Tankless water heaters cost 76% to 103% more upfront than traditional tank models, with total installed costs ranging from $1,400 to $6,500 depending on the system. However, their superior energy efficiency and longer lifespan can save you $150 to $200 annually on energy bills.
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.
The Noritz Easy Series NG Tankless Water Heater is a high-efficiency solution built to directly replace traditional 40-gallon natural gas storage tanks. Delivering continuous hot water on demand, this condensing tankless unit eliminates the limitations of tank capacity while reducing energy costs.
Natural gas is usually the cheapest way. Even with higher gas prices, a heating system fueled by natural gas is typically less than electricity, propane, or heating oil. Energy efficiency is another way to assess the cost of a heating system. An energy-efficient heating system saves you money on your heating bill.
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 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.
Yes, a tankless water heater can fill a bathtub. Because tankless systems heat water on demand, they provide a continuous stream of hot water, which prevents you from running out halfway through filling a large soaking tub.
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.
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.
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.
A propane tankless water heater typically uses 1 to 3 gallons of propane per day, which translates to about 30 to 90 gallons per month for an average household.
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.
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.
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.
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.
Even gas tankless heaters rely on electronic components such as control boards and ignition systems, so they stop working when power is lost. A tankless water heater battery backup provides the small amount of electricity needed to keep the system running, helping maintain hot water during short outages.
Families with 7-8 GPM units consistently run two showers simultaneously without any temperature fluctuation. Those with 9-10 GPM capacity comfortably handle three showers at once. The endless hot water feature means teenagers can take long showers without depleting the supply for everyone else.
A Cinderella tub is a vintage, space-saving corner bathtub popular from the 1930s to the 1950s. It is designed to fit diagonally into a corner, featuring a wide, rounded front and built-in seating on the sides. These cast-iron, often colorful (pink, blue, yellow) tubs maximize functionality in small bathrooms.
Use a Water Heater to Make Radiant Floor Heat Instead of a Boiler. Many people use a water heater instead of a boiler for radiant floor heat because it COSTS LESS. A hot water heater saves money when used in this way.
The "cold water sandwich" — a burst of cold water between uses — is a physics issue, not a malfunction. A small buffer tank or recirculation pump eliminates it. Flush the unit annually; mineral buildup is the #1 cause of actual performance loss.
Impact of Cold Weather on Tankless Water Heaters
Poorly insulated pipes and units are particularly at risk of freezing, which can damage the entire system, including critical components like the heat exchanger.
4 Ways to Reduce Cold Water Sandwich