much your tankless water heater will cost, take into consideration the cost of the heater itself as well as the price of installation using an installation calculator.

What should I consider when installing a tankless water heater?

After much deliberation, you’ve decided on a tankless water heater that meets your needs. Consider the amount of labor that will be required to remove an old, conventional water heater and replace it with a new tankless water heater before investing in the installation procedure.

What other projects should I do at the same time?

It is possible that you may wish to rebuild your bathroom or replace your showerhead at the same time as installing a new tankless water heater in order to take advantage of your new tankless water heater.

Tankless Water Heater Cost: Gas & Electric Prices 2022

In order to fully benefit from your new tankless water heater, you may choose to redesign your bathroom or replace your showerhead at the same time as installing it.

  • In a nutshell, the following are the cost reasons for tankless water heaters: The cost of a tankless water heater
  • Tankless water heater installation costs on average
  • Costs of operation and maintenance on a yearly basis
  • Whether tankless water heaters are a good investment or not. The best place to purchase a tankless hot water heater

In a Nutshell

Tankless water heater cost considerations, in a nutshell Water heater pricing for tankless systems Average price for tankless water heater installation Costs of operation and maintenance on a yearly basis Is it worthwhile to invest in tankless water heaters? The best place to purchase a tankless water heater;

PurchaseInstallation

It costs roughly $2,000 USD to install a big tankless gas water heater that is very efficient and has several extra features. The smallest point-of-use device costs about $100 USD, while the largest entire home system costs about $2,000 USD. The cost of an electric tankless water heater ranges from $100 USD for a point-of-use model to around $900 USD for a whole-house one, depending on the model. Tankless water heater installation costs around $1,900 – $2,000 USD on average (but the cost to install an electric heater can be as low as $150 USD).

This average covers the costs of labor, installation supplies, permit processing, and a warranty on the job performed. Continue reading for a more in-depth look at the costs associated with this project.

Tankless Water Heater Cost Factors

What is the cost of a tankless water heater? Answering this question is not as simple as it may appear at first glance. Due to the fact that there are a range of tankless water heater cost considerations to take into account, this is the case. They are as follows:

  • Type of system (fuel type, point of entrance or point of usage, and so forth)
  • Size of the unit (the number of gallons of hot water that may be delivered per minute)
  • The Energy Factor (EF) is a measure of energy efficiency. Features that are unique
  • The length and breadth of the warranty on replacement components
  • Brand

Whole House vs. Single Point

Obviously, the distinction between a whole-house system and a single point of use (POU) system is significant. A tankless water heater that provides hot water for the entire house must be significantly larger than a one that merely provides hot water for a single faucet or shower. In comparison, POE electric tankless water heaters have between 10 and 35 kW of power, whilst a POU unit may have no more than 3 kW of power.

See also:  What Happens To Water Heater When Water Is Turned Off?

Gas Fired vs. Electric Heaters

Tankless gas units are often more expensive than their electric counterparts, according to industry standards.

Natural Gas vs. Propane

When it comes to the initial purchase price of a water heating system, the choice between natural gas and propane makes little difference. Naturally occurring gas is less costly than other energy sources. propane is more energy efficient than natural gas at the same time.

Oil and Solar Water Heaters

We wanted to include tankless water heaters that are powered by oil and solar energy for the sake of completeness. They are both extremely rare and in the same price range as gas-fueled water heaters, which is a good thing.

Tankless Water Heater Prices

  • Small point-of-use systems start at a little more than $100 USD and go up from there. When equipped with 35,000 BTU (BTU is an abbreviation for “British Thermal Unit” and is used to measure a system’s heating power), they can deliver 1.5 to 2 gallons of water per minute
  • The largest residential whole house tankless gas water heaters can deliver up to 199,000 BTU and deliver up to 10 or 11 gallons per minute. Cost: Approximately $2,000 USD
  • Most tankless gas devices cost between $500 and $1,200 USD and have maximum flow rates ranging from 6 to approximately 11 gallons per minute. From 70,000 to 199,000 BTU, there are several options.

Rinnai is the manufacturer of our number one whole house gas tankless water heater.

  • Extremely high quality
  • Unlimited hot water for homes with up to 212 bathrooms (maximum flow rate of 6.5 gpm)
  • There are options for both natural gas and propane
  • Full remote control is available using a mobile application.

Marey GA10LP Power is intended for point of use.

  • Excellent price-performance ratio
  • Flow rates of up to 3.1 gpm are ideal for point-of-use applications. Installing it almost anywhere is simple because it is small and takes up little space. Allows you to customize the flow of gas and water to meet your specific requirements. Warranty of five years

Electric Tankless Water Heater Prices

  • Approximately $100 USD is the cost of the smallest POU electric tankless water heater. Their highest rated water flow is 3 kW, and their maximum power output is 3 kW. 5 to 1 gallon per minute is the flow rate. In this price range, some electric tankless water heaters are intended for 120 V power sources, although most require a 240 V power supply
  • The most powerful and most costly home electric tankless water heaters cost between $800 and $900 USD. With a maximum flow rate of 6 gpm and a power output of 36 kW, they can provide enough water for whole households
  • Most electric tankless systems are priced between $200 and $600 USD. Flow rates range from 2 to 6 gpm at their maximum. Power output ranges from 11 to 36 kW.

