Can I replace my 50 gallon water heater with a tankless water heater?

Author: Miss Cathy Lynch  |  Last update: Tuesday, June 23, 2026

A 50-gallon water heater should be replaced with a tankless system with a 10 GPM flow rate just to be safe. Selecting the right flow rate ensures you won't experience cold showers or excessive energy costs. Proper sizing optimizes performance, providing hot water on demand without unnecessary waste.

What size tankless water heater replaces a 50-gallon?

Replacing a 50-gallon storage tank: If you're replacing a 50-gallon storage tank, you'll want to make sure your new tankless water heater can handle the same demand. For most homes, a tankless water heater with a flow rate of 10 GPM should be sufficient.

What is the downside of a tankless water heater?

Before you commit to buying a tankless water heater, the primary drawbacks to know include: Higher upfront costs. Tankless water heaters are, on average, quite a bit more expensive to buy and install than tank water heaters. Access to fuel.

How much does it cost to switch from a water heater to a tankless water heater?

Tankless units are more expensive. An electric tankless unit will cost about $500 to $700, roughly the same as a traditional tank model, while the cost of a gas tankless heater runs about $1,000 to $1,200. Beyond the initial cost, the national average for the installation of a tankless unit is slightly over $1,700.

Can a regular water heater be replaced with a tankless water heater?

No, of course not. You could however usually replace one with a tankless water heater if you really wanted to. You would likely have to increase the gas line size and possibly replace the vent system.

How Much To Install a Tankless Water Heater?

Can a tankless water heater replace a 50 gallon water heater?

A 50-gallon water heater should be replaced with a tankless system with a 10 GPM flow rate just to be safe. Selecting the right flow rate ensures you won't experience cold showers or excessive energy costs. Proper sizing optimizes performance, providing hot water on demand without unnecessary waste.

Is it worth converting to a tankless water heater?

Even for homes with high water usage, up to 85 gallons per day, tankless water heaters can offer up to 14% energy efficiency savings. However, while they offer energy savings, the higher upfront costs and installation expenses can result in a long payback period, ranging from 12 to 27 years.

How hard is it to replace hot water heater with tankless?

Tankless water heater replacement is a complex process that involves the skills of a highly trained technician. Unless you are experienced and comfortable enough to solder pipe, make gas connections and follow local codes, hire a licensed professional.

What is the average labor cost to install a 50 gallon gas water heater?

In general, plumbers cost $45 to $200 per hour, while electricians cost $50 to $100 per hour. Expect the following average price ranges for labor alone: Replacing a tank-style water heater: $150–$450. Replacing a tankless water heater: $600–$1,850.

How much does your electric bill go up with a tankless water heater?

How Much Electricity Does a Tankless Water Heater Use? Many people wonder if tankless water heaters increase electric bills. The answer is no — tankless water heaters can save money on your monthly electric bill because they're 8%-34% more efficient than storage water heaters.

Why do people not like tankless water heaters?

Additional Installation Costs

Tankless water heaters are much more complex than traditional hot water tanks. As a result, they require professional installation. If you're switching from a hot water tank to a tankless unit, you will likely need your gas lines rerouted, as well as a larger gas supply line.

Is there an IRS tax credit for a tankless water heater?

The federal tax credit for tankless water heaters can lead to significant savings for homeowners. Eligible tankless gas water heaters must have an ENERGY STAR certification and a UEF of greater than 0.95. Homeowners can claim up to $3,200 in tax credits for eligible home improvements in a single year.

When not to get a tankless water heater?

Electric Tankless Water Heaters

They're less expensive than gas-powered ones but aren't efficient if you run multiple hot water devices. They may struggle to keep up with multiple appliances at the same time.

Who makes the best tankless water heater?

Top Tankless Water Heater Brands in 2025
  • Noritz.
  • Navien.
  • Rinnai.
  • Takagi.
  • Rheem.

Can you buy too big of a tankless water heater?

One clear sign of an oversized tankless water heater is inconsistent water temperature. When the unit is too large, it struggles to modulate the heat output effectively, leading to erratic temperature fluctuation during usage. The oversized unit will heat water quickly and may overshoot the target.

Does Home Depot install water heaters?

The Home Depot partners with local, licensed and insured professionals to help homeowners choose the right water heater for their home. If you live within 30 miles of a Home Depot store and call us before noon at 1-800-HOME-DEPOT, our team offers same-day installation.

How much does Lowe's charge to install a water heater?

The price depends on whether you want an electric or gas water heater. The basic installation fee at Lowe's is around $320. But, before the contractor can set up the heater, they'll need to come to your home to check the conditions and determine the best location for it. This inspection will cost you an additional $34.

How long does it take to replace a 50 gallon water heater?

If there are no issues or complications, a licensed plumber should be able to complete the process in 2-3 hours.

Do you need a plumber to install a tankless water heater?

So if you don't feel fully prepared with your plumbing and electrical skills, it's best to hire a licensed professional — in some locations, this is required. And make sure to follow local electrical and plumbing codes for installing and sourcing parts.

Can you switch from water heater to tankless water heater?

Switching from a traditional tank water heater to a tankless heater has its benefits, like energy efficiency, space savings, and a consistent supply of hot water. However, the transition comes with a higher upfront cost and potential challenges.

What is one disadvantage of a whole house tankless water heater?

More expensive installation and maintenance.

Tankless systems require special venting, rerouted gas lines, possibly multiple units for a larger household, and sometimes maintenance like installing a softener.

What size tankless water heater to replace a 50 gallon?

As a general guideline, for households in northern regions with colder groundwater temperatures, a tankless water heater with a flow rate of around 10 gallons per minute (GPM) is recommended. This higher flow rate ensures an ample supply of hot water for multiple appliances running simultaneously.

Can I replace my 40 gallon water heater with a tankless water heater?

Absolutely! In fact, tankless water heaters are becoming the standard for new home construction because of the energy efficiency.

Where should a tankless water heater not be installed?

Keep your water heater away from outside elements

If your tankless heater is exposed to extremes weather conditions, it will run a greater risk of premature failure. So, make sure your appliance is away from doors and windows, and never installed in the garage or basement.

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