Tankless Water Heater Installation
Service Overview
Tank-less water heaters (also known as on demand water heaters) heat water directly without the use of a storage tank. Upgrading your water heater system to a tankless, on demand system offers numerous advantages and benefits. Tankless units are 24 to 34 percent more energy efficient than conventional hot water heaters and they can last for 20 years or more, near twice that of water heater tanks. Tankless water heaters also feature a compact, space-saving, wall-mounted design.
Although the initial cost of a tankless water heater installation is greater than installation of a water heater tank, lower operating and energy costs are likely to offset the higher purchase price. ENERGY STAR® estimates that a typical family can save $100 or more per year with an ENERGY STAR qualified tankless water heater. You may also qualify for incentives offered by your local utility company! For additional details on the cost of having a tankless water heater installed, visit our cost guide.
Typically, tankless water heaters provide hot water at a rate of 2 to 5 gallons (7.6 to 15.2 liters) per minute. Gas tankless water heaters usually produce higher flow rates than electric models. By heating only the water you’re actually using, these units can provide energy and cost savings over time.
Advantages of a Tankless Water Heater
Proper installation and maintenance of your tankless water heater will optimize its energy efficiency over the years. Some of the other benefits to going tankless are:
– Lower operational costs
– Eligibility for state tax credits
PLAN AND DETAILS
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POPULAR QUESTIONS
Tank-less water heaters heat water to a digitally preset temperature when your demand for hot water passes either a gas burner or electric element. Unlike conventional tank-style units which heat water 24/7, a tank-less water heater only heats water on demand, making it more energy efficient.
Tankless water heaters have lower operating costs, occupy less space and can reduce energy consumption by 30-40% as compared to tank-based units. However, tankless water heater installation does require more of an upfront investment, may need venting and isn’t ideal for heavy usage.
In general, purchasing and installing a thank-less water heater costs about 2 to 2.5 times as much as a standard water heater because of the higher production costs of the unit, venting, and resizing the gas line and gas meter required to support the unit’s demand. However, once your tank-less water heater is installed, you’ll have lower operating costs, more usable square footage, and may be eligible for federal or local tax credits and incentives.
Test results have shown that a tank-less gas water heater costs about 30% less to operate than an electric tank-style water heater and 20-30% less than a natural gas tank-style water heater. Keep in mind, there’s no guarantee you will achieve these exact cost savings as many factors go into the efficiency of water heaters, including your usage and behavior. Tank-less water heaters do carry a much higher Energy Factor, meaning a larger percentage of the energy you use will be directly transferred to heating your water. A tank-less water heater has no standing pilot light, no standby loss or burners that modulate to maintain maximum efficiency.
As long as your tank-less water heater has enough combustion air, it can be installed in a utility room, garage, basement, attic or placed on an outside wall. It can also be installed in a location where a tank-based water heater may not fit, such as a bedroom or bathroom. The digital temperature controller can be mounted in any room.
water heater installation cost guide
Tankless Water Heater
New Tankless Water Heater and Installation Costs
Average Total: $2,979
Nationwide costs generally fall within the range of $2,044 to $5,898. Our overall estimate includes the following:
• Tankless water heater.
• Permits.
• Installation materials.
• Installation labor by a local, licensed and insured plumber.
• Removal of the old unit.
How Different Features Impact the Cost
The price of a traditional water heater depends largely on its size, as a bigger unit will typically cost more. Units with increased energy efficiency and upgraded features, like hybrid models, may also raise the unit’s price. However, government rebates may be available to help lower the price of a more energy efficient unit. If additional upgrades are required to create space for the new unit and bring the installation up to code, the overall installation cost will increase.
Energy Efficiency and Money Saving
ENERGY STAR™ certified models are available for water heater tanks. While tankless water heaters typically cost more upfront, these energy efficient units help lower utility costs and government rebates are often available for high-efficiency units.
Tank Water Heater
New Water Heater Tank and Installation Costs
Average Total: $1,308
Nationwide costs generally fall within the range of $952 to $2,098. This estimate includes the following components:
• Basic tank water heater
• Permits
• Installation materials
• Installation labor by a local, licensed and insured plumber
• Removal of the old unit
Cunano Builders offers same-day installation at no extra charge.
Factors that Impact the Cost
The price to install a new water heater will likely be higher if you change fuel sources or switch from a water heater tank to a tankless unit. To lower these additional charges, our trusted professionals will discuss your options and recommend installing your new tankless unit near existing water and fuel sources. This will facilitate ventilation and reduce the amount of extra labor needed. There are a variety of other features that affect the total cost: • The cost of the permit • The amount of work required to bring your plumbing connections up to code • The size of your new water heater (measured in gallons) • The length of the warranty • Energy efficient certification and other special features on the new unit Other upfront costs may also be accrued for a tankless model with elite features and a higher efficiency grade. Gas heaters are also historically less expensive than electric heaters to run.
Energy Efficiency and Money Saving
Installing a tankless water heater is a greater upfront investment, but these units can significantly cut the cost of monthly utilities. The U.S. Department of Energy estimates that in homes using 41 gallons or less of hot water, on-demand tankless units can conserve between 24% to 34% more energy than tank water heaters.
Other considerations
Gas vs. Electric Costs
Homeowners often ask if a gas water heater or an electric unit is more cost-efficient. The answer depends on your home. While gas models are less expensive to operate, they do require an existing natural gas line. The price tag of an electric water heater is usually lower, but it can be more costly to operate. Electric varieties are also easier to install, and unlike gas units, they are less likely to lose heat.
Warranties
Both tank and thankless units come with a manufacturer’s warranty. If you would like to extend this coverage.
Permits
Permits are required by most regions in the United States to install a new water heater. Please contact the governing department of your town or city before installation to ensure your paperwork is in order.