How Much Does A Tankless Water Heater Cost To Install

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

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

Tankless Water Heater Cost

Installation of a tankless water heater costs around $2,317, or between $1,196 and $3,446, depending on labor rates. Tankless model costs vary according on the manufacturer, model type, and flow rate. Comparing estimates from local contractors is the most efficient approach to plan a budget for a new tankless water heater. Inquire with your local professional to see whether your tankless system qualifies for a tax refund. If these devices are installed and linked appropriately, they have the potential to save you money in the long term.

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

Tankless Water Heater Cost Calculator

An average tankless water heater installation costs around $2,317, with labor charges ranging between $1,196 and $3,446, depending on the size of the unit. Brand, type, and flow rate all influence the cost of a tankless unit. Comparing estimates from local contractors is the most effective approach to plan a budget for a new tankless water heater. Find out if you qualify for a tax refund by consulting with a local professional. The use of these units has the potential to save you money in the long term provided they are properly installed and linked.

They will have the essential knowledge and experience to accelerate the installation while also ensuring that it is done correctly the first time around.

National Average $2,317
Typical Range $1,196 – $3,446
Low End – High End $350 – $5,200

The cost information in this report is based on real project costs provided by 2,689 HomeAdvisor users.

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 will cost you between $45 and $150 per hour on average, depending on how long it takes. 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. Typical accessories required include the following:

  • Termination vent kits range in price from $40 to $100
  • Gas connector kits range in price from $20 to $35
  • And a two-piece lead-free brass valve set ranges in price from $60 to 110. Fittings and mounting hardware range from $10 to $30
  • Insulation and pipe are priced at $10 per foot.

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

The sort of equipment you choose will have a significant impact on the overall cost of your project. Single-point electric units cost around $150 apiece, and a high-end gas model 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 in terms of 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 electric timer, an outlet, and supply lines.

Whole House or Single Point

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. They are quite simple to install and range in price from $100 to $300 per unit. 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. The fact that they work independently of one another makes these single point systems particularly helpful in homes with several bathrooms and appliances.

However, one whole-house unit will be plenty for an average-sized home with consistent consumption throughout the day. Village Plumbing, LLC is based in Henderson, Nevada. In Las Vegas, gas tankless water heaters cost on average between $800 and $1,500.

Natural Gas or Propane Water Heaters

Installation of natural gas and propane models often costs between $1,000 and $1,500. 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. propane must be purchased separately from natural gas since it is dependent on a utility supply line to be available. If you reside within a specific distance of a natural gas pipeline, you may be obliged to connect to it to heat your home. This isn’t a problem for the vast majority of homeowners.

Propane, on the other hand, is a more environmentally friendly and energy-efficient fuel that has a larger BTU capacity than natural gas.

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.

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 an expert home builder and contributor to the Home BuildingSustainability website. 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.

In comparison to a tank-based unit, the tankless electric unit is 20 percent to 30 percent more energy efficient and produces no greenhouse emissions.

In most cases, electricians charge between $50 and $100 per hour.

  • Electric hybrid water heaters are initially more expensive than ordinary electric ones, but they heat water more quickly than conventional electric models. 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 heaters range in price from $1,700 to $5,000 to install. Prices have been reported to go as high as $13,000. These approaches, on the other hand, produce some of the biggest returns. First and foremost, they are eligible for the 30 percent tax credit. For a $6,000 installation, that equates to $1,800 in return. 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.

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

Another aspect that will have an impact on expenses is a discount that is being provided on solar-electric equipment. Solar water heaters are eligible for a 30 percent tax credit on the cost of installation from the federal government. More information on the solar tax credit may be found at Energy Star. Inquire with your installer about tax credits and manufacturer rebates, as well as other financial incentives.

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

In addition, a discount on solar-powered equipment will be made available, which will effect expenses. When it comes to solar water heaters, the federal government provides a 30 percent tax credit for the cost of installation. Visit Energy Star for more information on the solar tax credit. Ask your installer about tax credits and manufacturer rebates, as well as other financial incentives.

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
  • Installation that is more time-consuming and expensive
  • Prices are higher
  • Units take up more space
  • They are better for larger places.

Pros of Tankless Units

This is not a project that the ordinary do-it-yourself homeowner should attempt. 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. This task must be conducted by a qualified professional in some areas, which is required by law. 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.

Additionally, they may make certain that you have the proper equipment for your property.

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.

Locate a Professional in Your Area

FAQs

The payback time for these products is rather lengthy. 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. 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. 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 stored 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?

Among the most well regarded brands are Rheem and EcoSmart. In spite of this, the business is continually growing and each home and family will have its own set of requirements. You should speak with a specialist to determine which option is the greatest fit.

