How Much Cost To Install Tankless Water Heater?

Learn how much it costs to Install a Tankless Water Heater.

Published on the 10th of January, 2022. Cati O’Keefe, Expert Home Building & Sustainability Contributor, has reviewed this article. HomeAdvisor has contributed to this article.

Tankless Water Heater Cost

  1. Installation of a tankless water heater costs around $2,321 (or between $1,196 and $3,448, depending on labor rates), however expenses vary.
  2. Tankless model costs vary according on the manufacturer, model type, and flow rate.
  3. Comparing estimates from local contractors is the most efficient approach to plan a budget for a new tankless water heater.
  4. Inquire with your local professional to see whether your tankless system qualifies for a tax refund.
  5. If these devices are installed and linked appropriately, they have the potential to save you money in the long term.
  6. Hiring a professional is the best way to get the most of your investment and ensure that the equipment functions at peak performance.

They will have the knowledge and skills to accelerate the installation while also ensuring that it is done correctly.

Tankless Water Heater Cost Calculator

Let’s run some numbers to see what the costs are. What part of the world are you in? What part of the world are you in?

National Average $2,321
Typical Range $1,196 – $3,448
Low End – High End $350 – $5,200
Cost data is based on actual project costs as reported by 2,700 HomeAdvisor members.

Tankless Water Heater Installation Cost

A professional might charge either an hourly rate or a flat price, depending on the services provided to the customer. Installing a tankless water heater can cost you between $45 and $150 per hour on average, depending on the plumber you choose. Final labor costs range from $100 and $450 on average.

Cost Factors

  • Labor and the sort of heating equipment you pick are the two most important cost elements to consider. Consumers will also need to figure out how much material and labor will be required for the appropriate pieces. Termination vent kits cost $40 to $100, gas connection kits cost $20 to $35, two-piece lead-free brass valve sets cost $60 to 110, fittings and mounting hardware cost $10 to $30, and insulation and piping cost $10 per foot, on average.

Other costs to consider include the removal and disposal of the existing heating system, electrical upgrades, additional insulation, and possible structural changes to make room for the new unit.

Get a Quote for Your Tankless System

Average Cost of Tankless Water Heaters

The sort of equipment you choose will have a significant impact on the overall cost of your project. Individual electric units cost roughly $150, but a high-end gas unit for the entire house may cost more than $1,500.

Tankless Type Average Unit Cost
Natural Gas or Propane $1,000 – $1,500
Electric $500 – $1,500
Solar $1,400 – $6,000
  • First and foremost, you must determine what sort of unit you will require. Noritz gas tankless unit with a BTU output of 199,000: A typical family with many bathrooms will be able to get by with this amount. It might take up to ten hours to complete the installation. Installation of suitable ventilation to avoid carbon monoxide poisoning, as well as the modification of the size of gas lines and fittings, will be more expensive due to the increased need for labor.
  • Model with an electric motor and a point-of-use interface: This is something that can be fitted under the sink. Installation takes an average of about two hours. It is necessary to have an electrical timer, an outlet, and supply lines.

Whole House or Single Point

  1. Tankless systems that are installed at a single point, or at a ″point of use,″ are those that are installed expressly by and for individual appliances and faucets that require them.
  2. They are quite simple to install and range in price from $100 to $300 per unit.
  3. They will be more efficient than utilizing a single one for the entire home because the water will only travel a small distance and will thus be wasted less frequently.
  4. The fact that they work independently of one another makes these single point systems particularly helpful in homes with several bathrooms and appliances.
  5. However, a typical-sized household with consistent usage throughout the day will be able to run on one whole-house unit with no problems.

Natural Gas or Propane Water Heaters

  1. Installation of natural gas and propane models often costs between $1,000 and $1,500.
  2. While all of these types of gas will feed your system in a similar manner, there are some significant variations in the costs of purchase and operation between the two.
  3. Natural gas is provided through a utility supply line, whereas propane must be purchased separately from the utility.
  4. If you reside within a specific distance of a natural gas pipeline, you may be obliged to connect to it to heat your home.
  5. This isn’t a problem for the vast majority of homeowners.
  6. When compared to propane, natural gas is the more affordable alternative, costing an average of $200 per year vs an average of $350 per year to run a heater on propane.

Propane, on the other hand, is a cleaner and more efficient fuel than natural gas, and it has a larger BTU capacity than natural gas.Styles that are tankless in nature are generally accessible in a broad range of types and dimensions.They are also available in a variety of outputs ranging from 140,000 BTUs to 380,000 BTUs and in both residential and commercial categories.If a natural gas connection is installed in your neighborhood, double-check that your existing appliances can be converted before making the move.

Electric Tankless Water Heater Prices

  • 240V 80 Amp hard-wired electrical service is required for electric whole-house tankless water heaters, which means your home must have a minimum of 150 Amp of electrical service to run all of the equipment. Cati O’Keefe is a home building and sustainability expert who contributes to this site. Electric variants are less costly than gas counterparts, with installation costs ranging from $800 to $1,500 on average. Because there is no requirement for venting, the installation work required is less difficult as compared to gas types. Moreover, they are less complicated to maintain, function exceptionally effectively, and provide excellent energy ratings. The tankless electric unit is 20 percent to 30 percent more efficient than a conventional unit with a tank, and it creates zero greenhouse gas emissions. These units, on the other hand, consume more energy than gas-powered units, and you may need to engage an electrician to rewire your home in order to use one. In most cases, electricians charge between $50 and $100 per hour. Water heaters that are both electric and hybrid: These are initially more costly, but they heat up much more quickly than regular electric versions. Despite the fact that they are not considered tankless, they have many of the characteristics of a tankless system: They do not require any ventilation and are extremely cost-effective. However, they are only available in versions with a maximum BTU output of 8,700.
  • Electric Models for Point-of-Use: $100 to $300 per unit – These have a number of appealing characteristics, including as their price and ease of installation. Aside from that, they are quite easy to use beneath sinks and in compact spaces, including near washing machines. This is a fantastic alternative for folks who want compact units for campers, boats, and other modest restroom requirements. They are non-corrosive, insulating, visually appealing, and light-weight in design. They contribute to water conservation by easily heating and delivering it swiftly
Find a Pro to Get Your Heater Installed

