Tankless water heaters produce hot water on demand when you turn on a faucet, which is why they are also called on-demand water heaters or instantaneous water heaters.
While tankless water heaters may cost more up front than tank water heaters, they tend to last longer. Therefore, the cost of a tankless water heater, if maintained properly, could be less over the life of the unit. They save a lot in energy costs, and you have the luxury of unlimited hot water. Need more info? Check out this article on how tankless water heaters work.
Typical Costs for Electric Tankless Water Heaters
Low-End Estimate: $450
High-End Estimate: $700
Typical Costs for Gas Tankless Water Heaters
Low-End Estimate: $750
High-End Estimate: $1,600
Typical Costs for Point-of-Use Tankless Water Heaters
Low-End Estimate: $175
High-End Estimate: $650
Point-of-use tankless water heaters are great for outdoor sinks, showers, and more.
Cost to Install a Tankless Water Heater
Low-End Estimate: $1,600
High-End Estimate: $4,000 or more.
Cost will vary depending on the contractor and type of system you're installing. Contact a local, licensed plumber for an estimate.
Additional Costs for Installing a Tankless Water Heater
A 200 AMP electrical outlet may be needed for an electric tankless water heater to work in your home. This will add to the total cost of installation.
If you're installing a tankless water heater in a new home, the appropriate pipes and ventilation can be installed prior to or during the time that your tankless water heater is being installed. If your tankless water heater needs to be retrofitted into a home that originally had a tank water heater, the installation effort is greater, and therefore, the cost will be higher.