How A lot Does Tankless Water Heater Set up Value? (2025)

The price of a tankless water heater set up hinges on a number of components, together with the dimensions you select, the kind of gas your water heater makes use of, and the model. On common, most owners pay round $2,600 for a tankless water heater set up. Nevertheless, prices could dip to round $1,400 or rise as excessive as $4,000 primarily based on components particular to your set up.

Tankless water heaters range in price relying on dimension (the circulate price measured in gallons per minute or GPM) and ‌if they’re point-of-use or whole-home items. They will price as little as $150 for a 1–2 GPM unit and as excessive as $2,000 for an 8-plus GPM unit.

How Does Tankless Water Heater Set up Value Differ by Gas Kind?

The price of your tankless water heater varies primarily based on the kind of gas powering it. The chart beneath critiques the nationwide common prices for every gas supply kind.

An electrical tankless water heater is the preferred of the bunch, because it’s the best to put in and keep. Due to this, electrical fashions are typically one of many extra inexpensive choices, making them in style for owners on a funds. Electrical water heaters price between $500 and $1,000. 

These water heaters are available in smaller sizes, in order that they’re excellent for smaller houses. Nevertheless, it may be tough to discover a tankless electrical water heater giant sufficient to warmth water for a bigger house, in order that they’re normally not very best for houses with 4 or extra bedrooms.

Watch the video beneath to be taught extra about electrical water heater choices:

A pure fuel tankless water heater is one other in style possibility. These fashions are pricier total, ratcheting up labor and set up prices in addition to upfront costs. Gasoline items usually have a bigger capability than electrical items, making them a great alternative for owners with bigger houses. Pure fuel water heaters vary from $750 to $2,000.

Some tankless water heaters make use of a mix of oil and electrical energy to produce sizzling water in your house. The burner makes use of a mix of oil and water, which the system exposes to an electrical spark to ignite it and warmth the water. Oil water heaters usually vary in price from $1,000 to $3,000.

The ignition and heating course of permits these water heaters to offer impressively fast heating instances. They’re additionally extremely environment friendly and appropriate for houses with increased water demand.

Propane tankless sizzling water heaters use propane to supply warmth for elevating the temperature of the water. Some pure fuel heaters can run utilizing propane, though a converter is commonly essential to make the swap. Nevertheless, there are some items designed particularly to run on propane. On common, propane water heaters price $500 to $2,000.

These fashions are significantly in style in rural areas the place pure fuel traces aren’t available.

The swap to photo voltaic makes an look on the tankless water heater scene, offering a extra eco-friendly method to warmth your private home’s water. These items have extremely low working prices since they pull energy from the solar, however they’re fairly dear to put in and keep. Photo voltaic water heaters are the most costly possibility, starting from $1,500 to $4,000.

Since they require daylight to function, they’re greatest suited to sunny climates.

Like many merchandise, the model identify in your new tankless water heater can dramatically affect the ultimate prices of your venture. Some manufacturers supply extra inexpensive merchandise, which helps lower the quantity in your ultimate tankless water heater set up invoice.

Nevertheless, tankless water heaters from different, usually extra recognizable, manufacturers characteristic increased value tags. Since the price of your tankless water heater is a part of the set up value, the model performs a crucial position within the complete value you pay.

The chart beneath provides a fast overview of common prices primarily based on the model identify.

A number of components apart from the dimensions, gas kind, and model of your tankless water heater can affect the whole in your venture invoice. From labor prices to house structural adjustments, the checklist of essential bills to finish the venture may be intensive.

Labor prices for a plumber to put in your water heater are a significant factor contributing to the ultimate price of your private home’s tankless water heating system. Labor prices range by the kind of gas your tankless water heater runs on, elevating or decreasing the ultimate complete in your venture invoice.

For instance, the labor price to put in solar-powered tankless water heaters is normally considerably greater than that of their customary electrical counterparts. However regardless of the water heater kind, what you’ll pay for labor depends upon the set up problem, ease of entry, and hourly price.

To put in a tankless water heater you’ll want numerous supplies relying on the kind of water heater — for instance, a fuel connector package for pure gas-powered fashions, which runs between $20 and $40. A termination vent package (to vent fuel exhaust from your private home) normally prices between $40 and $100.

Other than the mandatory add-ons, you’ll incur extra prices for mounting brackets, fittings, valve units, piping, insulation, and extra. On common, piping and insulation price round $10 per foot, whereas the opposite objects normally price $175 or much less.

Condensing Vs. Non-Condensing

You’ll discover two foremost varieties of tankless water heaters in the marketplace: condensing and non-condensing items.

Condensing fashions recapture warmth from exhaust gases that might in any other case escape up the flue. They’re about 10%–15% extra energy-efficient than their non-condensing cousins — just like the distinction between a Prius and an ordinary sedan. This further effectivity places $80–$100 again in your pocket yearly, however you’ll pay $200–$500 extra upfront.

Your location can play a key position within the ultimate price of your tankless water heater set up. For instance, in case you resolve to modify to a tankless water heater that makes use of solar energy in an space with excessive demand, you’ll probably pay extra for the set up.

Moreover, your location and native residing prices can drive up the price of labor, resulting in increased set up prices total.

