Tankless Water Heater Installation Costs

Are you looking forward to replacing your traditional water heater? What’s the cost of installing a tankless water heater? Well, that’s exactly what we’ll be finding out here. Conventional water heaters are giving way to the tankless models. These tanked units may soon get out of the market given the huge benefits that come with the modern heaters.

Tankless water heaters are efficient and save energy

Tankless water heaters beat their immediate rivals by eliminating the standby losses. This is the amount of energy that a traditional water heater uses to keep the water hot. You see, after heating the water, the tank water heater needs to maintain it at a certain temperature. This happens whether there’s any hot water consumption or not. The thing with the tankless water heaters is that they don’t have tanks. This means that they don’t store water in them. As such, no power goes into maintaining optimum temperatures. They heat water only when you need it. Due to this, they are also referred to as on-demand or instantaneous water heaters. On average, tankless water heaters will help you save up to 22% in operating costs per year.

What is the cost of installing a tankless water heater?

The cost of installing a tankless water heater depends on several factors. The type comes first. A tankless water heater is an umbrella term that refers to units that don’t use tanks. As such, let’s split them into their different models. The major difference boils down to the mode of power. The electric, natural gas, and propane gas-powered water heaters are the most common. Electric tankless water heaters are cheaper than their gas-powered counterparts.

Second, the cost of installing a tankless water heater varies with the size of the unit. Needless to say, the best water heater for a building is the one that meets all the hot water needs. Unlike traditional water heaters, tankless units don’t feature gallon capacity size. Consumers use the units’ flow rate to determine the water heater that fits their needs. The flow rate is equal to the number of gallons per minute (GPM). The ideal model for your house should supply enough GPM for all the hot water appliances. As such, you’ll have to consider the items that use hot water in your house. This may include bathrooms, the dishwasher, laundry machines, and kitchen faucets.

A dishwasher requires 1 to 2.5gpm while a bathroom faucet may consume up to 1.5gpm. Most kitchen faucets require between 3 and 5gpm. To determine the best water heater for you, you add the GPM of the appliances that run together. One tankless water heater isn’t enough for a busy home. Several bathrooms, laundry machines, and dishwashers running together need more than one unit. An alternative would be to run each of the appliances at a time.

Labor costs

Is it safe to install a tankless water heater DIY style?

Water heater installation is a pretty sensitive project. For instance, you’ll be dealing with propane gas lines and 220V/240V power outlets. For most of these water heaters, the warranty works if a licensed expert installed them. Some states allow only licensed and insured professionals to carry out these tasks.

But, DIY is still possible with some point-of-use water heaters. This involves uninstalling and installing power lines and water and vent pipes. You may have to drill holes through the walls in some instances too. In case you’re not experienced in these projects, DIY style may take half of your day.

Hiring a professional

If you decide to do it the safe way, here is all you need to know. The first cost that you’ll incur is getting a permit. Different counties, cities, and States require that you get a permit for the project. This depends on the scope and size of the whole process. It may cost you around $45-$200 to install a new tankless water heater. Regarding labor costs, water heater installation firms offer 2 options. You may decide to hire a plumber on an hourly basis or at a flat rate. In most instances, the 2 options lead to similar charges. Most firms charge between 45-65 dollars per hour if you go for the first choice.

The number of hours spent varies too. If you’re replacing a conventional tank water heater, a few hours may go into uninstalling it. Uninstalling the old system may cost you around $500. Certain tankless water heaters may be compatible with the older systems and location. Some systems may need some retouch. For a new home, you’ll have to relay all the gas supplies and power lines from scratch. Either way, you’ll need to pay for materials including pipes and wires. Labor alone may take 2-3 hours. This translates to between 90 and 195 dollars.

Tankless water heaters may fit either inside or outside the house. It should be as close to the points of use as possible. In instances where walls have to be opened, you may need to buy drywall. This requires a carpenter. Most of them ask for between $60 and $70. The drywall alone and its finishing may cost you up to 200 bucks. You’ll incur costs for purchasing all the materials required too. These include pipes and heat and water pumps. These may add up to around 300 dollars.


True. This seems like an expensive venture. Installing an electric tankless water heater may cost you between $800 and $1000. Gas-powered tankless heaters may require anywhere around $1470-$2500. But, these expenses are easy to recover in the long run. These units have low operating costs and need minimal maintenance. The US Department of Energy confirms this. The American Council for an Energy-Efficient Economy supports tankless water heaters too.

Best Tankless Water Heaters

Are you shopping for the best electric or gas-powered water tankless water heaters? Our previous write-up on this niche has some of the best units for you.  This one too has for more information on tankless water heaters.

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