Solar Units

  1. The installation of solar heaters ranges from $1,700 to $5,000.
  2. Prices have been reported to go as high as $13,000.
  3. These approaches, on the other hand, produce some of the biggest returns.
  4. First and foremost, they are eligible for the 30 percent tax credit.
  5. For a $6,000 installation, that’s a return of $1,800.
  6. Second, studies have shown that they may save water heating costs by 50 percent to 80 percent, depending on the model.

Tankless heaters can be used in conjunction with solar power systems to maximize energy savings.A combination of these two technologies is widely regarded as one of the most ecologically friendly ways now available on the market.Solar water tanks can be used to store hot water collected by solar collectors, which can then be utilized by the tankless water heater in the residence.The solar-energy components will have a high initial outlay of money.

Tax Credits

  1. An estimated $1,700 to $5,000 is required for the installation of solar water heaters.
  2. According to some sources, the price can go up to $12,800.
  3. These styles, on the other hand, provide some of the best returns.
  4. The 30 percent tax credit is the first benefit they receive.
  5. The return on an installation of $6,000 is $1,800.
  6. Studies have shown that they can cut water heating costs by 50 percent to 80 percent, depending on the model used.

If you want to save the most money on energy, tankless heaters can be used in conjunction with solar systems.The combination of these two techniques is widely regarded as one of the most ecologically friendly ways currently available on the market.Water heated by solar collectors can be stored in solar tanks and utilized by the tankless water heater in the house.Initial investment in solar-powered components will be substantial.

Popular Tankless Heater Brands

Tankless Prices by Brand
A.O. Smith $600 – $4,000
Bradford White $500 – $2,000
EcoSmart $150 – $6,000
Rheem $200 – $2,000
Rinnai $500 – $4,300
Takagi $500 – $7,000

Choosing the Right Tankless Water Heater

  1. ″The advantage of using a tankless water heater is that you are avoiding any liability from leaks.
  2. We receive calls on a regular basis from customers whose traditional tank heaters have failed.
  3. Even the new ones fail since they are only capable of carrying 50, 40, or 100 gallons of water each.
  4. That leak might cause substantial harm if you’re on vacation and it happens to you.
  5. The advantage of using a tankless system is that you won’t have to worry about that.″ Twin Home Experts is owned and operated by Jim Schuelke in Phoenix, Arizona.
  6. Unlike normal tanks, these containers do not have gallon capacity to speak of.

So, how can customers choose which one is the best fit for their needs and preferences?The flow rate, which is the amount of water that is required at a given moment, should be determined for both gas and electric systems.The flow rate is measured by counting the number of gallons that are produced every minute (gpm).Customers should establish which appliances and fixtures are being utilized at the same time in order to calculate the maximum gallons per minute (gpm) that is needed.Check out the table below to determine which tankless water heater capacity is most appropriate for you: 1.

Average Water Usage for Common Household Features

  • Washing machine flow rates are 1.5-3.0 gpm
  • shower flow rates are 1.0-2.0 gpm
  • bathroom faucet flow rates are 0.5-1.5 gpm
  • dishwasher flow rates are 1.0-2.5 gpm
  • kitchen flow rates are 3.0-9.0 gpm.

Compare Quotes For You Tankless Heater Installation

Pros and Cons of Hot Water Heaters vs. Tankless Units

Pros & Cons of Water Heater Boilers

  • Installation that is more time-consuming and expensive
  • Units are more expensive
  • they take up more space
  • they are better for large places.

Pros of Tankless Units

Cons of Tankless Units

DIY or Hire a Pro?

  1. This is not a project that the ordinary do-it-yourself homeowner should attempt.
  2. Many homes will need to be modified in order to suit this system, which may need the installation of new wiring or gas lines, the installation of new plumbing and fittings, and the rebuilding of drywall.
  3. This task must be conducted by a qualified professional in some areas, which is required by law.
  4. This is due to building rules governing carbon monoxide emissions, heat resistance, ventilation, and state-specific codes, such as seismic straps in California, among other things.
  5. To guarantee that your plumbing project complies with all applicable codes and permit requirements, it is advisable to use an experienced plumber.
  6. Additionally, they may make certain that you have the proper equipment for your property.

It would be a shame if you discovered after the fact that you had acquired an unsuitable heating system.Using a professional ensures that the job is completed quickly and accurately, preventing your house from becoming flooded while you wait for a plumbing permit.Get the Job Done Right the First Time.Locate a Professional in Your Area


Are tankless water heaters worth the cost?

  1. The payback time for these products is rather lengthy.
  2. Despite the fact that they are expected to endure for 20 years, it will take around 20 years for your energy savings to match your initial outlay.
  3. So the value of these models is determined by their use to you and their potential utility in attracting future home purchasers to your neighborhood.
  4. By selecting the most appropriate model for your consumption requirements, you may increase the return on your investment.

