Compact and efficient, tankless water heaters, also known as instant water heaters, give you hot water whenever you need it without the fuss of a tank. No need to worry about a tank sitting around keeping water hot all the time. Just turn on the faucet, and these systems heat water quickly for a steady flow of warmth. To avoid hot water problems, it’s important to pick the right size and number of tankless heaters.

Now, you might be wondering about how much does a tankless water heater cost. I’ve done the research and put together a comprehensive guide on what to expect in terms of costs for tankless water heaters.

How Much Do Tankless Water Heaters Cost?

Do cold showers bother your vibe? Upgrade to a tankless water heater – they’re not just efficient, but budget-friendly too!

Here’s the deal: Electric ones cost $500-$800, gas ones go for $750-$2,300, but prices vary. ^[1] On average, homeowners spend around $2,875 (including installation), with a range of $1,933 to $6,167. It’s an investment that guarantees a constant supply of hot water and more comfort. ^[2]

Tankless Water Heater Costs by Fueling Method and Type

Revolutionizing the way we get hot water, tankless water heaters are like magic for homes of any size. They save energy and are super efficient. So, if you’re thinking of getting one, let me break down the costs based on how they work.

1. Single Point Tankless Water Heaters

These heaters come in packs of three and are a smart choice. At major retailers, each unit costs between $145 and $250, with packs ranging from $435 to $775. Perfect for homes with extensive plumbing, they give you hot water where you need it.

They’re a great option for anyone who wants faster and use less energy, saving you money and being good to our planet.

2. Whole House Tankless Water Heaters

Whole-house tankless water heaters are like magic for having hot water at home. No need for a big tank, and the hot water keeps flowing. Now, here’s the lowdown on the different types:

• Electric: Imagine a water heater that only works when you need it. That’s the electric tankless water heater. It’s small, quiet, and won’t break the bank. Prices range from $550 to $2,000 – not bad for efficiency.
• Propane: For areas with shaky electricity, the propane tankless water heater is your hero. It’s reliable, eco-friendly, and fits anywhere. Prices? Between $600 and $3,500 – a worthy investment.
• Gas: Meet the natural gas tankless water heater – perfect for homes that need lots of hot water. It’s eco-friendly and has some power. Prices start at $700 and go up to $4,500.
• Oil: In places where other options are scarce, the oil tankless water heater steps in. It runs on home heating oil, costing between $1,000 and $3,000.
• Solar: For the green-minded, there’s solar tankless water heaters. They use solar panels, promising energy savings. Costs? $1,500 to $6,000. It’s an upfront investment for long-term eco-friendly benefits. Check local rules, some places offer tax perks for going green.

Labor Costs for Tankless Water Heaters

When you’re thinking about getting a tankless water heater, it’s important to know how much it’ll cost to install. The total cost depends on the type of system and power source, usually between $500 and $3,000.

Here’s the simple breakdown of what you need to know about labor costs for tankless water heater installation:

1. Average Installation Costs

Installing a tankless water heater may range in cost from $1,933 to $6,167, depending on the model. On average, people in the country pay about $2,875.

If you’re looking at larger or special units, you might be looking at a total cost of up to $8,900. This includes the cost of the unit, permits, installation materials, labor fees, and taking out the old water heater.

2. Switching Heating Sources

If you decide to change how your tankless water heater gets its power, there are extra costs. For example, going from gas to electric or the other way around needs both a plumber and an electrician.

Plumbers typically ask for payment in the range of $45 to $150 for every hour of their service. Depending on your system and where you are, you might need extra plumbing work. Electricians handle electrical tasks like installing new outlets, circuits, or wiring. You can hire them for $50 to $100 per hour. The switch might take a few hours, depending on how complex the project is.

If you’re changing from electric to gas, it might mean putting in a new gas line or rerouting one to the tankless water heater. Labor costs depend on how much work needs to be done and how long it takes.

Tankless Water Heater Maintenance Costs

Maintaining your tankless water heater is like giving it a health check to keep things running smoothly. Think of it as a tune-up for your home’s hot water supply. Regular check-ups, preferably in spring and fall, help catch any issues early, from a pilot light hiccup to more complex heat exchanger leaks.

The basic upkeep can be as low as $75, while more extensive repairs might reach up to $1,300. On average, expect to spend around $600 per service visit. ^[3] It’s an investment, but it’s worth it to avoid sudden breakdowns that can mess with your daily routine.

My Tankless Water Heaters Top Picks

If you’re on the hunt for a new water heater, you want something that’s reliable and fits your needs. I’ve put together a list of top picks for tankless water heaters, along with some insights to help you make a smart choice without getting overwhelmed.

1. Stiebel Eltron Tempra 36 Plus Electric Tankless Water Heater

Price: $1,059 – Amazon

This one’s a winner for overall performance. It’s quiet, saves energy, and doesn’t need venting. Additionally, it includes a solid warranty. Keep in mind, it’s not the best for big families, and you’ll likely need an electrician for installation.

2. Ecosmart ECO 27 Electric Tankless Water Heater

Price: Starts at $599 – Amazon

If you’re on a budget, the Ecosmart ECO 27 is a great choice. It performs well, offers excellent value, and has a lifetime warranty. Perfect for medium-sized homes, just remember you’ll need professional installation for warranty coverage, and it might not be enough for big families.

