What Is A Tankless Water Heater
A tankless water heater provides hot water on demand, heating water only when needed rather than continuously using fuel to heat water in a storage tank. When a hot water tap is turned on, cold water travels through the heat exchanger in the tankless unit and is warmed instantly.
- Whole-house tankless systems deliver hot water to all the fixtures and appliances throughout the home.
- Point-of-use tankless models are smaller units designed to provide hot water to a single fixture or appliance.
The Life Expectancy Of A Tankless Water Heater
A tankless water heater has a life expectancy of around 20 years compared to 10-15 years of conventional water heaters. With proper care and maintenance, you can elongate its life. Therefore, a tankless water heater has a longer life expectancy and a lower corrosion rate than a conventional water heater.
How Much Does A Tanklesswater Heater Cost
The real cost of a tankless water heater
Your up-front costs to purchase and install a tankless water heater will range from about $2,500 to $3,800, depending on the size of your home and the model you choose. We are committed to giving you the most competitive price as well as helping you select the most appropriate equipment for your familys lifestyle.
Our customers dont consider those costs alone the total cost of ownership is what really matters. With its energy efficiency and durability, you can expect your tankless water heater to pay for itself within two to three years. In fact, it should pay for itself at least ten times during its long life, depending on your usage habits.
Youll save the most energy and money when you have the Hot Water Guys professionally install the right tankless water heater for your home. We carry gas and electric models that are especially suited for the climate in Texas. Check out your options. »
Read Also: Why Is My Home Ac Not Blowing Cold Air
Whole House Vs Single Point
Whole house vs. single point of use makes a huge difference, obviously. A whole house tankless water heater needs to be a lot bigger than a unit providing hot water for a single faucet or shower only.
For comparison, POE electric tankless water heaters have between roughly 10 and 35 kW, whereas a POU unit may have no more than 3 kW.
Different Types Of Ignition System
One of the choices youll need to make with regard to your gas-fueled tankless water heater is what kind of ignition system to get. There are three basic options: Standing pilot light, direct ignition, and hydro-power ignition. Heres a quick summary of each ignition system type:
- Standing pilot light. This type of tankless water heater has a pilot light thats always burning, which means your energy savings will be somewhat diminished. However, the initial cost of a standing pilot light unit tends to be quite low.
- Direct ignition. This type of tankless water heater sends a spark to the main burner any time water flow is detected. This type of ignition system is quite popular, but be advised that it will require either batteries or an electrical hook-up in order for the sensor to work properly.
- Hydro-power ignition. This type of ignition system uses a turbine system. When water flows into the turbine, it activates the burner. These units do not require batteries or electrical hookups.
Also Check: Cost To Install Water Heater
Cost To Run An Electric Tankless Water Heater
While electric tankless water heaters are considerably less expensive than gas or propane models, they cost much more to run. Costs vary based on the heater size, how much water you heat each day, and the cost of electricity in your area.
On average, total costs start at around $19 a month for a small point-of-use heater and can reach $63 a month for a unit that serves a family of four. Over the course of a year, this translates to $228 for a small unit and $756 a year for a larger unit.
Many things impact the cost of running your heater, such as the number of kilowatts it uses and the cost of electricity per kilowatt in your area.
Who To Call If Youre In The Market For A Tankless Water Heater + Installation
You can buy a tankless water heater on your own, or an installer might buy it for you. In any case, its almost impossible to DIY tankless water heater installation, which means that you will eventually need an installer.
We can suggest some HVAC installers in your area if you need help. They will also give you more realistic quotes for your specific situation and do all the hands-on work. You can use this form to get up to 4 free quotes from HVAC guys in your area.
We hope all of this gave you some insight into how much tankless water heaters cost and how much youre expected to pay for having them installed.
Recommended Reading: Water Not Getting Hot Gas Water Heater
Cost Of Installing A Tankless Water Heater In California
No one wants to overpay on the cost of a water heater, and researching the tankless water heater costs in your area can help you determine the options. Many homeowners are opting for electric tankless water heaters because they are energy efficient and low maintenance, and they can save space and lower utility bills. It makes sense to compare the costs of these to conventional hot water heaters before making your final decision, though.