How much does it cost to install a tankless water heater ?

Find out how much it will cost in your city. Get the task done in three simple steps. 1Howmuch.net locates the most qualified and highly rated contractors in your region. 2Contractors will provide you with free, tailored quotes. 3Compare quotations and choose the contractor that would best meet your requirements. 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.

  • As a consequence, water consumption is minimized, and considerable energy savings are realized.
  • 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 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 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.
  • Solar, tankless systems, and fuel oil systems, on the other hand, can cost upwards of $1,000 or more to install and maintain.
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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

  • For example, you may need to employ a handyman or carpenter to remove drywall or build access panels, which would result in an additional expense. There are several materials that are not included in the typical installation prices, such as heat pumps and pipelines. License fees and taxes are not included in the price.

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.

References

  • 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
  • Phoenix,

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

Homewyse Calculator: Cost to Install Tankless Hot Water Heater

January in the next year, 2022

Itemdetails Qty Low High
Tankless Water Heater CostNon-discounted retail pricing for: 8.5 gpm tankless gas water heater at 35F temperature rise. 0.92 energy factor. Digital controller. Requires natural gas supply and 3″ vent connection at unit. 5 yr limited warranty. 1 heater $1,329.20 $1,494.31
Tankless Hot Water Heater Installation Labor, BasicBasic labor to install tankless hot water heater with favorable site conditions. Mount and secure new heater. Connect vent to existing vent ducting. Connect water to existing supply lines. Leak and cycle test. Any surface demolition, structural modifications and restoration if needed is extra. Includes planning, equipment and material acquisition, area preparation and protection, setup and cleanup. 1 heater $1,329.20 $1,494.31
Tankless Hot Water Heater Installation Job SuppliesCost of related materials and supplies typically required to install tankless hot water heater including: connectors, fittings and mounting hardware. 1 heater $1,329.20 $1,494.31
Option: Remove Water HeaterDetach and turn off connections. Drain unit. Remove from premises. Disposal costs/fees not included. 1 heater $1,329.20 $1,494.31
Tankless Water Heater Debris DisposalCosts to load and haul away old materials, installation waste and associated debris. 1 heater 53.15625 60.46875
Unused Minimum LaborBalance of 2 hr(s) minimum labor charge that can be applied to other tasks.
Totals – Cost To Install Tankless Hot Water Heater
Average Cost per Heater

Custom Calculators with Homewyse Lists

Service Professionals: develop a reusable estimating software that is completely tailored to your company’s needs and procedures. Make use of one of the templates provided or create your own (both are free; account registration is required): Tankless Hot Water Heater Installation costs start at $2,324 – $2,696 per heater for a typical project in zip code 47474 with one heater and a total of one heater. Job size, circumstances, and alternatives will all have an impact on final prices. To get an idea of how much your project will cost, do the following: Set the zip code for the project in step one.

2.

The number of “things” necessary for the project should be entered here.

RecalculateClick on the “Update” button to restart the calculation.

Unit Costs: How Pros Price

Instead of publishing prices from unrelated tasks in the past, Homewyse produces up-to-date estimates based on currentUnit Costs, as opposed to other websites. Due to the use of location, information, and alternatives tailored to the specific requirements of each work, the Unit Costmethod provides great accuracy. Businesses in the construction, commerce, design, and maintenance industries rely on the Unit Costmethod for transparency, accuracy, and equitable profitability.

Cost to Install or Replace Tankless Water Heaters

Tankless water heaters are popular among homeowners because they are energy efficient, provide rapid hot water, and will never cause 40 gallons of water to flood your home. The only disadvantage is that they require a significant upfront cost to be installed. The experienced plumbers at Reliant Plumbing have put together this website to assist you in better understanding the expenses associated with your construction or remodeling project. Please keep in mind that all pricing on this page is based on typical costs we’ve seen in the Austin, Texas area.

Cost to Install a Gas Tankless Water Heater

In the Austin, Texas region, the typical cost to have a qualified plumber install a gas tankless water heater is around $7,250– based on current costs for plumbing services. See the table below for a breakdown of the costs: When you are installing a tankless water heater for the first time, you will need to make a number of modifications to your home to suit the new unit. The reason for this is because the cost of installation varies greatly based on your current arrangement. Following are some of the steps that will need to be completed during the installation of your new tankless unit:

  • Reposition the water lines and circulation line
  • Install a condensate drain
  • Install a wall-mounted pan drain
  • And more. Temperature Pressure Relief Valve should be repositioned. A bracket and wall support should be installed to hang the tankless water heater. In the case of the gas line leading to the water heater, the pipe size should be increased. Converting metal venting to PVC is an option. Install flashing to guarantee that there are no leaks in the gas pipe (this may necessitate the use of a roofer)
  • To control the igniter temperature control panel, connect a 110-volt electrical outlet to the wall.

