Cost Of Installing Tankless Water Heater

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Permits And Inspection Cost

How Much do Tankless Water Heaters Cost?
  • $150 $500 | A permit is required for the installation of a tankless water heater. Cost varies based on what installation features, such as the unit only or the water heater plus a gas line or electric circuit. Your licensed plumber will most likely pull the permit for you and include it in your overall bill for the installation process. Two inspections might be included if a new gas line is run one to inspect the gas line and general setup, and the second to inspect and test the completed installation.

Tankless Water Heater Installation Costs

Tankless water heaters provide hot water on demand, eliminating bulky and inconvenient storage tanks and saving energy at the same time.

Unlike conventional water heaters, which can keep 40 to 50 liters of hot water ready at all times, tankless water heaters save energy by producing hot water only when needed. Tankless water heaters can actually be 24 to 34 percent more efficient than a traditional water heater, depending on a homes daily hot water demand, according to the US Office of Energy Efficiency and Renewable Energy website.

Annual Operating Cost Of Tankless Hot Water Heater

The next thing to figure out is how much it costs to run your tankless hot water heater each month or year. In other words, how much are you going to have to pay in utilities each month or year?

The easiest way to figure this out is to look for the bright yellow Energy Star label, which will tell you how much you can expect to pay each year to operate your unit. Many manufacturers also list it in the product information. But these estimates are averages and there are a number of factors that influence your operating cost.

  • Energy factor This measures the efficiency of your tankless water heater. According to Energy Star, tankless water heaters have Energy Factors that range from 0.96 to 0.99. The higher the number, the more efficient the unit and the less money youll pay to operate it.
  • Energy consumption / usage If you combine the energy factor with the frequency that your tankless water heater is used, youll get the total energy consumption. For electric heaters, this is measured in kilowatt hours per year . For gas units this is measured in therms or British Thermal Units per year.Cost of energy Once you know the expected energy consumption per year you can multiply that by the cost of energy and get the expected operating cost each year. Electricity costs are measured in cents per kilowatt hour . Natural gas costs are measured in therms, British thermal units , and cubic feet . If you need to convert them, you can use this calculator on the EIAs website.

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Labor Costs To Install A Tankless Water Heater

Tankless water heaters are installed by a plumber, with costs between $75 and $130 an hour, depending on the location. Installation takes between 6 to 10 hours, depending on the heater type, location, and fuel source. Installation involves opening walls to install the heater in most cases. This means you may have additional finishing costs after the installation to repair and paint the affected areas for around $200. Also, add an access door nearby for repairs. This may need to be installed by a carpenter for $70 per hour or a handyman at a rate of $100 to $300 for the project.

You may have additional installation costs in a cold climate. Many cold climates heaters need a nearby vent. They also require proper insulation for the pipes running to the heater. This can add up to $400 to the project.

Each fuel type may impact installation costs because fuel lines may need to be run to the heater, depending on the location, which can increase the installation time and costs:

$3,000 – $8,000

Electric Vs Gas Tankless Water Heater

Tankless Water Heater Cost â Is the Expense Worth It?

Like standard hot water heaters, tankless heaters can be powered by electricity or natural gas. In general, gas-fueled heaters cost less money to run monthly. However, they cost more money to install because you need to run a gas line to the heater.

Electric heaters, by definition, are more efficient, converting close to 100% of the energy they use into heat for the water. However, in most areas, the cost of electricity is higher than gas. In addition, while the heater itself can be efficient, this does not mean it is environmentally friendly because electricity providers can have multiple sources for producing their electricity. Some of these are worse for the environment than natural gas.

Natural gas is not available in all areas, however. If you live in a rural area, natural gas may not be available. This may make electricity a better choice than using propane or other heating fuels that may be in your area.

Electric heaters generally need less maintenance than gas heaters. Of the two, electric heaters are less expensive to purchase and install, so they can be a good option for those who have low electricity costs and want a less-expensive option upfront. Gas heaters, however, tend to cost the least long term unless you have a cheaper source of electricity.

The costs for both heaters of similar size ranges installed are below.


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Hybrid Heat Pump Water Heater

Hybrid heat pump water heater installation costs $1,500 to $4,400 for labor and materials or $1,200 to $2,800 for the unit alone. Hybrid systems pull heat from the surrounding air and pump it into the storage tank, making them up to three times more efficient than electric tank water heaters.

  • Works best in warm climates when installed in a hot garage or attic.
  • Taller than standard electric tanks and require 12′ x 12′ of open air space to operate efficiently.
  • Eligible for a federal tax credit of $300 and possibly additional rebates.

