Installing a tankless water heater can feel like a big decision, especially when it comes to the cost. On average, it costs about $2,622, but the price can range from $1,398 to $3,889. The final cost depends on factors like the size of the unit, if it runs on gas or electricity, how many units you need, and any challenges during installation.
It’s not just about the price tag—it’s about finding the right fit for your home and budget. Think about this: is it time to invest in something that could save you money and make life more convenient down the line?
What is a Tankless Water Heater?
A tankless water heater is a system that heats water only when you need it, without using a storage tank. Unlike traditional water heaters that keep a large tank of water hot all day, a tankless system heats water as it flows through the unit. This means you get hot water on demand, and you won’t run out like you might with a tank system.
Tankless water heaters are also more energy-efficient because they don’t waste energy keeping water hot when you’re not using it. They take up less space since there’s no bulky tank, and they usually last longer than traditional water heaters. They run on gas or electricity and work well for small or large homes needing reliable hot water.
Factors Affecting Tankless Water Heater Cost
The average cost of a tankless water heater is $2,622, with prices typically ranging from $1,398 to $3,889. Smaller electric models can cost as little as $375. When considering the average cost of tankless water heater systems, factors like the brand, type, and quality of the unit play a big role in the final price.
1. Quantity
The number of tankless water heaters you need can change the total cost. A single-point heater, used for one sink or shower, costs between $100 and $300.
If you want hot water in multiple places, like the kitchen, bathroom, and laundry, you might need more than one heater. The total cost adds up quickly with multiple units, so plan carefully to match your needs.
2. Quality
Tankless water heaters come in different quality levels, which can impact the overall tankless hot water heater cost. Cheaper models cost less but may not last as long or work as well.
High-quality models, priced between $1,000 and $3,000 more, often heat water more efficiently and last up to 20 years. Spending more upfront on a reliable heater can save you money on repairs and replacement in the future. Look for features like a good warranty and materials that resist rust and corrosion.
3. Energy Type
Tankless water heaters use different types of energy, such as electricity, gas, or solar power. The energy type affects both the upfront cost and long-term expenses like energy bills. Electric heaters are the most affordable to buy, with prices starting at $450. Gas heaters cost more but tend to heat water faster.
Solar heaters are the most expensive, ranging up to $4,000, but they can save money on energy bills in the long run if you live in a sunny area. When deciding, consider your home’s energy setup and how much you want to spend on installation and operation.
4. Gallon per Minute (GPM)
GPM measures how much hot water a tankless water heater can provide at once. If your home has multiple showers, sinks, or appliances running at the same time, you’ll need a heater with a higher GPM.
Most homes need 5.5 to 7.5 GPM to meet the demand for hot water during busy times, like in the morning when everyone showers. Calculate the GPM needed for your home by adding up the flow rates of the faucets and appliances you’ll use at the same time. This ensures you pick a heater that keeps up with your needs.
5. Brand
The brand of the tankless water heater can make a big difference in performance and lifespan. Well-known brands like EcoSmart®, Rheem®, Eemax®, Rinnai®, and Stiebel Eltron often offer better quality and longer warranties.
While budget-friendly options are tempting, they might not last as long or provide consistent hot water. Choosing a trusted brand may cost more at first but could save you money on repairs and replacements over time.
Cost of Installing a Tankless Water Heater
When figuring out the cost of a tankless water heater, keep in mind the extra expenses for equipment, installation, and operation. For example, equipment costs can go up if you need special parts to connect the water heater to your pipes. Labor, permits, and changing the power source can also add to the total.
1. Labor Costs
On average, labor cost to install tankless water heater range from $600 to $1,850. Most jobs take about three hours, though the time can increase if old pipes need fixing or replacing. You’ll need to hire a plumber, water heater installer, or HVAC technician for the job.
