Back to blogs

Understanding the Cost of Tankless Water Heater Gas in the US

When it comes to heating water in your home, tankless water heaters have become a popular choice due to their energy efficiency and cost-effectiveness. However, understanding the cost of a tankless water heater gas in the US is crucial before making a purchase decision.

Tankless water heaters that run on gas can range in price from $750 to $2,300, depending on various factors. These factors include the type of fuel source, the system type, and the installation requirements. On the other hand, electric tankless water heaters have a price range of $500 to $800.

To determine the cost of a gas tankless water heater, you need to consider factors such as the initial purchase price, labor costs for installation, and any additional expenses that may arise. It's essential to have a clear understanding of the pricing before making a decision.

Key Takeaways

  • The cost of tankless water heater gas in the US can range from $750 to $2,300.
  • Factors such as fuel source, system type, and installation requirements impact the price.
  • Electric tankless water heaters have a price range of $500 to $800.
  • Consider the initial purchase price, labor costs, and additional expenses when calculating the total cost.
  • Understanding the cost is essential to make an informed decision.

Factors Affecting the Price of Tankless Water Heaters

When it comes to the price of tankless water heaters, several factors come into play. Understanding these factors can help you make an informed decision about the cost of installation and choose the right system for your needs.

Type of Fuel:

The type of fuel used by the tankless water heater can significantly impact the price. Gas tankless water heaters tend to be more expensive than electric ones. However, gas models typically have a higher flow rate and can supply hot water to multiple appliances simultaneously, making them a popular choice for larger households with higher hot water demands.

System Size:

The size of the tankless water heater system you choose can also affect the price. A single point-of-use system, designed to supply hot water to a specific outlet, may have a lower cost compared to a whole house system that provides hot water to the entire property. The size and complexity of the installation can impact the labor costs involved.

Additional Plumbing and Electrical Work:

During the installation of a tankless water heater, you may require additional plumbing or electrical work. This can include upgrading the existing piping to accommodate the new system or installing a dedicated electrical circuit. The need for these additional modifications can increase the overall installation cost.

Labor Costs:

The labor costs for installing a tankless water heater can vary depending on the complexity of the installation and the region in which you live. On average, installation costs range from $500 to $3,000. It is important to factor in these labor costs when considering the overall price of a tankless water heater system.

By understanding these factors, you can make an educated decision about the cost of tankless water heater installation. It is advisable to consult with a professional to determine the best system and installation approach for your specific needs.

Types of Tankless Water Heaters and their Costs

When it comes to tankless water heaters, there are different types available to suit various needs. Understanding these types and their associated costs can help you make an informed decision for your home. In this section, we will explore the different types of tankless water heaters and provide an overview of their cost range.

Single Point Tankless Water Heaters

Single point tankless water heaters are designed to provide hot water to a specific outlet, such as a sink or shower. These units are compact and typically less expensive compared to whole house systems. Single point tankless water heaters are commonly sold in packs of three and range in cost from $145 to $250 per unit. Packs can cost anywhere from $435 to $775, depending on the brand and features.

Whole House Tankless Water Heaters

Whole house tankless water heaters are capable of supplying hot water to multiple outlets throughout your home. These units are larger and more powerful, making them suitable for households with higher hot water demands. The cost of whole house tankless water heaters can vary depending on the fuel type. Electric models generally range from $200 to $2,300, while gas models range from $230 to $2,300. Propane-powered tankless water heaters fall within the price range of $195 to $2,200.

Tankless Water Heater Type Cost Range Single Point $145 - $250 per unit$435 - $775 per pack Whole House (Electric) $200 - $2,300 Whole House (Gas) $230 - $2,300 Whole House (Propane) $195 - $2,200

It's important to note that these prices are estimates and can vary depending on factors such as brand, features, and installation requirements. When considering the cost of a tankless water heater, it's essential to factor in any additional expenses, such as installation labor, plumbing or electrical work, and maintenance.

Additional Costs and Considerations

When considering the average cost of a gas tankless water heater, it's important to take into account additional costs and considerations beyond the initial purchase and installation. These factors can have an impact on the overall expense and long-term maintenance of your tankless water heater system.

Conversion Costs

If you are switching from an electric to a gas tankless water heater or vice versa, there may be additional costs involved in the conversion process. This could include the need for additional electrical or plumbing work to accommodate the new system. It's essential to factor in these conversion costs when determining the total cost of your tankless water heater.

Maintenance and Repair

Like any appliance, tankless water heaters require regular maintenance and occasional repairs. It's advisable to budget for routine maintenance, such as descaling or flushing the system, to ensure optimal performance and longevity. Additionally, unforeseen repairs may be necessary in case of malfunctions or component failures. It's recommended to set aside funds for these potential costs.

