If you’re thinking about upgrading your home’s water heating system, a tankless water heater is a smart choice. These energy-efficient units save space and provide hot water on demand. But before you decide, it’s important to understand how much it costs to install a tankless water heater.
In this guide, we’ll break down the average costs, explain the factors that affect installation prices, and share tips to save money. Whether you want a gas or electric unit, this article will help you budget for your new tankless water heater.
What Is a Tankless Water Heater?
A tankless water heater, also called an on-demand water heater, heats water only when you need it. Unlike traditional water heaters with large storage tanks, tankless models provide endless hot water while using less energy. Because they are compact, they free up valuable space in your home.
Understanding the average installation cost for a tankless water heater helps you plan your upgrade wisely.
What Affects the Cost to Install a Tankless Water Heater?
Several factors influence the total price of installing a tankless water heater. Knowing these can help you avoid surprises.
1. Type and Size of the Water Heater
Tankless water heaters come in electric and gas versions. Electric models tend to cost less upfront but may have higher operating costs depending on electricity prices. Gas-powered units usually have a higher purchase price but are more efficient for larger homes.
The size of the unit also matters. A larger tankless water heater that can serve multiple bathrooms or appliances will cost more to buy and install.
2. Labor Costs and Regional Differences
Installation prices vary widely depending on where you live. Labor rates in big cities or areas with high demand tend to be higher. On average, labor costs range from $500 to $1,200 for a typical tankless water heater installation.
3. Complexity of Installation
If you’re replacing an old water heater, installation might be simpler and less expensive. However, if this is a new installation or requires upgrading your home’s plumbing or gas lines, costs can rise significantly.
For example, installing a new gas line or upgrading your home’s electrical panel to handle the tankless heater can add $500 to $2,000 or more.
4. Additional Materials and Permits
Your installation might require permits from your local municipality. Permit costs vary but generally range from $50 to $300. Also, new venting materials, piping, or electrical components may add to the total.
Average Cost Range for Tankless Water Heater Installation
The total cost to install a tankless water heater usually includes:
- The price of the unit
- Labor for installation
- Additional materials
- Permit fees
Tankless Water Heater Unit Price
Tankless water heaters typically cost between $500 and $2,500 depending on brand, size, and fuel type. Electric units are on the lower end, while high-capacity gas models are more expensive.
Installation Labor Cost
Labor can cost from $500 to $1,200, depending on the job’s complexity and your location.
Total Estimated Cost
On average, homeowners pay between $1,000 and $3,000 to install a tankless water heater. For more complicated jobs with upgrades, the price can reach $4,000 or more.
Additional Costs You Should Know
Besides the main installation, some extra costs might come up:
- Permitting and Inspection Fees: Required by local codes to ensure safety.
- Upgrades: Venting systems for gas units or new gas lines may be necessary.
- Maintenance Plans: While tankless water heaters require less maintenance than tank models, regular servicing helps extend their lifespan.
How to Save Money on Tankless Water Heater Installation
You don’t have to pay more than necessary. Here are some ways to reduce your installation cost:
- Choose the Right Size: Don’t overspend on a larger unit than you need. Calculate your household’s hot water demand before buying.
- Hire Licensed Professionals: Skilled installers work efficiently and avoid costly mistakes.
- Look for Rebates and Incentives: Many states and utilities offer rebates for energy-efficient tankless water heaters.
- Schedule Installation Wisely: Sometimes, scheduling your installation during off-peak seasons can lower labor costs.
Should You Try DIY Installation?
Some homeowners consider installing a tankless water heater themselves. However, this is generally not recommended. Improper installation can lead to safety hazards, void warranties, and cause inefficiencies. Professional installation ensures your system works safely and efficiently.
Final Thoughts
Installing a tankless water heater is an investment in comfort and energy savings. The cost varies based on the unit type, installation complexity, and your location. By understanding the average cost to install a tankless water heater, you can plan your budget and choose the right professional for the job.
Remember, hiring a licensed installer and selecting the right size unit are key to getting the best value. With proper installation, your tankless water heater will provide efficient, endless hot water for years to come.
Frequently Asked Questions (FAQs)
How long does it take to install a tankless water heater?
Most installations take 4 to 8 hours depending on complexity.
How often should I maintain my tankless water heater?
Experts recommend annual maintenance to clean and inspect your unit.
Will I save money on energy bills?
Yes, tankless water heaters use less energy than traditional tanks, which lowers your utility bills.