Make sure to discuss with the plumber the specifics of your installation and that the price quotation you receive is in line with your requirements.

Cost to Install an Electric Tankless Water Heater

In the Austin, Texas region, the typical cost to have a qualified plumber install an electric tankless water heater is around $8,850– based on current rates for the area. Our expert plumber, on the other hand, does not suggest using an electric tankless water heater in most circumstances. This is due to the fact that the majority of homes do not have enough AMPs to satisfy the demands of an electric tankless water heater. You’ll need around four 40AMP breakers. In most cases, many thousand dollars in electrical work is required before a plumber can even begin working on the unit’s installation.

We’ve also observed electric units fail to provide the hot water required by the majority of households.

The use of an electric tankless water heater is recommended in the following two circumstances: Their use is particularly appropriate for holiday houses or cottages that are only sporadically used.

It is also possible that electric tankless heaters might be effective in a condominium with only one bathroom. If you do determine that an electric tankless water heater is a suitable fit for your needs, the following is a breakdown of the expenses associated with installation:

Cost to Replace a Gas Tankless Water Heater

In the Austin, Texas region, the typical cost to have a professional plumber replace a gas tankless water heater is roughly $4,700– based on current prices for plumbing services. It is far less expensive to replace a tankless water heater because your location has already been set up to accommodate tankless water heaters. These water heaters, on the other hand, should endure for at least 15 years before needing to be replaced. If you’re experiencing troubles with your tankless water heater, take a look at these often encountered issues.

See the following table for replacement expenses of a gas tankless water heater:

Cost to Replace an Electric Tankless Water Heater

According to current pricing in the Austin, Texas region, the typical cost of having a qualified plumber replace a gas tankless water heater is around $4,700. Because your location has already been set up to accommodate tankless water heaters, it is far less expensive to replace a tankless unit. Water heaters of this type, on the other hand, are expected to endure for 15 years or more before needing to be changed. Listed below are some of the most typical issues that might arise with your tankless water heater.

Replace a gas tankless water heater at the following price:

How to Get an Estimate for Your Tankless Water Heater

Due to the wide range of differences between each property, it is impossible to estimate the cost of plumbing improvements. Frequently, when we arrive on a project site, we discover that the existing plumbing must be brought up to code before we can begin working. When hiring a plumber, you should always negotiate price with them up front. They should come to your home to assess the scope of your renovation and give an estimate. This is not going to be free, so be prepared! The time it takes for a plumber to come out to your house is considerable, and they frequently need to do some diagnostics before providing you with an estimate.

Do they charge for labor on an hourly basis or do they charge a set rate?

The condition of your water heater is critical to the operation of many of your home’s plumbing fixtures.

If you live in or around the Austin region, we would be delighted to assist you with your tankless water heater installation!

Learn More About Tankless Water Heaters

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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.

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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

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. You may have an effective, whole-house system that is vent-free, high-performance, and energy-efficient for a price ranging between $800 and $1,500.

$3,000

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 most affordable. The cost of installing a reliable whole-house system that is vented-free as well as high-performance and energy efficient is between $800 and $1,500.

$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+

Solar panel water heater installation is the most expensive sort of tankless water heater, and it may cost anywhere from $1,700 to $5,000. Good news: According to the Energy Star, under the Consolidated Appropriations Act of 2021, you will be eligible for a 30 percent tax credit for owning a renewable energy system. In spite of this credit, it’s a good idea to set aside money for the upfront expenditures before making a purchase decision.

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?

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 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?

Solar heaters are the most expensive choice, with prices ranging from $1,800 to $6,000 on average, however some can cost more than $13,000 in extreme instances.

Maintain your focus on the fact that solar water heaters provide a better rate of return, as evidenced by a 30 percent tax credit as well as a reduction in your energy costs by 50 to 80 percent.

  • 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.

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. Here’s what you need to know about There are few things in life that are more unpleasant than taking a hot shower only to be met with water that is so cold it seems like it has come straight from a melting glacier. A tankless water heater is one method to ensure that you never again have to take a cold shower when you least expect it.

Although they are less expensive than traditional tank water heaters, tankless water heaters with installation are roughly $3,000 on average. 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.

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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.