Labor Costs

Installation of a tankless water heater typically requires professional assistance, and labor costs can vary depending on the complexity of the installation and your location. On average, plumbers charge between $500 and $3,000 for installation services. It's important to factor in these labor costs when budgeting for your tankless water heater system.

By considering these additional costs and considerations, you can make a more accurate assessment of the average cost of a gas tankless water heater and ensure you have a comprehensive understanding of the financial aspects associated with owning and maintaining this energy-efficient water heating solution.

Sizing Your Tankless Water Heater

When it comes to choosing a tankless water heater, one important consideration is sizing. Properly sizing your tankless water heater involves determining the gallons per minute (GPM) flow rate needed for your home and the desired temperature rise. This ensures that you have sufficient hot water for your daily needs.

An average home typically requires a GPM rate between 5.5 and 7.5 to provide ample hot water. The type of fuel, whether gas or electric, can also impact how quickly the water gets heated. Gas tankless water heaters generally have higher flow rates and can heat water faster than electric models.

By accurately sizing your tankless water heater, you can ensure that you have enough hot water without wasting energy or overspending on a larger unit than necessary. Take into consideration the number of bathrooms and appliances that will be using hot water simultaneously to determine the appropriate GPM rate for your tankless water heater.

Table: Tankless Water Heater Sizing Guide

Bathroom(s) Appliances Recommended GPM Rate 1 1 showerhead, 1 sink 5.5 - 6.5 2 2 showerheads, 2 sinks 7.0 - 7.5 3+ 3+ showerheads, 3+ sinks 7.5+

Using the table above, you can estimate the recommended GPM rate based on the number of bathrooms and appliances in your home. However, keep in mind that these are general guidelines and individual usage patterns may vary.

By ensuring that your tankless water heater is properly sized, you can optimize its performance and efficiency while meeting your hot water needs. It's always a good idea to consult with a professional to help determine the appropriate size and model for your specific requirements.

https://www.youtube.com/watch?v=t7UrRq24VtQ

Assessing Flow Rates for Common Appliances

When determining the appropriate flow rate for your tankless water heater, it is essential to consider the flow rates of common appliances in your home. By understanding the typical flow rates, you can ensure that your tankless water heater can adequately meet your hot water demands.

Here are some examples of common appliances and their respective flow rates:

  • Showerhead: 2 to 3 gallons per minute (GPM)
  • Kitchen sink: 1.5 GPM
  • Bathroom faucet: 0.5 to 1.5 GPM
  • Dishwasher: 1 to 2.5 GPM
  • Washing machine: 1.5 to 3 GPM

Knowing these flow rates can guide you in determining the appropriate GPM rate for your tankless water heater. It ensures that you have enough hot water supply to meet your daily needs without any interruptions or compromises in performance.

Appliance Flow Rate (GPM) Showerhead 2 to 3 Kitchen Sink 1.5 Bathroom Faucet 0.5 to 1.5 Dishwasher 1 to 2.5 Washing Machine 1.5 to 3

By considering the flow rates of your appliances, you can ensure that your tankless water heater is capable of delivering a sufficient amount of hot water whenever you need it. This assessment will help you choose the right tankless water heater with the appropriate flow rate to meet your household's specific requirements.

Temperature Rise and its Impact on Tankless Water Heater Sizing

When it comes to selecting the right tankless water heater for your home, one important factor to consider is the temperature rise required to heat incoming water to the desired hot water temperature. The temperature rise refers to the difference between the temperature of the water entering the heater and the desired temperature at the point of use.

The temperature rise can vary based on geographical location and individual preferences. For example, in colder climates, a higher temperature rise may be needed to achieve the desired hot water temperature. It's essential to consider this factor when sizing your tankless water heater to ensure it can meet your hot water demands.

Gas tankless water heaters are known for their energy efficiency, providing hot water on-demand while minimizing standby energy losses. These systems are designed to handle various temperature rises, ensuring an adequate supply of hot water for your needs. Electric tankless water heaters, on the other hand, may have limitations in terms of the maximum temperature rise they can achieve.

Finding the Right Size

To properly size your tankless water heater, you need to determine the required gallons per minute (GPM) flow rate and the desired temperature rise. An average home typically requires a flow rate between 5.5 and 7.5 GPM to provide sufficient hot water. However, it's important to note that different appliances have varying flow rates, and the simultaneous use of multiple appliances can impact the overall hot water usage.