In some instances, structural adjustments to your private home are essential to accommodate a brand new tankless system. If it’s good to modify your private home for the brand new set up, the whole in your invoice will climb. The precise quantity you’ll pay is extremely variable, because it depends upon the issue of the venture and the kind of renovations essential.

In case you have an previous heater that should go, like a tank-style water heater, you’ll incur extra prices for the removing course of. The accessibility and dimension of the system will decide how costly this a part of the venture will probably be, however the contractor’s hourly price can also have an effect on it.

Most owners pay round $500 or extra to take away an previous water heater setup. Make sure the quote you obtain consists of the removing and disposal of the previous system.

Some areas require owners to acquire permits earlier than finishing sure house enchancment tasks or replacements. In some areas, permits is likely to be essential to put in a tankless water heater in your house. You may want permits to make essential structural adjustments or construct a cupboard across the heater.

In case you’re uncertain whether or not you want permits in your venture, speak to your native constructing authority or your contractor or plumber. The price of the allow will range primarily based in your location and water heater gas kind. The allow normally prices round a couple of hundred {dollars} or much less.

Tankless water heaters have a transparent edge over tank-style conventional water heaters. In case you’re on the fence a few tankless water heater in your house, think about the next advantages, as they could assist you resolve somehow.

Division of Vitality research present tankless water heaters reduce water heating payments by 24%–34%. What does that imply in your pockets? A median family paying $400–$600 yearly on water heating can pocket $100–$200 yearly. My neighbor tracked his payments after switching — his household of 5 saved virtually $230 the primary 12 months. Water heating makes up roughly 18% of your private home’s power use, so these aren’t small potatoes over time.

You understand that cold-water shock when somebody flushes the bathroom throughout your bathe? It’s historical historical past with a correctly sized tankless unit. A midsize 5–6 GPM unit handles a bathe and dishwasher directly.

Obtained a full home? Bigger 8+ GPM fashions maintain sizzling water flowing to a number of showers, washing machines, and dishwashers concurrently. No extra “bathe schedules” or racing to wash earlier than everybody else wakes up. One house owner instructed me it was price the price simply to finish the morning rest room battles between her youngsters.

The effectivity of tankless water heaters makes them eligible for numerous tax credit. Since they preserve water and save power as a result of their distinctive tankless design, the federal government will provide you with a credit score to make use of towards your subsequent tax return.

Whereas this received’t prevent cash upfront, it might reduce prices and decrease what you owe through the subsequent tax season.

Customary tank water heaters are area hogs — taking on 16 sq. ft of flooring area and standing 5–6 ft tall. Tankless items are concerning the dimension of a carry-on suitcase (27 inches tall, 18 inches extensive, 10 inches deep) and grasp on the wall. My pal mounted his in a utility closet and gained sufficient flooring area for a small exercise space. Many householders reclaim 10–15 sq. ft, which is ideal for that further shelving unit you’ve been eyeing or the bike that’s been cluttering your hallway.

Can you put in a tankless water heater your self? Positive. Must you? That’s a distinct query completely.

The job calls for critical know-how in plumbing, fuel traces (for fuel fashions), electrical methods, and native constructing codes. You’ll want specialised instruments, too — pipe cutters, soldering gear, fuel leak detectors, and strain testing gear aren’t precisely on a regular basis home items.

Electrical tankless heaters are simpler than fuel items, however they’re no stroll within the park. They require operating new electrical circuits — usually a number of 30–40 amp, 240-volt devoted traces. I’ve received a pal who’s an electrician, and even he known as a buddy for assist along with his personal set up.

Gasoline fashions deliver a complete further stage of complexity. Vent that exhaust incorrect, and also you’re taking a look at potential carbon monoxide issues. In case you dimension a fuel line incorrectly, you’ll expertise poor efficiency in the perfect case and harmful fuel leaks within the worst case.

However right here’s the actual kicker: DIY set up virtually all the time kills your guarantee. The tremendous print usually calls for set up by licensed professionals. When a $3,000 system fails and the producer factors to your DIY job as the rationale they received’t cowl repairs, these “financial savings” evaporate fairly rapidly.

Going the skilled route for tankless water heater installations is normally the only option. This manner, you possibly can relaxation assured figuring out the unit was put in to code and that it ought to operate superbly for years to come back.

After speaking with dozens of house owners and putting in three methods in my very own houses through the years, I firmly consider tankless water heaters make sense for many conditions. They price extra upfront — averaging $2,600, in comparison with $1,200 for traditional tank fashions — however this hole shrinks whenever you have a look at the entire image. The limitless sizzling water provide, over 20-year lifespan (versus 10–12 for tanks), and power financial savings of 24%–34% on water heating payments add up considerably. One household I do know saves virtually $240 yearly with their high-efficiency mannequin.

However tankless water heaters aren’t for everybody. If cash’s tight proper now, you’re transferring inside a couple of years, or your present tank works tremendous with out ever operating dry, the $1,400–$4,000 set up price won’t make sense. There’s no disgrace in sticking with what works.

For many trendy houses with average to excessive sizzling water calls for, tankless know-how provides a sensible improve that pays dividends in consolation, effectivity, and long-term financial savings.