Tankless Water Heater Installation Costs

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Factors Affecting The Electric Tankless Heater Cost

Cost To Go Tankless Water Heater Under $500 E02 || Review Atmor ThermoPro

What is the difference between an electric tankless water heater costing under $200 and one closer to $900? Cost factors!

And there are cost factors related to the tankless electric water heater you choose and installation of the unit. Product + Installation = total cost.

So, here are cost factors for both parts of the equation.

Installation Requirements & Operating Cost Of Tankless Water Heaters

As we discussed at Problems & Defects, conventional water heaters are relatively inexpensive due to their simplicity while tankless water heaters are more expensive to purchase and install.

In 2009 in Toronto, Ontario a high capacity instantaneous water heater installation could cost $4000. CDN. Their complexity also means that maintenance and repairs can be more expensive.

Dedicated isolating valves help simplify draining and other regular maintenance.

Below we discuss some of the special requirements for installation of tankless water heaters, followed by a discussion of the operating cost of tankless water heating systems.

Article Contents

Sketch of a point of use tankless water heater shown above/left was provided courtesy of Carson Dunlop Associates .

According to the U.S. Department of Energy,

For homes that use 41 gallons or less of hot water daily, demand water heaters can be 24%34% more energy efficient than conventional storage tank water heaters.

can be 8%14% more energy efficient for homes that use a lot of hot water — around 86 gallons per day.

You can achieve even greater energy savings of 27%50% if you install a demand water heater at each hot water outlet ENERGY STAR® estimates that a typical family can save $100 or more per year with an ENERGY STAR qualified tankless water heater.

Labor And Installation Costs

You will need to hire a plumber to install your water heater. Nationally, the hourly rate for plumbing services ranges from $45 to $150, depending on where you live.

You might also need to hire an electrician, depending on the type of tankless water heater you’re installing, whether you already have the necessary hookups in place, and the plumber’s skills. Either way, you should get estimates from several contractors before you select one or two to do the installation work for you.

Barring any unforeseen complications, it should take 2-3 hours for installation. If you’re swapping a traditional tank system for a tankless one, additional construction and time might be required.

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Unit Costs: How Pros Price

Unlike other websites that publish pricing from unrelated jobs in the past, Homewyse creates up-to-date estimates from current Unit Costs. The Unit Cost method delivers high accuracy by using location, details and options for the unique requirements of each job. Contracting, trade, design and maintenance businesses rely on the Unit Cost method for transparency, accuracy and fair profits.

Items Usually Included In Price Estimate

Tankless Water Heater Tucson Installation &  Cost

Tankless water heater installation estimates will usually include:

  • The price of the tankless water heater
  • Any supplies or special tools
  • Clean up after installation

A plumbing contractor will most likely use the table of supplies and tools listed below to install a tankless water heater. This list is fairly extensive, but to be completely prepared you should probably have all of these on-hand if you want to try out a tankless water heater installation on your own. You or your helper should have quite a bit of knowledge in plumbing and wiring before you try to do the job yourself.

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Tankless Water Heater Replacement Cost Factors

Tankless water heater replacement costs $600 to $2,650 if replacing an old tankless unit with a new tankless model, or $800 to $3,500 if switching from a storage tank to tankless. Installing a tankless unit requires upgrading the gas supply line, replacing the existing vents, and installing a new electrical outlet.

  • Gas line installation costs$350 to $750 to upgrade to a larger diameter gas supply line.
  • Plumber hourly rates are $45 to $150 per hour to modify or insulate the pipes.
  • Replacing the vent for gas exhaust costs $100 to $600. The vent system from a tank water heater cannot be reused for a tankless water heater and requires replacing.
  • Electricians charge $40 to $100 per hour to install a new outlet or upgrade a circuit. Electric and natural gas tankless models both require a dedicated electrical outlet.
  • Upgrading an electrical panel costs is $850 to $2,500 and may be necessary to support a new electric unit.

Tankless Hot Water Heater Prices By Brand

Tankless water heater prices from well-known brands like Rheem, Rinnai, Navien, and Takagi are $350 to $2,300 on average and come with a 5 to 15-year warranty, depending on if they’re gas or electric.

