What Is The Cost To Install A Tankless Water Heater?

If you’re tired of running out of hot water for showers, a tankless water heater could be the answer. These compact and highly efficient units heat water as you need it, and they’re becoming increasingly popular in homes throughout the nation.

A tankless water heater can be a good investment for many homeowners as it presents the opportunity to save money in the long run when installed and connected properly, despite having a higher upfront cost. Here is a closer look at the costs involved in installing and using a tankless water heater.

How Much Does Tankless Water Heater Installation Cost?

It is best to hire a professional, such as a plumber, to install a tankless water heater. Some charge an hourly fee, while others work on a flat fee basis.

According to HomeAdvisor, the average hourly rate for having a plumber install this type of water heater is between $45 and $150 per hour, while the average final labor total is between $100 and $450.

It is also important to factor in the cost of the accessories that are used for installing these heaters. Some of the accessories that are typically needed are:

  • A gas connector kit ($40 to $100)
  • Fittings and mounting hardware ($10 to $30)
  • Piping and insulation ($10 per foot)
  • Lead-free brass valve set ($60 to $100)
  • Termination vent kit ($40 to $100)

Some of the other fees you might need to pay include charges for the removal and disposal of your existing heating system, additional insulation, electrical updates and any structural modifications that are needed in the home to accommodate the new unit.

Single-Point Versus Whole-House Systems

There are two main types of tankless water systems. A single-point system is placed specifically for an individual appliance or faucet that needs it. These cost between $100 and $300 each and are fairly easy to install.

Because water only needs to travel a short distance, less of it goes to waste, which means these units are more efficient than those that heat water for the entire house. They are considered a good choice for homes that have multiple bathrooms and appliances because they are able to operate independently of one another.

However, an average-sized home that experiences typical usage throughout the day can get by with a single whole-house unit. When it comes to whole-house units, there are a few choices. A natural gas unit or a propane unit can cost between $1000 and $1500 to install.

An electric tankless water heater, meanwhile, is significantly less expensive, coming in at around $800 to $1500 to install. Because there is no need to vent, the insulation work involved is less complicated. These models are also easier to maintain and produce high energy ratings.

Are Tankless Water Heaters Worth The Expense?

Given their higher installation cost, you may be wondering if tankless heaters are worth the expense. Here is a brief rundown of some of their advantages.

Quick Heating

The water in a tankless unit is heated extremely quickly, and these units can produce hot water continuously in accordance with your family’s needs. This means that they are very efficient.

Resale Value

Many people who are buying homes look for modern appliances like tankless units, and having a system that is capable of running multiple units at once and delivering continuous hot water throughout the home is valued by many buyers.


A tankless water heater can last for around two decades when cared for properly, giving you enough time to realize their long-term energy savings.

Smaller Size

A tankless unit is relatively small, which means that it can be installed in places where conventional tanks will not fit. The average size of a tankless water heater is 28 inches tall, 10 inches deep and 20 inches wide.

Energy Savings

Tankless water heaters offer superior energy savings compared to traditional ones. HomeAdvisor estimates that the savings may amount to between $80 and $100 per year. Moreover, since water heating is typically responsible for roughly 30 percent of a home’s energy bills, tankless units can cut costs significantly.

Can You Save Money By Installing It Yourself?

Homeowners are advised not to attempt to install tankless units on their own because it may require new gas lines, piping, fittings, or wiring, and it might also be necessary to modify the drywall. This work should be carried out by a qualified professional who understands potential dangers such as carbon monoxide emissions.

An experienced plumber can ensure that your tankless heater is installed correctly and meets all of the permit and code requirements. They can also advise you on the best unit for your home’s needs.

Talk To The Water Heater Specialists

Get in touch with Baumbach Plumbing & Remodeling for all of your hot water and plumbing-related needs in the Northern Virginia area. Our experienced plumbers can help you determine the best tankless heater for your home, and we offer affordable, professional installation services.

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