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Understand the Cost to Install a Tankless Water Heater

Welcome to our guide on understanding the cost to install a tankless water heater. If you're considering upgrading your water heating system to a more efficient and convenient option, a tankless water heater might be the right choice for you. In this article, we will explore the factors that can impact the cost of installation, including the size, fuel type, and brand of the water heater. We will also discuss additional factors such as labor costs, necessary materials, location, structural changes, and permits. By the end of this guide, you'll have a clear understanding of what to expect when it comes to installing a tankless water heater and be able to make an informed decision for your home.

Key Takeaways:

  • The cost of installing a tankless water heater can vary depending on factors such as size, fuel type, brand, labor costs, materials, location, structural changes, and permits.
  • On average, homeowners can expect to pay around $3,000 for installation, but costs can range from $1,000 to $5,500.
  • The size of the unit, whether it is a point-of-use or whole-home system, and the type of fuel used will impact the cost.
  • Different brands offer varying price ranges, so it's important to consider brand reputation, quality, and warranty.
  • Labor costs, necessary materials, location, structural changes, and permits are additional factors that can contribute to the installation expenses.

Factors that Affect the Cost of Tankless Water Heater Installation

When it comes to installing a tankless water heater, several factors can influence the cost. Understanding these factors can help homeowners budget effectively for the installation. Let's take a closer look at the key factors that affect the cost of tankless water heater installation.

Size of the Unit

The size of the tankless water heater can have a significant impact on the installation cost. Point-of-use units, which are smaller and provide hot water for a single appliance or faucet, tend to be less expensive. Whole-home units, on the other hand, are larger and pricier. The size of the unit is typically measured in gallons per minute (GPM), and the larger the GPM capacity, the higher the cost.

Type of Fuel Used

The type of fuel used by the tankless water heater is another important factor. Electric tankless water heaters are generally more affordable, while natural gas units can cost slightly more. Oil-fired heaters and propane tankless water heaters tend to be on the higher end of the price spectrum. Solar-powered units, although energy-efficient, can be the most expensive option.

Brand of the Water Heater

The brand of the tankless water heater can also impact the installation cost. Different brands offer different price ranges, and some are more affordable than others. It's important to consider factors such as brand reputation, quality, and warranty when selecting a tankless water heater.

Labor Costs

The cost of labor for tankless water heater installation can vary based on the type of fuel used and the complexity of the installation process. Electric units generally have lower labor costs, while oil-fired heaters require more complex installation and can be more expensive to install. It's important to factor in the labor costs when budgeting for the installation.

Additional Factors

Other factors that can contribute to the cost of installation include necessary materials, such as gas connector kits, termination vent kits, mounting brackets, fittings, valve sets, piping, and insulation. Location can also play a role, with areas that have higher demand for tankless water heaters potentially having higher installation costs. Structural changes, such as modifications to the home or removal of an old water heater, may also impact the overall cost. Permits may be required in some areas, adding to the expenses.

Average Cost of Tankless Water Heater Installation

When it comes to installing a tankless water heater, the cost can vary depending on various factors. On average, homeowners can expect to pay around $3,000 for the installation, but the expenses can range from $1,000 to $5,500. It's important to consider these factors and obtain quotes from local professionals to get an accurate estimate for the installation.

The size of the unit, the type of fuel used, the brand, and the labor costs all contribute to the overall cost of tankless water heater installation. The size of the unit is typically measured in gallons per minute (GPM) and can impact the price. Point-of-use units are smaller and less expensive, while whole-home units are larger and pricier. The choice of fuel used, such as electric, natural gas, oil, propane, or solar, will also affect the cost. Different brands of tankless water heaters offer varying price ranges, so it's important to consider the brand reputation and warranty when making a decision.

Additionally, labor costs, necessary materials, location, required structural changes, and permits can contribute to the overall expenses. Labor costs can vary based on the type of fuel used and the complexity of the installation process. Homeowners may also need to consider the cost of materials such as gas connector kits, termination vent kits, mounting brackets, fittings, valve sets, piping, and insulation. Structural changes to accommodate the new system and permits may also impact the total cost. Considering all these factors is crucial to budgeting for tankless water heater installation.

