How Much Does Tankless Water Heater Installation Cost – The Truth Reveals
Are you considering installing a tankless water heater in your home? If you’re wondering what it takes to make the transition, you may be asking yourself how much tankless water heater installation costs. As it is an investment with the potential to dramatically reduce energy costs, but it can also be expensive. From preparing pipes and adding new venting systems to finalizing connections, installation can involve many steps and costs. Don’t worry, we have all the details here!
In this blog post, we take an in-depth look at how much does tankless water heater installation cost and various factors that could affect your tankless water heater installation cost and provide strategies for staying within your budget. With our guidance, you can make sure you get the most out of this financial investment so you never have to go without hot showers again!
Let’s explore how much tankless water heater installation costs.
The cost of tankless water heater installation can vary significantly depending on the type of unit you choose, the size of your home, and local labor rates. On average, a tankless water heater installation in an average-size home starts at around $1,000 and can run as high as $5,500. The cost also depends on whether you’re replacing an existing system or installing a new one. Generally speaking, electric models are more expensive than gas models to install. In addition to the cost of the unit itself, there may be additional expenses such as venting materials, piping, and other related parts.
Furthermore, if your home doesn’t meet the manufacturer’s recommended specifications for a tankless system installation such as adequate electrical wiring or ventilation, additional costs may be incurred to accommodate these requirements. Professional installation is recommended for most brands since it will ensure that your unit is installed correctly and safely by trained technicians.
Factors Affecting Tankless Water Heater Installation Cost
The cost of tankless water heater installation can vary depending on the following factors:
1: Type of Tankless Water Heater:
Tankless water heaters come in either electric or gas models. Generally speaking, electric tankless water heaters are more expensive to install than gas ones.
2: Fuel Type:
Depending on the type of tankless water heater you choose, the cost may be affected by whether your home has access to natural gas or propane. If not, an electric tankless water heater may end up being the more cost-effective choice here as well.
3: Size and Features of the Unit:
The tankless water heater’s size and features will also play a role in its cost. Smaller units are generally less expensive than larger ones, and certain features like digital temperature displays may drive up the price as well.
4: Location of the Installation Area:
The cost of tankless water heater installation can also depend on where you plan to install the unit. If a technician needs to access hard-to-reach areas or run pipes more than five feet, it could end up being pricier than an installation in a more straightforward area.
5: Labor Costs:
The cost of tankless water heater installation is also determined by the labor costs in your area. In some states and cities, these rates may be higher than in others.
6: Tax Credits:
It’s worth noting that tankless water heaters are energy-efficient, which means you may be eligible for tax credits. Be sure to check with your local authorities to see if this applies in your area.
Tankless Water Heater Installation Cost
The nationwide average cost of installing a tankless water heater is about $2,500. On average the tankless unit typically costs between $500 and $2,000 depending on the model, with installation adding another $500 to $1,500. On the other hand, the overall cost for large or specialized equipment might be as high as $5,500.
| National Average Cost | $2,500 |
| Minimum Cost | $1,000 |
| Maximum Cost | $5,500 |
| Average Range | $1,000 to $3,500 |
Fuel Sources Of Tankless Water Heaters
The four most common fuel types for tankless water systems are natural gas, propane, electricity, and solar power. The fuel you use for your tankless water heater influence the cost of the unit.
1: Electric Tankless Water Heaters:
Electric Tankless Water Heaters are a great choice for those looking to save money and energy while still enjoying the luxury of hot water when they need it. With no stored hot water tank, electric tankless heaters use electricity to heat water on demand as it flows through the unit.
Furthermore, these appliances are extremely compact and can be mounted on walls or inside closets, making them great space-savers in tight living spaces.
2: Propane Tankless Water Heaters:
Propane Tankless Water Heaters are perfect for those looking to enjoy the benefits of hot water without relying heavily on electricity usage. As their name implies, these units utilize propane gas instead of electricity as their fuel source and provide incredibly efficient performance due to their high energy density.
Additionally, many of these units come equipped with advanced safety features such as flame sensors and shutoff valves that will detect any unexpected changes in temperature or pressure levels to ensure your family’s safety throughout regular use.
3: Natural gas Tankless Water Heaters:
Natural Gas Tankless Water Heaters offer unbeatable convenience and energy efficiency thanks to their natural gas fuel source. Natural gas tankless units also tend to last longer than other types due to their durable construction materials and advanced technologies such as condensing technology which helps reduce operational noise levels significantly during peak times of use or when multiple showers are running concurrently in your home.