Tankless water heater prices by brand


*Prices for unit only. Warranty length depends on the model purchased.

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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

Factors Affecting The Cost Of Electric Tankless Heater Installation

How much does it cost to replace a hot water heater with a tankless?

Whether you DIY or hire a pro which of course costs more there are factors that affect cost.

  • DIY vs Pro This is the most significant factor. Depending on the cost of the unit, installation labor accounts for 50% to 75% of the total cost when hiring a plumber to install the water heater.
  • Replacement vs New When an old unit is replaced, the job goes faster and takes fewer plumbing and electrical supplies, so cost is far lower. Expect labor cost to double when a new circuit and plumbing must be installed.
  • Access When conditions are cramped or the site is hard to reach, installation cost goes up.
  • Where you Live The cost of living affects labor rates.

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Yearly Cost To Operate A Tankless Water Heater

The efficiency and price of running a tankless water heater will depend on a number of different factors including fuel source, water usage, local climate, and more. The more hot water you use, the more it will cost to heat it. Additionally, if you use multiple appliances at a timefor example, showering while you run the dishwasherthis will increase your homes peak flow rate and demand more of the tankless system.

Homeowners in cold climates may need to choose a tankless unit rated for a higher GPM to compensate for the lower temperature of the water as it enters the system. The colder the groundwater, the more energy is needed to heat it. For example, groundwater in the Southern and Gulf states is usually around 72 degrees and takes 400 BTU to heat to 120 degrees Fahrenheit. However, groundwater across most Mid-Atlantic, Midwestern, and Pacific states is around 52 degrees Fahrenheit, which takes 466 BTU to heat to 120 degrees Fahrenheit.

Overall, the most predictable variation in cost is due to fuel type. Here are some average costs for operating the major types of tankless water heaters. Unfortunately, due to the rarity of oil-fired tankless water heaters, theres not much information available about operating costs.


Bosch Tankless Water Heater Cost

Bosch water heaters cost $140 to $800 for electric models and $1,050 to $2,250 for gas models. Founded in Germany in 1886, Bosch has a history of producing high-quality, technologically advanced products. Today, their products are sold in over 150 countries. The tankless model from Bosch comes in electric and gas. Though dependable, Bosch products are not as highly rated as some of their counterparts, particularly Navien and Rinnai.

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Installing A Tankless Water Heater

After you have chosen which type of system you want to use, a plumber will have to remove your old heating system and then install new gas lines or heat source access. This process may include having to open up walls or part of the ceiling, depending on where your homes pipes run. After this is done, the new system is then set into place and installed and connected to the new gas lines.

An average plumbing company will charge $75- $125 for this service, and installation will usually take a full working day to install and properly test the system performance throughout the home so expect the installation cost to be around $600 $1,000. Other costs that may arise include the costs of heat and water pumps, new pipes, and costs that might be associated with permitting. With this in mind, your total cost for installation and other materials can be upwards of $1,000.

Are Tankless Water Heaters Worth The Cost

Tankless Water Heater Tucson Installation &  Cost

Whether tankless water heaters are worth the cost depends on your current and future needs. These models have a long payback period, as they’re projected to last 20 years yet your energy savings will take about 20 years to equal the initial investment. Therefore, the value of these models depends on how useful they are to you and whether they’ll appeal to future homebuyers. You can improve the return on your investment by choosing the right model for your consumption needs.

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Financial Benefits Of Tankless Water Heaters

According to the Department of Energy, on-demand water heaters can be anywhere from 8 percent to 50 percent more efficient than traditional storage tank water heaters, depending mainly on your water use patterns and system type . This is because, unlike tank storage systems, not much water is ever heated and left unused. The most efficient way to use on-demand hot water is with separate point-of-use systems at every hot water faucet in your home, but that type of setup can be very expensive upfront.

Regardless of exactly how efficient your specific system is, you can always save money on water heating with a tankless system. According to the Department of Energy, tankless water heaters typically save homeowners around $100 per year on energy costs when compared to storage tank water heaters. Check out our article on the pros and cons of tankless water heaters to learn more about how tankless water heaters can affect more than just your finances.

