A tankless water heater typically costs between $500 to $2,500. Switching to a tankless water heater is an excellent way to conserve energy and save money on monthly bills.
They take up less space than traditional water heaters and deliver hot water almost instantaneously. As a result, they’re becoming increasingly popular among homeowners. But just how much does a tankless water heater cost? In general, tankless water heaters are more expensive than traditional models.
The cost can vary depending on factors such as the brand, capacity, and type of fuel used. In this article, we’ll explore the cost of tankless water heaters and discuss factors that can influence their cost.
Factors That Affect The Cost Of A Tankless Water Heater
Tankless water heaters have become increasingly more popular in recent years due to their energy efficiency and space-saving design. While they have a higher upfront cost than traditional storage tank water heaters, tankless water heaters ultimately pay for themselves over time through energy savings.
However, one question remains: how much does a tankless water heater cost? The answer is not a simple one, as there are several factors that affect the cost of a tankless water heater. Below we’ll discuss these factors and what you can expect to pay.
Size Of The Unit
The size of the tankless water heater will play a significant role in the cost. Different sizes will be required to accommodate families of varying sizes, so the larger the unit, the more expensive it will be. Typically, residential tankless water heaters range from 2-6 gallons per minute (gpm) and can cost from $500-$1,500.
The installation process for a tankless water heater is more complex than a traditional storage tank water heater, which will also affect the cost. This is because the unit must be mounted, and often requires the relocation of existing piping.
The level of complexity can vary depending on the location of the heater, the distance from the current plumbing and electrical systems, and whether additional tools or permits are needed. You can expect to pay anywhere between $300-$1,500 for installation.
Hot Water Demand
The amount of hot water demand in your household will play a significant role in the cost of a tankless water heater. For example, a larger family with higher hot water needs may require a unit with a higher gpm capacity than a single person or couple.
The higher the gpm capacity, the more expensive the unit will be. Your contractor can help you determine the appropriate gpm capacity for your home.
Energy Efficiency Rating
Energy efficiency ratings are an essential factor in the cost of a tankless water heater. Units with a higher energy efficiency rating will be more expensive than those with a lower rating. However, those with higher ratings will save you more money in the long run through energy savings.
The energy efficiency rating for tankless water heaters is called the uniform energy factor (uef). Units with a high uef can start from $800.
The fuel source for the tankless water heater will affect the cost. Most commonly, tankless water heaters use either electricity or natural gas. Electric units are less expensive, but typically have a lower gpm capacity. Natural gas units, on the other hand, have a higher gpm capacity but are more expensive due to the additional setup and installation costs.
Depending on the fuel source, the price can range from $500-$2,500.
As you can see, there are several factors that affect the cost of a tankless water heater. The size of the unit, installation complexity, hot water demand, energy efficiency rating, and fuel source all play a role in determining the price.
However, regardless of the cost, tankless water heaters can bring you significant energy savings in the long run, making it a worthwhile investment.
Average Costs Of Tankless Water Heaters
If you are interested in purchasing a tankless water heater, you might be wondering how much it will cost you. The cost of a tankless water heater can vary depending on several factors, such as the type of unit you choose, its size, and the features it has.
Let’s take a closer look at what you can expect regarding the cost of a tankless water heater.
Overview Of Prices For Electric And Gas Units
Both electric and gas tankless water heaters have their benefits. Electric units are typically more affordable to purchase, while gas units are usually more energy-efficient in the long run. Here are some approximate prices of electric and gas tankless water heaters:
- Electric units: $250-$700
- Gas units: $500-$1,000
Example Costs For Different Sizes Of Tankless Water Heaters
The size of a tankless water heater is another crucial factor to consider when it comes to cost. In general, the larger the unit, the more expensive it will be. However, larger units can provide a more significant amount of hot water on demand, making them ideal for larger households or businesses.
Here are some examples of different tankless water heater sizes and their prices:
- Small units (suitable for 1-2 people): $250-$400
- Medium units (suitable for 2-4 people): $400-$700
- Large units (suitable for 3-5 people): $700-$1,000
Comparison Of Tankless And Traditional Water Heater Costs
While tankless water heaters are generally more expensive to purchase than traditional water heaters, they often provide long-term cost savings due to their energy efficiency. In contrast, traditional water heaters tend to be less expensive upfront but can cost more regarding energy bills in the long run.
Here is a quick comparison of the costs of a tankless water heater versus a traditional water heater:
- Tankless water heater: $250-$1,000 (purchase price)
- Traditional water heater: $300-$600 (purchase price) and $300-$700 annually (energy costs)
The cost of a tankless water heater will depend on various factors. However, it is essential to weigh the upfront cost against the long-term savings to determine which option is best for you.
Hidden Costs Of Installing A Tankless Water Heater
Tankless water heaters have become increasingly popular in recent years due to their energy efficiency, longevity, and space-saving benefits. While the initial cost of a tankless water heater may be higher than that of a conventional water heater, the long-term savings make it a worthwhile investment for many homeowners.
However, it is important to consider the hidden costs that come with the installation of a tankless water heater. We will be discussing the cost of additional installations needed, repair costs for any existing plumbing issues, and the cost of upgrading electrical or gas lines.
Cost Of Additional Installations Needed
When installing a tankless water heater, there may be additional installations necessary to ensure that it functions properly. This may include the installation of a new vent or gas line. Here are some key points to keep in mind:
- The cost of additional installations will depend on the current layout of your home and the type of tankless water heater you choose.
- The installation of a new vent can cost anywhere from $300 to $1,500 depending on the complexity of the installation.