Are tankless hot water heaters better?

The advantages of these models over conventional models are numerous. They save water by heating as they go, and they can help you save money on your energy bills. As a result, they are more durable and require less maintenance than conventional tanks since they do not store water, which may erode tank material and create leaks.

Do tankless hot water heaters work without electricity?

In the event of a power failure, these units will not function. Even gas versions require power to operate their spark igniter, which is a common problem with gas models.

What temperature should you set a tankless water heater?

The Consumer Product Safety Commission recommended that products be kept at 120 degrees Fahrenheit for the greatest amount of safety and efficiency. Do not set your unit to a temperature higher than 140 degrees Fahrenheit under any circumstance.

What is the best rated tankless water heater?

Rheem and EcoSmart are two brands that have received great ratings. In spite of this, the business is always changing and each home and family will have its own set of requirements. It’s advisable to speak with a professional to determine which option is best for you.

How much water does a 20-minute shower use?

A typical shower consumes 2.5 to 3.0 gallons per minute, resulting in a 20-minute shower consuming 50 to 60 gallons of water. In most cases, these water heaters are capable of producing 4 to 8 gallons of hot water per minute.

Tankless Water Heater Cost Calculator (2022) ~ With Installation Prices

  1. Don’t allow unexpected expenditures throw your renovation budget off the rails — use our helpful calculator to find out what the average installation prices for a Tankless Water Heater are in your neighborhood.
  2. The Cost of Tankless Water Heater Materials as well as an estimate of the installation costs have been provided.
  3. You have arrived at the correct location.
  4. As a registered home improvement contractor with years of expertise, I can tell you exactly how much it should cost for various levels of service – from the most basic to the most advanced.
  5. The Tankless Hot Water System calculator will offer you with up-to-date prices for tankless hot water systems in your geographic location.
  6. Fill out the form with your zip code and square footage, then hit ″Update″ to see a breakdown of how much it should cost to have a Tankless Water Heater put in your house.
Tankless Water Heater System Costs Zip Code Units
Basic Better Best
Tankless Water Heater System – Material Prices $350.00 – $645.00 $757.00 – $965.00 $1200.00 – $3500.00
Tankless Water Heater System – Installation Cost $500.00 – $650.00 $800.00 – $1200.00 $1500.00 – $1800.00
Tankless Water Heater System – Total $850.00 – $1295.00 $1557.00 – $2165.00 $2700.00 – $5300.00
Tankless Water Heater System – Total Average Cost per Units $1072.50 $1861.00 $4000.00

How much will it cost me to install a tankless water heater in my home?

  1. Almost from the time of its invention, about 1850, water heaters have been a necessary component of both residential and commercial structures.
  2. Water heaters with no tanks are the newest trend in water heating, and home builders and customers are progressively embracing this innovative technology.
  3. In order to heat the water, tankless water heaters employ high-quality heating elements that are close to the water that has to be heated.
  4. Tank storage style water heaters utilize a steady supply of power to store and heat the water, but tankless water heaters only heat the water when it is essential to do so, saving you money on your energy bills.
  5. Installation of a tankless water heater will typically cost between $1,500 and $3,000 on average.

Tankless Water Heater Prices By Brand:

  • Rinnai ranges from $500 to $4,250
  • Rheem ranges from $350 to $2,500
  • AO Smith ranges from $600 to $4,000
  • EcoSmart ranges from $300 to $850.00
  • Takagi ranges from $500 to $6,700
  • Bradford White ranges from $650 to $2,300.

Are whole house or single point water heaters better and what’s the difference?

  1. Water heaters without tanks can be installed inside or outside of a building near the water supply point and no more than 50 feet away from a direct power source.
  2. They can be installed either inside or outside of a building near the water supply point and no more than 50 feet away from a direct power source.
  3. A tankless heater is required for each water source, so if you have three bathrooms and a dishwasher, you’ll need to purchase and install four tankless heaters, unless the water sources are located close together in your home.
  4. An electric tankless water heater can heat up to three times the volume of water that a typical heater can heat up.
  5. A tankless device has the capability of heating up to 5 gallons per minute.
  6. This information is taken into consideration while choosing on the type of unit to utilize.

Most single-family houses benefit from a whole-house heating system, which allows many people to bathe at the same time, as well as run the dishwasher and use the sink at the same time.A single point system would require the installation of numerous heating systems or the usage of just one heating system at a time in the same single-family home, which would be prohibitively expensive.When determining the sort of water heater to purchase, it’s crucial to consider the lifespan of the heater you’re considering.Traditional water heaters have a lifespan of 10-15 years, however tankless water heaters may be used for up to 20 years with no maintenance.

How to choose the Right Tankless Water Heater?

  • When compared to standard water tanks, tankless water heaters do not have gallon quantities listed on the unit. However, in order to evaluate which tankless water system is best for you, you must first calculate how much water you use on a daily basis, whether you use gas or electricity. Gallons per minute (gpm) is the unit of measurement and calculation for water flow rates (GPM). If you want to know which system is the best fit for your needs, you must first determine how many appliances and water sources you use at the same time. See the table below for assistance in calculating GPM. Water use for common household appliances and water sources on average: The following flow rates are recommended: washing machine 1.5 to 3.0 gpm
  • dishwasher 1.0 to 2.5 gpm
  • kitchen faucet 3.0 to 9.0 gpm
  • bathroom faucet 0.5 to 1.5 gpm
  • shower 1.0 to 2.0 gpm

Installing a Tankless water heater

  1. Depending on the sort of system you choose, a plumber will be required to dismantle your existing heating system and then install new gas lines or heat source access in its place.
  2. Depending on where your home’s pipes are located, you may be need to open up walls or a portion of the ceiling during this operation.
  3. After this is completed, the new system is installed and linked to the existing gas lines before being put into operation.
  4. Installation would often take a full working day to complete and thoroughly test the system’s functionality throughout the property; thus, anticipate to pay between $600 and $1,000 for this service from an average plumbing firm.
  5. Costs related with new heat and water pumps, new pipelines, and any fees involved with permits are examples of additional expenses that may be incurred.
  6. Consider the following: your total cost for installation and additional supplies might be in the neighborhood of $1,000.

