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Tankless Water Heater Installation Cost

$1,900Typical Cost
Homeowners in the US usually spend between $1,000 and $3,000 on installing a tankless water heater.
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What others are spending on installing a tankless water heater:
Typical Cost$1,900
Typical Range$1,000–$3,000
Low End$400
High End$4,000

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Cost to Install a Tankless Water Heater

How much does it cost to install a tankless water heater?

It typically costs about $1,900 to install a new tankless water heater. While the typical cost to install a tankless water heater can range from about $1,000 to $3,000, high-end projects can cost upward of $4,000. The total cost of your project will depend on the size of and energy source for your heater, as well as labor costs in your area.

Table of Contents:
  • How much does it cost to install a tankless water heater?
  • How much do gas, electric and solar-powered tankless water heaters cost?
  • How much do whole- house and single-point systems cost?
  • What are the pros and cons of tankless water heaters?

Taking a hot shower is something most of us take for granted these days, so when your water heater stops working, it can be a rude wake-up call. If it’s time to invest in a new hot-water heater, it’s a good idea to consider a tankless unit. Water heaters come in a couple of different forms, either a tank heater or a tankless heater. Tankless models have recently become a popular option because of their lower energy usage. Rather than storing a tank of water that is kept continuously warm, tankless water heaters draw from the main water supply and heat water as needed.


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To make sure your new water heater is up to code, it’s a good idea to hire a professional plumber. It’s always wise to contact a few different companies to get multiple cost estimates. You should also make sure your contractor has the necessary permits to install a water heater.

Ready to get started? Contact a tankless water heater installation pro today

How much do gas, electric and solar-powered tankless water heaters cost?

The energy source that your tankless water heater uses will affect both the cost of the unit and labor costs for installation. Gas tankless water heaters typically cost more than electric versions, and also require a more intensive installation process. Solar tankless water heaters are the most expensive option upfront but won’t require any energy costs over their lifespan. You can also look for Energy Star-rated heaters if you’re trying to be as energy-efficient as possible.

Electric Tankless Water Heater Installation Cost

It typically costs about $1,000 to $1,500 to install an electric tankless water heater. The most affordable option, electric heaters are relatively quick and easy to install compared with gas-powered versions. That’s because they don’t require venting and don’t need to be hooked up to a main gas line. While electric models may require more energy than gas heaters to produce the same amount of heat, they won’t emit any greenhouse gases. Electric tankless water heaters are the most environmentally friendly choice out there, besides solar versions.

Gas Tankless Water Heater Installation Cost

It typically costs about $1,300 to $1,800 to install a gas tankless water heater. Gas heaters work efficiently by producing lots of heat relatively quickly. As stated above, a gas water heater will need venting for the exhaust, and if you don’t already have this installed, it will cost extra. It will also need to be connected to your city’s gas line. Alternatively, you can use propane instead of natural gas, which must be bought separately rather than pumped from a municipal line. Propane is slightly cleaner than natural gas, but it still emits carbon dioxide into the air.

Solar Tankless Water Heater Installation Cost

It typically costs about $2,000 to $6,000 to install a solar tankless water heater. While not as common, solar tankless water heaters are the most environmentally friendly option, as they simply store energy from the sun in order to heat water. Solar water heaters require extensive time for installation, so labor costs will be much higher than for gas- or electrically-powered systems. Some solar water heaters also come with either an electric or gas backup system, for when there isn’t enough sun to provide adequate heating energy. Despite the high cost to begin with, solar tankless water heaters will significantly reduce your energy bills and your environmental impact.

Want to learn more? How to Add a Solar Water Heater


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How much do whole-house and single-point systems cost?

Tankless water heater cost varies depending on whether you decide to go with a whole-house or single-point system. Single-point systems usually cost about $100 to $200, while whole-house systems range in cost from about $1,000 to $3,000. For small to medium-size houses, a whole-house system should be adequate. A small apartment will likely need only a single-point heater. If you live in a larger house or have more extensive hot-water needs, you can also have multiple single-point water heaters installed in different areas of your home. This will ensure that it won’t take too long for hot water to heat up and travel to a bathroom or kitchen sink far from the source.

What are the pros and cons of tankless water heaters?

Tankless water heaters boast a variety of benefits over tank water heaters. Still, they also have their particular drawbacks. You’ll have to weigh your priorities and budget when choosing between models of water heaters.

Pros:
  • More environmentally friendly than a tank water heater
  • Can lower your energy bills
  • Doesn’t run out of water
  • Takes up much less space
  • Lasts longer than a tank water heater, around 20 years
Cons:
  • Won’t work in a power outage (whether gas or electric)
  • Higher initial cost than a tank water heater
  • Takes longer to install
  • More difficult to repair

For more information: How to Switch to a Tankless Water Heater

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