Disadvantages of a tankless water heater

It is more expensive to purchase and install a tankless water heater upfront than it is to purchase and install a regular water heater. In fact, depending on the unit and the amount of retrofitting your home required, it might cost up to twice as much as a standard unit. It might take up to ten hours to complete the installation due to the level of skill required. The time it takes for hot water to be heated and supplied is longer. You may encounter what is known as a “cold water sandwich,” which occurs when the hot water is switched on but does not have enough time to heat up properly.

Water hardness can cause failures in tankless units, and manufacturer warranties do not often cover the damage caused by hard water in most cases.

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 Heater Cost Guide 2021 – Installation, Replacement and Operating Cost

The price of a tankless water heater is composed of three components:

  • The price of a tankless water heater
  • The cost of installing a tankless water heater
  • And the operating costs.

Here’s a high-level summary. Following the overview, you’ll find detailed information on each cost kind. Tankless Water Heater Price Information Electric tankless water heaters are available for as little as $125. The price of a whole-house electric tankless water heater starts at around $1,000. Gas tankless water heaters start at around $125, while high-quality, long-lasting gas tankless versions start at approximately $500 and can cost more than $2,000. Installing a tankless water heater can cost you money.

It costs between $600 to $1,500 to install a natural gas water heater.

Operating Expenses / Energy Expenses This cost represents the cost of electricity used to power the water heater.

Gas water heaters have an annual operating cost ranging from $200 to $600, depending on their size and energy efficiency.

Tankless Water Heater Costs

The costs of gas and electric tankless water heaters are shown in this table by size.

Gas Heater Size / BTUs Gas Heater Cost Range
120K – 140K BTUs $500 – $1,200
160K BTUs $750 – $1,600
180K BTUs $900 – $1,900
190K – 199K BTUs $1,000 – $2,200
Electric Heater Size / kWs Electric Heater Size / kWs
Less than 6kW $100 – $225
6-8kW $175 – $250
10-12kW $215 – $390
15-18kW $365 – $550
21-24kW $400 – $635
27-30kW $425 – $715
32-36kW $435 – $800

The expenses of installation are described further below. Factors affecting costs include: Tankless Water Heaters are a type of water heater that does not require a tank to be filled with water. The cost of a tankless water heater, whether gas or electric, is determined by a variety of factors, some of which are evident and others which are less so. Gallons per minute (GPM) flow rate is defined as follows: When all other things are equal, the higher the cost of the unit will be the greater the amount of hot water it can provide.

Gas versions generally have a BTU capacity ranging from 140,000 BTUs to 199,000 BTUs, with GPM being a factor of that capacity. When it comes to electric versions, GPM is expressed as a factor of kilowatts. The power ranges from around 3.5kW to 36kW.

  • Electric point of use (POU) models range in size from around 0.6 GPM to approximately 2.0 GPM
  • Electric whole home versions range in size from approximately 3.0 GPM to more than 5.0 GPM. The flow rate of gas tankless water heaters ranges from around 5.5 GPM to more than 10 GMP.

Observations on the maximum flow rate and entering water temperature: As this chart illustrates, the coldest ground water temperatures vary dramatically depending on climate. It is only when the incoming water is suitably warm that a tankless water heater may attain its maximum flow rate of 1 gallon per minute (GPM). As the temperature of the entering water rises, so does the amount of heat that is required, resulting in a decrease in the GPM output rate. For example, a water heater capable of delivering 5.0 GPM in Florida may only be capable of delivering 2.5 GPM during the winter in Michigan.

  1. Another point to consider while setting the thermostat: The higher the temperature is set, the lower the flow rate will be.
  2. 2: Units of varying quality: The quality of the units varies greatly.
  3. When comparing models, make sure to look at the warranty details.
  4. Gas tankless water heater efficiency begins at around 82 percent, or.82 UEF, when using natural gas as fuel (uniform energy factor).
  5. Using a secondary heat exchanger to increase efficiency results in a cost increase due to the additional equipment required.
  6. outside (only for gas): Indoor units are more expensive than outdoor units because they must be fitted with connections to connect to a ventilation system.
  7. This has an impact on the cost of installation as well (details below).
  8. These pumps boost the unit cost by $300 to $500 and also increase the cost of installation.
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  10. 6th and last feature: WiFi capabilities, wireless remotes, and wall thermostats are examples of additional features that drive up the price of gas and electric versions, respectively.

Tankless Water Heater Installation Cost

The expenses of installation for each kind of water heater are included in this table. Cost considerations are explored in further detail below the table.

