Tankless Water Heater Installation Cost

Calculating the estimation of your tankless water heater installation cost is crucial. Generally, it is more expensive than a conventional one. Indeed, this newer technology has more benefits to offer.  Still, you need to make sure  it is worth the cost.

On average, installing a new tankless water heater system will cost around $1,200 to $3,300. The exact number depends on various factors such as the brand and type of  unit, as well as the existing condition of the plumbing and electrical system.

The Unit Price

Many factors influence the price of tankless water heater units. The smaller and cheapest ones can be as low as $100, while  high-end units can cost up to $6,000. On average, the cost of one of these units  ranges between $1,000 to $2,000. To be more specific, here is the average cost of each type:

  • Natural Gas or Propane: $1,000 to $1,500
  • Whole-House Electric: $800 to $1,200
  • Single Point Electric (the one you attach directly to the faucet): $100 to $300
  • Solar: $1,700 to $5,000

 Side note, a solar system might not be as expensive as you expect. Although the original price can be high, you can factor in the 30% tax credit offered by the government. The system also reduces water heating expenses by around 50-80%.

Labor Fees

Aside from the price of the unit itself, the tankless water heater installation cost also includes labor fees. Not only the plumbers, but you might also need the service of electricians if your house doesn’t have the wiring ready for the water heater.

Plumbers usually charge $45 to $150, while electricians charge $40 to $100. To avoid giving vague estimates, they usually offer an inspection before a contract. They will inspect the conditions to estimate the work they need to do, and how long it will take to finish. They will then propose a quote that will include  the fees and other necessary costs.

Additional Work and Parts Required

Sometimes,  your plumber and electrician need to do extra work due to unique circumstances they found during the inspection. Such things may lead to extra costs. Most of these things are minor, so they won’t cost too much. Here are some examples:

  • Pipe extension: $10 per foot
  • Fittings and mountings: $10 to $40
  • Vent for gas exhaust: $100 to $600
  • Gas line installation: $350 to $750
  • Electrical panel: $850 to $2,500

Energy Saving

Due to their high efficiency, tankless water heaters consume less energy to operate. Thus, you may see your monthly bill decrease after installing one. A gas tankless water heating system costs around $16 to $22 per month, while  propane and electric ones cost around $25 to $45 per month. These are approximately 30-50% lower than the tanked systems.

Although a tankless water heater installation cost is comparably higher than the conventional system, it can help save a lot more money in the future. Plus, it is more convenient to use in modern households. If you take into account its  20 year lifespan, this new system is an absolute win!



ECM Air Conditioning, with its headquarters located in Boynton Beach, FL, provides air conditioning services within Palm Beach County, Broward County, Martin County, and St. Lucie County. If you’re looking to have a new HVAC system installed, we’re on-call and ready to assist you. So if you’re in need of an HVAC installation, don’t hesitate to contact us today to schedule an inspection! Our HVAC installation experts will check your ductwork, measure, check wire sizes, and more before making recommendations to ensure maximum efficiency and comfort. Call us at 561-295-1763 or contact our HVAC installation team online by clicking here.


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