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.
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.
A tankless unit allows you to save on your energy bill (up to 34%) by using less energy. Tankless water heaters can last longer than storage water heaters—sometimes as much as five to ten years longer.
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.
The typical range for tankless heater installation is between $5,400 and $7,400 averaging out to around $6,400 (including the water heater, warranty and tune ups). The tankless installation without the unit can cost between $1800 and $3500, averaging out to around $2650. One of the big variables is labor rates.
Installing a tankless gas water heater is a difficult and sometimes dangerous process. We highly recommend having a licensed professional plumber handle this job. Be sure to follow all local plumbing and electrical codes when sourcing and installing parts for your new 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.
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.
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.
Absolutely! In fact, tankless water heaters are becoming the standard for new home construction because of the energy efficiency.
However, this efficiency does come at a cost. The initial investment for a tankless water heater is typically higher, with prices ranging from $1,000 to $3,000 or even more, depending on brand, size, and specific features.
Installing a tankless water heater typically takes four to five hours, depending on the type of system and a household's needs.
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.
A small (50- to 60-gallon) storage tank is usually sufficient for one to two three people. A medium (80-gallon) storage tank works well for three to four people. A large tank is appropriate for four to six people.
Federal Tax Credit for Energy-Efficient Appliances
As part of this program, the tankless water heater tax credit for 2024 provides homeowners with a financial incentive to upgrade their water heaters to more energy-efficient models.
You can claim 30% of the project cost, up to a $2,000 maximum credit. Heat pump water heaters that have earned the ENERGY STAR are eligible for this credit. You can find a list of ENERGY STAR certified models here.
Tax Credits for Water Heaters
Rebates are available for high efficiency gas fired tankless, gas-fired storage and for heat pump water heaters. Gas-fired tankless with UEF ≥ . 95 are eligible for up to $600 in rebates.
Unlike traditional storage water heaters, tankless units may not be able to meet your home's hot water needs if you have multiple outlets running simultaneously. This is because the flow rate of a tankless unit may not be high enough to support multiple uses of hot water at the same time.
A tankless water heater cannot provide hot water faster than its ability to heat the water. While a tank unit can provide hot water for multiple uses at once, a tankless unit might not be able to support simultaneous usage, such as washing dishes, taking a shower and running a washing machine all at once.
Natural Gas, Propane, and Electric
Natural gas or Propane powered units are likely the best option for most households. Natural gas/propane units are more powerful than electric, and wherever you live, you likely already have a gas line in your home. Additionally, gas is typically less expensive than electric.
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.
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.