Stiebel Eltron is the manufacturer of one whole-house electric system.

  • Excellent performance
  • Large enough to feed two showers
  • Many different sizes available
  • Simple temperature control
  • Water heater is quite quiet
  • Many different sizes available Maximal energy efficiency is achieved by self-modulation (EF = 0.99).

Rheem RTEX-13 is intended for point of use.

  • A single bathroom or weekend cabin would be ideal for this unit, which is self-modulating to save energy. It is simple to adjust the output temperature by using the dial control. Design that saves on floor space
  • Warranty of five years

Want to go electric but haven’t settled on a specific model yet? We can help. Here’s where you can find the greatest electric tankless water heater! Alternatively, you can refer to this link for our size reference.

Commercial Tankless Water Heater Prices

Whether you need 240,000 BTU or 380,000 BTU or more, the cost of a business tankless water heater can go into the thousands of dollars, depending on your unique needs. As a result, it makes little sense to discuss projections at this time. We propose that you get in touch with a handful of vendors in your region and work your way up from that point.

Price Comparison by Brand

BrandModel Price Range
Ecosmart $140-500 USD
Rinnai natural gas fired tankless heaters $700-2,100 USD
Rinnai propane gas fired tankless heaters $700-1,900 USD
Rheem electric $170-500 USD
Rheem gas fired tankless heaters $500-2,000 USD
Bosch ProTL 175N $1,200 USD
Bosch Tronic 3000 T $150 USD
Stiebel Eltron Tempra Plus $500-850 USD
Camplux CA528 $450 USD
Noritz NRC66DVNG $800-900 USD
Rinkmo 18KW 240V $350 USD

Average Tankless Water Heater Installation Cost

Electric water heaters are less difficult to install than gas water heaters. This is due to the fact that the latter requires release. In the event that you need to rewire your home or improve the electrical system in order to satisfy the amperage needs of your new electric water heater, this may be a different situation. In addition, it matters if you are only replacing an old heater, which means that most or even all of the plumbing connections and other components are already in place; if you plan to switch fuel sources; whether or not you need to make any modifications in order to meet plumbing or electrical codes; and whether or not you want to upgrade from a tank-based to an on-demand heater.

Aside from the fundamentals of labor, there are a number of other considerations:

  • Gas water heaters are more difficult to install than electric water heaters. Due to the fact that the latter requires an outlet, this is the case. In the event that you need to rewire your home or improve the electrical system in order to satisfy the amperage needs of your new electric water heater, this may be a different scenario. In addition, it matters if you are only replacing an old heater, which means that most or even all of the plumbing connections and other components are already in place
  • If you intend to switch fuel sources
  • Whether or not you need to make any modifications in order to meet plumbing or electrical codes
  • And whether or not you intend to upgrade from a tank-based to an on-demand heater. In other words, the cost of installing a tankless water heater varies greatly depending on the specific model. There are several more aspects to consider in addition to basic labor, which are as follows:

Example 1: Gas Tankless Water Heater Costs

(Tip for mobile users: Swipe to scroll.)

Scenario Labor Material Total Cost
Full installation (mounting, hot and cold water connections, gas line, venting) About 8 (10) hours Copper/flex piping, gas piping and kit, vent piping and kit, valves, fittings, mounting hardware, … $1,000 – $1,700 USD
Replacement of old tankless unit, already existing gas line + venting can be used 3 – 4 hours Gas kit, vent kit, valves, fittings, mounting hardware, … $200 – $700 USD
Other Cost Factors Pricing
Upgrade to larger gas pipe diameter ~$500 USD
New venting system $150 – $600 USD
Removal and disposal of old water heater $100 – $300 USD

Example 2: Electric Tankless Water Heater Costs

(Swipe to scroll on a mobile device.)

Scenario Labor Material Total Cost
Full system installation (cold and hot water connections, electrical connection) 2 – 5 hours Copper/flex piping, valves, fittings, mounting hardware, … $150 – $750 USD
Replacement of old water heater, already existing water lines can be used 1 – 3 hours Valves, fittings, mounting hardware, … $150 – $250 USD
Other Cost Factors Pricing
Outlet must be installed and wired back to electrical panel $100 – $200 USD
Home rewiring $,$$$

Cost to Remove or Replace a Tankless Water Heater

When it comes to tankless water heaters, removing or replacing an existing unit should not be prohibitively expensive in most situations. That being said, just like with standard system installation, the cost of replacing a tankless hot water heater is highly dependent on the specifics of the situation.

Hiring a Pro

Although it is hard to cover every conceivable case here, calling three or four firms in your region and asking for pricing estimates is generally the best course of action to take. Pro tip: Look for contractors who are licensed and insured, who have been in business for a number of years, and who provide a warranty on their work and materials. A service provider with an A+ rating on the Better Business Bureau website and other directories is also a solid sign of their reliability.