Tankless Water Heater Costs By Size

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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Factors That Influence Tankless Water Heater Installation Cost

When water heater installers come to your house to provide you an estimate, they will consider a number of factors that can increase or decrease the cost of your project. Pricing for your tankless water heater project will vary based on your geographic location, the size water heater you select, and whether you choose gas or electric heater. Here are a few things to keep in mind when you get quotes from on-demand water heater contractors:

Tankless Hot Water System Pricing And Installation Cost Checklist

How Much do Tankless Water Heaters Cost?
  • Expect the Tankless Hot Water System prices to fluctuate between various companies each and every company have different operation expenses and over-head.
  • Try to get prices in late Fall, early winter you should expect aggressive pricing discounts by waiting for a contractors down season.
  • Try to budget and additional 7-15% more on top of what our calculator gives out for Tankless Hot Water System costs.
  • Visit every supply house that sell your particular brand of Tankless Hot Water System and try to negotiate a better price with each supplier I save on average 20%.
  • Tankless Hot Water System isnt an easy task to perform and can leave you with a sore back. You might find it more cost effective to hire a Electrician contractor to perform the work for you. Electrical companies will most always get better prices on Tankless Hot Water System saving your back and additional costs of Tankless Hot Water System, so shop around, ask your neighbors if they can recommend someone.

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How Much Does It Cost To Install A Tankless Water Heater

Thanks to modern technology, we can now use a number of amazing appliances and devices at our homes which make lives easier for ourselves. One such appliance is a tankless water heater. It is a relatively newer concept and is a water heater which instantly heats water after you open the hot water tap. Unlike traditional water heaters, these devices do not store water but provide an instant supply when you need it. While it is true that tankless water heaters prove much better than the tank storage ones, but one thing that you may have to consider before you decide on getting them is the initial costs. This article will help you know how much does it cost to install a tankless water heater. Read on to find out:

Electric Tankless Water Heater Costs For Top Brands

Here are the top electric water heater brands, information about what they offer and prices for the water heaters. Refer to the section above on installation cost to determine what the total cost of your electric water heater might be the unit plus installation labor.


Rheem makes the largest selection of electric water heaters available. They are found in two quality tiers from 3kW to 36kW units. The GPM range is 0.5 GPM to 8.8 GPM maximum. Its technology is proven, and consumer ratings are among the best of any brand. Prices are mostly midrange, but the cost of Rheems most expensive models are quite pricey.

Stiebel Eltron

This German brand is another industry leader. Tempra is its popular whole house electric water heater brand. The company makes several point of use series including the reliable Stiebel Eltron DHC water heaters and the newer Mini Series for handwashing sinks.


This brand makes gas water heaters in addition to electric models. Sizes start at point of use 0.5 and 1.5 GPM units to whole house electric water heaters with ratings from 4.4 to 8.8 GPM.


The Bosch Tronic Series is available in several sizes, though not as many as offered by the brands above. The Tronic 3000 Series begins with a 120V 0.4 GPM unit and maxes out with the Tronic 6000 Series with up to 3.5 GPM which can provide continuous hot water to 2 or possibly 3 locations at once.

AO Smith



Here are the top electric tankless water heater brands and prices.

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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

How Does The Price Compare To A Traditional Tank Water Heater

Tankless Water Heater Tucson Installation &  Cost

Typically, tankless water heaters are more expensive than traditional, tank-style water heaters of the same size.

In many cases, you start to notice a return on your investment in a tankless water heater after about six years. That’s around when traditional tank water heaters start to lose some of their efficiency. You may need to replace a traditional water heater after eight to 12 years. Because of that, if you’re not planning to live in your current home for at least six years, you’re probably better off sticking with a traditional tank water heater.

But if you do plan to live in your current home for longer than six years and especially if you plan to stay longer than 10 years you’ll really start to notice the savings. That’s because tankless units are set to last for around 20 years, slightly more than double the length of time that a traditional water heater is expected to work.

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