Miscellaneous costs and things to consider

  • Repairs & upkeep: If your water heater requires any repairs or maintenance, you may expect to pay the expenses associated with a regular plumbing project ($75-$125 per hour). In most cases, the maintenance job takes roughly 3 hours to complete. The majority of plumbing firms charge a normal minimum of four hours
  • nevertheless,
  • Additional information: Tankless water heating systems may not be suitable with the place where earlier heating types were previously installed. This may necessitate some problem-solving and may necessitate the purchase of additional materials such as pipes and insulation, both of which retail for around $12 per foot.
  • Configuration and updates: In order for the new tankless heater to function properly, various electrical systems will need to be upgraded. The cost of materials for the upgrades as well as the cost of the electrician is not always necessary, but it is a possible expense that should be considered.
  • Old heating system removal: Before you can install a new heating system, you must first have the old heating system removed and disposed of properly. This can cost anywhere from $300 to $600, depending on how difficult it is to remove the previous system.
  • It may be necessary to obtain a permission to install a water heater based on the rules that apply in your jurisdiction. This should be kept in mind to ensure that the project was completed appropriately and in accordance with the regulations. Permit fees are generally between $5 and $10 per thousand dollars of the overall work cost.
  • Energy savings: According to, the typical tankless water heater saves $170 per year in energy expenditures. As a result, they are less expensive and more energy efficient than their traditional equivalents.


How much does a tankless water heater cost?

A tankless water heater typically costs between $1,500 and $3,000. Depending on whether it is a gas-powered heater or not, it will cost around $430, not including the cost of installation.

How do tankless water heaters function?

In order to maximize efficiency, tankless water heaters are always built close to where the water will be utilized. When needed, a heating element warms the cold water as it passes through it, rather than keeping the water hot all of the time like standard water heaters do.

Are tankless water heaters good?

It is possible to heat up to 5 gallons of water per minute using a tankless water heater, which is more than enough water for most applications.

How long will a gas water heater work?

A tankless gas water heater may last up to 20 years if it is maintained properly.

How much water does a 20-minute shower use?

An average shower consumes around 2.5 – 3.0 gallons per minute, resulting in a total water use of 50-60 gallons. Tankless water heaters, on the other hand, are capable of heating water at a rate of 4-8 gallons per minute.

What temperature should you set a tankless water heater?

For the sake of safety and efficiency, manufacturers recommend that the temperature be set at 120 degrees. However, as you can see in the graphic above, I have mine set to 125 degrees during the winter months and 115-120 degrees during the summer months.

How much does a new hot water heater cost?

Purchasing a tankless water heater from the manufacturer may cost up to $2,000, whereas purchasing a full home water heater tank can cost anywhere from $600-800. The cheapest tankless unit, excluding installation, costs around $430, while the most expensive bought type costs over $1,200.

Tankless Hot Water System – Pricing and Installation Cost Checklist

  • Expect the pricing of Tankless Hot Water Systems to vary amongst different firms because each and every organization has a different set of operating fees and overhead.
  • Make an effort to obtain quotes in the late fall or early winter — you should be able to take advantage of significant pricing cuts by waiting for a contractor’s off-season
  • It is recommended that you spend an additional 7-15 percent on top of the expenditures that our calculator estimates for a Tankless Hot Water System.
  • To save money on a Tankless Hot Water System, visit every supply shop that sells your particular type and attempt to negotiate a lower deal with each provider — I save an average of 20% on my purchases.
  • Inspecting and maintaining a Tankless Hot Water System is a difficult operation that might leave you with a hurting back. You may discover that hiring an Electrician contractor to complete the work for you is more cost efficient in the long run. If you search about and ask your neighbors for recommendations, you’ll find that electrical businesses will almost always provide better pricing for Tankless Hot Water System — saving you money on your back as well as on additional Tankless Hot Water System expenditures.

View Other Water Heater and Filtration Costs: From Gas, Electric, Tankless & More

  • Electric
  • Gas
  • Water Filtration

External References:

  1. – Electric and Gas Water Heater Energy Cost Calculator (available in both English and Spanish). On July 17, 2015, the following was added:
  2. HVAC/Plumbing Estimation in the Hud Path — Volume 8 Rehab Guide

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What Others are paying:

Tankless Water Heater Cost: Installation & Unit Prices

  1. The price of a tankless water heater ranges from $250 to $6,500 dollars.
  2. Get bids from as many as three professionals!
  3. Enter your zip code below to get matched with top-rated professionals in your area.
  4. 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.
  5. Many households have switched to tankless water heaters in order to avoid this unpleasant experience.
  6. Although tankless water heaters are expensive up front, with a national average cost of $2,200, the energy savings and comfort they provide may make them a worthwhile investment.