Yearly OperatingMaintenance Costs

Obviously, depending on the sort of tankless water heater you have, gas or electricity will be the primary source of your operational costs. In addition, the more hot water you use, the higher your utility expenses will be in the future. Which is more cost-effective: natural gas or electric power? As a general rule of thumb, a gas water heater will be around one-third less expensive to operate than an electric model, however this may vary depending on your local electricity costs. Another important consideration is temperature increase, which is dictated by the temperature of the input water as well as the temperature settings at the output.

It is possible, however, to change the thermostat on your water heater to the lowest output temperature that you are comfortable with.

PropaneNatural Gas Prizes

The cost of operating a gas tankless water heater ranges from less than $200 USD per year to more than $500 USD per year depending on the model. Only a tiny role is played by the efficiency of the system. Natural gas is the least priced choice because it is powered by a utility supply line. In contrast, propane is a more efficient fuel with a significantly greater BTU, but it must be purchased separately from the rest of the fuel. Prices for natural gas and propane vary depending on where you live.

Electricity

Gas tankless water heaters have annual operating costs ranging from less than $200 USD to more than $500 USD. Efficacy of the system is simply a secondary consideration. Natural gas, which is supplied by a public utility distribution system, is the more affordable alternative for powering equipment. For its part, propane, which has significantly more BTU, is the most efficient fuel; nevertheless, it must be purchased separately. Natural gas and propane costs differ from one region to the next depending on where you live.

Tankless Water Heater Maintenance Cost

When it comes to maintaining a tankless unit, all that is required is periodic descaling (also known as deliming) and flushing of the heating components to keep it operating at optimal performance. This is normally required once every 12 months, depending on the hardness of your water and how much water you consume. As a point of reference, if you have a water softener placed upstream of your instant hot water heater, you won’t have to bother about descaling. Furthermore, the methods needed are not extremely hard, so you may complete this task on your own to save a few dollars.

You would, however, be need to purchase a system descaler kit, which costs around $120 USD. It takes 1 to 2 hours for a plumber to do routine maintenance. You could expect to pay between $50 to $120 USD for this service.

Are Tankless Water Heaters Worth the Investment?

As previously stated in the introduction, a tankless water heater is a more expensive upfront expenditure when compared to a typical water heater. However, it reduces recurring expenses by a significant margin since it has virtually no standby losses – in contrast to storage tank systems, which heat water around the clock. According to the United States Department of Energy, on-demand water heaters can be up to 30 percent more energy efficient than traditional water heaters, depending on how much hot water you consume on a daily basis.

Are they worth the money?

Average Cost Savings

“Water heating is the second most energy-intensive end-use in the home (.).” It accounts for 16.8 percent of home energy usage and can cost a household anywhere from $200 to $600 per year,” according to the Energy Information Administration. (Image courtesy of the Internet Archive) When moving from a gas tank-based to a gas tankless water heater, a typical family of four consuming 64 gallons of hot water per day may save around $115 USD each year. In the case of high hot water consumption (about 85 gallons per day), energy savings of 8 – 14 percent are achievable.

Overall, tankless water heaters have a relatively lengthy payback period of around 20 years, which is approximately the same amount of time that the average system lasts.

Tankless Water Heaters – Pros and Cons

What are the advantages and disadvantages of putting up a tankless water heater in your home?

Benefits

The following are some of the advantages of tankless water heaters:

  1. When compared to standard water heaters, they are more energy efficient than those. This is due to the fact that they do not hold any hot water, therefore eliminating standby losses. The heating takes place instantly, allowing you to save up to 30% on energy costs. Heating water on demand also ensures that you will never run out of hot water. Tankless water heaters provide an infinite supply of hot water since they are tiny and therefore easier to install in confined spaces. Having a new water heater will also free up room in your basement or wherever you decide to install it. They are simple to prepare for the next winter season. As previously said, a tankless water heater may last up to 20 years, but a standard water heater with a tank can only last 15 years.

Disadvantages

The following are some of the disadvantages of tankless water heaters:

  1. Both the purchase and the installation are more expensive in the beginning. As a result, the payback period is lengthy
  2. Tankless water heaters are susceptible to sluggish flow
  3. Electric tankless systems are restricted in terms of the amount of hot water they can produce at any given moment. However, even the largest units designed for residential usage are unable to heat more than 6 gallons per minute under optimum conditions.

Where to Buy a Tankless Hot Water Heater

Where is the most convenient location to purchase a new tankless water heater? Of course, we always prefer to shop online, for example at Amazon or Home Depot, in order to get the greatest deal possible. However, most manufacturers also sell their hot water heaters through local dealers and/or licensed contractors, which is a common practice in the industry. Home improvement stores and big-box retailers are another feasible choice. If you have any queries concerning the price of a tankless water heater, please don’t hesitate to ask them in the comments section below!

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