How Much Is It To Install A 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 BuildingSustainability Contributor, has reviewed this article. HomeAdvisor has contributed to this article.

Tankless Water Heater Cost

Installation of a tankless water heater costs around $2,319, or between $1,196 and $3,447, 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

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 $2,319
Typical Range $1,196 – $3,447
Low End – High End $350 – $5,200

The cost information in this report is based on real project costs provided by 2,695 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

“The advantage of using a tankless water heater is that you are avoiding any liability from leaks. We receive calls on a regular basis from customers whose conventional tank heaters have failed. Even the new ones fail since they are only capable of carrying 50, 40, or 100 gallons of water each. That leak might cause substantial harm if you’re on vacation and it happens to you. The advantage of using a tankless system is that you won’t have to worry about it.” Twin Home Experts is owned and operated by Jim Schuelke in Phoenix, Arizona.

So, how can customers choose which one is the best fit for their needs and preferences?

The flow rate is measured by counting the number of gallons that are produced every minute (gpm).

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
  • Shower: 1.5-3.0 gpm
  • Bathroom faucet: 0.5-1.5% of total water consumption
  • Dishwasher: 1.5% to 2.55% of total water consumption
  • Kitchen faucet: 3.0% to 9.0% of total water consumption
  • Washing machine: 1.5-3.0% of total water consumption

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


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?

Payback periods for these models are lengthy. Their expected lifespan is 20 years, however it will take around 20 years for your energy savings to match the amount you spent on installation. So the worth of these models is determined by their utility to you and their potential use in attracting future home purchasers to your neighborhood. The proper model for your consumption requirements can help you maximize the return on your investment.

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?

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.

See also:  How To Keep Tankless Water Heater From Freezing

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. 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.

For example, because they are the most frequent, electric and natural gas versions are the most economical options available. Solar, tankless systems, and fuel oil systems, on the other hand, can cost upwards of $1,000 or more to install and maintain.

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.


  • 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,

Local expenses have been computed by taking into consideration the differences in labor and material prices across various cities. In order to receive accurate cost estimates, please include the following information:

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.


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

Tankless water heaters are popular among homeowners because they are energy efficient, provide rapid hot water, and will never allow 40 gallons of water to flood your home. However, the initial expenditure required to install them is one of their primary disadvantages. To assist you in understanding the expenses associated with your job, the experienced plumbers at Reliant Plumbing have compiled this website.

Please keep in mind that all pricing on this page is based on typical costs we’ve seen in and around Austin, Texas, so please be conservative. Plumbing labor and supply prices in your area may have an impact on how much it will cost to complete your project.

  • 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.

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

In the Austin, Texas region, the typical cost to have a qualified plumber replace an electric tankless water heater is around $4,200– based on current prices for this service. 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.

It is recommended that if you are certain that you need to replace your electric tankless water heater, you consider converting it to a gas one instead.

Because of their quality and dependability, we favor gas tankless heaters.

If you decide to go with a gas tankless water heater instead of an electric one, your costs will be more in line with the cost of installing a gas tankless water heater described above. The following is a summary of the expenses associated with replacing an electric tankless water heater:

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.

See also:  How To Hook Up Electric Water Heater

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

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

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

Installation of a tankless water heater might be quite expensive depending on where you reside in the United States.

The following table shows the average cost for ten popular cities in the United States:

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

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

What Tankless Water Heater Can I Get on My Budget?

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


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. 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.


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


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.


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

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

While it is possible to install a tankless water heater yourself, you must have prior knowledge in order to save money and do so in a safe and efficient manner. It is strongly recommended that you should not attempt to accomplish this job on your own. This might result in significant harm or property damage to you or your loved ones. An inexperienced handyperson may cause an explosion or discharge carbon monoxide into the air if a tankless water heater is installed or repaired.

Not to mention that if a system is not installed by a professional, many warranties will be worthless, and your house will be at a higher risk of not being up to code if you ever decide to sell your property. As a result, we recommend that you use a competent electrician or plumber in your area.

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

Although propane water heaters are the same price as natural gas water heaters for installation ($1,000 to $1,500), the cost of the fuel itself may add up, with propane costing approximately$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. Keep in mind that solar water heaters provide a larger return because they qualify for a 30% tax credit as well as a 50 percent to 80 percent reduction in your water heating bills due to the 30 percent tax credit.

What Factors Influence the Cost of a Tankless Water Heater?

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

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

Labor Costs

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

Hidden Costs to Consider

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

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

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.

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?

A tankless water heater has a price tag of around $1,500. The answer is dependent on whether you opt for an electric or a gas-powered type of the vehicle. The following are some variables to consider while deciding between the two options:

  • 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.
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Benefits of a tankless water heater

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

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

Disadvantages of a tankless water heater

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.

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.

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

Despite the fact that tank systems are often easier and less expensive to install, a tankless type may be less expensive in the long run. Because they heat water on demand, tankless water heaters can help you save money on your energy bills. In fact, they can save households as much as $100 per year over the course of their lifetime. Because they are more labor-intensive to install, it is beneficial to be aware of the advantages and disadvantages of each before deciding which heater is best for you and your household:

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

A tankless system heats water as it travels through the system, thanks to the use of a heat exchanger. Water is heated on demand, which means that it is heated just when you need it, rather than being heated in preparation. Water is heated and then sent via your pipes to your sink, shower, or washing machine where it is put to use by you. With a high flow rate, which is defined as the number of gallons your water heater can heat in one minute, you will be considerably less likely to run out of hot water.

