Imagine you live in a super cold city in the United States and have water at freezing temperatures. It becomes so difficult to perform daily tasks efficiently.
Now you may have a question about what you can do to tackle this situation. This is the point where water heaters come in to help you. These water heaters warm the water which makes it easy to do daily activities smoothly.
Tankless water heaters warm up the water instantly. It usually does not have a tank to store hot water. This type is further divided into two categories.
- Electric Tankless Water Heaters
- Gas Tankless Water Heater
If we move forward toward the pricing of these water heaters, it may vary according to the functionality and types. In this article, we will discuss in detail about installation cost of the tankless water heater.
How Much Does a Tankless Water Heater Cost?
The cost of a tankless water heater depends on several factors. Investing in a tankless system saves money. The reason behind this is that these heaters are up to 30% more energy-efficient as compared to traditional tanks.
A tankless water heater typically costs between $1,000 and $3,500 on average. Energy efficiency is a key advantage of tankless heaters. These heaters usually have high costs but lower utility bills. Most of the models last for at least 20 years or more.
Comparing Tankless and Traditional Water Heaters
| Feature | Tankless Water Heater | Traditional Water Heater |
| Energy Efficiency | 20-30% more efficient as it heats water only when needed. | Less efficient due to standby heat loss from storing hot water. |
| Upfront Cost | Higher, ranging from $1,000 to $3,500 (including installation). | Lower, typically $500 to $1,500 (including installation). |
| Operating Cost | Lower, as it only heats water on demand. | Higher, as it continuously heats water even when not in use. |
| Hot Water Supply | Endless hot water, but may struggle with multiple users if undersized. | Can run out of hot water and requires time to reheat. |
| Lifespan | 20+ years with proper maintenance. | 10-15 years, requiring more frequent replacement. |
| Space Required | Compact & wall-mounted, saving storage space. | Bulky & requires a storage tank, taking up more space. |
| Installation Complexity | More complex, and may require electrical upgrades or venting modifications. | Easier and cheaper to install with existing plumbing. |
| Ideal For | Homes with high hot water demand and limited space. | Homes with moderate hot water use and budget constraints. |
Pros and Cons of Installing a Tankless Water Heater
Although tankless water heaters have lots of benefits, at the same time there are some drawbacks to these heaters. Let’s have a look at both pros and cons.
Pros of tankless water heater:
- These water heaters warm water instantly. That means you never run out of hot water.
- They usually consume less energy as compared to traditional heaters.
- They usually come in compact size and free space for homes.
- These water heaters do not have storage tanks which means there are fewer chances of water damage.
Cons of tankless water heater:
- The installation cost of these heaters may be higher than that of traditional ones.
- Minerals can build up inside, so maintenance is required to keep working well.
- If several people use hot water at the same time, then the water may be short.
Cost Comparison: Electric vs. Gas Tankless Water Heater Installation
| Factor | Electric Tankless Water Heater | Gas Tankless Water Heater |
| Unit Cost | $500 – $1,500 | $1,000 – $2,500 |
| Installation Cost | $800 – $1,500 (easier setup) | $1,500 – $3,000 (may require gas line/venting) |
| Total Cost | $1,300 – $3,000 | $2,500 – $5,500 |
| Energy Efficiency | 98%+ efficiency (less energy waste) | 80-90% efficiency (some heat loss) |
| Operating Cost | Higher due to electricity rates | Lower, as natural gas is often cheaper |
| Venting Required? | No venting needed | Requires venting (adds cost) |
| Maintenance | Minimal maintenance needed | Requires descaling and vent cleaning |
| Lifespan | 20+ years with proper care | 20+ years, but may need more maintenance |
| Best For | Homes without gas lines or low hot water needs | Larger households with higher hot water demand |
Key Factors That Affect Installation Cost of Tankless Water Heater.
Several factors affect the installation price of tankless water systems. Let’s discuss some of them one by one.
Type of Fuel Source
The type of fuel used in tankless water heaters significantly increases the installation cost. Usually, gas power water heaters require a proper venting system and gas lines. This ultimately increases the installation costs. On the other hand, electric heaters do not require such type of installation but they may require an electrical panel.
Unit Size and Capacity
The size and capacity of the water heater definitely have a great impact on the installation costs. Large units require a high capacity of electricity and strong power of gas. Moreover, if your home has multiple bathrooms and has a high demand for hot water, you may need a large water system.
Brand and Quality
Brands with a high reputation and name have more installation costs as compared to local brands. Premium brands follow a specific installation process. Moreover, they also have certified technicians that also increase the labor costs of installation. Cheaper brands may have low installation costs but they could need more repairs and even you may have to replace them.
Installation Complexity
The complexity of installing a tankless water heater has a great impact on the installation cost. If you are replacing it with the traditional tank you may have to pay extra installation charges for gas lines or electrical wiring. Moreover, if your home does not have proper ventilation it will also add more expenses as gas heaters must require adequate ventilation.
Energy Efficiency Ratings
High energy efficient water heaters have more installation cost as they help to save utility bills later. Moreover, some gas model heaters use condensing technology which requires a condensate drain. This also increases the installation costs. The initial installation cost of these water tanks may be high but they have a relief that they have low utility bills.