Fuel Type Average Cost Electric $500 - $1,500 Natural Gas $750 - $2,000 Oil $1,000 - $3,000 Propane $500 - $2,000 Solar $1,500 - $4,000

Table: Average costs for different fuel types of tankless water heaters.

Cost Range for Different Sizes of Tankless Water Heaters

When it comes to installing a tankless water heater, the cost can vary depending on the size of the unit. Tankless water heaters are available in different sizes, typically measured in gallons per minute (GPM). The size of the unit determines its capacity to provide hot water at any given time.

Whole-home tankless water heaters, which have a higher GPM capacity, generally cost between $500 and $2,000. These units are designed to provide hot water for an entire house and are larger in size. On the other hand, point-of-use tankless water heaters, which are smaller and provide hot water for a single appliance or faucet, range from $150 to $500.

Size (GPM) Price Range 1-2 $150 - $250 3-5 $300 - $700 6-8 $800 - $900 8+ $900+

As shown in the table above, a 1-2 GPM tankless water heater can cost between $150 and $250, while an 8+ GPM unit can cost $900 or more. It's essential to choose a size that meets your hot water needs while staying within your budget.

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Factors Affecting the Size and Cost

Several factors can influence the size and cost of a tankless water heater. The number of appliances or faucets in your home that require hot water, along with their flow rates, will determine the necessary GPM capacity. Additionally, the number of bathrooms and people in your household will also impact the size of the unit you need. It's important to consider these factors and consult with a professional to determine the right size and cost for your specific requirements.

Furthermore, it's worth noting that the cost of a tankless water heater doesn't solely depend on its size. Other factors like the brand, fuel type, and installation labor can also contribute to the overall cost. Therefore, it's crucial to consider all these aspects when budgeting for the installation of a tankless water heater.

In Summary

The cost of installing a tankless water heater can vary depending on the size of the unit. Whole-home units, designed to provide hot water for an entire house, generally range from $500 to $2,000. Point-of-use units, which serve a single faucet or appliance, typically cost between $150 and $500. It's important to consider your hot water needs and budget when selecting the right size unit for your home. Consulting with a professional can help ensure you choose the most suitable option and get an accurate estimate for the installation.

Cost Range for Different Fuel Types of Tankless Water Heaters

When it comes to installing a tankless water heater, the cost can vary depending on the type of fuel it uses. Different fuel types have different price ranges, which can impact the overall installation expenses. Here is a breakdown of the cost range for different fuel types of tankless water heaters:

Fuel Type Price Range Electric $500 - $1,500 Natural Gas $750 - $2,000 Oil $1,000 - $3,000 Propane $500 - $2,000 Solar $1,500 - $4,000

Electric tankless water heaters tend to be more affordable compared to other fuel types, with prices ranging from $500 to $1,500. Natural gas units have a slightly higher price range, typically between $750 and $2,000. Oil-fired tankless water heaters fall into the higher price range, varying from $1,000 to $3,000. Propane tankless water heaters have a similar price range to natural gas units, ranging from $500 to $2,000. Solar-powered units are the most expensive, with prices ranging from $1,500 to $4,000.

When choosing the fuel type for your tankless water heater, it's important to consider your specific needs, the availability of the fuel type in your area, and your energy efficiency goals. Each fuel type has its own pros and cons, so it's crucial to make an informed decision based on your requirements and budget.

Summary:

The cost range for installing a tankless water heater varies depending on the fuel type. Electric tankless water heaters are generally more affordable, followed by natural gas and propane units. Oil-fired heaters and solar-powered units tend to be on the higher end of the price spectrum. Consider your specific needs, availability, and energy efficiency goals when selecting the fuel type for your tankless water heater installation.

Impact of Brand on Tankless Water Heater Installation Cost

When it comes to installing a tankless water heater, the brand you choose can have a significant impact on the overall cost. Different brands offer different price ranges, with some being more affordable than others. It's important to consider the brand reputation, quality, and warranty when making a decision.