- The installation of a new gas line can cost anywhere from $500 to $2,000 depending on the distance between your home and the gas meter.
- Hiring a professional to install these additional components is recommended as doing it yourself can be dangerous and may not be up to code.
Repair Costs For Any Existing Plumbing Issues
Before installing a tankless water heater, it is important to ensure that your existing plumbing system is in good working order. If there are any issues, such as leaks, blockages, or corroded pipes, these will need to be repaired before installation.
Here are some key points to keep in mind:
- Repair costs will vary depending on the extent of the plumbing issue and the location of the affected pipes.
- The average cost of repairing a single leak can be anywhere from $150 to $1,000.
- It is important to hire a licensed plumber to assess and repair any plumbing issues as attempting to fix them yourself could cause further damage.
Cost Of Upgrading Electrical Or Gas Lines
The installation of a tankless water heater requires a large amount of electricity or gas, depending on the model. As a result, it may be necessary to upgrade your electrical or gas lines to ensure that they can handle the increased load.
Here are some key points to keep in mind:
- The cost of upgrading your electrical or gas lines will depend on the extent of the necessary upgrades and the location of your existing lines.
- Upgrading your electrical system can cost anywhere from $1,000 to $3,000.
- Upgrading your gas line can cost anywhere from $500 to $1,500 depending on the distance between your home and the gas meter.
- It is important to hire a licensed electrician or gas technician to assess your current system and make any necessary upgrades.
While there are hidden costs that come with installing a tankless water heater, the long-term savings and overall benefits make it a worthwhile investment for many homeowners. It is important to carefully consider these costs and to hire licensed professionals to ensure that your system is installed properly and up to code.
By doing so, you can enjoy the comfort and convenience of a tankless water heater for years to come.
Tips For Saving Money On A Tankless Water Heater
Are you looking to switch to a tankless water heater but don’t want to break the bank? Here are some helpful tips to save money on your purchase:
Rebates And Incentives Offered By Manufacturers Or Utility Companies
Many manufacturers and utility companies offer rebates and incentives for those who choose to switch to an energy-efficient tankless water heater. These could range from a few hundred to thousand dollars in savings. Do some research and find out which companies offer such discounts and take advantage of these programs.
- Check the website of the manufacturer or your local utility company for any available rebates or incentives they might offer to homeowners who switch to tankless water heaters.
- The department of energy is also an excellent resource when it comes to rebates and incentives offered by various organizations. They publish a database of all the programs available in every state.
Diy Installation Considerations
If you have experience installing hot water heaters, you could save money by doing it yourself. However, installing a tankless water heater can be a little more complicated than a traditional one. But if done right, it can save you money on the installation fees.
Here are a few things to keep in mind before deciding if you want to install it yourself:
- Make sure you have the necessary plumbing and electrical skills to install the water heater safely and correctly.
- Read the manufacturer’s manual fully and watch tutorials online to ensure you are well-prepared.
- It is always a good idea to have another person helping you and checking your work.
Alternative Financing Options
Opting for different financing options like loans, lease agreements, or credit cards could be beneficial in some cases. Many companies offer financing options, too, which can make it easier for homeowners to invest in a new tankless water heater. Here are some options to consider:
- Personal loans often have lower interest rates and can be a good option for those with good credit scores.
- Home equity loans or lines of credit can be considered for more significant investments.
- Leasing might be the best option for homeowners who do not want to pay for the water heater upfront.
To sum it up, switching to a tankless water heater is a smart investment in the long run. With these tips, you can save a significant amount of money on your purchase. So, research all the available discounts and financing options, and with careful planning, you can have an energy-efficient and cost-effective water heater in your home.
Frequently Asked Questions On How Much Is A Tankless Water Heater
How Much Does A Tankless Water Heater Cost?
A tankless water heater can cost anywhere between $500 to $2,500, depending on the unit’s size, type, and fuel source. The installation cost can be high, averaging between $1,000 and $1,500, depending on the complexity of the installation.
How Long Do Tankless Water Heaters Last?
A well-maintained tankless water heater can last up to 20 years. Its lifespan depends on proper maintenance, water quality, and frequency of use. Hard water can cause mineral buildup, shortening the unit’s lifespan.
How Efficient Are Tankless Water Heaters?
Tankless water heaters are highly efficient, with an energy efficiency rating (eer) between 0. 82 and 0. 96. They can save homeowners up to 30% on their energy bills compared to traditional storage tank water heaters.
Do Tankless Water Heaters Need Maintenance?
Yes, regular maintenance is essential to keep tankless water heaters operating efficiently. Common maintenance tasks include flushing the unit to remove mineral buildup, checking the system for leaks, and inspecting the venting system. It’s best to have them serviced by a professional at least once a year.
What Size Tankless Water Heater Do I Need?
The size of the tankless water heater depends on your household’s hot water demand, determined by the number of people living in the home and their water usage habits. A professional plumber can help you determine the appropriate size.
After analysing the pricing options available in the market, we can conclude that tankless water heaters are comparatively expensive than the traditional ones. However, considering the long-term benefits, they prove to be a wise investment. With their efficiency, durability, and reduced energy bills, the cost incurred in purchasing and installing them is offset over the years.
Tankless water heaters not only save space in your home but also save valuable resources. Moreover, they produce hot water on demand, giving you a limitless supply of hot showers and baths. With the advancements in technology, you can even enjoy smart features like remote control, energy monitoring, and leak detection.
Additionally, it is essential to get them installed by professional plumbers to ensure a hassle-free experience in the long run. Hence, if you want to enjoy these benefits and value long-term savings, a tankless water heater is worth the investment.