If you’ve been researching new water heaters, you may have come across tankless water heaters and seen their potential benefits like unlimited hot water and energy efficiency. But when you started looking into installing one in your home, you likely discovered that the upfront cost is much higher than a traditional tank water heater.
In short, tankless water heater installation is more expensive due to the complexity of the system, the materials and special parts required, the need for professional installation, and upgraded gas lines or electrical wiring to support the heater.
Tankless Water Heaters Have Complex, Specialized Parts
One of the main reasons why tankless water heater installation can be expensive is because these units come with complex and specialized parts. Unlike traditional water heaters that store and continuously heat a large amount of water, tankless water heaters have a more intricate design.
More Expensive Heat Exchanger that Heats Water Instantly
Tankless water heaters use a heat exchanger to instantly heat water as it flows through the unit. This heat exchanger is typically made from high-quality materials like copper or stainless steel, which are known for their excellent heat conductivity.
However, these materials can be more expensive, contributing to the overall cost of the unit.
Smart Control Boards and Sensors to Monitor Water Temperature and Flow
Tankless water heaters are equipped with advanced control boards and sensors that monitor the temperature and flow of water. These smart systems ensure that the water is heated to the desired temperature and that there is a constant supply of hot water when needed.
The inclusion of these sophisticated components adds to the complexity and cost of the unit.
Needs Special Venting like Stainless Steel or PVC
Another factor that adds to the expense of tankless water heater installation is the need for special venting. Unlike traditional water heaters that use a chimney or a metal flue pipe, tankless water heaters require either stainless steel or PVC venting.
These specialized venting materials are designed to handle the high temperatures and corrosive gases produced during the water heating process.
It’s important to note that the higher upfront cost of installing a tankless water heater is often offset by the energy savings and longer lifespan of these units. Tankless water heaters are more energy-efficient, as they only heat water when it is needed, resulting in potentially significant savings on utility bills.
Additionally, tankless water heaters have a longer lifespan compared to traditional water heaters, which may require replacement more frequently.
If you’re considering installing a tankless water heater, it’s essential to consult with a professional plumber who can assess your specific needs and provide accurate cost estimates. Keep in mind that while the initial installation cost may be higher, the long-term benefits of a tankless water heater may make it a worthwhile investment.
Professional Installation Is Recommended
When it comes to installing a tankless water heater, it is highly recommended to hire a professional. While the initial cost of professional installation may seem expensive, it is worth the investment for several reasons.
– Gas line may need to be upgraded to support higher BTUs
One of the reasons why professional installation is necessary is because the gas line may need to be upgraded to support the higher BTUs (British Thermal Units) required by tankless water heaters. A professional plumber or technician will have the expertise to determine if your existing gas line can handle the increased demand.
If an upgrade is needed, they can ensure it is done safely and in compliance with local building codes.
– Electrical panel may need upgrade for electric models
For electric tankless water heaters, the electrical panel may need to be upgraded to accommodate the higher power requirements. This is another area where professional installation is crucial. A licensed electrician can assess your electrical system and make any necessary upgrades to ensure safe and efficient operation of the tankless water heater.
– Proper venting and condensate drain lines require expertise
Proper venting and condensate drain lines are also essential for tankless water heaters. These systems remove exhaust gases and condensation from the unit. Improper installation can lead to ventilation issues, including the risk of carbon monoxide buildup.
Professional installers have the knowledge and experience to properly size and install the venting and condensate drain lines, ensuring safe operation of the tankless water heater.
It’s important to remember that tankless water heaters are complex systems that require precise installation to function correctly. While it may be tempting to attempt a DIY installation to save money, the risks associated with improper installation far outweigh the potential cost savings.
Investing in professional installation not only ensures your safety but also maximizes the efficiency and longevity of your tankless water heater.
Higher Upfront Costs but Potential Savings Long Term
Installing a tankless water heater may come with a higher upfront cost compared to traditional tank water heaters. However, the potential savings in the long run make it a worthwhile investment for many homeowners.
– Higher initial purchase price than tank water heater
One of the main reasons why tankless water heater installation can be expensive is the higher initial purchase price. Tankless water heaters typically cost more than traditional tank water heaters. The advanced technology and energy-efficient features of tankless units contribute to their higher price tag.
According to ENERGY STAR, the average cost of a tankless water heater can range from $500 to $4,500, depending on the model and brand. In comparison, traditional tank water heaters typically range from $300 to $1,500.
– Installation costs can be $1,000 – $4,000+
In addition to the higher purchase price, the installation costs of tankless water heaters can also contribute to the overall expense. The installation process for tankless units requires professional expertise and may involve additional expenses such as venting, electrical upgrades, and plumbing modifications.
The average cost of installing a tankless water heater can range from $1,000 to $4,000 or more, depending on factors such as the complexity of the installation, location, and any necessary upgrades. It is essential to hire a licensed and experienced plumber to ensure proper installation and to avoid any potential issues down the line.
– But saves on energy bills and lasts longer (15-20 years)
Despite the higher upfront and installation costs, tankless water heaters offer significant advantages that can lead to long-term savings. One of the main benefits is their energy efficiency. Tankless units only heat water when it is needed, eliminating the standby energy losses associated with traditional tank water heaters.
According to the U.S. Department of Energy, tankless water heaters can be up to 34% more energy-efficient than their tank counterparts. This increased efficiency can result in substantial savings on monthly energy bills over time.
Furthermore, tankless water heaters have a longer lifespan compared to traditional tank water heaters. While traditional tanks typically last around 10-15 years, tankless units can last between 15-20 years with proper maintenance.
This extended lifespan further contributes to the long-term cost-effectiveness of tankless water heaters.
Conclusion
While tankless water heaters come at a higher upfront investment, they can save money over time through energy efficiency and their long lifespan without needing replacement. Weigh the higher installation costs against the potential long-term savings to decide if a tankless heater is right for your home.
