When you’ve had a long, hard day, sometimes all you want to do is turn on that hot tap and know that a constant and piping-hot stream of water fills your tub or steams up your shower screen. But in the hot water world, one trend of the past several years has been impossible for even the most casual hot water industry observer to ignore – the surging popularity of the tankless water heater. There are some very good reasons for that, too: Guaranteed hot water on demand, energy efficiency, and a slick, modern, space-saving design. All that’s left now is to explore that tankless water heater installation cost.

Install tankless water heater cost: A complete breakdown

Just want to skip to that tankless water heater install cost without all the explanation? Unfortunately, it’s almost impossible to state – because while a very basic setup might start at around $1000, a high-end installation might start tipping the scales at $3000 and even more. Instead, let’s look at the numerous factors that influence where your project might fall within this range. Here’s 11 factors shaping your tankless water heater installation cost

1. Heater type

We’re really talking about the energy type here – so it’s going to be electric vs. gas. And while electric tankless water heaters typically have a lower initial cost compared to gas heaters ($300-$500 vs. $600-$1,000), the installation of gas tankless water heaters can be higher – especially if a gas line needs to be added or modified for $200-$600.

2. Unit capacity

The size and capacity of the heater play a significant role in its price. A heater for a large family home will be $1,500-$2,500, whereas one for a small apartment may range from $800-$1,200.

3. Brand & quality

Premium brands that offer advanced features and efficiency like Rinnai RL94iP or Rheem RTEX-08 for example will cost between $1,200-$2,500, while basic or lesser-known brands can quite a bit less – somewhere in the $500-$1,000 range or so.

4. Local labor costs

When considering how much to install a tankless water heater, it’s essential to factor in the varying labor costs across the United States. Depending on your specific location, labor can range from $50 all the way up to $150 per hour. It’s also worth noting that a typical installation might take between 3-5 hours – and more for really tricky installs.

5. Existing infrastructure

If significant modifications are needed, such as upgrades to your electricity or gas lines, this can add $300-$800.

6. Permit fees

Like the labor costs, this depends on where you are. Because while some local governments might not charge a fee at all, others can charge from $50-$200 before work even begins.

7. Additional features

How whiz-bang will your setup be? Recirculation systems can offer almost instant hot water, but that can add another $100. Similarly, Wi-Fi connectivity, self-modulation modes, safety locks, and many other advanced features can start to add up.

8. Warranty & service plans

Extended warranties can add $50-$200 to the initial cost, and may come bundled with a service plan or not. Separate maintenance packages and protection plans can be even more expensive – $100-$300 per year – but can save you money on repairs in the longer term.

9. System complexity

These days, it’s possible to hook multiple smaller units together for a particularly grand home or premises, and integration with other household systems is also becoming popular – but expect to pay another $500-$1,500.

10. Old system removal

A good water heater installer will probably remove the old system and dispose of it for you for free, whilst others can charge $50-$200 for the privilege.


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11. Energy efficiency rebates

Again, it depends on where you are, but some US regions offer rebates that can reduce the net cost of installing tankless water heater technologies by $100-$500 or so, depending also on the heater type and model.

How To Save On The Cost To Install Tankless Water Heater

The secret to achieving a top-tier installation without breaking the bank is simple – engage only with the crème de la crème of professional plumbing & gasfitting assistance. That’s where Best Plumbers Club steps in: a unique network of only the finest plumbers across the USA. To bridge the gap between your desire for a hot, affordable stream of water and exemplary plumbing expertise, just give us your details – and we’ll do the rest.