By assessing the flow rates of your common appliances, such as showers, kitchen sinks, and washing machines, you can get a better understanding of your hot water needs. This information will help you choose a tankless water heater that can deliver the required GPM rate and handle the necessary temperature rise to meet your household demands.

gas tankless water heater energy efficiency

Appliance Flow Rate (GPM) Showerhead 2 - 3 Kitchen Sink 1.5 Washing Machine 1 - 2

As the table above illustrates, different appliances have different flow rates. Understanding these flow rates can help you determine the appropriate GPM rate for your tankless water heater, ensuring a sufficient supply of hot water throughout your home.

Factors Affecting the Total Cost of a Tankless Water Heater

When considering the total cost of a tankless water heater, there are several factors to take into account. These factors can significantly influence the overall price and determine the long-term cost savings associated with a tankless water heater.

Fuel Type:

The type of fuel used by the tankless water heater is one of the primary factors affecting its total cost. Gas-powered tankless water heaters generally have a higher initial cost compared to electric models. However, they tend to be more energy-efficient and can provide greater cost savings over time. Electric tankless water heaters tend to have a lower upfront cost but may result in higher energy bills.

System Size and BTU Output:

The size of the tankless water heater system and its British Thermal Units (BTU) output are essential considerations. Whole house systems that supply hot water to the entire property may have a higher initial cost compared to point of use systems. Additionally, the BTU output of the tankless water heater should be appropriate to meet the hot water demands of the household.

Flow Rate and GPM:

The flow rate, measured in gallons per minute (GPM), is another crucial factor to consider. The flow rate determines the amount of hot water that can be delivered at any given time. Higher flow rates may correspond to higher costs, as they require more powerful tankless water heaters.

Tax Credits and Incentives:

It's important to explore any available tax credits and incentives that can help offset the cost of a tankless water heater. While the federal tax credit for residential energy efficiency measures has expired, there may still be state or utility rebate programs in place. These incentives can significantly reduce the overall expense of purchasing and installing a tankless water heater, making it a more cost-effective solution in the long run.

Factors Affecting Total Cost Impact Fuel Type Determines initial cost and long-term energy savings System Size and BTU Output Influences initial cost and ensures sufficient hot water supply Flow Rate and GPM Determines the amount of hot water delivered and may affect the cost Tax Credits and Incentives Can help offset the overall expense

https://www.youtube.com/watch?v=Ax5yrRgtKMs

Types of Tankless Water Heater Systems

When considering a tankless water heater, it is important to understand the different types of systems available. Two common options are whole house systems and point of use systems. Whole house tankless water heater systems are designed to provide hot water to the entire property, making them suitable for larger homes with higher hot water demands. On the other hand, point of use systems are installed near specific hot water outlets, such as sinks or showers, delivering hot water directly to those areas.

The cost of a whole house tankless water heater system is generally higher compared to a point of use system. This is because a whole house system requires more robust heating capabilities to supply hot water to multiple outlets simultaneously. Additionally, the installation costs for a whole house system can be higher due to the complexity of connecting it to the main water supply and ensuring proper distribution throughout the property.

For those on a budget or with lower hot water demands, a point of use tankless water heater system may be a more cost-effective option. These systems are typically less expensive and easier to install since they only need to provide hot water to a single outlet. Point of use systems are often favored in situations where hot water is primarily needed in specific areas, such as a kitchen or bathroom.

Type of Tankless Water Heater System Cost Range Whole House $XXXX - $XXXX Point of Use $XXXX - $XXXX

Ultimately, the choice between a whole house tankless water heater system and a point of use system depends on your specific hot water needs and budget. If you require hot water throughout your entire home and have a higher budget, a whole house system may be the best choice. On the other hand, if you have lower hot water demands or want to prioritize cost savings, a point of use system may be more suitable. It is important to consider your household's hot water usage patterns and consult with a professional to determine the most appropriate system for your needs.

Available Tax Credits for Tankless Water Heater

While the federal tax credit for residential energy efficiency measures expired in 2016, there may still be other state or utility rebate programs available. These programs can help offset the cost of purchasing and installing a tankless water heater, particularly if it is Energy Star-certified. It's worth researching local incentives to determine if any can reduce the overall expense.

State-Level Tax Credits

Many states offer tax credits or incentives for energy-efficient home improvements, including tankless water heaters. These credits can vary from state to state and are often based on the energy efficiency ratings of the equipment. For example, some states offer credits for Energy Star-certified products or those that meet specific performance criteria. Be sure to check with your state's energy or tax authority to see if any tax credits are available in your area.