To give you an idea of the cost range, here are some popular brands and their average price ranges for tankless water heaters:

Brand Average Price Range A.O. Smith $600 - $1,550 Bosch $180 - $2,400 Bradford White $500 - $1,700 EcoSmart $170 - $1,600 Navien $1,000 - $2,000 Noritz $500 - $2,600 Rheem $370 - $2,000 Rinnai $500 - $2,300 Takagi $500 - $2,000 Westinghouse $350 - $2,000

These price ranges are just an estimate and can vary depending on factors such as the specific model and size of the tankless water heater. It's always a good idea to consult with professionals and obtain quotes to get a more accurate cost estimate for your installation.

tankless water heater installation

Additional Factors Affecting Tankless Water Heater Installation Cost

When budgeting for the installation of a tankless water heater, it's essential to consider several additional factors that can affect the overall cost. These factors include labor costs, necessary materials, structural changes, and permits.

Labor Costs

The labor costs associated with tankless water heater installation can vary depending on the type of fuel used and the complexity of the installation process. For electric tankless water heaters, labor costs generally range from $150 to $1,000. Natural gas units typically have higher labor costs, averaging between $900 and $1,500. The installation of oil-fired heaters, which require more complex processes, can cost between $1,200 and $2,000. Propane tankless water heaters have similar labor costs to natural gas units, ranging from $900 to $1,500. Solar-powered units may require additional expertise, resulting in higher labor costs ranging from $2,000 to $4,000.

Necessary Materials

In addition to labor costs, homeowners should consider the cost of necessary materials for tankless water heater installation. These materials can include gas connector kits, termination vent kits, mounting brackets, fittings, valve sets, piping, and insulation. The price of gas connector kits for natural gas-powered models typically ranges from $20 to $40. Termination vent kits, which vent gas exhaust from the home, can cost between $40 and $100. Piping and insulation costs average around $10 per foot, while other materials usually cost $175 or less.

Structural Changes and Permits

In some cases, installing a tankless water heater may require structural changes to accommodate the new system. This can involve modifications to the home, such as building a cabinet around the unit or making changes to the plumbing or gas lines, which can increase the overall cost of installation.

Additionally, homeowners should be aware that permits may be required for tankless water heater installation in some areas. The cost of permits will vary based on location and the type of fuel used. It's important to factor in these additional costs when planning for tankless water heater installation.

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 the type of fuel used and the complexity of the installation process. Here is a breakdown of the average labor costs for different types of tankless water heaters:

Electric Tankless Water Heaters:

Labor costs for installing an electric tankless water heater are generally lower compared to other fuel types. On average, homeowners can expect to pay between $150 and $1,000 for labor.

Natural Gas Tankless Water Heaters:

Natural gas tankless water heaters require more expertise during installation, which can contribute to higher labor costs. The average labor costs for natural gas units range from $900 to $1,500.

Oil-Fired Tankless Water Heaters:

Installing an oil-fired tankless water heater involves more complex installation processes, resulting in higher labor costs. Homeowners can expect to pay between $1,200 and $2,000 for labor.

Propane Tankless Water Heaters:

Propane tankless water heaters have similar labor costs to natural gas units, ranging from $900 to $1,500. The complexity of the installation process contributes to the higher labor costs.

Solar-Powered Tankless Water Heaters:

Solar-powered tankless water heaters may require additional expertise during installation, leading to higher labor costs. Homeowners should budget between $2,000 and $4,000 for labor when installing a solar-powered unit.

It's important to consider these labor costs when budgeting for tankless water heater installation. By understanding the labor costs associated with different fuel types, homeowners can make informed decisions and plan their installation expenses accordingly.

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Necessary Materials for Tankless Water Heater Installation

When installing a tankless water heater, there are several necessary materials that you may need to ensure a successful installation. These materials can vary depending on the specific requirements of the unit and the installation process.

Gas connector kits: If you are installing a natural gas-powered tankless water heater, you will likely need a gas connector kit. These kits connect the gas supply to the unit and typically cost between $20 and $40.

Termination vent kits: Termination vent kits are necessary for venting the exhaust gases from the water heater to the outside. The cost of these kits ranges from $40 to $100.

Mounting brackets, fittings, and valve sets: Depending on the specific installation requirements, you may need mounting brackets, fittings, and valve sets to ensure proper installation and connection of the unit. The cost of these materials is typically $175 or less.

Piping and insulation: Depending on the distance between the tankless water heater and the plumbing system, you may need additional piping. The average cost of piping and insulation is around $10 per foot.

It's important to consider these necessary materials when estimating the total expenses for your tankless water heater installation. Including the cost of these materials in your budget will help ensure a smooth and successful installation process.

