How much does it cost to install a gas tankless water heater?

The pace at which technology is advancing today, devices which are just a few years old have become obsolete today. And one such device is the conventional storage type water heater which soon may become a thing of the past. They are being rapidly replaced by new state-of-the-art tankless water heaters. They are energy efficient as well compact. Speaking of tankless water heaters, one might wonder what are the various costs associated with a tankless water heater. Apart from the actual heater cost installation charges are major part of the initial investment.

The cost of installing a hot water heater is not rigidly priced. It varies across regions and different models available in the market. It also depends on what necessary connections are already available on the site of installing your new hot water heater. The national average cost to install a water heater across America is tabulated below:

National average $1,036
Usual range $740 – $1,350
Floor cost $305
Ceiling cost $12,000


So, on an average installation of tankless water heaters cost between 1000 – 2000 dollars. Again, the installation costs will vary based on the type of your heater and additional hardware and wiring requirements of your home.

In case of gas powered tankless water heaters, you would require ventilation to send out carbon monoxide and modifying size of gas lines and fittings will require around 10 hours of labor. Labor costs may go higher for gas type tankless water heaters.

On the other hand, installation of electric tankless water heaters should be easier and cheaper. In most cases the pre-requisites for electric tankless water heaters would have been met with existing set up. This type of water heaters requires an electric outlet, an electrical timer and water supply lines. And the average time for installation would be 2 hours, thus reducing the labor charges.

The other charges in installing would be purchasing hardware such as valves, connection kits, mountings and fittings.

Most branded tankless water heaters come with very high performance and Energy Star ratings. This makes them eligible for tax credit under Federal laws. So, higher the Energy Star rating of your heater higher the tax credit you get.

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