Utility Rebate Programs

In addition to state-level incentives, utility companies may also offer rebate programs for installing energy-efficient equipment like tankless water heaters. These programs are typically designed to encourage customers to reduce their energy consumption and can provide financial incentives for making upgrades. Contact your local utility company or visit their website to find out if they offer any rebates for tankless water heater installation.

State Tax Credit Rebate Program California $200 $300 Texas $150 $250 New York $100 $200 Energy Efficiency Criteria Tax Credit Amount Energy Star-certified $300 Minimum Energy Factor (EF) of 0.87 $200 Minimum Uniform Energy Factor (UEF) of 0.94 $400

Remember, tax credits and rebate programs can change over time, so it's important to stay informed about the latest incentives available in your area. These programs can help make the upfront cost of a tankless water heater more affordable, while also providing long-term energy savings and environmental benefits.

Advantages of Tax Credits and Rebates

  • Reduce the overall cost of purchasing and installing a tankless water heater
  • Encourage energy-efficient upgrades
  • Promote environmental sustainability

Considerations for Tax Credits and Rebates

  • Check eligibility requirements and application deadlines
  • Keep documentation and receipts for tax purposes
  • Make sure the tankless water heater meets the necessary energy efficiency criteria
tax credits for tankless water heater

Pros and Cons of Tankless Water Heaters

When it comes to tankless water heaters, there are several advantages and disadvantages to consider. Understanding the pros and cons can help you make an informed decision about whether a tankless water heater is the right choice for your home.

Advantages of Tankless Water Heaters

  • Energy savings: One of the major benefits of tankless water heaters is their energy efficiency. These units only heat water as it is needed, eliminating the standby energy losses associated with traditional tank-style heaters.
  • Cost savings: Because tankless water heaters only heat water on demand, they can help reduce energy consumption and lower utility bills. Over time, the cost savings can offset the higher initial investment.
  • Longer lifespan: Tankless water heaters generally have a longer lifespan compared to tank-style heaters. With proper maintenance, tankless units can last up to 20 years or more.
  • Space-saving design: Tankless water heaters are compact and wall-mounted, freeing up valuable space in your home. This can be particularly beneficial for smaller homes or properties with limited utility room space.

Disadvantages of Tankless Water Heaters

  • Higher initial cost: Tankless water heaters tend to have a higher upfront cost compared to traditional tank-style heaters. The initial investment includes the unit itself and professional installation.
  • Limitations on simultaneous hot water supply: While tankless water heaters can provide a continuous supply of hot water, they may struggle to meet high-demand situations where multiple appliances are used simultaneously.
  • Installation requirements: Depending on your home's existing plumbing and electrical infrastructure, installing a tankless water heater may require additional modifications or upgrades. This can add to the overall installation cost.
  • Maintenance considerations: Tankless water heaters may require periodic maintenance to ensure optimal performance and longevity. This can include descaling to remove mineral buildup and checking for any potential issues.

Overall, tankless water heaters offer numerous benefits, including energy and cost savings, longer lifespan, and space-saving design. However, they also come with higher initial costs and limitations on simultaneous hot water supply. Assessing your hot water needs and considering these pros and cons can help you determine if a tankless water heater is the right choice for your home.

Environmental Benefits of Tankless Water Heaters

Tankless water heaters, whether gas or electric, offer several environmental benefits that make them a more sustainable choice compared to traditional storage tank heaters. These benefits are primarily derived from their energy efficiency and reduced carbon footprint.

Energy Efficiency: Tankless water heaters are highly energy efficient, as they only heat water when it is needed. Unlike storage tank heaters that continuously consume energy to keep a large volume of water hot, tankless heaters heat water on-demand, eliminating standby heat loss. This results in significant energy savings and reduced electricity or gas consumption over time.

Reduced Emissions: The energy efficiency of tankless water heaters directly translates into reduced emissions. By consuming less energy, they contribute to lower greenhouse gas emissions, helping to mitigate climate change impacts. Additionally, gas tankless water heaters produce fewer emissions compared to electric models, as natural gas is a cleaner-burning fuel source.

Environmental Benefits of Tankless Water Heaters Gas Tankless Water Heaters Electric Tankless Water Heaters Energy Efficiency Highly efficient, heat water on-demand, no standby heat loss Highly efficient, heat water on-demand, no standby heat loss Emissions Produce fewer emissions compared to electric models Produce fewer emissions compared to storage tank heaters Carbon Footprint Lower carbon footprint compared to storage tank heaters Lower carbon footprint compared to storage tank heaters

In conclusion, gas tankless water heaters offer excellent energy efficiency and reduced emissions, making them a more environmentally friendly choice. By choosing a tankless water heater, homeowners can contribute to energy conservation and sustainability efforts, while also benefiting from lower utility bills and long-term cost savings.

https://www.youtube.com/watch?v=8RFuFBI3r2c

Tankless Water Heater Cost Savings

Investing in a tankless water heater may require a higher upfront cost compared to traditional tank-style heaters, but the long-term savings can make it a worthwhile investment. By understanding the cost savings associated with tankless water heaters, you can make an informed decision for your home.