Additional Features
Tankless water heaters with advanced features have more installation costs. These features may include Wi-Fi controls, recirculation pumps, or anti-scale technology. Smart features help users to monitor the temperature remotely with some extra wiring or setup. A recirculation pump reduces water waste by delivering hot water faster. But again it requires additional plumbing work.
Maintenance and Longevity
Maintenance of water heaters is necessary to increase their lifespan. This maintenance cost affects the installation cost of a tankless water heater. Gas units may need periodic vent cleaning. Similarly, electric models might require circuit inspections. Remember, investing in a high-quality system with proper installation ensures fewer breakdowns.
Is Investing in a Tankless Water Heater Worth It?
Investing in a tankless water heater worth it or not depends on your household’s needs for hot water. These heaters provide endless hot water and are more energy efficient as compared to traditional tanks.
Another benefit of these tanks is that they last longer than traditional heaters. Smaller houses with lower use of hot water can get more benefits from them. Large houses may need more than one unit to get hot water.
Condensing vs. Non-Condensing Tankless Water Heaters
| Feature | Condensing Tankless Water Heater | Non-Condensing Tankless Water Heater |
| Efficiency | 90%+ efficiency (more energy-saving) | 80-85% efficiency (less efficient) |
| Heat Exhaust | Uses a secondary heat exchanger to recycle heat | Vents out hot gases directly |
| Venting Needs | Uses PVC or plastic venting (cheaper) | Requires stainless steel venting (costlier) |
| Installation Cost | Higher upfront cost due to extra components | Lower installation cost |
| Operating Cost | Lower, due to better energy efficiency | Higher, as more heat is wasted |
| Maintenance | Requires more maintenance due to condensate drain | Less maintenance required |
| Lifespan | Longer lifespan with proper care | Slightly shorter lifespan |
| Best For | Homeowners looking for long-term savings | Those wanting a simpler, lower-cost option |
How to Properly Maintain Your Tankless Water Heater
Proper maintenance of a tankless water heater is necessary to maintain its performance and work efficiency. Given below are some simple steps that help to maintain your tankless water heater.
- Remove mineral buildup by flushing the heater every 6–12 months. Use white vinegar or a descaling solution for cleaning.
- Check and clean the water inlet filter every few months. This helps to prevent clogs and maintain water flow.
- Ensure gas models have clear vent pipes by checking for buildups.
- Regularly inspect connections and pipes.
- For electric models, periodically test the heating element.
- Pay attention to error codes and resolve them promptly.
Types of Ignition Systems in Tankless Water Heaters
1. Direct Ignition
Direct ignition is a common system in modern tankless water heaters. They need an electrical sprat to start working. Once they get started you can get hot water instantly. This model is not suitable for the areas where there is a shortage of electricity.
2. Hydropower Ignition
Hydropower ignition starts working with the movement of water. When you turn on the tap it gives a signal to the water heater and it starts working. This model reduces the need for extra power usage such as electricity and batteries. Hydropower ignition is especially beneficial for areas that have unstable power supply.
3. Standing Pilot Light
A standing pilot light system keeps a small flame burning at all times. This small flame ignites the burner when hot water is required. his traditional ignition method is reliable and does not require electricity. This system makes it suitable for off-grid locations. However, it has some drawbacks as the flame burns continuously so it needs more fuel.
4. Electronic Ignition
Electronic ignition systems use advanced sensors and electronic controls to ignite the burner. These systems improve efficiency by eliminating the need for a continuously burning pilot light. However, some electronic ignition models rely on an external power source. However, it may require occasional maintenance to keep the components in good condition.
5. Battery-Powered Ignition
Battery-powered ignition is designed for areas where there is a shortage of electrical systems. These systems use replaceable or rechargeable batteries to generate a spark. They are highly portable and ideal for cabins, RVs, and off-grid homes. However, frequent battery replacement can add to maintenance costs over time.
How to Choose the Right Plumber for Installation
Before choosing a plumber must consider the points which are discussed below.
- Make sure the plumber has a valid license and certification for tankless water heater installation.
- Choose a plumber who already installed a tankless water heater.
- Read reviews or ask past customers about their experience with the plumber.
- Ensure the plumber has insurance to cover any potential damages.
- Pick a plumber who offers a warranty to cover any installation issues.
Final Thoughts: Key Considerations for Your Tankless Water Heater
Investing in a tankless water heater can be beneficial if you choose wisely. Must consider different factors and then check if they resonate with your needs or not. Choosing the right model can be really beneficial for you.
Moreover, the plumber involved in the installation of tankless water heaters has a great impact on installation costs. Therefore, it’s necessary to choose a plumber wisely and smartly.
Frequently Asked Questions
It’s a truth that tankless water heaters come have high initial installation costs. But they reduce the utility bills, that’s a great benefit of these heaters.
Installation cost of a water heater for 1,000 sq.ft may vary from $1,500 and $3,500. This cost fluctuates due to several reasons. These reasons include nit type, labor costs, and any necessary plumbing upgrades.
Yes, Home Depot offers installation services for tankless water heaters. They do this through licensed professionals. You can schedule an appointment for an estimate and installation.
Installing a propane tankless water heater usually costs $1,800 to $4,500. This cost includes the unit price and labor. These costs vary based on unit size, location, and installation complexity. How much does it cost to install a tankless water heater in a 1,000 sq ft home?
Does Home Depot install tankless water heaters?
What’s the cost to install a propane tankless water heater?
