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How A lot Does Tankless Water Heater Set up Price? (2023 Information)

Tankless water heaters, often known as demand-type or immediate water heaters, solely present scorching water once you want it. Because the title suggests, they don’t have a tank that always retains a number of gallons of water scorching. As an alternative, they shortly warmth water once you flip the tap on, to allow them to present a continuing stream of scorching water (until you flip a number of taps and showers on on the identical time). However should you set up the proper measurement and variety of tankless water heaters, you possibly can sidestep these pesky scorching water points altogether.

So, how do you determine how a lot a tankless water heater set up will value? We did the onerous half for you, utilizing our intensive expertise and top-notch analysis abilities to compile a useful information that walks you thru what to anticipate.

Want a quote for tankless water heater set up now? Get a quote from native professionals by clicking the software under.


  • Most owners pay round $3,000 for a tankless water heater set up.
  • Prices are extremely depending on components particular to your situation, together with the gasoline sort, model, labor prices, and set up problem.
  • Whilst you can set up a tankless water heater your self, it’s often finest to depart this mission to the professionals.

Watch this video about tankless water heaters to study why they are often an environment friendly possibility to your residence.

How A lot Does Tankless Water Heater Set up Price?

The price of a tankless water heater set up hinges on a number of components, together with the scale you select, the kind of gasoline your water heater makes use of, and the model. On common, most owners pay round $3,000 for a tankless water heater set up. Nonetheless, prices might dip to round $1,000 or rise as excessive as $5,500 based mostly on components particular to your set up.

Low Common Excessive
$1,000 $3,000 $5,500

How A lot Do Tankless Water Heaters Price Based mostly on Measurement?

Tankless water heaters range in value relying on measurement (the circulation charge measured in gallons per minute or GPM) and ‌if they’re point-of-use or whole-home items. They’ll value as little as $150 for a 1–2 GPM unit and as excessive as $2,000 for an 8-plus GPM unit.

Sort/Measurement Price
Complete residence $500 to $2,000
Level of use $150 to $500
1 – 2 GPM $150 to $250
2 – 3 GPM $200 to $650
3 – 4 GPM $300 to $750
5 – 6 GPM $400 to $900
7– 8 GPM $500 to $1000
8 GPM and up $900+

How Does Tankless Water Heater Set up Price Differ By Gas Sort?

The price of your tankless water heater varies based mostly on the kind of gasoline powering it. The chart under critiques the nationwide common prices for every gasoline supply sort.

Gas Sort Price
Electrical $500 – $1,500
Pure gasoline $750 – $2,000
Oil $1,000 – $3,000
Propane $500 – $2,000
Photo voltaic $1,500 – $4,000


An electrical tankless water heater is the most well-liked of the bunch, because it’s the best to put in and keep. Due to this, electrical fashions are typically one of many extra inexpensive choices, making them standard for householders on a price range. Electrical water heaters value between $500 and $1,000. 

These water heaters are available in smaller sizes, in order that they’re good for smaller houses. Nonetheless, it may be tough to discover a tankless electrical water heater giant sufficient to warmth water for a bigger residence, in order that they’re often not ultimate for houses with 4 or extra bedrooms.

Watch the video under to study extra about electrical water heater choices:

Pure Fuel

A pure gasoline tankless water heater is one other standard possibility. These fashions are pricier total, ratcheting up labor and set up prices in addition to upfront costs. Fuel items typically have a bigger capability than electrical items, making them a perfect selection for householders with bigger houses. Pure gasoline water heaters vary from $750 to $2,000.


Some tankless water heaters make use of a combination of oil and electrical energy to provide scorching water to your residence. The burner makes use of a combination of oil and water, which the system exposes to an electrical spark to ignite it and warmth the water. Oil water heaters usually vary in value from $1,000 to $3,000.

The ignition and heating course of permits these water heaters to supply impressively fast heating occasions. They’re additionally extremely environment friendly and appropriate for houses with larger water demand.


Propane tankless scorching water heaters use propane to supply warmth for elevating the temperature of the water. Some pure gasoline heaters can run utilizing propane, though a converter is usually essential to make the swap. Nonetheless, there are some items designed particularly to run on propane. On common, propane water heaters value $500 to $2,000.

These fashions are notably standard in rural areas the place pure gasoline strains aren’t available.

Photo voltaic

The swap to photo voltaic makes an look on the tankless water heater scene, offering a extra eco-friendly approach to warmth your property’s water. These items have extremely low working prices since they pull energy from the solar, however they’re fairly dear to put in and keep. Photo voltaic water heaters are the most costly possibility, starting from $1,500 to $4,000.

Since they require daylight to function, they’re finest suited to sunny climates.

How Does Model Have an effect on Tankless Water Heater Set up Costs?

Like many merchandise, the model title in your new tankless water heater can dramatically affect the ultimate prices of your mission. Some manufacturers provide extra inexpensive merchandise, which helps lower the quantity in your remaining tankless water heater set up invoice.