Electric tankless water heaters are often $500 to $1,000 less expensive than gas tankless water heaters, despite the fact that gas tankless systems heat water more quickly.

Finally, while tankless types are often more expensive to acquire and install, they are typically more energy-efficient in operation.

How Much Does It Cost To Install a Tankless Water Heater in San Antonio?

A tankless water heater installation in San Antonio can cost anywhere from $3,500 to $8,500, with an average cost of $5,200 on the market today. Given the wide range of variables that influence the cost of your installation, the only way to know the exact cost to install a tankless water heater is to have a qualified plumber visit to your home and examine the present system and hot water requirements. There are a number of factors that will have an influence on the cost of your installation, including:

  • The unit’s physical dimensions
  • The type of tankless unit that is used
  • The kind of fuel used
  • The plumber that you employ

Following that, we’ll take a deeper look at each of these elements to give you a better sense of how much money you’ll need to spend on your tankless water heater installation. Want a professional to provide you with an accurate price for your tankless water heater installation? Look no further. Call us at (210) 227-8358 or use our online scheduling tool to make an appointment: Make an appointment as soon as possible.

Cost Factor1: The size of the unit

Tankless water heaters, in contrast to standard tank water heaters, which keep 20–100 gallons of heated water, do not store any water at all. As opposed to this, they heat the water as it passes through the unit. As a result, there are two parameters that influence the “size” of a tankless water heater:

Temperature rise:

Tankless water heaters, in contrast to standard tank water heaters, which hold 20–100 gallons of heated water, store no water at all. Water is heated as it passes through the unit rather of being heated by the unit. Consequently, two things influence the “size” of a tankless water heater:

Flow rate:

Tankless water heaters, in contrast to standard tank water heaters, which hold 20 to 100 gallons of heated water, do not store any water at all.

As opposed to this, they heat water as it passes through the unit. As a result, two things influence the “size” of a tankless water heater:

  • The following flow rates are recommended: washing machine: 1.5 – 2.0 gpm
  • Kitchen faucet: 0.5 – 2.5 gpm
  • Dishwasher:1.0 – 2.5 gpm
  • Showerhead:1.0 – 3.0 gpm

Cost factor2: The type of tankless unit

There are two types of tankless water heaters: electric and natural gas. The cost of whole-home units is often higher than the cost of POU units since they offer hot water to all of the plumbing fixtures in your house. Hot water is delivered to a single appliance or room in your house using a point-of-use (POU) device (like a bathroom or laundry room). So, how can you choose which sort of unit is the most appropriate for your residence? If you have a typical-sized home, a whole-house unit will most likely be sufficient to heat enough water to run all of your appliances at once.

For example, if you have a high-flow equipment such as a washing machine or a dishwasher, you may want to consider installing a POU unit in addition to a whole-house unit to ensure that you have adequate hot water.

Cost factor3: The type of fuel

Despite the fact that gas water heaters are more expensive to install than electric water heaters, gas water heaters are also less expensive to run on a monthly basis. Gas water heaters are more expensive to install because, in addition to the water heater itself, a gas water heater requires the following items:

  • If you don’t already have a gas line running to your home, you’ll need to have one installed, which will raise the cost of your water heater installation by around $1,500 or more
  • Gas line installation If your property has natural gas service, but the line isn’t close enough to your tankless water heater, the gas line will need to be extended, increasing the cost of installation. Exhaust Ventilation: Gas water heaters emit gases that must be vented to the outside of your home. If you’ve never had a gas water heater before, a plumber will be required to install the venting as well, which will increase the cost of the installation.

Electric water heaters are less expensive to install than gas water heaters since they do not necessitate the installation of extra infrastructure as gas water heaters do. The only additional expense you may incur as a result of using an electric water heater is the cost of upgrading your electrical panel. It is possible that the electrical panel in your home does not have enough power to accommodate the additional load created by a new water heater. If you want an update to your electrical panel, you could expect to pay an additional $1,000-$2,000.

Cost factor4: The plumber you hire

Due to the fact that electric water heaters do not require the additional infrastructure that gas water heaters do, they are less expensive to install than their gas-powered counterparts. An update to your electrical panel is the only additional cost you may incur if you want to use an electric water heater. A new water heater may put a strain on your home’s electrical panel, which may not be able to handle the additional load it creates. Upgrades to electrical panels will often result in an additional $1,000-$2,000 in costs for the homeowner.

  • A valid driver’s license as well as insurance. By checking a plumber’s Better Business Bureau (BBB) page, you may determine whether or not they are licensed and insured in your area. If they are accredited by the Better Business Bureau, it indicates that they have a valid license and insurance.
  • Online reviews that are trustworthy. Check online review sites such as Google, Facebook, and the Better Business Bureau.
  • Pricing that is open and transparent. A tankless water heater installation business that gives you with an upfront, written estimate of the cost to install your tankless water heater protects you from any unexpected expenditures or fines.

Ready to have your tankless water heater installed by a San Antonio Pro?

One of our highly qualified plumbers will meet with you to discuss your hot water requirements so that we can assist you in finding the most appropriate tankless water heater for your house. Call Now at (210) 702-3289 “>Call Now!

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