You’re probably thinking about getting rid of that big, clunky water heater in your garage, right? Maybe it’s getting old, maybe you’re tired of running out of hot water or maybe you’ve heard about these cool, space-saving tankless water heaters. They sound great – endless hot showers, saving energy – but then that little voice in your head pops up: “How much is this all going to cost?”
It’s a big question, and it’s one we hear all the time at Instant Plumbing and Rooter. Homeowners in Glendale, Phoenix, Scottsdale and all over the Valley are smart. You want to know what you’re getting into before you spend your hard-earned money. You’re probably picturing dollar signs and wondering if going tankless is really worth it. We get it. It’s a significant investment and you want to make the right choice for your home and your family.
So, let’s break down the cost of tankless water heaters in a way that’s easy to understand, right here in the Valley. We’ll talk about what you pay upfront, what other costs might pop up and whether those long-term savings you hear about are actually real.
Tankless Water Heater Cost: Understanding the Upfront Investment
The first thing you’ll see is the price tag on the unit itself.
Average Purchase Price Range for Different Models
Just like cars or TVs, tankless water heaters come in different models with different features, and that means different prices. You can find basic electric tankless water heaters for around $500 to $1500, while gas models generally start a bit higher, maybe $900 to $1900. But those are just the starting points. More powerful units that can handle more hot water at once will cost more.
Electric vs. Gas Tankless Water Heater Costs
Generally, the unit cost for a comparable gas tankless water heater tends to be higher than an electric one. This is because gas units have more complex parts, like a burner and venting system. This is the same with a tank water heater unit as well.
Factors Influencing the Initial Price
A few things will change that initial price:
- Flow rate: How much hot water can it heat at once? If you have a big family using multiple showers at the same time, you’ll need a unit with a higher flow rate, which costs more.
- Brand and features: Just like anything else, some brands are pricier than others and fancy features like built-in recirculation pumps (which give you hot water even faster) will add to the cost. Choosing a brand name tankless water heater will make sourcing parts for future repairs possible.
What are the Installation Costs for a Tankless Water Heater?
The cost of the unit is only part of the story. Installation is where things can get a little more complicated.
Labor Costs Explained
This is what you pay the plumber to actually put the new water heater in. Labor costs will vary depending on how long the job takes and the plumber’s rates.
Potential Plumbing Modifications
If you’re switching from a traditional tank to a tankless, your existing plumbing might need some changes. Tankless water heaters often need different sized pipes or different connections.
Electrical Upgrades for Electric Models
This is a big one for electric tankless water heaters. These things need a lot of power! Often, your home’s current electrical wiring isn’t enough, and you’ll need to hire an electrician to upgrade the wiring and possibly install a new circuit breaker to power the unit. This can add a significant chunk to the total cost. For example, to just supply and install a SioGreen electric tankless water heater right now, you’re looking at around $3121.00, and that doesn’t even include the potential electrical work!
Gas Line Upgrades and Ventilation for Gas Models
Gas tankless water heaters need a strong enough gas line to supply them. If your current gas line is too small, you’ll need to pay to have it upgraded. They also need proper venting to safely get rid of exhaust fumes, and that can add to the installation cost too. For instance, to supply and install a good quality Navien gas tankless water heater with a built-in recirculating pump, without needing to mess with the gas line, you’re looking at around $6570.29 right now.
The Real Cost of Going Tankless: Combining Purchase and Installation
So, what’s the bottom line when you add it all up?
Low-End to High-End Total Cost Examples
For a basic electric tankless water heater with minimal electrical work, you might be looking at $1500 to $3500 total. For a high-end gas unit with gas line upgrades and venting (which is not needed for all installs), the total could easily be $5000 to $9000 or even more.
Comparing Initial Costs to Traditional Tank Heaters
Compared to traditional tank water heaters, which typically cost $1000 to $4000 installed, going tankless is definitely a bigger initial investment.
Key Factors That Influence Tankless Water Heater Cost
Let’s break down those cost drivers a bit more.
Size and Flow Rate Requirements
The more hot water you need at once, the bigger and more expensive the tankless unit will be.
Brand and Features
Just like with any appliance, well-known brands and extra features will increase the price.
Fuel Type (Electric vs. Gas)
Gas units often have higher upfront costs due to installation complexities, but operating costs can be lower depending on gas and electricity prices.
Complexity of Installation
The more changes your plumbing and electrical/gas systems need, the higher the installation costs will be.
Beyond the Initial Price: Understanding Long-Term Tankless Water Heater Costs and Savings
Okay, the upfront cost is higher, but what about later?
