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Tankless Water Heater Installation Costs In 2024 (with Pictures)

installing tankless water heater

installing tankless water heater

Tankless water heaters are considered a more energy-efficient alternative to a traditional water heater because they heat or warm water as it is required. Over time, the tankless water heater pays for itself, but it does cost more initially.

Your heating bills will be reduced along with the cost of maintenance and other running costs, and after a few years of use, this will more than makeup for the initial cost while also minimizing your impact on the environment. Twatehe physical advantage of the tankless heater is that there is no tank, so the system takes up much less space than a traditional system, and it is suitable even in restricted bathrooms and small apartments.

It is estimated that a tankless water heater will save you up to 30% of the monthly cost of your hot water. However, you cannot overlook the increased initial costs. Including the cost of the system itself and its installation, a traditional system costs an estimated $1,500. A tankless system will cost an average of $3,500. The difference is substantial, and breaks down as follows:

Tankless Water Heater Purchase

The water heater system itself includes the boiler, the tank, and any other required equipment. Your plumber or installation service may need to buy additional items and accessories, in some cases, but these costs will be consistent regardless of the type of system that you buy.

  • Electric tankless heaters are very energy efficient. They use more than 98% of the power that is supplied to the heater, which compares favorably to natural gas and solar units. These are also the cheapest to buy, costing between $500 and $1,200. However, if you are replacing a tank system, you may have to have the house’s electricity supply and system upgraded. This upgrade can cost $1,000 and will necessitate that you have a professional electrician complete the job for you. Your heater warranty may be invalid if you do not use a professional installer.
  • Gas heaters, which can be natural gas or propane according to your requirements, cost between $1,000 and $1,500. This may require the improvement of your gas supply and an increase in the diameter of the pipe between the meter and the house. This can cost several hundred dollars and, once again, requires the use of a professional to ensure that the work is completed properly.
  • Solar heaters are another option. These convert heat from UV rays to power, which can then be stored in a battery unit, and the power used to heat the water when you turn the faucet or an appliance demands hot water. These systems are the most expensive, costing between $1,500 and $5,000. However, they attract the lowest monthly bills, although you may have to top up during some months. It may also be possible to get a grant or some kind of rebate to help with the installation and running costs of this kind of system
tankless water heater
Image By: Narah, Shutterstock

Single Point Systems

The prices above relate to whole-house systems. They connect to your mains water supply, and when you turn a faucet in any room, or a plumbed appliance tries to draw hot water from anywhere in the property, the water is heated via the tankless heater and then supplied to that outlet. A single-point system, on the other hand, is attached to a single appliance or tap.

If you have multiple bathrooms and find that you are running out of hot water by the end of the day, installing one of these boilers in one bathroom could resolve the issue. Single point systems are smaller and less complex, so they only cost approximately $200 each.

Additional Parts And Accessories

Simply buying the boiler isn’t enough, unless you are replacing one boiler with another identical type. Otherwise, you will need to buy parts like a gas connector kit, termination vent, and insulation and piping. The costs of these parts will vary according to the size of your home, the type of heater, and the complexity of the system that is being installed, but will usually vary between $100 and $300.

You may have to pay for the removal of your old heating system. At the very least, ensure that this cost is included in the quote that you receive. It can be expensive to have a water heating system removed, especially if you have converted from a traditional system with a large tank. This may account for $200 of the price.

tankless water heater in the wall
Image Credit: Volodymyr Shtun, Shutterstock

Installation Costs

Installation costs vary dramatically according to the complexity of the job. If it is a straight swap, replacing a heater on a like-for-like basis, it may only take a couple of hours and cost $200. If you are upgrading from a traditional system with a tank, to a tankless water system, and you need to make changes to your gas or electric supply, installation can take days and cost $1,000 or more.

You should always try to get a fixed quote before the job starts and ensure that it includes any additional work that has not been quoted. This may not be possible, especially if the installer finds anything unforeseen once they remove the old boiler. Not all quotes include a contingency but, at the very least, you will want to ensure that your quote is itemized and highlights what additional costs will be incurred, if any.

Tankless Water Heater Installation Costs

The tankless water heater is considered a more energy-efficient and convenient alternative to the traditional heater. It supplies hot water on demand, can cost 30% less to run over the year, and it provides hot water throughout the day, no matter how much hot water you’ve already drawn.

Available in gas, electric, or solar-powered models, you can even buy tankless heaters that connect to and feed a single tap or appliance. Although costs really do vary dramatically, you can expect to pay $1,500 for a simple installation of an inexpensive electric heater, $3,000 for a gas system, and $5,000 for a solar system with costs rising for more intensive water requirements and larger properties with more complex needs.

Featured Image Credit: Jaral Lertjamekorn, Shutterstock


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