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

  1. The entire cost of your new tankless water heater is influenced by the size of your tankless water heater.
  2. On average, you can expect to pay roughly $150 on a low-performance, single-point electric tankless water heater, according to the manufacturer.
  3. Single-use water heaters, such as those used for sinks or appliances, will only supply hot water for that specific purpose.
  4. Tankless water heaters, which are used in whole-house systems to heat all of the water in your whole home, will cost you around $1,500 for a gas-fired unit.
  5. The most powerful solar panel tankless water systems will cost you anywhere in the neighborhood of $2,000 to $6,000, depending on their features.

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 ($2,700), 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:


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.


If you want to invest in a system for the entire house but still want to save money, electric ones are your best bet. They are also the least expensive. It is possible to install a very effective, whole-house system that is ventless, high-performance, and energy efficient at a price ranging between $800 and $1500.


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 an annual basis, which is around $1,500. Natural gas costs around $200 per year, whereas propane costs approximately $350 per year.


  1. Solar panel water heater installation is the most expensive form of tankless water heater, with costs ranging from $1,700 to $5,000 for the most expensive models.
  2. If you own a renewable energy system, you will be eligible for a 30 percent tax credit, according to Energy Star and the Consolidated Appropriations Act of 2021, which was signed into law by President Barack Obama.
  3. 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.


  1. 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.
  2. Price increases might be significant if your property requires a basement renovation or other substantial rebuilding in order to accommodate the heater.
  3. Especially if you’re planning on installing a high-quality solar heater, you’ll want to account for any additional expenditures that may arise.
  4. Additional installation charges can push your budget into the $6,000 to $13,000 region, so plan accordingly.

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

  1. 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.
  2. It is strongly recommended that you should not attempt to accomplish this job on your own.
  3. This might result in significant harm or property damage to you or your loved ones.
  4. An inexperienced handyperson may cause an explosion or discharge carbon monoxide into the air if a tankless water heater is installed or repaired.
  5. 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.
  6. As a result, we recommend that you use a skilled electrician or plumber that is nearby to you.

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

Are you curious about how much money you can save (or spend!) by switching to a tankless water heater? One of the most accurate ways to estimate your costs is to consider the type of heater you pick. There are four different types of tankless heaters to take into consideration:

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 natural gas heater itself.

3. Propane Tankless Water Heaters

Even while propane water heaters are around the same price as natural gas ones in terms of installation ($1,000 to $1,500), the expense of the fuel itself may add up, with propane costing about $350 per year to operate.

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. Maintain your focus on the fact that solar water heaters provide a greater rate of return since they qualify for a 30 percent tax credit and reduce your water heating expenditures by 50 percent to 80 percent.

What Factors Influence the Cost of a Tankless Water Heater?

  • Sun-heated water heaters are the most expensive choice, ranging from $1,800 to $6,000 in price, with some models costing more than $13,000. Always keep in mind that solar water heaters provide a better rate of return because they qualify for a 30 percent tax credit and can reduce your water heating costs by 50 to 80 percent.

Labor Costs

  1. Tankless water heaters are installed by plumbers and HVAC specialists in your neighborhood.
  2. The cost of labor will range from $40 to $175 per hour for your project.
  3. 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.
  4. Removal and installation of a typical tankless water heater, assuming there are no hidden problems, takes around three hours.
  5. As a result, total labor rates to remove an old water heater and install a new tankless system might range from $120 to $525.
  6. The placement of the tankless system within your home, the size of the tankless system, and the age of the existing pipes all have an impact on labor expenses.

Hidden Costs to Consider

  1. When calculating the price of a tankless water heater, remember to include any hidden costs associated with the equipment, installation, and use.
  2. Example: If you require accessories to connect the tankless water heater to your plumbing system, the cost of the equipment may increase.
  3. If your home’s water pressure is inadequate, one regular and unexpected expense is the cost of adapting it.
  4. If your home’s water pressure is low, a plumber may be required to replace a pressure regulator, clean blocked pipes, or add a bigger pressure tank (if you are on a well) to compensate.
  5. Calculate the expenses of the unit’s operation, taking into consideration the price of natural gas or electric power.
  6. This also helps you prevent disappointment if you expect the tankless heater to save you a lot of money on fuel expenditures, which it won’t do in the long run.

A 50-gallon hot water heater will cost you more money, but it will save you money and be more ecologically friendly.

FAQs About the Cost of a Tankless Water Heater

How do I calculate the cost of a tankless water heater?

When calculating the cost of your tankless water heater, take into account the cost of the heater itself as well as the price of installation, which may be done with 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?

When installing a new tankless water heater, you may wish to renovate your bathroom or change your showerhead at the same time in order to fully benefit from your new tankless water heater.

How Much Does It Cost To Install A Tankless Water Heater?


  1. Find out how much it will cost in your city.
  2. Get the task done in three simple steps.
  3. locates the most qualified and highly rated contractors in your region.
  4. 2Contractors will provide you with free, tailored quotes.
  5. Comparison shop for quotations and pick the contractor that will best meet your requirements.
  6. An energy-efficient addition for any home or commercial area, tankless water heaters are becoming increasingly popular.

Many users prefer these models over others since they do not continually heat and cycle water, as some other types do.Instead, they have a heating system that allows them to have hot water whenever they need it.As a consequence, water consumption is minimized, and considerable energy savings are realized.A single-point hot water tank may be beneficial for small flats or for restricted use, such as when there is only one supply of hot water available to the entire building.However, because these systems are only capable of pumping half a gallon to two gallons of water per minute, they may not be able to keep up with the demands of the typical household.

