How Much Does It Cost To Install Tankless Water Heater?

Installing a tankless water heater typically costs between $1,000 and $3,000. It is a cost-effective solution for efficient and continuous hot water supply in residential or commercial settings.

Tankless water heaters heat water as needed, eliminating the need for a storage tank, saving space, and providing energy savings in the long run. Moreover, they have a longer lifespan compared to traditional water heaters. The upfront cost may vary based on factors such as the capacity, brand, installation complexity, and location.

It is advisable to consult a professional plumber to assess your specific requirements and obtain accurate cost estimates for the installation of a tankless water heater.

How Much Does It Cost To Install Tankless Water Heater?


The Benefits Of A Tankless Water Heater Installation

If you’re considering installing a tankless water heater in your home, you may be wondering about the benefits it can offer. Well, wonder no more! Let’s dive into some of the advantages of opting for a tankless water heater installation.

Energy Efficiency Of Tankless Water Heaters

When it comes to energy efficiency, tankless water heaters take the lead. Here’s why:

  • No standby heat loss: Unlike traditional water heaters that continuously heat and store water, tankless water heaters only heat water when needed. This eliminates the energy wasted on maintaining a constant hot water supply, resulting in significant energy savings.
  • Lower energy bills: Due to their on-demand heating mechanism, tankless water heaters can save you up to 20% on your monthly energy bills. By heating water only when necessary, you’re not paying to heat water you’re not using.
  • Longer lifespan: Tankless water heaters typically last longer than conventional storage tank water heaters. With proper maintenance, they can easily outlive their tank counterparts, reducing the need for frequent replacements and further contributing to your energy savings.

Saving Money With A Tankless Water Heater

Not only are tankless water heaters energy efficient, but they can also help you save money in various ways:

  • Reduced operational costs: By utilizing advanced technology, tankless water heaters minimize energy wastage, resulting in lower operational costs over time. With the potential to save hundreds of dollars annually, they offer a cost-effective solution in the long run.
  • Tax incentives and rebates: Many states and utility companies offer tax incentives and rebates for upgrading to energy-efficient appliances, including tankless water heaters. Taking advantage of these programs can further reduce your installation costs and maximize your savings.
  • Increased home value: A tankless water heater installation adds value to your home. With energy-efficient features becoming increasingly desirable to buyers, you can potentially fetch a higher resale value if you decide to sell your property in the future.

Endless Hot Water Supply With A Tankless Water Heater

Have you ever experienced the frustration of running out of hot water mid-shower? With a tankless water heater, that’s a thing of the past. Here’s why:

  • On-demand hot water: Tankless water heaters provide hot water on demand, meaning you’ll never have to worry about running out. Whether you’re taking a quick shower or running multiple appliances simultaneously, a tankless water heater has got you covered.
  • Continuous flow rate: Unlike storage tank water heaters that have a limited hot water supply, tankless water heaters offer a consistent flow rate. This ensures a comfortable and uninterrupted hot water experience for your entire household.
  • Space-saving design: Tankless water heaters are compact and wall-mounted, freeing up valuable space in your home. With no bulky tanks to accommodate, you have more flexibility in choosing the installation location.

A tankless water heater installation brings numerous benefits to your home. From energy efficiency and cost savings to endless hot water supply, the advantages are undeniable. So why wait? Upgrade to a tankless water heater and enjoy the convenience and savings it offers.

Factors That Affect The Cost Of Installing A Tankless Water Heater

Tankless water heaters have gained popularity in recent years due to their energy efficiency and space-saving design. If you’re considering installing a tankless water heater in your home, one of the first questions that might come to mind is, “how much will it cost?

” In this section, we will explore the various factors that can affect the cost of installing a tankless water heater.

Type Of Tankless Water Heater

  • Electric tankless water heaters: Electric models tend to be more affordable upfront compared to their gas counterparts. However, they may have higher operational costs in regions where electricity rates are high.
  • Gas tankless water heaters: Gas-powered tankless water heaters usually have a higher upfront cost but can be more cost-effective in the long run, especially in areas with lower gas prices. It’s important to note that gas models require proper ventilation and may require additional installation costs.
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Size And Capacity Of The Unit

  • Flow rate: Tankless water heaters are sized based on their flow rate, measured in gallons per minute (gpm). Determining your household’s hot water demands is crucial to selecting the right unit. Factors like the number of bathrooms, kitchen appliances, and simultaneous hot water usage should be considered.
  • Unit capacity: Tankless water heaters come in different sizes and capacities. Larger units with higher gpm ratings tend to be more expensive but can accommodate larger households with greater hot water needs.

Professional Installation Costs

  • Labor: Hiring a professional plumber or hvac technician to install your tankless water heater is recommended to ensure proper installation and avoid any potential issues. The complexity of the installation, including any required modifications to existing plumbing or electrical systems, can impact the overall cost.
  • Additional materials: Depending on your specific installation requirements, additional materials such as venting pipes, gas lines, or electrical wiring may be necessary. These materials can add to the total installation cost.
  • Permits and inspections: In some areas, obtaining permits and scheduling inspections for tankless water heater installations may be required. The associated fees should be factored into the overall cost.

