Best Locations to Install a Tankless Water Heater

Install a tankless water heater in a well-ventilated area, close to the point of use, preferably in a basement, garage, or utility room for optimal performance.

Tankless water heaters provide endless hot water while saving space and energy. But their performance depends heavily on proper placement. Follow this guide to find the optimal installation spot for maximum efficiency and longevity.

Optimal locations for tankless water heater setup

Indoor vs Outdoor Installation

Most tankless units work best indoors. Outdoor installations require special considerations:

Indoor Locations

  • Basements – Near main water/gas lines
  • Utility closets – Protected from elements
  • Garages – Must be climate-controlled

Outdoor Locations

  • Require freeze protection kits in cold climates
  • Need weatherproof enclosures
  • Must have proper venting clearance

Key Placement Factors

Proximity to Demand Points

Install within 30 feet of primary hot water fixtures like showers. Consider adding a point-of-use unit for distant fixtures.

Ventilation Requirements

Gas models need 12+ inches clearance around vents. Electric units require less space but still need airflow.

Access for Maintenance

Leave 24 inches front clearance for servicing. Wall-mounted units should be 18+ inches off the floor.

Special Installation Cases

Attic Installations

Require reinforced flooring and proper drainage pans. Vent pipes must extend through roof with proper flashing.

Mobile Homes

Need special earthquake straps and flexible gas/water connectors. Consult mobile home heater guidelines.

Professional Installation Tips

According to Department of Energy guidelines:

Consideration Requirement
Gas Line Size ¾” minimum for most units
Water Pressure 20-150 PSI range
Vent Material Stainless steel recommended

For complex installations, the International Association of Plumbing Officials recommends hiring licensed professionals.

Multi-Unit Solutions

Large homes may need parallel installations. Consider:

  1. Zoned systems with separate units for different floors
  2. Cascading setups with multiple heaters in series
  3. Hybrid systems with storage tanks for peak demand
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Proper placement ensures your tankless system delivers maximum efficiency and lifespan. Always consult local codes and manufacturer specifications before installation.

Joye
Joye

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.