Cost To Replace An Electric Tankless Water Heater
There can also be a wide range of costs associated with replacing a tankless water heater. Like installation, the heater may be in a difficult-to-access area or need modifications to make the replacement. Average labor costs for replacement are between $135 and $1,200, depending on how difficult the old unit is to remove and the new one is to install. Open-area installations are less costly than those in tight areas. Likewise, your costs are lower if this is a direct swap and not an upgrade in size or a change to a different heater. This can make the total average cost range to replace an electric water heater $235 to $2,700, depending on the model, style, and placement.
Read Also: How Much For An Ac Unit
Electric Tankless Water Heater Installation 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.
Why Install Tankless Water Heaters
You might actually make back the money invested in your heater within a few months. Do you know that 15% to 25% of your energy bills is likely the fault of your tank heater? If your tank is old and less energy efficient, it may be eating up more and more of your money.
If this recurring cost is cut out for a more energy-efficient tankless model, youll continuously save money. Because of this, the high tankless water heater installation costs can be seen as an investment.
Some tankless models may even allow you to get a certain amount of money in tax rebates. When you add these advantages, youll most likely be able to recover your money in a few years at most, even without the rebate!
Still not convinced? Think of it this way. Why continue spending so much money on an old tank when you can cut costs, gain a more efficient heater and make a profit? An excellent tankless heater will be able to last 15 years if well-maintained.
Within those 15 years, youll still be making a gain on your reduced energy bill. Of course, if you want your machine to last that long, youll need a capable contractor to install your tankless water heater.
Direct Vent Vs Power Vent
Gas water heaters produce exhaust that must be discharged either directly overhead through a vent flue, or by a power vent blower. Direct vent water heaters discharge exhaust through a flue pipe above the unit. If you replace an electric water heater with a direct vent gas model, expect to pay an additional $500 to $1,000 to install the vent pipe.
Power vent water heaters use a fan to force exhaust out through vent pipes. They can discharge exhaust horizontally or vertically, utilizing inexpensive PVC pipe instead of more expensive metal flue pipe. This system offers more flexibility in locating the unit compared with a direct vent model, and it is more energy-efficient. Power venting units cost $300 to $600 more than direct vent units, and the wiring and electrical work adds another $300 to $500 to the installation cost.
Who Can Install Your Water Heater
Apart from finding out the cost of installing your tankless water heaters, you also need to find an excellent contractor to award it. For this job, you need a contractor with a proven record of excellence.
Also, you need a contractor with the skill, information and experience to install tankless water heaters because a single mistake can completely spoil the machine or reduce its efficiency.
Here are a few steps you can take when looking for a contractor.
Recommended Reading: Circuit Board For Ac Unit
Tank Size Or Tankless Water Heating Capacity
The size of the water heater also plays into the cost. Tank-style heaters range in size from 20 to more than 80 gallons of storage, with most homes using either a 40 or 50-gallon size. Tankless water heater size is measured in a flow rating of between two- and six gallons-per-minute . A higher flow rate of four- to six-gpm is recommended for most homes.
Be sure to choose a new unit that will supply enough hot water for the number of individuals in the house. The average prices shown below reflect the unit price only, not including labor or additional costs.
|Number Of People|
|50-plus gallon tank, $400 to $3,000||6+ gpm tankless, $500 to $900|
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.
Also Check: Best Heated Socks For Skiing
Environmental Impact Of Tankless Water Heaters
In addition to the financial benefits of installing an on-demand water heater, there are positive environmental impacts of upgrading your propertys hot water system to consider.
Tankless water heaters are more efficient than traditional tanked systems, meaning that youll use less fuel to heat your water. This translates to less power generated at power plants from fossil fuels like coal, natural gas, and oil, which helps lower the amount of greenhouse gas emissions and other pollutants entering the atmosphere.