At this time’s House owner Suggestions

Tankless water heaters take up much less area than conventional tank items. Nonetheless, some fashions don’t have as a lot capability, so maintain that in thoughts when trying to find a tankless unit.

Nonetheless, tankless water heaters from different, typically extra recognizable, manufacturers characteristic larger worth tags. Since the price of your tankless water heater is a part of the set up worth, the model performs a essential function within the whole worth you pay.

The chart under gives a fast overview of common prices based mostly on the model title.

Model Title Common Price Vary
A.O. Smith $600 to $1,550
Bosch $180 to $2,400
Bradford White $500 to $1,700
EcoSmart $170 to $1,600
Navien $1,000 to $2,000
Noritz $500 to $2,600
Rheem $370 to $2,000
Rinnai $500 to $2,300
Takagi $500 to $2,000
Westinghouse $350 to $2,000

Which Elements Affect Tankless Water Heater Set up Price Estimates?

A number of components except for the scale, gasoline sort and model of your tankless water heater can affect the full in your mission invoice. From labor prices to residence structural modifications, the checklist of essential bills to finish the mission may be intensive.


Labor prices for a plumber to put in your water heater are a significant component contributing to the ultimate value of your property’s tankless water heating system. Labor prices range by the kind of gasoline your tankless water heater runs on, elevating or reducing the ultimate whole in your mission invoice.

For instance, labor value to put in solar-powered tankless water heaters is often considerably greater than that of their normal electrical counterparts. However regardless of the water heater sort, what you’ll pay for labor depends upon the set up problem, ease of entry, and hourly value.

Water heater sort Labor prices
Electrical $150 – $1,000
Pure gasoline $900 – $1,500
Oil $1,200 – $2,000
Propane $900 – $1,500
Photo voltaic $2,000 – $4,000


To put in a tankless water heater you’ll want varied supplies relying on the kind of water heater — for instance, a gasoline connector package for pure gas-powered fashions, which runs between $20 and $40. A termination vent package (to vent gasoline exhaust from your property) often prices between $40 and $100.

Except for the required add-ons, you’ll incur further prices for mounting brackets, fittings, valve units, piping, insulation, and extra. On common, piping and insulation value round $10 per foot, whereas the opposite objects often value $175 or much less.

Condensing vs. Non-Condensing

Most tankless water heaters are both condensing or non-condensing. The previous sort gives higher power financial savings, because it recaptures and makes use of the exhaust warmth in a secondary warmth exchanger. Nonetheless, it tends to be the pricier of the duo.

Non-condensing tankless water heaters use a single warmth exchanger and are much less environment friendly than their condensing counterparts by about 17%.


Your location can play a key function within the remaining value of your tankless water heater set up. For instance, should you resolve to change to a tankless water heater that makes use of solar energy in an space with excessive demand, you’ll probably pay extra for the set up.

Moreover, your location and native residing prices can drive up the price of labor, resulting in larger set up prices total.

Structural Adjustments

In some circumstances, structural modifications to your property are essential to accommodate a brand new tankless system. If it’s essential modify your property for the brand new set up, the full in your invoice will climb. The precise quantity you’ll pay is very variable, because it depends upon the problem of the mission and the kind of renovations essential.

Outdated Heater Elimination

If in case you have an outdated heater that should go, like a tank-style water heater, you’ll incur extra prices for the elimination course of. The accessibility and measurement of the system will decide how costly this a part of the mission might be, however the contractor’s hourly charge might also have an effect on it.

Most owners pay round $500 or extra to take away an outdated water heater setup. Make sure the quote you obtain contains the elimination and disposal of the outdated system.


Some areas require householders to acquire permits earlier than finishing sure residence enchancment tasks or replacements. In some places, permits is likely to be essential to put in a tankless water heater in your house. You may want permits to make essential structural modifications or construct a cupboard across the heater.

In the event you’re not sure whether or not you want permits to your mission, speak to your native constructing authority or your contractor or plumber. The price of the allow will range based mostly in your location and water heater gasoline sort. The allow often prices round a number of hundred {dollars} or much less.

What Are the Advantages of a Tankless Water Heater?

Tankless water heaters have a transparent edge over tank-style conventional water heaters. In the event you’re on the fence a few tankless water heater to your residence, take into account the next advantages, as they might assist you resolve in some way.

Save on Power Payments

Not like their tank-style counterparts, tankless items are extremely power environment friendly. Tank-style water heater methods warmth and reheat water saved within the tank to maintain it always scorching and prepared to be used, which consumes a substantial quantity of power.

On the flip facet, tankless water heaters ship on-demand scorching water to your taps, minimizing the power utilization essential to maintain 40-plus gallons of water scorching. They’ll save as much as a whopping 50% in power prices in comparison with a tank-style water heater.

So, should you’re seeking to reduce whole prices and save essentially the most in your power payments, a tankless water heater is likely to be the proper match.

By no means Run Out of Sizzling Water

One of many key advantages of a tankless water heater is its unending scorching water provide. So long as there’s chilly water flowing into it, you’ll have scorching water in mere minutes. Tankless water heaters produce scorching water on demand, guaranteeing you all the time have water once you want it.

