The Home Depot offers traditional water heater tanks and modern tankless units, both powered by either gas or electricity. Depending on your selection, the average cost for standard tank installation is generally between $1,600 to $2,400. Tankless installation can range from $2,400 to $5,400.
Electric Tankless Water Heater Installation Cost
It typically costs about $1,000 to $1,500 to install an electric tankless water heater.
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.
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.
You must be 65 or older by the end of the tax year to qualify for the senior tax deduction, include your Social Security number on your tax return, and meet the income limits. You can claim the $6,000 senior tax deduction if you itemize your tax deductions, or if you choose to take the standard deduction.
The 10 Most Overlooked Tax Deductions
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.
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.
Insulate your tankless water heater pipes to prevent freezing and bursts. When plumbing guides talk about “insulating your tankless”, they mean the pipes going to and from your unit. They're as susceptible to freezing and bursting as any other pipes in your plumbing system.
The Home Depot offers traditional water heater tanks and modern tankless units, both powered by either gas or electricity. Depending on your selection, the average cost for standard tank installation is generally between $1,600 to $2,400. Tankless installation can range from $2,400 to $5,400.
For example, an electric heat pump water heater typically is more energy efficient than an electric conventional storage water heater.
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.
Tankless Water Heater: 4 to 10 Hours
Tankless installations are the most variable. A like-for-like replacement of an existing tankless unit can be done in 3 to 4 hours. Converting from a tank to tankless is a full-day project. The conversion requires several infrastructure changes.
Here are some common reasons why your tankless water heater might not be working and how you can troubleshoot these problems.
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 possible, install your outdoor tankless water heater where it will be sheltered from wind, or build an enclosure that blocks the wind. Install a pipe cover to conceal and protect the gas, water and power connections. Insulate pipes to keep freezing temps from reaching water lines.
Tankless water heaters might produce cold water due to low water flow, mineral deposits, incorrect installation, or insufficient system capacity. Addressing these issues through regular maintenance, professional repairs, or system replacement can ensure a steady hot water supply.
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.
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.
Tankless water heaters come with a limited flow rate, meaning they might struggle to provide hot water simultaneously to multiple appliances or fixtures. If your household comprises several individuals taking showers or running appliances concurrently, you may need to invest in a larger unit.
Broadly, heat pumps are the most efficient form of heating. They can be more expensive than a furnace, especially if you purchase a geothermal heat pump. However, geothermal heat pumps are one of the cleanest heating options on the market. A geothermal heat pump can produce 1/6th the CO2 of a natural gas furnace.
At Mother, we encounter leaky tankless units all the time. Most are caused by the exact same issues that create leaks in conventional water heaters- mineral scaling from hard water, high water pressure issues, and problems with your pressure relief valve (PRV).