Why should you replace your Water Heater in 2024

Why upgrade your water heater?

Do you ever run out of hot water in the middle of a shower or have to wait forever for your water heater to refill? If that sounds familiar, a tankless water heater might be the solution you’ve been looking for. Tankless water heaters provide a continuous supply of hot water and come with energy-saving and space-saving perks.

But before you dive into this upgrade, it’s important to understand the costs involved in installing these systems. In this article, we’ll cover everything you need to know about tankless water heater installation costs to help you make a smart decision for your home.

What is a tankless water heater?

A tankless water heater, also called an on-demand water heater, heats water right when you need it. Unlike traditional water heaters that store and keep a large amount of water hot all the time, tankless models heat water instantly as soon as you turn on the faucet. This means you get hot water immediately without the need for a storage tank.

Factors affecting installation costs

Several factors contribute to the total cost of installing a tankless water heater. Understanding these factors will give you a better idea of what to expect in terms of expenses.

Type of Tankless Water Heater

There are two main types of tankless water heaters - electric and gas-powered. Electric ones are cheaper upfront but may require a more extensive electrical upgrade in your home. Gas-powered units often have higher initial costs due to the need for gas lines and ventilation systems.

Unit Size and Capacity

The size and capacity of the tankless water heater affect its price. Larger units that can supply hot water to multiple fixtures at once will generally cost more.

Installation Complexity

How complicated the installation process is can also impact the cost. Retrofitting a tankless water heater into an existing plumbing system may require more labor and materials compared to installing one during new construction.

Additional Equipment

Depending on your home's setup, you might need extra equipment like a gas line, exhaust vent, or upgraded electrical wiring. These can add to the overall installation cost.

Labor Costs

Labor expenses can vary depending on your location and the complexity of the installation. Hiring professional plumbers or an HVAC technician ensures the system is installed correctly and safely. Tandem is a fine choice for these things.

Average installation costs

The installation cost for a tankless water heater typically falls between $1,000 and $3,000, but it can go higher depending on various factors. Let’s break down the costs further:

  • Electric tankless water heaters usually cost between $1,000 and $2,000 for installation. However, keep in mind that you might need to upgrade your electrical system, which could increase the overall cost.

  • Gas-powered tankless water heaters come with higher installation costs due to gas line and ventilation requirements. The installation expenses for these models can range from around $1,500 to $3,000 or more, depending on specific circumstances and installation complexities.

It’s important to note that these numbers are approximations and can vary based on your location, the features of the unit, and the intricacies of the installation. To make an informed decision, it’s advisable to get quotes from reputable contractors to determine the precise cost and available options.

Long-term savings

While the initial installation cost of a tankless water heater may seem high, it’s essential to consider the long-term savings they can bring. Tankless units are more energy-efficient than traditional storage tank water heaters because they only heat water when you need it. This efficiency can lower your energy bills, helping you recover some of the initial investment.

Furthermore, tankless water heaters typically have a longer lifespan than traditional units. While traditional water heaters may need replacement every 10-15 years, tankless units can last 20 years or more with proper maintenance. This extended lifespan can provide additional value over time.

In conclusion Investing in a tankless water heater can offer many benefits for your home, including a constant supply of hot water, energy savings, and space efficiency. While installation costs can vary based on several factors, the long-term advantages often outweigh the initial expenses. It’s recommended to work with a professional plumber or HVAC technician for a smooth installation process and optimal performance. By understanding the installation costs associated with tankless water heaters and considering their long-term benefits, you can make an informed decision that fits your budget and your household’s hot water needs.