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Water Heater Replacement Cost By Location

The cost to change a water heater is higher in major cities with a higher cost of living. The following prices are for a standard tank unit plus labor.

Water heater replacement cost by location

City, State
9 11+
  • Tank: Consider the water heater’s first hour rating and recovery rate.
  • First hour rating is the number of gallons of hot water supplied per hour when fully heated.
  • Recovery rate is the number of gallons of hot water the system can provide within one hour of being completely drained.
  • Electric water heaters have a slower recovery rate and need a larger tank size than gas.
  • Tankless: To determine the gallons per minute needed, calculate the peak water demand by adding the flow rates of all fixtures and appliances that will use hot water simultaneously. View flow rates
  • Tankless Water Heater Costs By Size

    Install a Tankless Water Heater

    Tankless water heaters come in a variety of sizes to deliver a sufficient volume of water with the necessary temperature rise. The water volume rating is shown in gallons per minute . The heating capacity is shown in either British Thermal Units for combustion-based models, or kilowatts . Do not attempt to save money by undersizing your tankless water heater.

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    Hiring A Plumber To Install A Water Heater

    Hire a licensed plumber to install or replace a water heater. Before signing a contract, be sure to:

    • Get at least three estimates from licensed plumbers to compare.
    • Look for plumbers with experience installing tank or tankless water heaters.
    • Check out their reviews and previous work on HomeGuide, Google, and the Better Business Bureau .
    • Select companies that are licensed, insured, and bonded.
    • Make sure the quote includes removal of the old water heater.
    • Get an itemized estimate, contract, and warranty in writing before the work begins.
    • Never pay in full before the project starts. Follow a payment plan instead.

    Finding The Right Plumber To Install Your Water Heater

    As you consider your options for tankless hot water heaters, theres one final decision youll need to make: Who will you hire to install your tankless heater? Make sure you do your due diligence and find a reputable local plumber who will provide you with quality workmanship at a fair, honest price.

    If you dont already have a good local plumber in your contacts list, here are a few tips and suggestions for finding one.

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    Tankless Water Heater Calculator

    The cost of installing a tankless water heater can vary greatly depending on the heater model, along with its features and capacities. Solar-powered and propane tankless heaters, for example, are more costly on average than simple electric heaters. Your current location can also have a big bearing on the price because labor and material costs can be higher or lower in certain states. Enter your zip code into the tankless hot water heater calculator to get estimated average prices for your tankless heater installation, along with high and low estimates.

    Understanding Your Rinnai Tankless Hot Water Heater Options & Model Codes

    Cost Of Tankless Water Heater Vs Traditional

    When youre looking at buying a Rinnai tankless water heater and trying to figure out how much its going to cost, there are several ways they are categorized, these include:

    • Series Currently there are multiple models of tankless heater available from 7 different series, these include the V, RL, RLX, RUCS, RUR, RUS, and RU series
    • Efficiency level Rinnai make high efficiency models and super high efficiency models
    • Condensing vs Non-Condensing Both are an option with Rinnai, however condensing water heaters are only available through the RUCS, RUR, RU and RUS tankless series. Non-condensing heaters are available in the V, RL and RLX series and as a consequence, are in the lower price range category
    • Indoor vs Outdoor Indoor and outdoor tankless heaters are available through Rinnai, the V, RL, RU and RUR series have a range of both indoor and outdoor options available. Whereas, the RUCS and RLX series are only available in indoor units and the RUS series are only available in outdoor units .

    The features mentioned above are easily identified from the Rinnai model number. Using the example of the V65iN and the RL75eN you can better understand what the Rinnai model numbers mean.


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    Estimating Hot Water Heater Costs

    Your hot water heater replacement cost depends on whether you choose a tank or tankless unit as well as the labor costs, but it also depends on where you live. Larger cities and affluent suburbs have higher costs of living than less populated areas, and the costs for materials and installation will reflect this. There are ways to research the prices in your area, and it is quite easy to get answers that are in the ballpark.

    If you live in California and need to know the cost of a water heater, you can visit a local plumber website, like Burgesons this company is based in Southern California. It says the price ranges from $1,000 to $7,500 since the costs fluctuate greatly depending on the variables. Shops like this can provide you with tankless water heater installation quotes. You can also go to websites like Angi and enter your ZIP code to get three free quotes.