The Cost of Operating a Tankless Water Heater

One of the main cost-saving benefits of tankless water heaters is their energy efficiency. Unlike conventional tank heaters that continuously heat and store water, tankless heaters only heat water as it is needed. This results in significant energy savings and lower utility bills over time.

Additionally, tankless water heaters have a longer lifespan compared to tank-style heaters, reducing the need for frequent replacements. This not only saves money on purchasing new units but also lowers maintenance and repair costs.

Comparing Energy Efficiency Between Gas and Electric Tankless Water Heaters

When considering the cost savings of a tankless water heater, it's important to compare gas and electric models. While gas tankless heaters typically have a higher upfront cost, they offer greater energy efficiency and potential savings in the long run. Gas models tend to have a higher GPM rate, allowing for simultaneous hot water use in multiple appliances.

Electric tankless water heaters, on the other hand, have a lower upfront cost but may result in higher electricity bills. These models are ideal for smaller households with lower hot water demands. It's important to assess your household's hot water needs and usage patterns to determine the most cost-effective option.

Tankless Water Heater Type Upfront Cost Energy Efficiency Potential Savings Gas Higher Greater Potentially higher long-term savings Electric Lower Lower More suitable for smaller households

In conclusion, while the initial investment in a tankless water heater may be higher, the potential cost savings in energy bills and longer lifespan can make it a financially wise choice. Consider your hot water needs, energy efficiency, and long-term savings potential when deciding between gas and electric models. By choosing a tankless water heater that aligns with your requirements, you can enjoy the benefits of reliable hot water while saving on costs.

Finding the Best Tankless Water Heater for Your Needs

When it comes to selecting a tankless water heater, there are several factors to consider to ensure you find the best option for your specific requirements and budget. Here, we will explore the key considerations that can help you make an informed decision.

System Size

First and foremost, you'll need to determine whether you require a whole house system or a point of use system. Whole house systems provide hot water to the entire property, while point of use systems are installed near specific hot water outlets. Assessing your hot water needs and evaluating the size of your household will help you determine which type of system is suitable.

Fuel Type

Another crucial consideration is the fuel type for your tankless water heater. Gas and electric options are available, each with its own pros and cons. Gas models tend to have a higher upfront cost but are more energy-efficient in the long run. Electric models, on the other hand, are generally cheaper upfront but may have higher energy consumption. Evaluate your energy sources and costs to choose the most cost-effective option for your home.

Energy Efficiency and Warranty

Considering the energy efficiency and warranty of a tankless water heater is essential for long-term cost savings and peace of mind. Look for models that have a high Energy Factor (EF) rating, as this indicates better energy efficiency. Additionally, check the manufacturer's warranty to ensure it covers parts, labor, and any potential defects. This can protect your investment and provide reassurance in case of any issues.

By carefully assessing these factors and comparing prices, you can find the best tankless water heater that aligns with your specific needs, offers cost savings, and provides reliable performance for years to come.

Conclusion

After assessing the cost factors and considering the potential savings, it is clear that tankless water heaters can provide significant cost benefits in the long run. While the initial investment may be higher compared to traditional tank-style water heaters, the energy efficiency and lower operating costs of tankless systems can lead to substantial savings over time.

By eliminating the need for constantly heating and storing a large volume of water, tankless water heaters can reduce energy consumption and lower utility bills. Additionally, their longer lifespan and reduced maintenance requirements contribute to further savings in the form of decreased repair and replacement costs.

It is important to remember that the actual cost savings will vary depending on factors such as the size of the household, usage patterns, and regional energy prices. However, numerous studies have shown that homeowners can save up to 30% on their water heating expenses by switching to a tankless system.

Considering the potential for long-term cost savings, increased energy efficiency, and reduced environmental impact, investing in a tankless water heater can be a wise decision. With careful evaluation of your hot water needs and thorough research into available options, you can select the best tankless water heater for your home, ensuring both immediate and long-term benefits.

FAQ

Lightning fast quotes.

Our water heater experts are standing by to help. Complete our form or call to schedule service.

Get a quoteA picture of a water heaters now technician.