3. Rinnai RU199iN Condensing Tankless Water Heater

Price: $1,955 – Amazon

Got a big family? The Rinnai RU199iN is a powerhouse. It’s powerful, quiet, and has a high flow rate. The warranty is generous too. But, it’s a bit bulky and comes with a higher price tag.

4. Rheem RTEX-13 Classic Tankless Electric Water Heater

Price: $329 – Amazon

For small homes or apartments, the Rheem RTEX-13 is a compact and affordable choice. It’s easy to install and doesn’t use much power. Just keep in mind, it’s not the best for whole-home use.

5. Rheem RTEX-36 Tankless Electric Water Heater

Price: Around $649 – Amazon

If you want an electric option with a sleek design, the Rheem RETEX-36 is a good pick. It’s low-profile, has a decent flow rate for whole-home use, and no venting is needed. But, it’s not as efficient as some larger units, and the warranty could be better.

6. Rinnai RL75iN Plus Gas Tankless Water Heater

Price: $1,254.75 – Amazon

If you prefer natural gas, the Rinnai RL75iN is a top choice. It’s well-built, has an excellent warranty, and you can even monitor it with Wi-Fi. But, it’s less efficient, and the Wi-Fi module is a separate purchase.

7. Rinnai V53DeP Tankless Propane Water Heater

Price: $618.19 – Amazon

For those in rural areas or RVs, the Rinnai V53DeP is a versatile propane option. It’s reasonably priced, comes with a 10-year warranty, and doesn’t need vents. Just remember, it’s better for moderate flow rates, outdoor installation, and might not be ideal in very cold climates.

Factors That Affect Tankless Water Heater Costs

Knowing what affects the cost of a tankless water heater is important for homeowners looking for a hot water solution that’s efficient and fits their budget. Let’s go over the key things that shape the price:

• Type of System: Do you need a tankless water heater for the whole house, or just specific spots? Going for the whole-house option costs more upfront, while getting individual units might mean some extra setup costs. Think about how much hot water you actually need at home.
• BTUs (British Thermal Units): For gas-powered tankless water heaters, the cost depends on their BTU output. Higher BTU models come with a higher price tag. These BTU’s affect how well the unit heats water, especially if you use a lot of hot water at home.
• GPM (Gallons Per Minute): This one’s simple – the more gallons per minute (GPM), the more hot water you get. If you’ve got a big household with high hot water needs, a higher GPM rating is the way to go. Just match it with your family size and how you use hot water.
• Tax Credits: Don’t forget about tax credits. You can snag a 30% tax credit or up to $600 for grabbing an Energy Star-certified gas-powered tankless water heater. It’s a nice bonus that makes the investment easier on your wallet.
• Condensing vs. Non-Condensing Units: Some tankless water heaters recover heat from exhaust gases, and those cost a bit more. But here’s the deal – they’re more efficient and can save you money on energy in the long run. It’s like spending a bit more now for savings later.
• Installation Costs: Last but not least, the total cost includes getting the thing installed. Don’t skimp on this part – get a pro to do it right. The complexity of the setup and any tweaks needed for your plumbing or electrical systems can change the overall cost.

Benefits and Drawbacks of Tankless Water Heaters

Let’s check out the pros and cons of tankless water heaters – the cool and efficient choice for your home water needs.

Benefits:

• Save Space: Tankless heaters are compact, and won’t take up much room in your home.
• Energy Saver: They cut down on energy waste by avoiding the standby heat loss seen in regular tank heaters, which means more savings for you.
• Longevity: Worried about leaks? Tankless systems reduce the risk of corrosion, giving you peace of mind.

Drawbacks:

• Higher Setup Cost: The initial cost can be a bit higher compared to traditional tanks, but think of it as an investment in long-term efficiency.
• Simultaneous Limits: If you’re running multiple water sources at once, there might be a limit. Just something to consider for busy households.
• Weather Impact: In colder weather, the hot water might not be as hot. It’s good to know, but not a deal-breaker.

Professional vs. DIY Tankless Water Heater Installation

Picking a pro for your tankless water heater setup just makes sense. It cuts down on mistakes, ensures great performance, and comes with a solid warranty. Our skilled team looks at your home’s needs, tweaks gas or electrical connections carefully, and makes sure everything follows local codes.

On the other hand, doing it yourself (DIY) might seem tempting if you’re handy. But it’s trickier than it looks and could lead to leaks, safety issues, and voided warranties for your roof or foundation. Handling adjustments, gas lines, and electrical connections can be a challenge. That’s why my advice is to get professional help.

My Final Thoughts & Recommendations

Getting a new tankless water heater installed or replacing the old one is a bit tricky. Since it can cost a good chunk of money upfront, it’s smart to have a professional do the job with solid warranties.

Here’s my tip: Get quotes from three plumbing experts to compare prices and services. Good companies can also help you snag tax credits and rebates for your new water heater, making it a smooth installation and saving you some money.

So, take your time to decide and go for this upgrade in your home’s water heating—it’s a wise move that pays off in the long run.