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Understanding How Much to Install a Tankless Water Heater

Are you considering installing a tankless water heater in your home? Understanding the cost of installation is essential to make an informed decision. Factors such as brand, fuel source, labor, and size can all influence the overall cost. Let us break it down for you.

Key Takeaways:

  • The average cost for tankless water heater installation is around $2,800 across the country.
  • Installation costs can range from $1,200 to $3,500.
  • Factors like brand, fuel source, labor, and size impact the overall price.
  • Consider the accessibility of the installation location and any structural changes required.
  • It is recommended to hire a certified technician for proper installation and compliance with local codes.

Typical Cost Range for Tankless Water Heater Installation

When considering the cost of installing a tankless water heater, it's important to understand the typical price range involved. On average, the cost of tankless water heater installation can range from $1,200 to $3,500. This includes both the cost of the unit itself and the cost of installation.

The price of the unit can vary depending on the brand and model chosen. Generally, tankless water heaters can range in price from $500 to $2,000. However, larger or specialty units can cost up to $6,600 in total.

In addition to the unit cost, the installation itself adds an additional expense. Typically, the cost of installation for a tankless water heater ranges from $500 to $1,500. This cost can vary depending on factors such as the complexity of the installation, the location of the unit, and any additional modifications required.

Factors Influencing Installation Cost

Several factors can influence the cost of installing a tankless water heater. These factors include:

  • Brand: The brand of the unit can impact the overall cost, with more trusted and premium brands often charging higher prices.
  • Fuel Source: The type of fuel source used, such as electric, natural gas, or propane, can affect the installation cost. Some fuel sources may require additional plumbing or electrical work.
  • Labor: Labor costs can vary based on location and the complexity of the installation. Plumbers typically charge an hourly rate for installation.
  • Size: The size of the tankless water heater can also impact the cost. Larger units may require more extensive installation work and potentially additional modifications to the plumbing system.

By considering these factors and understanding the typical cost range for tankless water heater installation, homeowners can better budget for this investment and make informed decisions when choosing a unit that meets their needs.

Brand Unit Cost Range Installation Cost Range Total Cost Range Brand A $500 - $1,000 $500 - $1,000 $1,000 - $2,000 Brand B $700 - $1,500 $700 - $1,500 $1,400 - $3,000 Brand C $1,000 - $2,000 $800 - $1,200 $1,800 - $3,200

Factors Influencing Tankless Water Heater Installation Cost

When it comes to installing a tankless water heater, there are several factors that can influence the overall cost. Understanding these factors can help you budget for your installation and make informed decisions. Below, we explore four main factors that can impact the cost of installing a tankless water heater.

Brand

The brand of the tankless water heater can play a significant role in the installation cost. Premium and trusted brands often charge higher prices for their units. While these brands may come with a higher upfront cost, they are known for their quality and reliability. It's important to consider the reputation and customer reviews of different brands when choosing a tankless water heater.

Fuel Source

The fuel source for your tankless water heater can also affect the installation cost. Different fuel sources, such as electric, natural gas, oil, propane, and solar power, have varying price ranges. Electric models tend to be more affordable, while solar models can have a higher upfront cost but may offer long-term energy savings. Consider your energy needs and availability of different fuel sources when selecting a tankless water heater.

Labor

The cost of labor for tankless water heater installation can vary based on location and the complexity of the installation. Hiring a professional plumber is recommended to ensure proper installation and avoid any potential issues. The installation time can range from two to 10 hours, depending on the type of water heater and any additional repairs or modifications required. Labor costs should be factored into your overall budget.

Size

The size of the tankless water heater can impact the overall installation cost. Smaller units, such as point-of-use models, are generally less expensive than larger whole-home units. The appropriate size depends on the number of rooms and appliances that require hot water. Consider your household's hot water needs and consult with a professional to determine the right size for your tankless water heater installation.

Factors Impact on Installation Cost Brand Higher-quality brands typically have higher upfront costs. Fuel Source Different fuel sources can have varying price ranges. Labor Labor costs vary based on location and installation complexity. Size Larger units may have a higher installation cost.