Remember, the cost of installing a tankless water heater will vary based on your location, the specific unit you choose, and any additional factors unique to your installation. It’s always best to consult with a professional to get an accurate estimate for your specific situation.

Installing a tankless water heater can be a worthwhile investment that offers long-term energy savings and improved efficiency. By considering these factors, you can better understand the cost implications and make an informed decision for your home’s hot water needs.

Understanding The Average Cost To Install A Tankless Water Heater

Tankless water heaters have become increasingly popular because of their energy efficiency and space-saving benefits. If you’re considering installing a tankless water heater in your home, it’s important to understand the average costs associated with the installation process. This will help you make an informed decision and budget accordingly for this upgrade.

Cost Breakdown Of Tankless Water Heater Installation

To better understand the cost of installing a tankless water heater, let’s break it down into the different components that contribute to the overall expense:

  • Initial investment: The cost of the tankless water heater unit itself can vary based on its size, features, and brand. On average, you can expect to spend anywhere between $500 to $2,000 for a high-quality unit.
  • Installation labor: Hiring a professional plumber is highly recommended for the installation of a tankless water heater. The complexity of the installation process and your location can affect the labor costs. On average, the installation labor can range from $500 to $1,500.
  • Additional materials: Apart from the water heater unit, there may be additional materials required for the installation, such as pipes, fittings, and venting. These materials should be factored into the overall cost and can amount to around $100 to $500.

Average Installation Prices For Different Brands

Different brands offer tankless water heaters with varying features and price points. Here are the average installation prices for some popular brands:

  • Brand a: The installation cost for brand a tankless water heaters typically falls between $1,500 and $2,500. These units are known for their energy efficiency and durability.
  • Brand b: When opting for brand b, you can expect to pay around $1,200 to $2,000 for installation. These water heaters are praised for their innovative technology and reliable performance.
  • Brand c: For brand c tankless water heaters, the average installation cost ranges from $1,000 to $1,800. These units are renowned for their compact design and ease of use.

It’s essential to note that these prices are rough estimates and can vary based on factors such as the size of the unit, additional features, and the complexity of the installation.

Additional Costs Associated With Tankless Water Heater Installation

In addition to the primary costs mentioned above, there are a few additional expenses that you should consider when planning for a tankless water heater installation:

  • Permits and inspections: Some localities require permits and inspections for the installation of a tankless water heater. These costs can range from $50 to $300, depending on your location.
  • Upgrading electrical or gas systems: If your home’s electrical or gas systems need modifications or upgrades to accommodate a tankless water heater, there may be additional costs involved. These costs can vary greatly depending on the extent of the upgrades required.
  • Maintenance and servicing: While tankless water heaters generally require less maintenance than traditional tank heaters, it’s important to factor in the cost of periodic maintenance and servicing. These costs can include descaling, flushing, and general inspections, with an average annual cost of around $100 to $300.
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Understanding the average cost to install a tankless water heater empowers you to make an informed decision and budget accordingly. Remember to gather multiple quotes from professional plumbers and consider the long-term energy savings and benefits that a tankless water heater can provide.

Tips For Saving Money On Tankless Water Heater Installation

Tankless water heaters are becoming increasingly popular due to their energy efficiency and space-saving design. While they may have a higher upfront cost compared to traditional water heaters, the long-term savings and convenience they offer can make them well worth the investment.

However, it’s important to consider ways to save money on the installation process. In this section, we will explore some tips for saving money on tankless water heater installation.

Choosing The Right Unit For Your Needs

  • Consider your household’s hot water demand: By determining your hot water needs, you can choose a tankless water heater that is appropriately sized for your household. This will ensure that you’re not overspending on a unit that is larger than necessary.
  • Energy efficiency ratings: Look for a tankless water heater with a high energy efficiency rating, such as energy star certification. Investing in an energy-efficient unit will help you save on your energy bills over time.
  • Longevity and warranty: While the initial cost of a tankless water heater may be higher, consider the longevity of the unit and the warranty offered. A reliable unit with a good warranty will save you money in potential repairs or replacements down the line.
  • Research brands and models: Take the time to research different brands and models of tankless water heaters. Look for customer reviews and ratings to ensure you are choosing a reliable and reputable brand.
  • Seek professional advice: Consult with a professional plumber or water heater specialist to get their expert opinion on which unit would be best for your specific needs. They can provide valuable insight and help you make an informed decision.

Comparing Quotes From Different Installation Professionals

  • Obtain multiple quotes: Reach out to different installation professionals and request quotes for the tankless water heater installation. By comparing multiple quotes, you can ensure you are getting a fair price for the installation.
  • Consider experience and expertise: When comparing quotes, take into account the experience and expertise of the installation professionals. While price is important, it’s also crucial to choose a professional who has the knowledge and skills to install the unit correctly.
  • Ask about additional services: Some installation professionals may offer additional services as part of their package, such as maintenance or warranty coverage. Inquire about any additional services provided to get the most value for your money.
  • Negotiate the price: Don’t hesitate to negotiate the price with the installation professionals. They may be willing to adjust their rates or provide discounts to secure your business.