4: Solar Tankless Water Heaters:
Solar Tankless Water Heaters take advantage of the sun’s natural power by using solar collectors that transfer thermal energy into usable domestic hot water for your home or business needs all year round, even during cloudy days! A solar tankless heater has no emissions from burning fuel sources so you can feel good about reducing your carbon footprint while still taking advantage of a consistent hot water supply whenever needed without worrying about additional costs associated with electricity bills or other fuel sources over time.
Tankless Water Heater Cost by Fuel Type
Here is the cost of tankless units by their fuel type and this cost don’t include installation.
| Fuel | Cost |
| Electric | $450–$1,500 |
| Propane | $500–$2,000 |
| Natural gas | $800–$2,000 |
| Solar | $1,500–$4,000 |
Common Sizes of Tankless Water Heaters
Next here comes the common sizes of tankless water heaters that you choose according to your needs and preferences.
1: Point of Use Tankless Units:
Point-of-use tankless water heaters are specifically designed for low-flow applications such as single showerheads, sinks, and bathroom fixtures. These tankless systems typically range in size from 2.5 to 3.5 GPM and are less expensive thanks to their compact size.
2: Whole House Tankless Units:
Whole house tankless water heaters are the most efficient tankless models available and they typically range in size from 4 GPM to 8.4 GPM. These units are best suited for high-flow applications such as multiple showers, tubs, and dishwashers running simultaneously.
Tankless Water Heater Costs by Size
| Size | Cost |
| Point of Use | $200-$500 |
| Whole House | $500 – $2,000 |
| 1 to 4 GPM | $200-$700 |
| 4 to 8 GPM | $400-$1500 |
| 8+ GPM | $1200-$2200 |
Brands of Tankless Water Heaters
EcoSmart, Stiebel Eltron, Rheem, and Rinnai are four well-known brands of tankless water heaters. Here’s a detail of each of them.
1: EcoSmart:
EcoSmart is a leading brand in tankless water heaters that include electric and gas-powered options, as well as hybrid models that combine the two fuel sources. The products of EcoSmart are also certified by Energy Star and other environmental organizations, reducing overall energy consumption while delivering superior performance.
2: Stiebel Eltron:
Stiebel Eltron is another renowned brand of tankless water heaters, known for their premium products designed to last for decades. With advanced technological features such as temperature control systems, digital displays, and error diagnostics, Stiebel Eltron is trusted by professionals for its near-perfect performance record. Many of their tankless water heaters also feature a built-in recirculation system that can help save money on your monthly utility bills.
3: Rheem:
Rheem has been at the forefront of tankless water heater technology since 1925 when they introduced their first residential model. Today they offer an extensive line of electric and gas-fired models suitable for both indoor and outdoor installations with advanced features such as modulating burners to adjust power output automatically based on demand. And all of Rheem’s tankless models come with long warranties to ensure lasting quality and peace of mind for homeowners.
4: Rinnai:
Lastly, Rinnai has earned a reputation as one of the top manufacturers in the industry due to its innovative approach to product design and customer service. Their highly efficient condensing technology maximizes energy efficiency while minimizing emissions from combustion gases. Additionally, Rinnai offers one of the largest selections available today with over 20 models ranging from compact sizes to whole house solutions, giving consumers plenty of options for finding just the right fit for their needs.
Tankless Water Heater Cost by Brand
| Brand | Cost |
| EcoSmart | $150 – $1,000 |
| Stiebel Eltron | $450 – $1,500 |
| Rheem | $300 – $2,000 |
| Rinnai | $500 – $2,500 |
Professional Installation of Tankless Water Heaters
Installing tankless water heaters can be complicated, so it’s recommended to hire a professional. The cost of tankless water heater installation can range from $500 – $1,500 depending on the size and type of tankless system you choose, as well as any additional materials or services needed for the job.
Whether you decide to go tankless or stick with a tank-style unit, it’s important to factor in the total cost of ownership when making your decision. While tankless systems may require an upfront investment in terms of installation costs, they offer long-term savings through reduced energy bills over time, plus the peace of mind of knowing that your hot water supply will never run out!
Tankless Water Heater Installation Labor Cost
| Heater | Labor Cost |
| Electric | $350 – $1500 |
| Gas | $500 – $1000 |
| Propane | $800 – $1200 |
| Solar | $2,000 – $3,500 |
Tankless Water Heater Conversion Cost
Converting an existing tank-style water heater to a tankless one can range from $500 – $3,500 depending on the size of the tank and the complexity of the job. This includes disconnecting your old tank, installing a new tankless unit, running necessary gas lines or other connections for your specific model, as well as any additional materials needed for the job.