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By considering these factors, you can better estimate the cost of installing a tankless water heater and make an informed decision for your home. Keep in mind that prices can vary based on region and individual circumstances. Consulting with a professional and obtaining multiple quotes is recommended to ensure an accurate assessment of your installation cost.

National Average Cost for Tankless Water Heater Installation

When considering installing a tankless water heater, it's essential to understand the national average cost. The average cost, including the unit and installation fees, is approximately $2,800. However, it's important to note that this cost can vary depending on various factors, such as the brand, fuel source, labor, and size.

By knowing the national average cost, you can have a baseline estimate for your budget when planning for tankless water heater installation. Keep in mind that this cost includes both the unit and the installation, which can range from $1,200 to $3,500 in total.

It's crucial to consult with professionals and obtain quotes based on your specific requirements to get an accurate estimate of the expected cost for your tankless water heater installation.

Factor Average Cost Range Brand $500 - $2,600 Fuel Source Varies by type (electric, natural gas, propane, oil, solar) Labor Varies based on location and installation time Size $150 - $2,000

As shown in the table above, factors such as brand, fuel source, labor, and size can all impact the overall cost of tankless water heater installation. By considering these factors and obtaining quotes from reputable professionals, you can make an informed decision and budget accordingly for your installation project.

Comparison of Tankless Water Heater Brands and Costs

When it comes to installing a tankless water heater, there are several brands to choose from, each offering its own unique features and pricing. Some of the popular brands in the market include AO Smith, Bosch, Bradford White, EcoSmart, Navien, Noritz, Rheem, Rinnai, Takagi, and Westinghouse. These brands offer a range of models with different capacities, fuel sources, and advanced technologies to meet various hot water needs.

Table: Tankless Water Heater Brands and Costs

Brand Price Range AO Smith $170 - $2,600 Bosch $350 - $1,700 Bradford White $400 - $1,800 EcoSmart $250 - $1,000 Navien $500 - $2,600 Noritz $400 - $1,800 Rheem $400 - $2,000 Rinnai $500 - $2,500 Takagi $400 - $1,800 Westinghouse $300 - $1,200

The cost of tankless water heaters can vary depending on the brand, model, and specific features offered. The price range for these brands typically falls between $170 and $2,600. It is important to consider factors such as desired capacity, energy efficiency, warranty, and customer reviews when choosing the right brand for your tankless water heater installation.

Keep in mind that while some brands may be more affordable, they may not offer the same level of performance or durability as the higher-priced options. It's also important to factor in the installation cost, as professional installation is often recommended for proper setup and to ensure compliance with safety regulations.

Different Fuel Sources for Tankless Water Heaters

When it comes to tankless water heaters, there are several fuel sources to choose from. Each fuel source has its own cost range and considerations. Understanding the differences can help you make an informed decision for your tankless water heater installation.

Electric Tankless Water Heaters

Electric tankless water heaters are a popular choice for their energy efficiency and ease of installation. They are typically less expensive upfront compared to other fuel sources, with prices ranging from $500 to $1,500. However, keep in mind that electric tankless water heaters may have higher operating costs in the long run.

Propane Tankless Water Heaters

If you have access to propane, a propane tankless water heater may be a good option. Propane models typically range from $500 to $2,000 in price. These units offer excellent efficiency and can provide hot water even during power outages. However, it's important to consider the availability and cost of propane in your area.

Natural Gas Tankless Water Heaters

Natural gas is another popular fuel source for tankless water heaters. Natural gas models can range in price from $750 to $2,000. They offer efficient and cost-effective operation, but they require a gas line connection, which may increase installation costs.

Oil Tankless Water Heaters

If you have access to oil, you may consider an oil tankless water heater. Oil models typically range in price from $1,000 to $3,000. They are durable and can provide consistent hot water, but it's important to consider the availability and cost of oil in your area.

Solar Tankless Water Heaters

For a renewable and environmentally friendly option, solar tankless water heaters are worth considering. Solar models typically range in price from $1,500 to $4,000. They utilize solar energy to heat the water, reducing energy costs over time. Keep in mind that solar tankless water heaters require specific installation requirements, such as adequate sunlight exposure and the use of solar panels.