    If you are not ready to speak with contractors yet, you can visit HomeAdvisors tankless water heater cost calculator and enter your ZIP code. The next screen will show the average price paid in your area, the typical range and the low-end/high-end prices. It also has calculators for installing water heaters and repairing both kinds of hot water heaters.


    Power Vent Vs Direct Vent On

    All natural gas and propane tankless water heaters need to vent harmful exhaust through a direct vent or power vent system:

    • Direct ventâ draws air from outdoors through a duct and vents exhaust through a separate duct or a separate chamber within the same duct. Direct vent systems may be installed in small, enclosed spaces.
    • Power ventâ draws indoor air from around the water heater and uses an electric blower to vent exhaust through a vertical or horizontal duct.

    Unlike storage tank water heaters, tankless models may vent through an exterior side wall or the roof.

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    Electric Tankless Water Heater Installation Requirements

    Before you can determine what the costs to install an electric tankless water heater, you have to determine how big it is going to be. How many gallons per minute you need should be calculated so you know the size and thus the electric requirements that your house needs to have.

    First, go to my article about how to size a tankless water heater so you can figure out how big of a unit you need.

    Then, go check out my list of the best electric tankless water heaters.

    Once you know the size you need and have a type of electric on demand water heater in mind, you can get an idea of if it can even work for your houses electric set up, or if you need to upgrade.

    Here is a handy chart with a few models and brands so you can get an idea of what you need before you can think about installing.

    Oklahoma City Water Heater Specialists Family

    Tankless Water Heater Install | Existing Home

    In an industry where a lack of pride, ethics, and respect for the client has become the norm, we aim to change the shady/grumpy plumber stereotype one water heater job at a time! We love serving local people like you! It is thanks to you that we get to make our families proud every day.

    Water heaters aren’t just something we install or repair in Oklahoma City and the metro area, they are our passion, and our way of life.

    John Crossett, Founder & PrincipalRapid Water Heaters – Oklahoma City, OK

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    Cost To Install Or Replace Tankless Water Heaters

    Many homeowners love tankless water heaters because they are energy efficient, instantly supply hot water, and wont ever lead to 40 gallons of water flooding your home! Their one drawback is the upfront investment it takes to install them. The master plumbers at Reliant Plumbing have put together this page to help you understand the costs involved for your project.

    Note: All pricing on this page is based on average prices we see around Austin, Texas. Your costs could vary depending on the price of plumbing labor and supplies in your local area.

    Tankless Water Heaters Pros And Cons

    What are the pros and cons of installing a tankless water heater in your home?


    The benefits of tankless water heaters are:

  • They are more energy efficient compared to traditional water heaters. Thats because they dont store any hot water which eliminates standby losses. The heating happens instantaneously saving up to 30% more energy.
  • Heating water on demand also means that you can never run out of hot water. The supply is endless.
  • Tankless water heaters are compact and therefore easy to install in tight corners. Youll also save space in your basement or wherever you want to put your new water heater.
  • They are easy to prepare for winter season.
  • Like we said, a tankless system lasts for up to 20 years, a traditional water heater with tank no more than 15.
  • Disadvantages

    Disadvantages of tankless water heaters include:

  • Both purchase and installation are more costly upfront. As a consequence, the payback takes a while.
  • Tankless water heaters are sensitive to slow flow.
  • Electric tankless units are limited by how much hot water they can provide at any given time. Even the largest models for home use can barely heat more than 6 gallons per minute under ideal circumstances.
  • Also Check: Power Vent Water Heater 50 Gallon

    Comparison Of Rinnai Tankless Hot Water Heater Costs

    When youre looking at the cost of a tankless water heater, one of the common factors likely to affect the cost of the heater you buy is going to be the brand. Rinnai, Navien, Takagi and Rheem are highly popular choices in the tankless hot water heater market, and are among the biggest named brands out there. While their products can be costly, their reliability is also good.

    Electric Tankless Water Heater Installation Cost

    2021 Tankless Water Heater Cost

    Electric tankless water heater installation costs $600 to $2,500 total on average. Electric systems don’t require venting and are easier to repair and less expensive to install than gas units. However, they have higher annual operating costs of $300 to $540 and aren’t eligible for federal tax credits.

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    The Pros And Cons Of Tankless Water Heaters

    Thinking of upgrading to a tankless water heater? Before doing so, learn the pros and cons of installing one – cost, requirements, and maintenance.

    If its time to replace your water heater, you may be thinking of installing a tankless model in your home. To help you make the right decision about which kind to install, well explain how tankless water heaters work and point out some of their advantages and disadvantages.

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