Plumbers typically charge between $45 and $200 per hour, depending on the complexity of the work, their experience, and local demand. Labor usually makes up about half of the total cost to install a tankless water heater, with the rest covering materials and equipment.
2. Permits
In some areas, you’ll need a permit and an inspection to install a tankless water heater. Permits typically cost between $50 and $100 and can be obtained by your plumber or from your local building office.
The permit fee often covers the cost of an inspector to check the completed work, which may add to the overall cost for tankless water heater. Be sure to check your local requirements to see if a permit is needed.
3. Accessibility
Where you want to install your tankless water heater can affect the cost. If the spot is easy to access, like in a garage or utility room with plenty of space, the labor costs will be lower. However, if the location is hard to reach, such as in a cramped attic, a narrow crawl space, or behind other appliances, the labor costs can increase by 10% to 15%.
When deciding on a location, consider how accessible it is to make installation easier and less expensive. If possible, consult with a professional installer to choose the best spot for both convenience and cost.
4. Pressure Regulator Replacement
Tankless water heater costs can sometimes include additional expenses, such as ensuring proper water pressure for the system to work efficiently. If your home’s water pressure is too low, a plumber might need to replace the pressure regulator, clean pipes, or install a larger pressure tank if you have a well system.
Replacing a pressure regulator typically costs between $250 and $350. While this adds to the initial expense, it can save money by lowering energy bills and extending the life of your pipes and fixtures.
5. Power Source Conversion
Electric tankless water heaters may require upgrades to your home’s electrical system. Hiring an electrician for this work typically costs $50 to $100 per hour or $100 to $200 for emergency services. This work usually takes up to two hours, adding $200 to $400 to your total cost.
If you want to switch from one fuel source to another, like moving from gas to electric, an electrician will handle the process. The costs will be similar to the rates mentioned above.
6. Removing the Old Water Heater
Getting rid of your old water heater can cost $500 or more. The price depends on the size of the unit and how hard it is to take out. For example, removing a small electric water heater in a garage might cost less because it’s easy to access. However, removing a large gas water heater tucked in a tight attic or basement may cost more due to the extra effort required.
Some contractors include removal and disposal in their installation quote, while others charge separately. For instance, one plumber might offer a full-service package, while another may charge an extra $150 for disposal on top of the labor fee.
Think Ahead, Save More
When it comes to spending on your home, it’s tempting to go for the cheapest option or put things off until later. But let me tell you, thinking ahead can save you a world of trouble. A tankless water heater might seem like a big expense right now, but it’s an investment that pays you back in comfort, savings, and reliability over time.
Why settle for quick fixes or delay important upgrades for your home? A tankless water heater gives you comfort, saves money, and keeps your home running smoothly for years. Vegas Plumbing Pros is here to help you every step of the way. Contact us today, and let’s get started on making your home better!
FAQs
Is a tankless water heater worth the cost?
Although the cost of tankless water heater installation is higher upfront, the energy savings can make it worth it in the long run. Tankless water heaters are small, making them easier to install. It’s best to have professionals handle the installation and any maintenance needed.
How long do tankless water heaters last?
Many people ask how long a tankless water heater will last. With proper care, regular maintenance, and correct use, it can last 15 to 20 years or even longer. This makes it a great long-term investment for your home. On the other hand, a regular tank water heater usually lasts 10 years or less and may need replacing sooner.
Can I replace my 40 gallon water heater with a tankless water heater?
You can use a small tank and a small tankless water heater together. They work as one system, with the tankless water heater (1.5 gallons per minute) sending hot water to the tank, and the tank supplying your home. When you need a lot of hot water quickly, both heaters work at the same time.
How do tankless water heaters impact a home’s water pressure?
Switching from a tank to a tankless water heater might lower your water pressure. This happens because tankless water heaters limit water flow until it reaches the right temperature. To avoid water pressure issues and ensure your investment in the tankless heater cost is worth it, make sure your new water heater has enough GPM output to handle all the appliances you need.
