The cost of a tankless water heater may vary widely depending on the heating requirements of your house, but the average price range is between $1,171 and $3,331, with $2,216 being the national average. Installing a gas tankless water heater may range from $700 to $4,600, while an electric on-demand water heater might cost anywhere from $600 to $2,500. The price range for converting or replacing a tank water heater with a tankless system is between $800 and $3,500. The cost of a tankless system is determined by factors like the brand, fuel source, and flow rate.

Tankless Water Heater Price Factors to Consider

• Single-Point vs. Whole-House System

A point-of-use tankless water heater system, also known as a single-point tankless water heater system, is installed close to the sink, appliance, or shower that requires heated water. A trained expert may install these quickly and easily, and the cost ranges from $100 to $300 for each. They are effective because the water only has to travel a small distance, which results in less water being wasted. Single-point systems are typical in houses with several bathrooms and appliances. These water heating systems may be built either inside or outside the home, but they must be no more than fifty feet away from an adjacent power source if powered by an electric heater. This necessitates the installation of a separate water heater for each water supply. The amount of hot water produced by a single-point device ranges from 0.5 to 2 gallons per minute.

• Installation Complexity

Installing a tankless water heater may be a relatively straightforward process at times. In other circumstances, it may be necessary for your plumber to create an intricate ventilation system or to rewire certain sections of the home to accommodate the new device. The higher the difficulty of the installation, the higher the price will be.

• Tankless Water Heaters: Condensing Vs. Non-Condensing

Tankless water heaters that don’t condense their waste heat use only one heat exchanger, send their heated exhaust outside, and have an energy efficiency rating of only 80%. 

The energy efficiency of condensing tankless versions may increase to at least 90%, thanks to the inclusion of a second heat exchanger. This heat exchanger collects excess heat just as it is about to be lost via the vent system and reuses it to heat incoming water.

•  Tax and Rebates

Most tankless water heaters that run on gas or propane qualify for a federal tax credit of $300, in addition to extra rebates or state tax incentives. Electric tankless units don’t qualify for tax credits or rebates.

Tankless water heaters may save between $40 and $200 annually on energy bills, but they are more expensive to install. After 20 years, most homeowners will have seen a complete return on their initial investment. The investment in a tankless water heater is money well spent for homeowners who desire an unlimited supply of hot water and an improvement in the market value of their house. Contact us at  Bueno Plumbing right now to set up an appointment regarding tankless water heaters.