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.
Equipment purchase and installation runs $1,200–$3,500 for tankless heaters versus $800–$1,500 for traditional tanks. Tankless models use 24%–34% less energy when households use up to 41 daily gallons, according to ENERGY STAR.
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.
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.
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.
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.
Water heaters with a storage tank have more moving parts than tankless models, so they tend to need more frequent maintenance or repair. Sediment buildup in the tank can cause problems, so you may need to have the tank flushed periodically to remove any accumulated debris.
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.
Converting to a Tankless Water Heater
This process could include working with gas lines, electrical components, and other potentially dangerous steps. We strongly encourage even the most knowledgeable homeowners to trust an HVAC or plumbing technician for a tank-to-tankless conversion.
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.
It's true: tankless water heaters will cut up to 40% off your monthly energy bill. By heating water instantaneously and only when you need it, you and your family members can enjoy continuous, uninterrupted hot water at the same time, along with savings over a conventional tank.
Absolutely! In fact, tankless water heaters are becoming the standard for new home construction because of the energy efficiency. Newer tank water heaters have a UEF (Uniform Energy Factor) rating of 0.70 compared to your standard tankless water heater that has a rating of 0.94.
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.
Keep your water heater away from outside elements
If your tankless heater is exposed to extremes weather conditions, it will run a greater risk of premature failure. So, make sure your appliance is away from doors and windows, and never installed in the garage or basement.
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.
Over time, a tankless water heater may accumulate mineral build up which can erode the walls inside your tank's heating chamber. To properly maintain and clean your tankless water heater, it's important to flush those mineral deposits at least once a year.
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.
Tankless water heaters have several drawbacks and disadvantages, including a higher initial cost, limited flow rate, specialized venting requirements, potential need for additional equipment, limited hot water supply, delayed hot water delivery, mineral buildup and maintenance, complexity of installation, dependence on ...
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.
Installing a tankless water heater typically takes four to five hours, depending on the type of system and a household's needs. The installation process duration also depends on your location and which professionals are available when you need an installation.
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.
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.