When choosing the fuel source for your tankless water heater, consider factors such as availability, cost, efficiency, and installation requirements. We recommend consulting with a professional to determine the best option for your home and budget.

tankless water heater installation cost

Labor Costs for Tankless Water Heater Installation

When it comes to installing a tankless water heater, labor costs are an important factor to consider. The cost of labor can vary depending on your location and the complexity of the installation. On average, plumbers charge between $75 and $150 per hour for tankless water heater installation. The total installation time can range from two to 10 hours, depending on the type of water heater and any additional repairs or modifications required.

It's important to note that labor costs are separate from the cost of the unit itself and any additional materials that may be needed for the installation. While some homeowners may choose to install their tankless water heater themselves, it is generally recommended to hire a certified technician to ensure proper installation and avoid any potential hazards.

During the installation process, the plumber will turn off the incoming water supply, remove the old water heater if necessary, mount the new tankless unit on the wall, connect the water and gas lines, and test the hot water supply. Additional steps may be required depending on the specific installation requirements.

Labor Costs Average Duration $75 - $150 per hour 2 - 10 hours

By hiring a professional for the installation, you can ensure that the job is done correctly and efficiently. Plumbers have the expertise and experience to handle the complexities of tankless water heater installation, including proper electrical and plumbing work. Investing in professional installation can save you time, money, and potential headaches down the line.

Additional Costs for Tankless Water Heater Installation

When considering the installation of a tankless water heater, it is important to factor in additional costs that may arise during the process. These costs can include changes to your home that are necessary for the installation to be successful.

One potential additional cost is hiring a carpenter or handyman for any required structural changes or insulation. The average cost for these services ranges from $25 to $75 per hour, depending on the complexity of the job.

Another potential additional cost is hiring an electrician for rewiring purposes. If your home's electrical system needs to be modified to accommodate the tankless water heater, you can expect to pay an average of $50 to $100 per hour for the services of an electrician.

Additional Costs Average Cost Range Carpenter or Handyman $25 - $75 per hour Electrician $50 - $100 per hour

It's crucial to budget for these additional costs to ensure that you have a comprehensive understanding of the total expenses involved in the installation process. By taking these factors into consideration, you can plan accordingly and avoid any unexpected financial challenges.

Choosing the Right Size Tankless Water Heater

When it comes to selecting a tankless water heater for your home, size matters. The size of a tankless water heater is determined by its flow rate, measured in gallons per minute (GPM). Point-of-use units are smaller and less expensive, while whole-home units are larger and more expensive. It's important to choose the right size to ensure optimal performance and efficiency.

The appropriate size of the tankless water heater depends on the number of rooms and appliances that require hot water. To determine the ideal size, consider the average GPM required for each fixture or appliance and add them up. This will give you an estimate of the total GPM needed for your household. It's recommended to consult with a professional plumber to accurately assess your hot water needs and select the right size tankless water heater.

Prices for tankless water heaters vary depending on their size and capacity. Smaller point-of-use units can range from $150 to $500, while whole-home units can cost anywhere from $500 to $2,000. Higher capacity units designed for commercial or larger residential applications can range from $2,000 to $5,000 or more. Keep in mind that larger units may require additional installation considerations and cost.

Finding the Right Size Tankless Water Heater

Here are some general guidelines to help you determine the appropriate size tankless water heater for your home:

  • Determine the number of bathrooms in your home
  • Calculate the average flow rate for each showerhead, faucet, and appliance that requires hot water
  • Add up the total GPM to determine the minimum flow rate you need from the tankless water heater
  • Consider peak usage scenarios, such as simultaneous showers or running multiple appliances, to ensure sufficient hot water supply

By following these steps and consulting with a professional, you can ensure that you choose the right size tankless water heater for your home's specific hot water needs.

Tankless Water Heater Size Flow Rate (GPM) Price Range Point-of-Use Up to 2.5 GPM $150 - $500 Whole-Home (Small to Medium) 3 - 5 GPM $500 - $1,500 Whole-Home (Large) Above 5 GPM $1,500 - $2,000+

Remember, selecting the right size tankless water heater is crucial for efficient and reliable hot water supply in your home. Don't hesitate to seek professional advice to ensure you make the best choice for your specific needs.