When a tankless water heater is installed throughout the property, it can pump out 5-10 gallons per minute, providing substantially more hot water between heating cycles and ensuring that you will never run out of water when you need it.When discussing your installation with a plumber, take into account both possibilities in order to evaluate which solution is the best based on consumption, cost, and other key considerations.In addition to tank heaters and tankless systems, there are a variety of fuel options available for your water heater to consider.In addition to affecting your tankless water heater’s operational expenses, the type of fuel you use will also influence the amount you pay for your tankless water heater.For example, because they are the most frequent, electric and natural gas versions are the most economical options available.

For solar and other energy systems, such as tankless water heaters and fuel oil heaters, installation costs might reach $1,000 or even more.

Item Cost
1. Tankless Water Heater Unit $450-$1,050
2. Installation Labor $90-$1,200
3. Optional Gas Line Installation/Replacement $500
Total Average Installation Cost $540-$2,750

Other considerations and costs

  • Find out how much it will cost in your area. Three simple actions will get the job done for you. Contractors from are the finest in their field, according to their customers’ reviews. contractors provide you with no-obligation estimates that are tailored to your specific requirements Comparison shop for contractors and pick the one that best suits your requirements. 3 For any home or commercial area, tankless water heaters are an excellent energy-saving solution. This type of device is popular among customers since it does not constantly heat and cycle water. An alternative heating system is used, which provides hot water on demand. Reduced water use and considerable energy savings are achieved as a result of this strategy. A single-point hot water tank may be beneficial for small apartments or for restricted use, such as when there is only one source of hot water available to them. Although these systems are capable of pumping between half a gallon and two gallons of water per minute, they may not be able to keep up with the demands of a typical family. When a tankless water heater is installed throughout the property, it can pump out 5-10 gallons per minute, providing substantially more hot water between heating cycles and ensuring that you will never run out of water whenever you need it. When discussing your installation with a plumber, take into account both choices in order to evaluate which solution is the best based on consumption, cost, and other relevant aspects, such as the environment. Along with tank heaters and tankless systems, there are a variety of fuel options for your water heater to choose from. In addition to affecting your tankless water heater’s operational expenses, the kind of fuel you use will have an impact on the amount you pay for your tankless water heater when you acquire it. For example, because they are the most prevalent, electric and natural gas types are the most economical. System installation costs for solar, tankless water heaters, and fuel oil heaters can reach $1,000 or higher.

If you need a loan to complete a home renovation project, consult our guide for more information.

DIY considerations

  • You may save a significant amount of money on labor expenses by installing this system yourself
  • but, tankless systems need specialized skills in order to be properly installed.
  • However, even if you choose to build your own system, you will need to arrange regular maintenance appointments with a plumber or a maintenance firm.
  • Before deciding to do the installation on your own, double-check that there isn’t any serious reconfiguration necessary.


  • Costbook for Craftsman Estimators, whole series for the year 2019.
  • The most recent pricing were discovered on the Home Depot and other vendor Web sites
  • DIY Websites: A Review of the Literature

When it comes to installing a tankless water heater in your area, how much does it cost? Estimates may be obtained by inputting your zip code.

Cost by city

  • $1,810
  • Philadelphia, PA$2,642
  • Bronx, NY$2,171
  • Brooklyn, NY$1,810
  • Washington, DC$1,959
  • Atlanta, GA$1,773
  • Miami, FL$1,612
  • Fort Lauderdale, FL$1,689
  • Minneapolis, MN$1,981
  • Chicago, IL$2,308
  • Houston, TX$2,381
  • San Antonio, TX$1,598
  • Austin, TX$1,810
  • Denver, CO

New York, NY$2,642; the Bronx, NY$2,171; Brooklyn, NY$1,810; Philadelphia, PA$2,258; Washington, DC$1,959; Atlanta, GA$1,773; Miami, FL$1,612; Fort Lauderdale, FL$1,689; Minneapolis, MN$1,981; Chicago, IL$2,308; Houston, TX$2,381; San Antonio, TX$1,598; Austin, TX$1,8

Water Heater Installation Cost Guide (2022)

  1. Tank vs.
  2. Tankless Water Heater Costs |
  3. Gas vs.
  4. Electric Water Heater Costs |
  5. Energy-Efficient Water Heaters |
  6. Signs of a Failing Water Heater |

Choosing Your Water Heater |When to Call a Plumber |Frequently Asked Questions |In practically every family, having access to clean, hot water has become a luxury.While the requirement for hot water in a home is constant, the methods by which it is produced are constantly evolving, with a wide range of tanks and fuel sources accessible to homeowners.

If you’re buying a water heater for the first time or replacing an old one, it’s crucial to understand the different types of water heaters available and how much each one costs.

Tank vs. Tankless Water Heater Costs

In terms of water heaters, the tank and tankless water heaters are two of the most popular options available.

Tank Water Heaters

  1. Storage tank water heaters are a popular alternative for households because they can keep and heat large amounts of water on a continuous basis.
  2. Water heaters are often situated out of sight, in a garage, basement, or utility closet, among other places.
  3. Tank water heaters generally utilize electricity or natural gas to heat the water they produce.
  4. The installation of a storage tank water heater is less difficult than the installation of a tankless water heater, needing just roughly three hours of effort.
  5. The storage tank water heater is a traditional water heater that is simple to install.
  6. Storage tank water heaters are less expensive than tankless systems, with prices ranging from $820 to $1,290.

Tank heaters, although being a more inexpensive choice, are less energy-efficient due to the fact that they must operate continuously in order to maintain the target tank temperature.In turn, these tanks have higher utility costs and a shorter lifespan as a result of their design.

