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The Average Cost of Tankless Water Heater Installation

The average cost of a tankless water heater installation depends on a number of factors. It can range anywhere from $1,171 to $3,331 depending on your state, city, and model. This article will discuss the cost range, types of models, and sizes available. Before making a purchase, it is important to know what to expect during the installation process. Listed below are some things to consider when choosing a tankless water heater.

Costs range from $1,171 to $3,331

Depending on your needs, a tankless water heater can save you $40 to $200 per year on energy bills. Many natural gas and propane units qualify for federal tax credits and additional rebates. Installation takes about three to 10 hours for a new installation and two to four hours for a replacement. The costs vary based on size, type, and complexity, so be sure to compare quotes carefully.

The installation of a tankless water heater typically costs between $1,171 and $3,331 for a 500-gallon model. However, gas tankless water heaters can save you hundreds of dollars per year, since their operation does not rely on electricity. Gas tankless models typically have longer warranties and lower energy costs, while electric tankless units may cost from $300 to $540 per year.

The cost of tankless water heater installation varies significantly by region, but generally begins at $1,171 for a single-family home. Some regions may require permits. Contact the appropriate department for your region to determine if you need to obtain one. The cost estimates are based on Home Depot’s internal sales database and include any applicable permit charges. Once you have a firm idea of the costs, contact a Home Depot technician for more details.

When installing a gas tankless water heater, the labor for the installation typically ranges from $900 to $1,700. Since gas tankless water heaters require venting, the labor costs for gas tankless water heater installation are typically higher than those of electric tankless water heaters. The difference is mostly due to the fact that the gas version requires venting while the electric unit does not.

Permits required

Before you begin the installation process, you must get a permit from your local building department. These permits can be obtained for as little as a few dollars. The type of tankless water heater you purchase and where it will be installed will determine whether you need a permit to install one. If you have a tankless water heater that uses gas, it will be necessary to get a separate permit for this.

A permit is also needed to bring your home up to code, so you need to make sure that you have the proper plumbing. Proper installation prevents a fire hazard. If you don’t get a permit, you could end up having to pay for a new water heater and plumbing installation later. For more information, read our guide to permits. For more information on how to get a permit, visit our website or check out our blog post.

Installing a water heater is dangerous if it is not done properly. Not only could it be dangerous, but it could also cause legionella bacteria to grow and contaminate the water. Additionally, improper installation can lead to fuel gas leaks, which can be a fire hazard. You should also make sure to have a professional plumbing inspector inspect the job. A licensed plumber can catch any potential problems before they become hazards.

Obtaining a permit for a water heater installation is not difficult and generally costs about $20 to $100. It can save you hundreds of dollars in plumbing costs if you’re not a plumber. You may want to check with your local building department for information about installing a tankless water heater, including the installation process. You may also need a secondary permit for major work. If your project involves electrical changes or a gas line relocation, you may need to get an electrical permit as well.

Models available

The main difference between a storage water heater and a tankless water heater is the water storage capacity. Storage water heaters hold water in tanks, requiring more energy to maintain their temperature. On the other hand, tankless models use heat from the air to heat water, and as a result, use 60 percent less energy than standard electric water heaters. Tankless water heater installation is similar to that of a standard electric water heater, except that the latter requires a larger space than an electric-only one. In addition, tankless heaters do not function well in very cold spaces, and need to be installed in an area between forty and ninety degrees Fahrenheit to maintain their performance.

The installation process involves ensuring the tankless water heater is securely mounted to its mounting box. Before attempting the installation, make sure to follow manufacturer specifications and contact a licensed contractor if you are unsure of gas connections or other parts of the installation. Also, remember to shut off the water supply to the old water heater and make sure there is adequate space to connect the new tankless water heater. Depending on which model you choose, you may need to purchase a kit to connect to the existing gas line.

When it comes to tankless water heater installation, you should check local codes to make sure the area where the tankless water heater will be located does not conflict with the building code. You should choose a location with sufficient ventilation. Remember that tankless water heaters do not vent air to the outdoors, so you might need a power vent. For optimum performance, you should also know about local codes and installation guidelines to determine the best location.


When selecting a tankless water heater, there are a few things to consider. The length of the unit will determine whether you need a smaller or larger tank. A smaller tank might not be as efficient, so consider the size of the bathroom as well. Also, look at the energy factor (EF) of the unit, which tells how efficient it is at converting fuel into hot water. Higher EFs mean that a tankless water heater will use 67 percent less gas to provide the same hot water.

One of the first things to consider when choosing a tankless water heater is how many people will be using it. If the water heater is small, it will provide only enough hot water for one shower, while if it is large, it will provide ample hot water for all of your fixtures. A large tankless water heater, on the other hand, will provide more hot water for a large family. If you have more than four people in your home, you may need two units.

If you are unsure about the right size tankless water heater for your home, you should call a professional. A company like Smile HVAC will have the experience and knowledge to properly size your tankless water heater for your needs. They can also install it. You’ll be glad you did. In the long run, a tankless water heater will save you money and energy. This makes them an excellent investment. If you’re looking for a tankless water heater that will heat your water efficiently, this is the perfect option for you.

Tankless water heaters that use propane are portable and can be installed inside or outside of a home. Compact LPG units are perfect for outhouses, camping trips, and beach surfing. Make sure that the unit is made for outdoor use. This is a vital safety precaution. While choosing a tankless water heater, always be sure to read the installation manual carefully to ensure you get the right model for your home.


If you’re in the market for a new tankless water heater, there are many different brands available. Some of these brands have been in the business for years, while others are just starting to get into this market. Navien, for example, has been in business since 1978 and has been one of the most respected brands in the industry. Founded in Korea, they have expanded to Russia, Europe, Oceania, South America, and North America.

There are many benefits to choosing a tankless water heater over a conventional tank. They are energy-efficient and require less maintenance than traditional tank-style water heaters. These units are great for homes that need constant hot water, but their upfront cost can be prohibitive for many homeowners. Installation is complex and may not give you a return on your investment for several years, so it’s best to make sure you fully assess the situation before investing in a tankless water heater.

While electric water heaters are the most affordable option for many homeowners, they do require more installation work than tankless models. A tankless water heater installation will require an electrical system that can support its high energy requirements. This type of heater will cost anywhere from $2,500 to $10,000. Some brands offer warranties of up to 12 years. However, many consumers will find themselves replacing a tankless water heater more than once, and that is a significant consideration.

There are several different brands of tankless water heaters on the market. You’ll need to decide what size unit you need based on your needs. Most units will give you up to two GPM. So if you’re going to use a tankless water heater for just a single shower, you may need a tankless water heater with four or five GPM. If you have two bathrooms, you’ll need a tankless water heater with at least eight GPM.