Yes, hiring a licensed professional is highly recommended—and often required. Installing a tankless water heater involves working with high-voltage electricity, complex plumbing, and explosive gas lines. Mistakes can void your warranty, cause gas leaks, or result in severe property damage.
Tankless Water Heater Installation Cost
Nationwide costs generally fall within the range of $2,400 to $5,400. Our overall estimate includes the following: Tankless water heater. Permits.
While technically possible if you have advanced DIY skills, installing a tankless water heater yourself is not recommended for beginners. It involves complex plumbing, specialized electrical work, and dangerous gas fitting.
Installing the Unit: The plumber will carefully connect the tankless heater to the gas line (if using a gas model), water pipes, and electrical supply. He/she will also install the venting system to ensure safe exhaust of combustion gases.
Plumbers often hesitate to recommend tankless water heaters because they act like high-performance sports cars. Unlike traditional tank models that are "workhorses" and can function while mostly ignored, tankless units require precise installation, regular maintenance, and are highly sensitive to mineral buildup.
Home Depot’s total cost for a tankless water heater, including both the unit and standard installation, ranges from $𝟐,𝟒𝟎𝟎 to $𝟓,𝟒𝟎𝟎. Out of this total, labor alone typically accounts for $𝟔𝟎𝟎 to $𝟏,𝟖𝟓𝟎, though complex retrofits can push that labor number higher.
Drawbacks of Tankless Water Heaters
As discussed above, the biggest downside of owning a tankless water heater is its higher cost. The initial installation and unit costs are more expensive than a traditional storage-tank water heater.
For larger households, multiple showers, laundry, and dishwashing may run at the same time. Hot water demand could reach 10–12+ GPM. A high-capacity tankless water heater—or even two units installed in parallel—may be the best solution.
If the project is as simple as replacing an old water heater with a new one, a handyman can likely do it with no trouble. However, converting a gas water heater to an electric one or putting in specific wiring and framing for the water heater will likely require the skill set of a licensed professional.
In freezing temperatures, condensate produced by a condensing tankless hot water heater can freeze inside the drain line, which can cause leakage, operation issues or shutoff. To help keep your indoor tankless water heater from freezing, use a direct vent exhaust & intake system.
A gas tankless water heater (natural gas) is only marginally cheaper to operate than an electric tankless water heater due to the exceptionally high thermal efficiencies of the electric units (99%+).
A 10-minute shower typically uses 12 to 25 gallons of hot water, depending on your showerhead's flow rate and how hot you keep the water.
Gas tankless water heaters installed by December 25, 2025, might qualify for a $600 federal tax credit. The government is offered this 30% credit through December 2025 to help cover the cost of the unit and its installation. This tax credit comes from the 25C Energy Efficient Home Improvement Tax Credit program.
A typical tankless water heater's lifespan often ranges from 15 to 20 years or more with proper care. In many cases, well-maintained systems can reach 25 to 30 years of service. That extended lifespan is one of the strongest considerations for homeowners researching how to choose a tankless water heater.
A tankless water heater usually goes cold mid-shower because the water flow drops below the heater's minimum activation threshold, or the system is overloaded by using too many fixtures at once. It can also happen if sediment blocks the filter or the unit is improperly sized.
Here is a simple way to decide: Choose Navien if you want the highest efficiency, longest warranty, and built-in recirculation. Choose Rinnai if you have a large household and need the highest flow rates. Choose Rheem if you want a reliable brand at a lower price point.
If a standard showerhead is fitted, it will use around an extra half a gallon each minute, accounting for a 25-gallon emittance every 10 minutes, or 50 gallons throughout a 20-minute shower. *1 gallon = 4.54 litres.
Plumbers often hesitate to recommend tankless water heaters because they act like high-performance sports cars. Unlike traditional tank models that are "workhorses" and can function while mostly ignored, tankless units require precise installation, regular maintenance, and are highly sensitive to mineral buildup.
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.
Here are some common reasons why your tankless water heater might not be working and how you can troubleshoot these problems.
Tankless water heater installation costs between $1,404 and $3,899 for your home, depending on unit size and setup. The fuel type you choose shapes your upfront and utility costs, with electric lower-priced and solar earning tax credits.
Yes, tankless water heaters generally increase a home's appeal and marketability, though they rarely trigger a dollar-for-dollar appraisal increase. Instead, they act as a major selling feature, helping properties sell faster while appealing to modern buyers focused on energy efficiency, longevity, and endless hot water.
Stores like Home Depot and Lowe's often include removal when delivering a replacement unit. This is the most convenient option, especially if the old unit is still in place and connected.