Table: Necessary Materials and Average Costs

Materials Average Cost Gas connector kit $20 - $40 Termination vent kit $40 - $100 Mounting brackets, fittings, and valve sets $175 or less Piping and insulation Around $10 per foot

Condensing vs. Non-condensing Tankless Water Heaters

When considering the installation of a tankless water heater, one important factor to consider is whether to choose a condensing or non-condensing unit. Condensing tankless water heaters are generally more expensive than non-condensing units, but they offer better energy efficiency. These units recapture and utilize exhaust heat in a secondary heat exchanger, resulting in increased efficiency and lower energy costs over time.

On the other hand, non-condensing tankless water heaters are less efficient compared to condensing units. They utilize a single heat exchanger and can be about 17% less efficient. However, non-condensing units are typically more affordable, making them a popular choice for homeowners who prioritize upfront cost savings over long-term energy efficiency.

When deciding between a condensing and non-condensing tankless water heater, it's important to consider your budget, energy efficiency goals, and overall heating needs. If you're looking for the most energy-efficient option and are willing to invest in a higher-priced unit, a condensing tankless water heater may be the best choice. However, if upfront cost is a primary concern and you're willing to accept slightly lower efficiency, a non-condensing unit can be a more affordable option.

Tankless Water Heater Installation

Ultimately, the decision between condensing and non-condensing tankless water heaters will depend on your personal preferences and budget. Consider your long-term energy savings goals and consult with a professional to determine the best option for your specific needs. By carefully weighing the pros and cons of each type, you can make an informed decision that will provide you with reliable hot water and optimal energy efficiency for years to come.

Impact of Location on Tankless Water Heater Installation Cost

The location of the installation can have a significant impact on the overall cost of installing a tankless water heater. The demand for tankless water heaters, especially those using solar power, can vary from one location to another. In areas with high demand, the installation costs may be higher due to increased competition among professionals and the need for specialized expertise.

Moreover, the cost of labor can also vary based on location and local living costs. Areas with higher living expenses may have higher labor rates, which can increase the overall installation cost. It's important to research and obtain quotes from local professionals to get an accurate estimate of the installation expenses in your specific location.

The Impact of Location on Installation Cost:

  • Varies based on demand for tankless water heaters
  • Higher demand can lead to increased installation costs
  • Higher living costs may result in higher labor rates

Considering the impact of location on installation costs is crucial when budgeting for a tankless water heater. By understanding the local market and labor rates, homeowners can make informed decisions and ensure they are getting the best value for their investment.

Impact of Structural Changes on Tankless Water Heater Installation Cost

When installing a tankless water heater, it's important to consider the potential impact of structural changes on the overall cost. Structural changes may be necessary to accommodate the new system, such as building a cabinet around the unit or making alterations to the plumbing or gas lines. These modifications can increase the complexity of the installation process and consequently affect the installation cost.

The cost of structural changes will vary depending on the specific renovations required and the complexity of the project. For example, building a cabinet around the tankless water heater may require additional carpentry work, which would add to the overall cost. Similarly, modifying the plumbing or gas lines may involve more labor and materials, resulting in higher expenses.

It's essential to consult with a professional plumber or contractor to assess the extent of structural changes needed and obtain accurate cost estimates. They will be able to provide guidance on the necessary modifications and advise on the associated expenses. By taking into account the potential impact of structural changes, homeowners can ensure they budget appropriately for the installation of a tankless water heater.

Structural Changes Estimated Cost Range Building a cabinet around the unit $300 - $800 Modifying plumbing lines $500 - $1,200 Modifying gas lines $700 - $1,500

Cost of Removing an Old Water Heater

When installing a new tankless water heater, homeowners may need to consider the cost of removing their old water heater. The removal process involves disconnecting and safely disposing of the existing unit, making way for the new tankless system. The cost of this service can vary depending on factors such as the accessibility and size of the old water heater, as well as the hourly rate of the contractor.

On average, homeowners can expect to pay around $500 or more for the removal and disposal of an old water heater. However, the exact cost will depend on the specific circumstances of the removal. If the old water heater is located in a difficult-to-access area or requires additional steps for safe removal, the price may be higher.

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It's important for homeowners to include the cost of removing the old water heater in their budget for tankless water heater installation. By planning for this expense ahead of time, homeowners can ensure a smooth transition from the old system to the new, energy-efficient tankless water heater.

