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How much does a tankless water heater installation cost? 

This is a question homeowners ask themselves when considering switching from their traditional storage tank to a more modern and more efficient tankless water heater.

If you’re tired of your high water bills and are ready to take the plunge on a new tankless water heater, here’s a cost guide to help you with your purchasing decisions!

Tankless Water Heater Cost As of 2023

tankless water heater

A unit of a tankless water heater costs around $500 to $2000 depending on the brand and its features. If you add installation costs, it would have an additional cost of $500 to $1,500 depending on how large your tankless system is. 

Speaking of larger units, there might be cases wherein you need to consult an electrician to make some rewiring installations inside your house. That would cost about $50 to $100 depending on the complexity of the installation.

[Related: What Size of Water Heater Do I Need for My Home?]

Common Fuel Sources for Tankless Water Heaters and Costs of Installation

tankless water heating system

In a report by the U.S. Environmental Protection Agency, a tankless water heater can save you up to 34% on energy costs each year compared with a traditional tank water heater and that’s based on average usage!

So, we have gathered the most common tankless water heater types depending on the fuel source. There are different options that you can choose from depending on the costs and a few other factors. 

Take a look at the different types of tankless water heaters that you can install at your homes:

Natural gas tankless water heaters

A natural gas tankless water heater is a small, energy-efficient appliance that heats water on demand. It’s more expensive than a traditional tank heater, but it can save you money in the long run because it requires less energy to run.

Cost for Installation: $750–$2000

Electric Tankless Water Heaters

An electric tankless water heater is a great option for people who don’t have access to natural gas lines or prefer not to use them. They’re also useful for homes that use a lot of water and need a quick, efficient way to heat it.

Usually, an electric tankless water heater would require you to connect them directly to your home’s electrical supply, while others can be hardwired into your home’s wiring system.

As opposed to tank-type heaters which use up a lot of energy while heating up the water in their storage tanks, electric tankless heaters only use energy when they’re actually heating the water that’s going into your home.

Cost for Installation: $500 to $1500

[Related: How Does a Tankless Water Heater Work? (Pros and Cons)]

Solar-powered Tankless Water Heaters

Solar-powered tankless water heaters are a great option to go green. They use a lot less energy than traditional water heaters, and they’re very easy to install.

These kinds of heaters have been around for a while now and became popular in the last few years as more people have gotten into using solar power.

The way these systems work is that they use energy from the sun to heat up water without storing it first in a tank. This means that you don’t have to rely on electricity at all; instead, you can use the sun’s energy to do all the work for you!

Cost for Installation: $1500–$4000

Propane Fuel

Propane tankless water heaters are a great option if you’re looking for a high-efficiency tankless water heater. These units utilize the energy that is normally lost when water flows through the pipes of your home, and they can save you money by using less energy than other types of tankless water heaters.

Additionally, since this type of tankless unit is compatible with propane gas tanks, you can easily get propane into your house and your tankless water heater. You can find propane tanks at hardware stores and other retailers near you.

As an added benefit, propane fuel tankless water heaters are also very easy to install—you don’t need any special tools or expertise

Cost for Installation: $500–$2000

Tankless Water Heater Cost Factors to Consider

Professional Tankless Water Heater Installation Cost

Aside from the unit brand and labor costs, there are also other factors that you must consider if you are calculating the whole installation costs of your tankless hot water heaters:

Get Professional Help to Install Your Tankless Water Heater

It is always best to consult seasoned plumbing professionals to install any new equipment for your home. At Stellar Plumbing, we have over 20 years of experience in plumbing services, and we are more than happy to assist you with installing your tankless hot water heater! Give us a call today.