In distinction, a tank-style water heater can run out of scorching water, particularly if a number of individuals bathe without delay or you’ve got a number of hot-water-using home equipment operating. This could develop into a nuisance, particularly once you’re hoping for a toasty bathtub or have friends over.

Take Benefit of Tax Credit

The effectivity of tankless water heaters makes them eligible for varied tax credit. Since they preserve water and save power as a result of their distinctive tankless design, the federal government provides you with a credit score to make use of towards your subsequent tax return.

Whereas this received’t prevent cash upfront, it might probably reduce prices and decrease what you owe in the course of the subsequent tax season.

Save Area in Your Utility Room

Tank water heaters are giant, typically consuming a substantial chunk of area in your storage or utility room. The larger the home, the bigger the water heater. By switching to a tankless water heater, you should use the area left by your tank-style water heater for one thing else. This makes them notably sought out for smaller and cell houses.

Retailer your oodles of vacation decor in that spot, or use it for overflow linens and bedding that appear to eat a lot area. What you do with that area is as much as you, however should you’re already brief on room, scrapping the tank-style water heater may be helpful on a number of fronts.

Go Longer Between Replacements

Tankless water heaters can final significantly longer than their tank-style counterparts. In some circumstances, they will final as a lot as two occasions longer. This interprets to extra financial savings over time, as you received’t want to interchange the system as incessantly.

Since water heaters, with or with out a tank, are costly, this can be a notable perk.

Skilled vs. DIY Tankless Water Heater Set up

Some residence tasks are DIY-friendly, permitting you to save lots of on labor prices by doing the work your self. Whilst you can DIY a tankless water heater set up with the right information and expertise, it’s often finest to depart this mission to the professionals.

Doing Tankless Water Heater Set up Your self

Putting in a tankless water heater by your self is doable, however you’ll have to know the ins and outs of any such mission. In the event you’re an avid DIYer with ample expertise putting in comparable methods, this mission will probably be a breeze for you.

Nonetheless, it’s typically finest to depart this mission to the professionals should you don’t have expertise with tankless water heater installations. These tasks may be harmful if accomplished improperly, probably inflicting explosions or releasing carbon monoxide into the air.

So, whereas it’s potential to DIY the set up, it’s finest to have an expert do it for you.

Hiring a Skilled for Tankless Water Heater Set up

Going the skilled route for tankless water heater installations is often your best option. This manner, you possibly can relaxation assured understanding the unit was put in to code and that it ought to perform fantastically for years to come back.

Plus, you often get essentially the most out of your water heater guarantee when you’ve got an expert set up the system. In some circumstances, DIYing the set up voids your guarantee, leaving you with out protection.

Right here’s the best way to decide an expert to deal with your tankless water heater set up:

  1. Analysis choices in your space: Do a fast web search to seek out native specialists close to you.
  2. Ask neighbors, household, and mates: Ask trusted people in your life about their installer suggestions and add these choices to your pool of decisions.
  3. Receive quotes: Get quotes from a number of highly-rated suppliers in your space.
  4. Evaluate your choices: Use the quotes you get to check your choices to seek out the proper match for you.
  5. Choose a supplier: Choose one of the best supplier to your wants and allow them to know you need to transfer ahead and schedule an set up date.

So, Is Tankless Water Heater Set up Price It?

A tankless water heater may be a superb addition to many houses. It offers on-demand scorching water, effortlessly assembly most calls for. It saves you cash in alternative prices as a result of much less frequent alternative necessities and extra in power financial savings every month in your utility invoice.

Nonetheless, whereas a tankless water heater is likely to be good for some houses, it won’t be one of the best for everybody. Finally, it hinges in your particular person wants and expectations, so use these components to find out one of the best path for you.

In the event you resolve to go together with a tankless water heater, you possibly can count on to pay round $3,000 for set up, though you may pay as a lot as $5,500 or as little as lower than $1,000.

FAQs About Tankless Water Heater Set up

What’s the draw back of a tankless water heater?

Whereas tankless water heaters have considerable advantages, there are a few drawbacks to contemplate. For instance, you’ll pay significantly extra upfront than you’ll for a tank-style water heater. On prime of that, whole-house tankless water heaters might not be capable to sustain with aggressive scorching water calls for (quite a lot of individuals showering and a number of hot-water-using home equipment operating).

Can you put in a tankless water heater your self?

Whilst you can set up a tankless water heater your self, it may be harmful, so it’s finest to depart this mission to the professionals. Plus, you threat voiding your guarantee with a DIY set up, so going the skilled route is finest.

How a lot does tankless water heater set up value?

On common, putting in a tankless water heater prices about $3,000. Nonetheless, it might probably value lower than $1,000 or greater than $5,000 based mostly on components particular to your set up, together with the mission’s problem and labor prices.

Is it value the price to put in a tankless water heater?

The price of a tankless water heater may be fully value it for a lot of householders, particularly those that are dissatisfied with the efficiency of their tank-style water heaters. Nonetheless, the reply to this query finally hinges in your particular person wants.

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