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Conversion Costs for Switching to Tankless Water Heater

Switching from a traditional tank-style water heater to a tankless water heater requires certain conversions that can incur additional costs. These conversions include removing the old tank, upgrading plumbing and gas lines, and obtaining necessary permits. The extent of these changes will determine the overall cost of conversion.

On average, conversion costs for switching to a tankless water heater range from $1,200 to $3,500. The specific cost will depend on factors such as the complexity of the installation, the location of the water heater, and the size of the unit. It's recommended to consult with a professional plumber to assess the specific requirements and get an accurate estimate.

To give you a better idea of what to expect, here is a breakdown of the potential conversion costs:

Conversion Cost Approximate Price Range Removal of old tank $200-$500 Upgrading plumbing and gas lines $500-$1,500 Obtaining necessary permits $100-$500

It's important to note that these costs are estimates and can vary depending on factors such as the location and specific requirements of your home. Additionally, unforeseen issues or complications during the installation process can also impact the overall cost. Therefore, it's advisable to budget for potential contingencies when planning for the conversion to a tankless water heater.

Installation Process for Tankless Water Heater

Installing a tankless water heater involves several steps to ensure proper functionality and safety. Here is a breakdown of the installation process:

  1. Turn off the incoming water supply: Before starting the installation, shut off the main water supply to your home to prevent any water flow during the process.
  2. Remove the old water heater (if necessary): If you are replacing an existing water heater, disconnect and remove the old unit. This step may require draining the tank and disconnecting the electrical or gas connections.
  3. Mount the new tankless unit on the wall: Securely mount the tankless water heater on a suitable wall surface. Follow the manufacturer's instructions for proper positioning and spacing requirements.
  4. Connect the water and gas lines: Install the necessary plumbing connections, including cold water inlet and hot water outlet pipes. Ensure that the gas line is properly connected if you are using a gas-powered tankless water heater.
  5. Test the hot water supply: Once the installation is complete, turn on the water supply and check for any leaks. Operate the hot water fixtures to confirm that the tankless water heater is providing a consistent and reliable hot water supply.

Additional Steps

Depending on the specific installation requirements and local codes, additional steps may be necessary. These can include:

  • Installing venting or exhaust pipes: Some tankless water heaters require venting to remove combustion gases. Ensure that the venting system is properly installed and complies with local regulations.
  • Electrical and gas connections: If you are installing an electric tankless water heater, ensure that the unit is properly wired and connected to the electrical panel. For gas-powered units, make sure the gas line is correctly sized and connected.
  • Insulating pipes: Consider insulating hot water pipes to prevent heat loss and improve energy efficiency.
  • Obtaining necessary permits: Check with your local building department to determine if any permits or inspections are required for the tankless water heater installation.

It is important to consult with a professional installer or plumber to ensure the proper installation of your tankless water heater. They can provide expert guidance and ensure that all installation steps are completed correctly, following local codes and regulations.

tankless water heater installation steps

Considerations for Tankless Water Heater Installation

When planning for tankless water heater installation, there are several additional considerations to keep in mind. These factors can impact the overall cost and success of your installation project.

Accessibility of the Installation Location

Before proceeding with tankless water heater installation, it's important to assess the accessibility of the chosen location. The unit needs to be installed in an area that allows for proper ventilation and maintenance. Additionally, consider the proximity to existing plumbing and gas lines, as well as the availability of electrical outlets if necessary. If the installation location poses challenges, additional modifications and labor may be required, which can increase the overall cost.

Structural Changes and Insulation

Depending on the existing infrastructure of your home, installing a tankless water heater may require certain structural changes. For example, if you're upgrading from a traditional tank-style water heater, you may need to remove and dispose of the old unit, potentially involving additional labor costs. Additionally, insulation may be necessary to ensure efficient operation and prevent heat loss. These structural changes and insulation requirements should be taken into account when estimating the overall installation cost.

