If you’re looking to upgrade your water heater, going tankless can seem appealing. Tankless water heaters provide hot water on demand without needing a bulky storage tank. But tankless water heaters usually cost more to purchase and install than traditional tank water heaters.
So how much does it cost to install a tankless water heater in 2023?
The total cost to install a tankless water heater ranges from $2,000 to $4,500 on average. The exact price depends on the type of unit, fuel type, difficulty of installation, and additional features or modifications needed.
Factors That Impact the Cost to Install a Tankless Water Heater
When considering the cost to install a tankless water heater, there are several key factors that can influence the overall price. These factors include the type of tankless unit, the fuel type, the difficulty of installation, and any additional features or modifications required.
Type of Tankless Unit
The cost of installation can vary depending on the type of tankless unit chosen. There are two main types of tankless water heaters: electric and gas. Electric units tend to be less expensive upfront, but may have higher operating costs in the long run.
Gas units, on the other hand, typically have higher upfront costs but can be more cost-effective over time. It’s important to consider both the initial investment and the long-term savings when choosing the type of tankless unit that best fits your needs and budget.
Fuel Type
The fuel type of the tankless water heater can also impact the installation cost. Gas-powered units require a gas line to be installed, which can add to the overall cost. Electric units, on the other hand, require a dedicated electrical circuit.
The availability of gas or electricity in your area, as well as any necessary upgrades to your home’s infrastructure, should be taken into account when determining the installation cost.
Difficulty of Installation
The complexity of the installation process can affect the overall cost. Factors such as the location of the unit, the distance from the water source, and the complexity of the plumbing system can all contribute to the installation cost.
In some cases, additional modifications may be required to ensure proper installation, such as upgrading the electrical panel or rerouting plumbing lines. It is recommended to consult with a professional installer to assess the specific requirements of your home and provide an accurate cost estimate.
Additional Features and Modifications
Additional features and modifications can also impact the cost of installing a tankless water heater. For example, if you wish to install multiple units to accommodate larger households or specific hot water needs, the cost will be higher.
Other factors to consider include the need for a water softener or filtration system, which can improve water quality but also add to the installation cost. It’s important to discuss any desired features or modifications with your installer to understand their impact on the overall cost.
When planning to install a tankless water heater, it’s crucial to consider these factors that can impact the cost. By evaluating the type of unit, fuel type, difficulty of installation, and any additional features or modifications required, you can make an informed decision that aligns with your budget and hot water needs.
Tankless Water Heater Installation Cost Breakdown
Tankless Unit Cost
The cost of a tankless water heater unit can vary depending on factors such as brand, size, and features. On average, the cost of a tankless unit ranges from $500 to $2,500. Higher-end models with advanced features and larger capacity can cost even more.
It’s important to consider your specific needs and budget when selecting a tankless unit.
Labor Costs
The installation of a tankless water heater typically requires professional assistance, which incurs labor costs. The cost of labor can vary depending on your location and the complexity of the installation. On average, the labor costs for tankless water heater installation range from $500 to $1,500.
It’s recommended to get quotes from multiple contractors to ensure you are getting a fair price.
Additional Costs
In addition to the unit and labor costs, there may be additional costs associated with the installation of a tankless water heater. These may include:
- Permits and inspections: Depending on your local regulations, you may need to obtain permits and have the installation inspected, which can incur additional fees.
- Ventilation and exhaust: A tankless water heater may require modifications to your home’s ventilation system to ensure proper exhaust. This can add to the overall installation cost.
- Upgrades to gas or electrical lines: If your current gas or electrical lines are not compatible with a tankless water heater, you may need to upgrade them, which can increase the installation cost.
It’s important to factor in these additional costs when budgeting for a tankless water heater installation.
For more information on tankless water heaters and their installation costs, you can visit reputable websites such as HomeAdvisor.com or Angie’s List.
Ways to Reduce Installation Costs
Choose a More Affordable Unit
One of the most effective ways to lower the cost of installing a tankless water heater is to choose a more affordable unit. Tankless water heaters come in a range of prices, so it’s important to do your research and find one that fits your budget.
Consider factors such as the size of your household, the hot water demand, and the energy efficiency of the unit. Websites like Consumer Reports can provide valuable information and reviews on different tankless water heater models.
Use Existing Infrastructure
If you’re replacing an old water heater with a tankless unit, using the existing infrastructure can help reduce installation costs. Tankless water heaters can often be installed in the same location as the old unit, which means you won’t have to pay for extensive plumbing or electrical work.
However, it’s important to consult with a professional to ensure that your existing infrastructure is compatible with the new tankless water heater.
Hire for Labor Only
Another way to save on installation costs is to hire a professional for labor only. This means that you can purchase the tankless water heater yourself and then hire a licensed plumber or contractor to install it.
By separating the cost of the unit from the cost of labor, you have more control over your expenses. Be sure to get multiple quotes from different professionals to find the best price for the installation.
Install It Yourself
If you’re handy and have experience with plumbing and electrical work, you may consider installing the tankless water heater yourself. This can save you a significant amount of money on installation costs.
However, it’s important to note that installing a tankless water heater requires knowledge of local building codes and regulations. Make sure to check with your local authorities and follow all safety guidelines.
Additionally, keep in mind that some manufacturers may require professional installation to maintain the warranty.
By following these ways to reduce installation costs, you can make the process of installing a tankless water heater more affordable. Remember to research different models, utilize existing infrastructure, consider hiring for labor only, or even attempt a DIY installation if you have the necessary skills.
Always prioritize safety and consult professionals when needed to ensure a successful installation at the best possible price.
Conclusion
Installing a tankless water heater costs $2,000 to $4,500 on average based on the unit, fuel type, installation difficulty, and additional modifications required. The tankless unit itself ranges from $500 to $2,500. Professional installation labor adds $1,000 to $2,000 or more.
Carefully selecting the right tankless model for your needs and installing it properly are key to getting a cost-effective system that provides efficient water heating for years to come.
