A tankless water heater costs $2,622 on average. Depending on size, fuel type, quantity, and on-site issues, you could spend between $1,399 and $3,889. If you've ever experienced a shower without hot water, you know how unpleasant it can feel to hop into an ice-cold shower.
For an electric tankless water heater, the average cost is around $8,850. Replacing a gas tankless water heater costs approximately $4,700, while replacing an electric tankless water heater costs about $4,200. Factors such as fuel type, brand, labor, and home modifications can influence the overall installation cost.
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 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.
The federal tax credit for tankless water heaters in 2024 is an excellent opportunity for homeowners to save money while investing in energy-efficient water heating solutions. This tax credit is effective from January 1, 2023, to December 31, 2032.
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.
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.
Absolutely! In fact, tankless water heaters are becoming the standard for new home construction because of the energy efficiency.
Installing a tankless water heater can require gas line upgrades, electrical modifications, and specialized venting—all of which can increase costs. Professional labor also runs from $500–$1,500 due to complex installation requirements.
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.
While a tankless water heater will deliver an unlimited stream of hot water, they struggle to deliver a lot of hot water at one time. So while you might be able to take 100 showers in a row if you have the dishwasher, washing machine, and shower going at the same time you might have problems.
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.
One of the most common questions asked by consumers about tankless water heaters is how long they will last. A tankless water heater can last anywhere from 15 to 20 years with proper maintenance and operation. In comparison, a standard tank water heater normally has a working life of 10 years or less.
It's important to note that standard homeowners insurance policies typically only cover damage to the structure of your home and personal property. They do not include replacement cost coverage for the heater itself.
Do I need to replace all my home's plumbing if I install a tankless water heater? Rarely is a complete overhaul necessary. However, you may need to upgrade certain sections of your plumbing, particularly those leading into and out of the tankless unit, to ensure proper water flow and volume.
And to keep the hot water flowing, we offer a variety of high-performance water heaters, including electric water heaters, energy-saving tankless water heaters, and the latest smart water heaters. Costco carries a variety of lighting that's perfect for your kitchen, bathroom, dining room, and outdoor living areas.
Installing a tankless water heater typically takes four to five hours, depending on the type of system and a household's needs.
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.
The most complicated and time-consuming tankless water heater maintenance is typically descaling and flushing out the unit. Even with the inline water filter, lime and calcium deposits can build up inside the tankless system. If you have hard water, it's a good idea to descale and flush the unit once a year.
Electric tankless water heaters still save homeowners around $44 per year according to the US Department of Energy. Longer useful lives than storage tank water heaters. Tankless water heaters typically last 20 to 30 years, double the forecasted useful life of a storage tank water heater.
Water Heater Tax Credit Details.
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.
This tax credit is effective for products purchased and installed between January 1, 2023, and December 31, 2032. Claim the credits using the IRS Form 5695 .
Qualifying buyers are limited to individuals with a modified adjusted gross income (MAGI) less than $150K (or $300K for joint filers).