Taking Advantage Of Available Rebates And Tax Credits

  • Research available rebates: Look into any rebates or incentives offered by your local utility company, state government, or federal programs for installing energy-efficient appliances. These rebates can significantly offset the upfront cost of a tankless water heater.
  • Check for tax credits: Investigate whether there are any tax credits available for installing a tankless water heater. The government often offers tax incentives to promote energy efficiency in homes, which can help lower the overall cost of installation.
  • Consult with a tax professional: If you’re unsure about the tax implications or eligibility for any rebates or tax credits, it’s recommended to consult with a tax professional. They can provide expert advice tailored to your specific situation.

By following these tips for saving money on tankless water heater installation, you can minimize your upfront costs and enjoy the long-term benefits of energy efficiency and convenience. Remember to choose the right unit for your needs, compare quotes from different installation professionals, and take advantage of available rebates and tax credits.

With careful consideration and research, you can make informed decisions that will ultimately save you money and enhance your home’s hot water system.

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Faq: Everything You Need To Know About Tankless Water Heater Installation

Tankless water heaters have gained popularity in recent years due to their energy efficiency and convenience. If you’re considering installing a tankless water heater in your home, you probably have a lot of questions. In this faq section, we’ll address some common concerns about the cost, installation process, and maintenance of tankless water heaters.

So, let’s dive in!

How Long Does It Take To Install A Tankless Water Heater?

Installing a tankless water heater may seem like a daunting task, but it’s actually a relatively straightforward process. Here are the key points to know about the installation time:

  • On average, it takes about 4 to 8 hours to install a tankless water heater, depending on the complexity of the installation and any necessary modifications to your plumbing or electrical systems.
  • The installation time may be longer if you’re replacing a traditional water heater with a tankless model, as additional modifications may be required.
  • Hiring a professional plumber is highly recommended, as they have the expertise and tools to ensure a proper and safe installation.
  • Factors such as the location of the installation, accessibility to electrical and plumbing connections, and the size and type of the unit can also affect the installation time.

Is Diy Installation An Option For Tankless Water Heaters?

While some homeowners may consider a diy approach to save money on installation costs, it’s important to understand the challenges and risks involved. Here’s what you need to know before deciding to install a tankless water heater yourself:

  • Tankless water heater installation requires a good understanding of plumbing and electrical systems. If you’re not experienced in these areas, it’s best to leave the job to a professional.
  • Diy installation may void the warranty of your tankless water heater, as most manufacturers require professional installation for warranty coverage.
  • Improper installation can lead to performance issues, water leaks, and even safety hazards. Hiring a licensed plumber ensures a proper installation that meets all safety and building code requirements.
  • Additionally, professional plumbers have the necessary tools, knowledge, and experience to handle any challenges that may arise during the installation process.

How To Maintain And Extend The Lifespan Of Your Tankless Water Heater

Proper maintenance is essential to ensure the longevity and efficiency of your tankless water heater. Consider the following tips to keep your system in top condition:

  • Regularly clean the inlet filter to prevent debris from clogging the unit and affecting its performance. Consult your manufacturer’s guidelines for the recommended cleaning frequency.
  • Perform an annual flush of your tankless water heater to remove mineral build-up. This helps maintain optimal heat transfer and prevents damage to the unit.
  • Check the pressure relief valve regularly to ensure it’s functioning properly. If you notice any leaks or unusual noises, contact a professional plumber for inspection and repairs.
  • Schedule regular maintenance with a licensed plumber who specializes in tankless water heaters. They can identify and address any potential issues before they escalate.
  • Keep the area around your tankless water heater clear of debris and ensure proper ventilation to prevent overheating.

By following these maintenance tips and seeking professional assistance when needed, you can maximize the lifespan of your tankless water heater and enjoy hot water on demand for years to come.

Remember, installation and maintenance are key factors in the performance and longevity of your tankless water heater. It’s always best to consult with professionals to ensure a successful installation and adhere to proper maintenance practices.


Installing a tankless water heater can be a wise investment. Although the initial cost may be higher compared to traditional water heaters, the long-term savings are undeniable. With a tankless system, you can enjoy lower energy bills and reduced water waste.

The exact cost of installation will vary depending on various factors such as the size of your home and the complexity of the installation. However, in general, the average cost ranges between $2,000 and $4,500, including installation and the necessary accessories.

It is important to note that while the upfront cost may seem daunting, the energy efficiency and durability of tankless water heaters make them a cost-effective choice in the long run. Additionally, many utility companies offer rebates or incentives for installing energy-efficient appliances, further reducing the overall cost.

With its numerous benefits and potential cost savings, investing in a tankless water heater is a smart choice for homeowners looking to upgrade their water heating system.


I am a mechanical engineer and love doing research on different home and outdoor heating options. When I am not working, I love spending time with my family and friends. I also enjoy blogging about my findings and helping others to find the best heating options for their needs.