Permits and Code Compliance

Before installing a tankless water heater, it's crucial to research and comply with local building codes and regulations. Some jurisdictions may require permits for the installation of a water heater, which can add to the overall cost. It's important to consult with local authorities or a professional installer to ensure that your installation meets all necessary codes and regulations.

By considering these additional factors, you can better prepare for the installation of a tankless water heater and accurately estimate the overall cost of the project. It's recommended to consult with a professional installer to assess your specific needs and ensure a successful installation.

Can You Install a Tankless Water Heater Yourself?

Installing a tankless water heater can be a complex task that requires expertise in both electrical and plumbing work. While it may be tempting to attempt a DIY installation to save money, it is not recommended for inexperienced individuals. The risk of improper installation and potential hazards outweighs any potential cost savings. It is crucial to hire a certified technician who has the necessary skills and knowledge to ensure a safe and efficient installation.

The installation process involves various steps, including turning off the water supply, removing the old water heater (if applicable), mounting the new tankless unit on the wall, and connecting the water and gas lines. These steps require a thorough understanding of plumbing and electrical systems, as well as compliance with local codes and regulations.

By hiring a professional, you can have peace of mind knowing that the installation will be done correctly and up to code. A certified technician will also be able to address any potential challenges or complications that may arise during the installation process. Additionally, hiring a professional ensures that you will be eligible for any warranties or guarantees offered by the manufacturer.

Overall, while it may seem tempting to install a tankless water heater yourself, it is best to leave this task to the experts. Investing in professional installation not only guarantees a safe and efficient installation but also protects your home and ensures that your tankless water heater operates at its optimal capacity.

Conclusion

Installing a tankless water heater can be a cost-effective and efficient solution for providing hot water in your home. When considering tankless water heater installation, it is crucial to take into account various factors such as brand, fuel source, labor, and size. These factors can influence the overall cost of installation.

By consulting with a professional and considering these factors, you can determine the best tankless water heater option for your home. With proper installation, a tankless water heater can provide endless hot water and save on energy costs in the long run. It is important to remember that though it is possible to install a tankless water heater yourself, it is recommended to hire a certified technician to ensure proper installation and avoid any potential hazards.

So, take the time to research and understand the different options available. Whether you opt for an electric, natural gas, oil, propane, or solar-powered tankless water heater, make sure to consider your specific needs and budget. With the right choice and professional installation, you can enjoy the benefits of a reliable and energy-efficient hot water supply for years to come.

FAQ

How much does it cost to install a tankless water heater?

Tankless water heater installation costs can range from $1,200–$3,500, with the national average being around $2,800.

What factors influence the cost of tankless water heater installation?

The cost of installation can be influenced by factors such as brand, fuel source, labor, and size.

What is the national average cost for tankless water heater installation?

The national average cost for tankless water heater installation is approximately $2,800.

Which brands of tankless water heaters are available and how much do they cost?

Some popular brands include AO Smith, Bosch, Bradford White, EcoSmart, Navien, Noritz, Rheem, Rinnai, Takagi, and Westinghouse. The cost of these brands can range from $170 to $2,600.

What are the different fuel sources for tankless water heaters and how do they affect the cost?

Tankless water heaters can be powered by electric, natural gas, oil, propane, and solar power. Each fuel source has its own cost range, with prices ranging from $500 to $4,000.

How much do labor costs typically add to tankless water heater installation?

Plumbers charge an average of $75–$150 per hour for installation, and the installation time can range from two to 10 hours.

Are there any additional costs to consider for tankless water heater installation?

Additional costs may include hiring a carpenter or electrician for structural changes or rewiring, which can range from $25–$100 per hour.

How do I choose the right size tankless water heater?

The size of a tankless water heater is determined by the flow rate, measured in gallons per minute (GPM). The appropriate size depends on the number of rooms and appliances that require hot water.

What are the conversion costs for switching to a tankless water heater?

Conversion costs typically range from $1,200 to $3,500, depending on the extent of the changes required.

What is the installation process for a tankless water heater?

The installation process involves turning off the incoming water supply, removing the old water heater (if necessary), mounting the new tankless unit, connecting the water and gas lines, and testing the hot water supply.

What other considerations should I keep in mind for tankless water heater installation?

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