Tankless Water Heaters

  1. Tankless water heaters function by heating water only when it is required.
  2. The technology heats the water pipe with either a gas burner or electricity, allowing it to furnish water on demand.
  3. A tankless device, like a hot water storage tank, can be kept in a basement or utility closet for easy access.
  4. Tankless heaters are less bulky than tank units and may be placed on the wall of a bathroom or bedroom, for example.
  5. Tankless water heaters have a greater initial cost than tank water heaters, with prices ranging from $1,200 to $3,500 for a typical home.
  6. The increased cost is due to the more labor-intensive set-up necessary for the installation, which necessitates the construction of additional gas and water lines.

Electric tankless heaters will require the installation of brand new electrical wiring.Even while tankless heaters are more expensive to install than traditional versions, they are more energy efficient and have a cheaper total cost of ownership than their counterparts in most cases.Furthermore, these water heaters have a longer longevity, with an average lifespan of around 20 years.

Gas vs. Electric Water Heater Costs

Tankless and tank water heaters are both available in gas and electric variants, with each offering its own set of advantages and disadvantages to homes.

Electric Water Heaters

  1. In comparison to a gas tank, an electric tank is less expensive to purchase and install, with a home 50-gallon tank water heater costing approximately $500.
  2. The overall cost of operation on a monthly basis, on the other hand, is typically more than the cost of operating a gas heater.
  3. Because there is a lower danger of a leak or combustion with this heat source than with gas, it is regarded to be safer than gas.
  4. The disadvantage of using an electric heater, which is more ecologically friendly, is that if the power goes out, so does the hot water.

Gas Water Heaters

  1. Gas heaters are more expensive to acquire at roughly $700 for a 50-gallon tank.
  2. The operating costs of these heaters, on the other hand, are less expensive than those of an electric type.
  3. Despite the fact that natural gas is more likely to combust or leak, a gas-powered water heater provides hot water without the use of electricity.
  4. The most significant disadvantage of using a gas water heater is the harm it causes to the environment via the release of carbon dioxide.
  5. More information can be found at A Guide to the Best Water Heater Warranty.

Energy-Efficient Storage Tank Water Heater Costs

If you want to be more ecologically concerned, you might consider purchasing one of these energy-efficient water heaters instead.

Solar Water Tank Heaters

  1. Natural sunlight is used to heat the water in these water heaters.
  2. A solar water heater system is made up of two parts: a storage tank that retains water and solar collectors that produce heat.
  3. In most cases, a solar water heater will rely on a standard water tank in the event of a power failure.
  4. Active solar water tank systems and passive solar water tank systems are the two main types of solar water tank systems.
  5. An active system provides water to residences through the use of a pump, whereas a passive system circulates water around the home through the use of natural convection.
  6. A passive system will cost roughly $2,000, while an active system will cost around $3,000, according to the National Association of Home Builders.

The increased expense is due to the considerable amount of labor required as well as the requirement for a backup water heater.

Indirect Water Heaters

  1. Heat is provided to the tank by an existing furnace or boiler, which is powered by the energy from the furnace or boiler.
  2. The water from the boiler is cycled into the tank’s coils, where it is heated by the water contained within.
  3. This water heater style is energy efficient, as it relies on heat generated by a boiler or furnace to heat the water.
  4. Although the monthly cost of an indirect water heater is cheap, the initial purchase and installation costs are higher than those of standard heaters, with the cost of an indirect water heater ranging from $1,500 to $2,000.

Signs of a Failing Water Heater

  • Heat is supplied to the tank by an existing furnace or boiler, which is powered by the energy from the furnace or boiler. The water from the boiler is cycled into the tank’s coils, where it is heated by the water contained inside them. Energy-efficient, this water heater device makes use of heat generated by a boiler or furnace. The monthly cost of an indirect water heater is lower than that of a regular heater, but the initial purchase and installation costs are more than that of a traditional heater and are around $1,500.

More information may be found at: How to Maintain a Water Heater.

Selecting Your Water Heater

  • Keep the following considerations in mind when selecting a water heater for your residence: Fuel type and availability—Before purchasing a water heater for your house, evaluate whether or not the required fuel type is available. For example, if you’re considering a natural gas water heater, ensure sure your home already has or is capable of receiving a natural gas connection before proceeding.
  • Household size and number of people in your home should be taken into consideration when purchasing a gas tank of the appropriate size. For example, a family of two people need a 30–40 gallon tank, but a household of four people requires a 50–60 gallon tank.
  • Savings on both costs and energy—
  • Consider the price of each water heater as well as the cost of the fuel it uses. However, while certain heaters may be more expensive up front, their energy efficiency may allow you to save money in the long term.

When You Should Call a Plumbing Professional

It is suggested that you contact a professional if your water heater is showing symptoms of wear or if it has abruptly failed. While you may opt to replace a water heater as one of your home improvement projects, the amount of effort required and the extensive expertise required to install a system make water heater repairs and replacement a job best suited for a plumbing professional.

Frequently Asked Questions About Water Heaters

How long does it take a new hot water heater to work?

After installation, a gas heater will take around 40 minutes to reach full temperature, but an electric heater may take an hour or longer. The length of time it takes for the heater to begin supplying hot water to your house is also dependent on the size and kind of water heater you have.

How many hours a day does a water heater run?

The size, style, and fuel source of a water heater all influence how long it will operate. A tankless water heater typically runs for around an hour per day, but a tank water heater may run for four hours or more each day. Immediately contact a licensed plumber if you find that your water heater is operating more frequently than normal. The plumber will evaluate your heater for any faults.

How much does it cost to replace a 50-gallon water heater?