Finally, it’s important to factor in regular maintenance costs when budgeting for tankless water heater installation. While tankless systems are generally very reliable, they require annual checkups to ensure optimal performance. So make sure you factor this cost into your calculations before making any decisions!
Cost To Convert Tankless Water Heater
| Factor | Cost |
| Old tank water heater removal | $150 – $400 |
| New tankless installation and hookup | $500 – $2,500 |
| New Electric Outlet | $300 – $500 |
| Permit Fees | $30 – $250 |
| Update Plumbing Connections | $100 – $400 |
| Upgrade Gas Lines | $300 – $750 |
| Attic Or Closet Installation | $75 – $300 |
Tankless Water Heater Installation Steps
A tankless water heater installation is far too complex to take on yourself, but it’s worth brushing up so you can have a meaningful conversation with any professionals you hire! Understanding the essential components makes sure nothing gets lost in translation.
- Your installer will take the necessary steps to ensure your home is completely prepared for the new installation by shutting off any incoming water.
- If you are saying goodbye to your old water heater, then they’ll make sure it’s properly disconnected from power and water lines before taking it away for disposal.
- With a well-trained eye, the plumber will spot the ideal position for your new tankless system, then securely hang it up on the wall.
- If you’re considering a gas heater for your home, keep in mind that it will require the installation of ventilation ducts. To handle all the high heat, these systems typically use large stainless steel flues, but electric units don’t demand anything extra!
- Then the new water heater will be linked up to the water lines, ensuring that you can enjoy all its benefits seamlessly.
- For electric tankless water heater installations, a skilled technician will link up the necessary wires and bring hot showers to your home.
- For a gas tankless water heater, your installer will happily connect your gas supply line, increasing the usual half-inch diameter pipe to a more robust three-fourths-inch size. They’ll finish off by lighting up the pilot light!
- Finally, you are ready to dip your toe in the hot water, just give it a moment for the warmth to reach you.
By following these steps and keeping an eye out for potential costs, you should be able to get a good estimate of what tankless water heater installation costs may look like for your specific project. Keep in mind that tankless systems offer long-term savings not only in terms of energy costs but also peace of mind knowing you will always have hot water!
Frequently Asked Questions
Tankless water heaters cost more upfront than tank-style systems, but they typically save you money over time thanks to their energy efficiency. On average, tankless units are about 24%–34% more efficient than tank models.
Yes! Tankless water heaters provide consistent hot water on demand as well as long-term savings in terms of energy costs and longevity. Plus, since they don’t require a tank, tankless units are more space-efficient.
It is recommended to have your tankless water heater serviced annually to ensure optimal performance and to reduce the risk of unexpected repairs. A professional can perform maintenance checks on all components of your system and make sure it is functioning correctly.
Tankless water heaters have the potential to be installed either inside or outside, depending on your preference. However, outdoor installations require additional safeguards to protect against freezing temperatures and other inclement weather conditions.
Yes, tankless water heaters can be used to replace tank-style systems. However, you’ll need to make sure your home is properly set up for the tankless installation and that any necessary permits are obtained. It’s best to talk with a professional about the best option for your needs.
Conclusion
We hope you found this article useful in answering the question: how much does tankless water heater installation cost? The cost of tankless water heater installation depends on a variety of factors, including the size and type of tankless water heater you choose, any additional supplies or labor required, and local contractor rates. The cost also varies depending on whether you install the tankless system yourself or hire a professional. With proper planning and consideration for potential costs, tankless water heater installation is a worthwhile investment that can provide long-term savings in energy costs as well as peace of mind knowing that you always have hot water!
Ella John is passionate about helping her readers make the best choice when purchasing a heater. She understands that selecting a heater can be difficult and strives to provide information to help make the decision easier. Ella’s website, Heatersinfo.com, provides valuable insight into heating trends and types of heaters and tips on how to care for them. She also advises selecting the right heater based on individual needs and preferences. Her expertise in electronics makes her an excellent source of knowledge, and she is confident that anyone who visits her website will find the perfect heater information for their needs. Ella’s dedication to helping others make educated decisions about buying the right heater is unparalleled, and she hopes to continue offering her expertise for many years. With Ella’s help, finding the perfect heater can be a breeze!