You can decrease your carbon footprint even further by switching all of your energy use, including your tankless hot water system, from fossil fuel-generated to solar electricity. Installing solar panels on your roof makes it possible to power your electric water heater with free, zero-emissions electricity.
And as solar costs fall across the country, the average homeowner in the U.S. breaks even on their solar investment by year eight. Pairing your home water heating system with locally generated solar electricity is a cost-effective way to heat your home water supply while reducing your reliance on fossil fuels.
Enter your zip code to see solar quotes near you
Electric Vs Gas Tankless Water Heater Unit Cost
Point of use electric water heaters start below $200 for just the heater. The average cost for a whole house model is about $600 while the most expensive top $900.
Gas tankless water heaters start at about $200 for newer point of use units with lower GPM, but typically cost closer to $800 to $1,200. The largest, most efficient gas water heaters $2,500 to $3,000 depending on the model and where you buy it.
- Electric tankless water heater cost: $160 $950
- Gas tankless water heater cost: $200 $2,900
You May Like: Home Ac Blower Motor Replacement Cost
Whats The Difference Between An Electric Tankless Water Heater And A Gas Water Heater
As you start looking around for a tankless water heater, one of the biggest decisions youll face is whether you should get an electric tankless water heater, or one that runs on natural gas.
Theres not necessarily a right answer here, though if your house does not have natural gas access, then your hands might be tied. Otherwise, its important to consider the pros and cons of both fuel options. Keep in mind that the fuel type may have an impact on your tankless water heater installation cost.
How Much Do Tankless Water Heaters Cost In Toronto
Most tankless water heaters in Toronto cost between $1000 to $3000. While we can accurately estimate the machine, the cost of installing tankless water heaters is based on the contractor you select.
Other factors that may change the full price of tankless water heaters are the type of water heater you buy, where youd like to install it, and the average water demand in your household.
When discussing how much do tankless water heaters cost, there are other factors involved. We discuss these in the next section.
Timeline Of Government Actions Against The Industry
Since the early 2000s, the Bureau has taken significant enforcement action to address concerns relating to alleged anti-competitive conduct in this market, including filing applications and Registered Consent Agreements with the Competition Tribunal.
- In 2002, the Competition Tribunal prohibited Enbridge Services from engaging in practices that intentionally suppressed competition and restricted consumer choice in a 10-year consent order. The investigation found that Direct Energy re-engaged in similar conduct after the consent order expired in February 2012.
- Bureau determines that the companies had policies that intended to frustrate consumers, including:
- a requirement to call to obtain authorization to return a rented tank
- aggressive retention tactics during these calls
- restrictions on when and where units can be returned and
- unwarranted fees and charges.
Miscellaneous Costs And Things To Consider
- Maintenance: if your water heater needs any maintenance, you can expect to pay the fees of a standard plumbing project . Typically, the maintenance project takes about 3 hours. Most plumbing companies charge a standard minimum of 4hrs.
- Extra material: occasionally, tankless water heating units arent compatible with the location in which older heating models had been installed. This can require a bit of problem solving and can cost money for extra materials such as pipes and insulation, both of which sell for about $12 per foot.
- Configuration and updates: certain electrical systems will need to be updated in order to work with the new tankless heater. This isnt always required but is a potential cost that includes the cost of materials for the updates and the price of the electrician.
- Old system removal: in order to install a new heating system, you must first have the old system removed and disposed of. This can cost up to $300-$600 depending on how difficult the existing system is to remove.
- Permitting: depending on the laws in your area, a permit could be required to install a water heater. This should be kept in mind to make sure that the project was done correctly and up to code. The permit fees normally run $5-$10 per thousand of the total job cost.
- Energy savings: the average tankless water heater costs $170 per year, according to EnergyStar.gov. This makes them cheaper and easier on energy than their traditional counterparts.
Factors Affecting The Cost Of The Gas Tankless Water Heater Installation
Gas tankless water heater installation can be more or less expensive depending on a few variables. The main cost components are labor costs, permit costs, tools, and the complexity of the job. Below is a list of the primary cost factors that will determine how much you pay for a gas tankless water heater installation.