How Much Does a Tankless Water Heater Cost?
If you’re looking to purchase a new water heater, a tankless model can be a great option. After all, they tend to have a much longer lifespan than traditional models, and they’re particularly efficient.
But how much will you need to spend on one of these shiny new models? It turns out that many factors will affect your overall price. Learn more about the costs associated with these state-of-the-art water heaters in this guide.
What type of tankless water heater are you looking for?
You’ll find many tankless water heaters on the market, but most fall into two categories. Here’s a closer look at these systems:
Whole house
A whole-house tankless water heater supplies all your faucets and appliances with hot water. Water passes through heat exchangers that warm it up and keep it moving. The device connects to your water line to send the good stuff throughout your house.
These are the most common models because they simply make the most sense. After all, it’s rare to only need hot water for one or two devices. However, there are some drawbacks. If you need to use lots of hot water at one time, these heaters may struggle to keep up.
Point of service
On the other hand, a point-of-service water heater supplies hot water directly to a single appliance or faucet.
These are a great option to supplement an existing whole-house system that isn’t quite up to the job.
They tend to be less expensive, but labor and installation can add up quickly, especially if you need electrical work to install outlets near your appliance.
Labor costs to install a tankless water heater
Depending on your location and the company you hire, labor costs to install your new tankless water heater can easily rack up. You can expect to pay anywhere from $50 to $200 per hour for a knowledgeable technician to install your new device correctly.
In addition to basic installation costs, you’ll need to consider additional hours if you’re changing over from a standard tank to a tankless model. Regular maintenance is also essential to keeping your heater in great condition for decades to come. Tankless heaters require more upkeep than traditional models. This can be complex and may need to be outsourced.
Factors that can affect the cost of a tankless water heater
Many factors will affect your overall costs when installing a tankless water heater. Here are a few things to keep in mind as you shop around:
The type of heater system
If your existing water heater is still kicking but can’t keep up with certain appliances, it might be worth investing in a point-of-source tankless heater. These may only cost a few hundred dollars. In fact, you could end up paying more for installation than for the unit itself.
But if you’re looking for a whole-home solution, you can expect to pay a couple thousand bucks for the unit, plus additional installation fees. Remember, when you take care of them, they can last 20 years or more, and the energy-saving costs may mean it’ll eventually pay for itself.
GPM
The gallons-per-minute (GPM) rating measures your heater’s flow rate or the volume of hot water it can pump out. Homes that require more hot water need a tankless heater that can keep up with demand. Generally, systems with higher GPM ratings are more expensive.
BTUs and heating speed
British Thermal Units (BTUs) measure an appliance’s ability to heat water effectively. It’s based on the starting temperature of your water versus the temperatures you need your water to reach. Fortunately, folks in Southern states can rely on less powerful water heaters since our groundwater is generally warmer than areas up north or out west.
Any available tax credits
If you choose a natural gas-powered tankless water heater, you can claim 30% of project costs on your federal tax filings. These tax credits apply to ENERGY STAR devices purchased and installed between 2023 and the end of 2032.
Gas-powered vs. electric-powered
Propane and gas-powered tankless heaters are generally more powerful than electric options. They’re also typically less expensive to operate. Most experts recommend these models for their robust performance and economic value.
Electrical tankless heaters are an option for homes that aren’t hooked up to gas. However, be aware that they’ll cost much more to operate and may not be able to keep up with your hot water needs.
Condensing vs non-condensing
Non-condensing tankless water heaters require slightly less maintenance than their condensing counterparts, but the difference is negligible. Considering that tankless heaters generally require more upkeep than old-school models, you probably won’t be impacted too much either way.
The important difference between these two is that condensing tankless heaters are more efficient, so you’ll save more money over time.
If your new tankless water heater needs electrical work, call Young Cardinal Electric!
There’s no one-size-fits-all solution to tankless water heaters, but the experts at Young Cardinal Electric can help you determine the best solution–and total cost–of a tankless water heater for your home.
Contact us today to schedule an appointment and get started on the path to a more efficient home!