Potential Permits for Tankless Water Heater Installation

When installing a tankless water heater, it is important to consider the potential need for permits. Some areas require homeowners to obtain permits before completing certain home improvement projects, including tankless water heater installation. The need for permits can depend on factors such as structural changes or building a cabinet around the heater. These permits ensure that the installation is done safely and up to code.

The cost of permits will vary based on the location and the type of fuel used by the tankless water heater. In some areas, permits may cost a few hundred dollars or less. It is crucial for homeowners to be aware of and factor in these costs when budgeting for tankless water heater installation. Additionally, it is recommended to check with local authorities or consult a professional to determine the specific permit requirements for your area.

Potential Permit Costs for Tankless Water Heater Installation

Location Permit Cost City A $200 City B $300 City C $400 City D $500

As shown in the table above, permit costs for tankless water heater installation can range from $200 to $500, depending on the location. These costs should be considered in addition to other expenses associated with the installation.

By understanding and accounting for potential permit requirements and costs, homeowners can ensure a smooth and compliant tankless water heater installation process.

Conclusion

Installing a tankless water heater can provide hot water on demand and eliminate the inconvenience of running out of hot water. However, the cost of installation can vary depending on several factors. These factors include the size, fuel type, and brand of the water heater, as well as labor costs, necessary materials, location, structural changes, and permits.

On average, homeowners can expect to pay around $3,000 for the installation of a tankless water heater. However, costs can range from $1,000 to $5,500, depending on the specific circumstances. To get an accurate estimate for your installation, it is recommended to obtain quotes from local professionals.

When budgeting for tankless water heater installation, it is essential to consider these factors carefully. The size of the unit, the type of fuel used, and the brand of the water heater will impact the overall cost. Labor costs, necessary materials, location, structural changes, and permits can also contribute to the expenses.

By understanding these factors and obtaining professional advice, you can make an informed decision about the installation of a tankless water heater that meets your hot water needs and aligns with your budget.

FAQ

What factors affect the cost of tankless water heater installation?

The size of the unit, the type of fuel used, the brand of the water heater, and the labor costs associated with installation can all impact the cost.

What is the average cost of tankless water heater installation?

On average, homeowners can expect to pay around $3,000 for the installation of a tankless water heater.

How much does a tankless water heater cost based on its size?

Whole-home units can cost between $500 and $2,000, while point-of-use units range from $150 to $500 depending on their gallons per minute (GPM) capacity.

How does the type of fuel used impact the cost of a tankless water heater?

Electric tankless water heaters tend to be more affordable, with prices ranging from $500 to $1,500. Natural gas units can cost between $750 and $2,000, while oil-fired heaters range from $1,000 to $3,000. Propane tankless water heaters cost between $500 and $2,000, and solar-powered units are the most expensive, with prices ranging from $1,500 to $4,000.

Does the brand of the tankless water heater affect the installation cost?

Different brands offer different price ranges. Some popular brands and their average cost ranges include A.O. Smith ($600 to $1,550), Bosch ($180 to $2,400), Bradford White ($500 to $1,700), EcoSmart ($170 to $1,600), Navien ($1,000 to $2,000), Noritz ($500 to $2,600), Rheem ($370 to $2,000), Rinnai ($500 to $2,300), Takagi ($500 to $2,000), and Westinghouse ($350 to $2,000).

What are some additional factors that can affect the cost of tankless water heater installation?

Labor costs, necessary materials, location, required structural changes, and permits can all contribute to the installation expenses.

How much do labor costs typically add to the total installation cost?

Labor costs for installing a tankless water heater can vary based on factors such as the type of fuel used and the complexity of the installation process. Electric tankless water heaters generally have lower labor costs, ranging from $150 to $1,000. Natural gas units have higher labor costs, typically between $900 and $1,500. Oil-fired heaters require more complex installation and can cost between $1,200 and $2,000 in labor. Propane tankless water heaters have similar labor costs to natural gas units, ranging from $900 to $1,500. Solar-powered units may require additional expertise and can have higher labor costs, ranging from $2,000 to $4,000.

What materials are necessary for tankless water heater installation?

Materials such as gas connector kits, termination vent kits, mounting brackets, fittings, valve sets, piping, and insulation may be necessary fo

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