Energy Efficiency and Potential Savings
Tankless water heaters are generally more energy-efficient because they only heat water when you need it, avoiding that standby heat loss from traditional tanks. This can definitely lead to lower monthly energy bills.
Lifespan and Replacement Costs Compared to Tanks
Tankless water heaters can last significantly longer than traditional tanks (20+ years vs. 6-10 years). So, while the initial cost is higher, you might not have to replace it as often.
Maintenance Costs
Tankless water heaters still need annual maintenance, like descaling to remove mineral buildup.
What Does it Cost to Run a Tankless Water Heater?
The operating costs depend on a few things.
Gas vs. Electric Operating Costs
In Arizona, natural gas is often cheaper than electricity, so gas tankless water heaters can have lower monthly operating costs if you use a lot of hot water.
Impact of Usage Habits
The more hot water you use, the more you’ll spend on energy, regardless of the type of water heater.
Potential Savings Over Time
Over the long run, the energy savings from a tankless water heater can help offset the higher initial cost, especially if you have a large household.
Saving Money on Installation: DIY vs. Hiring a Professional for Your Tankless Water Heater
Can you save money by installing it yourself?
Cost Savings of DIY Installation
You’ll save on labor costs, which can be a significant portion of the total, but you may void the manufacturer warranty since the tankless water heater was not installed by a licensed plumber.
Risks and Potential Future Costs of DIY
However, installing a tankless water heater involves working with gas lines or high-voltage electricity and mistakes can be dangerous and costly to fix later. You also need to make sure everything is up to code.
When Professional Installation is the Better Value
For most homeowners, especially with gas or complex electric installations, hiring a licensed plumber and licensed electrician is the safer and smarter choice in the long run.
Tankless Water Heater Cost: Is the Investment Justified?
So, is it worth it?
Weighing the Pros and Cons Against the Price
You need to consider the upfront cost versus the potential long-term savings, the space savings and the convenience of endless hot water.
Long-Term Value and Benefits
For many homeowners, the energy savings and longer lifespan make tankless water heaters a good long-term investment.
Considerations for Different Household Needs
If you have a smaller home and don’t use a ton of hot water, the upfront cost of a tankless might take longer to recoup in energy savings. However, the space savings could still be a big plus. For larger families with high hot water demand, the endless hot water and potential for significant energy savings often make the higher initial cost worthwhile.
Understanding Tankless Water Heater Cost: Making an Informed Decision
Choosing a new water heater is a big decision and understanding the cost of going tankless is a crucial part of that process. While the initial investment is typically higher than a traditional tank water heater, the long-term benefits of energy efficiency, endless hot water and a longer lifespan can make it a smart choice for many homeowners right here in the Valley.
At Instant Plumbing and Rooter, we believe in giving you all the information you need to make the best decision for your home. We’ve seen firsthand the benefits of tankless water heaters for many of our customers in Glendale, Phoenix, Scottsdale and beyond. We’re happy to answer all your questions, provide a flat rate estimate that includes both the unit and installation costs (including any necessary gas line upgrades or if an electrician will be needed), and help you determine if going tankless is the right move for you.
Don’t let the initial price tag scare you away. Let’s explore the long-term value and see if a tankless water heater is the smart investment you’ve been looking for.
Frequently Asked Questions
Q: How much more expensive is it to install a tankless water heater compared to a traditional tank?
A: Installation costs for tankless units can be significantly higher, often ranging from $1000 to $5500 more than a tank unit, depending on the complexity of plumbing, electrical or gas line modifications needed.
Q: Will a tankless water heater really lower my monthly energy bills in Phoenix?
A: It can, especially if you have a larger household or use a lot of hot water. The savings come from not heating and storing a large tank of water continuously. Gas tankless water heaters often offer more significant savings here in the Valley due to the price difference between gas and electricity.
Q: What’s the typical lifespan of a tankless water heater, and how does that affect the overall cost?
A: Tankless water heaters can last 20 years or more, which is about twice as long as a traditional tank. While the initial cost is higher, the longer lifespan means you might not have to replace it as often, potentially saving money in the long run.
Q: Are there any government rebates or tax credits available for installing energy-efficient tankless water heaters in Arizona?
A: Yes, depending on current federal and state programs, there may be rebates or tax credits available for installing energy-efficient appliances like tankless water heaters. It’s worth checking with your utility company and checking the IRS website for any rebates or incentives available.
Q: If the initial cost of a tankless water heater is high, are there any financing options available?
A: Many plumbing companies, including Instant Plumbing and Rooter, offer financing options to help make the initial investment more manageable. We can discuss different payment plans to find one that fits your budget. If you would like to check into financing a tankless water heater, click here and it will take you to our financing page.