For an electric water heater of the same size, the cost is around $1,000, while a natural gas water heater of the same capacity is approximately $1,200. Send an email to our Reviews Team at if you have any comments or questions about this post.

What are the Pros and Cons of Tankless Water Heaters?

  1. One of the most frustrating ways to start the day is to be getting ready for work and then having a chilly shower because someone else used all of the hot water in the building.
  2. It takes a significant amount of time for the tank to fill back up, for the burner to turn on, and for the water to heat.
  3. You’ve already departed for the day at that point.
  4. Additionally, while no one is home, the water in the tank cools and is re-heated multiple times during the day to maintain the temperature.
  5. This is simply a waste of energy that will raise your power costs significantly.
  6. The installation of a tankless water heater might help to alleviate some of these problems.

Homeowners are moving to tankless water heaters for a variety of reasons, including the availability of endless hot water and decreased energy expenses.Angie’s List published an article in which she covers some of the advantages and disadvantages of installing a tankless water heater.

Tankless water heaters save money in the long run, but initial costs are higher than tank models.

  1. Inexhaustible hot water, extra storage space, and reduced utility bills are just a few of the reasons that homeowners are moving to tankless water heaters.
  2. However, for some people, such benefits may not be sufficient to compensate for the higher purchase price and installation costs.
  3. According to the United States Department of Energy, gas-fired tankless heaters save an average of $108 in energy expenditures each year when compared to their traditional tank equivalents, while electric tankless heaters save an average of $44 in energy costs per year.
  4. Sounds wonderful, doesn’t it?
  5. Continue to hold off on spending those money for the time being.
  6. Compared to storage water heaters, tankless water heaters can cost up to three times as much.

Prices range from less than $1,000 for an electric whole-house model to $3,000 for a gas-powered type, which includes installation by a licensed plumber.Furthermore, not all homes are equipped to accommodate tankless water heaters.For households that rely only on electric utilities, it is possible that their electrical system may need to be improved, necessitating the appointment of an electrician.When it comes to installing a tankless water heater, rewiring your home may easily add as much as $5,000 to the overall cost.

Tankless models save space, offer longer warranties

Many households, on the other hand, perceive advantages to using a tankless water heater that go beyond energy savings.The tiny form of these heaters allows them to conserve space while also extending their lifespan and being better for the environment because a rusted tank does not wind up in a landfill.In Clearwater, Florida, Connie Steele, co-owner of Gulf Coast Tankless Hot Water, said that many individuals are purchasing tankless water heaters because of the environmental movement.Tankless water heaters also offer a longer warranty period than traditional water heaters.According to Larry Murdock, a water heater specialist with Caffi Contracting Service in Alexandria, Virginia, the guarantee for a tankless water heater is typically 15 years.Traditional water heaters are covered by a guarantee for up to six years.

With a tankless system, he adds, ″you will also avoid the breakdown issue associated with water on the floor.″

Is a tankless water heater right for you?

  • Prior to making the decision to go tankless, there are several factors to think about: Wanted: Do you want a device that will heat water in one bathroom or across the entire house?
  • Type: Take into consideration the criteria. A model that is powered by electricity will require the appropriate voltage, amperage, and circuit breaker. Ventilation is required for gas-fired versions.
  • It is necessary for them to be within around 50 feet of a power supply, and they may be installed on either an interior or an exterior wall.
  • Average life expectancy is more than 20 years, which is about double the duration of storage water heaters.
  • Installation: Hire a reputable plumber or heating and air conditioning professional to do the installation. Most of the time, when you acquire a unit from a dealer, the installation is included.

Tankless water heaters: electric or gas?

So you’ve made the decision to ditch your tank.So, what do you do now?First and foremost, you’ll need to decide whether you want an electric or a natural gas type.Even beyond the possible expense of rewiring your home, which was previously discussed, there are significant distinctions between them.Electric tankless heaters are extremely energy efficient, achieving 99 percent efficiency.They do not, however, qualify for subsidies or the Energy Star accreditation, which demands that a product increase its energy output by 14 percent when compared to previous generations.

93 percent efficiency is achieved by using the least efficient conventional electric heaters.Water heaters that are tankless and run on natural gas are around 23 percent more efficient than standard storage water heaters, which are approximately 60 percent efficient, according to the Department of Energy.The vast majority of gas-powered tankless water heaters are eligible for a $300 federal tax credit.

Many states provide incentives along the same lines.Steele established her tankless water heater business in Florida after seeing a significant reduction in her personal utility expenses as a result of the move.Over the course of more than 50 years, Abacus Plumbing, Air Conditioning & Electrical, Inc.has grown to become a full-service home contractor serving the greater Houston region.It is a member of the Greater Houston Chamber of Commerce and has received an A+ rating from the Better Business Bureau of Houston, among other accolades.Abacus is a recognized and insured company that provides emergency assistance around the clock.

  • Abacus Air Conditioning, Plumbing & Electrical may be reached at 713-766-3605 or by email at
  • ALAN O’NEILL M-20628 |
  • TACLB82488E |
  • TECL 39119 ALAN O’NEILL M-20628 |
  • TACLB82488E In addition to Houston and the surrounding areas, Abacus Plumbing, Air Conditioning & Electrical also serves the broader Dallas-Fort Worth region, including but not limited to: Baytown, Bellaire, Conroe, Katy, Spring, Sugar Land and The Woodlands, among other cities.
  1. Check out customer reviews of Abacus Plumbing, Air Conditioning & Electrical or the Abacus A+ BBB rating to ensure that Abacus is a company you can rely on.

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