TypeInstallation Installation Cost Range
Electric 110V $150 – $300
Electric 110V plus outlet $250 – $500
Electric 220V $300 – $600
Electric 220 plus outlet $500 – $750
Gas indoor $600 – $1,000
Gas indoor plus vent $900 – $1,500

Installation Cost Factors

The cost of installing a tankless water heater ranges from $150 to $1,500 dollars. The factors are as follows. The following questions must be answered: 1: Whether an outlet must be placed and wired (electric only): Installing an electric tankless unit is simple as long as there is a 110-120V outlet accessible to connect the unit into for power. When an outlet must be built, the cost increases. 2: 110V versus 220V (Electricity): The same situation arises for 220-240V units as for 110V ones. Adding an outlet and wiring it back to the electrical box, maybe with the inclusion of one or more circuit breakers, increases the cost of the project.

  • 4: Indoor vs.
  • Installing in a crawlspace, attic, or other difficult-to-access and work-in area will raise the cost of installation.
  • It may also have an influence on the amount of installers in your region.
  • Seventh: Recirculation pump (gas): Installing and wiring a recirculating pump involves time and resources.

There are a variety of recirculation systems available. The approach you pick will have an impact on the pricing. We’ve created aGuide to Tankless Recirculating Pumpswhere you can learn about the benefits, drawbacks, and pricing of tankless recirculating pumps.

Tankless Water Heater Operating CostsFactors

As previously stated, the following are the expenses of energy:

  • Electric tankless water heaters may cost anywhere from $75 to more than $300 per year, while gas tankless water heaters can cost anywhere from $175 to $500 per year.

The following are the cost considerations: 1: Demand for hot water: The amount of hot water consumed by your home is the most significant element affecting operational costs. Simply said, smaller homes tend to consume less hot water than bigger households. Temperature rise: This is the second most significant thing to consider. It is estimated that the water heater will consume more energy the greater the amount of heat it raises the temperature of incoming water. As previously stated, the temperature of the groundwater (incoming water) and the temperature setting of the thermostat control the rate of temperature rise.

  1. Heating water using natural gas is often more cost effective than heating water with electricity generated by the combustion of natural gas or coal in a power plant in most locations.
  2. Prices vary depending on where you live.
  3. Capacity of an electric water heater: The bigger the kW rating of an electric unit, the more energy it will consume.
  4. Energy expenses rise as the size of the building increases.
  5. Recirculation: By using a recirculating pump to retain hot water near to the exit, you may enhance the amount of hot water that is used.
  6. The projected annual running costs for the unit are shown by the yellow label.
  7. Consider a gas-powered model, but be certain you’re looking at the correct label, since there should be a label for natural gas (NG) and another for liquid propane (LP) (LP).
  8. The annual cost of the Energy Guide for natural gas is $160.

2022 Average Tankless Water Heater Installation Cost

Water heaters are classified into two categories: tank-style and tankless-style water heaters. In most cases, installing a typical tank-style water heater costs between $350 and $2,000, which is far cheaper than the $2,000 – $5,000 price tag associated with installing a tankless unit.

Type of water heater Average water heater cost Average installation cost
Gas water heater with storage tank $650 – $900 $350 – $2,000
Electric water heater with storage tank $300 – $700 $350 – $2,000
Gas tankless water heater $200 – $1,300 $2,000 – $5,000
Electric tankless water heater $250 – $700 $2,000 – $5,000

Water heaters are generally classified into two types: tank-style and tankless. In most cases, installing a typical tank-style water heater costs between $350 and $2,000, which is significantly cheaper than the $2,000 – $5,000 cost of installing a tankless water heater.

Tank-style hot water heaters

Traditionally, a tank-type water heater has been the preferred water heater model. In a tank system, a predetermined amount of hot water is stored in a storage tank that is available for use at any time. It depends on how much hot water you anticipate your home will use that you choose a tank that is between 20 and 80 gallons in capacity. The most often seen tank capacity is 40 gallons. Larger tanks are often more expensive than smaller ones. Because a tank system ensures that hot water is available at all times, it necessitates the continuous use of gas or electricity.

If you have a tank system and consume a large amount of hot water at once, you may run out of hot water and be forced to wait until the system can heat additional water and store it in your tank.

Consider a bigger storage tank or a tankless hot water heater if your hot water heater is constantly running out of capacity.

Tankless hot water heaters

In terms of water heater design, a tank-type unit is the more traditional option. In a tank system, a predetermined amount of hot water is stored in a storage tank that is always available for use. It depends on how much hot water you anticipate your home will use that you choose a tank that is 20 gallons or more. Forty-gallon storage tanks are the most frequent. It is customary for larger tanks to be more expensive than smaller tanks. The constant usage of gas or electricity required by a tank system ensures that hot water is always available.

It is possible that you will run out of hot water if you have a tank system and will have to wait until the system can heat additional water and store it in the tank.

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