How Much Does It Cost To Install A Tankless Water Heater

There are many factors that primarily affect the price of a tankless water heater installation in places like Darnestown, MD. We break down each one below so you can prioritize your budget about what needs you have. 

The Brand

It goes without saying that branding plays an important role in determining the price of any product. Tankless water heater from reputed and exclusive brands comes at a high cost; therefore, you may have to incur a high price if you go for installing a tankless water heater from a reputed water heater services company in your home. Though the average cost of a tankless water heater is $800, its price can go as high as $2,300.

Fuel Source

The pricing of a water heater also depends upon its fuel source. Electric water heaters often come with a low upfront cost, while the price increases if you aim for an energy-efficient water heater for your home. Though solar-powered tankless water heaters come with a high cost, however, they can reduce your energy bills over a long period of time. An electric tankless water heater usually comes within the range of $500–$1,500, propane-sourced tankless water heater comes within the range of $500–$2,000, natural gas-sourced tankless water heaters are in the range of $750–$2,000, and solar-powered tankless water heater comes within the range of $1,500–$4,000.

Labor and Installation

On the basis of your location, you can be asked to pay around $50–$150 per hour for the technician. Generally, it takes around two to eight hours to install a tankless water heater in any house, depending on the type and fuel source of the heater. Therefore, the cost of installing a water heater in your house can go up if the technician takes long hours to complete the installation process.

Tankless Size

Size plays a major role in making up the bill for tankless water heater installation. The larger water heater draws higher charges for installation when compared to the smaller ones.

Type of System

Whole-house tankless water heaters cost more than a point-of-service unit, though you may incur additional costs if you want to add single-point units to your water heater services. Similarly, condensing tankless water heaters provide more heat to the water by utilizing a second heat exchanger. Usually, condensing units are priced higher than non-condensing units in the market. In case an additional heat exchanger is used in the system, it increases the cost of a condensing tankless water heater.

Gallons per Minute

The cost of a tankless hot water heater is also affected by its flow rate. The higher the capacity of a tankless water heater, the higher number of items that are needed for its operation. A water tanker with a higher flow rate is generally required for a big household; therefore, one may have to incur a higher price if one needs a tanker with a higher flow rate for its household.

Tax Credits

In some places, tax credits are available for buying a tankless water heater. As per the beneficial provisions of the Inflation Reduction Act of 2022, one may get back 30% of its project cost or $600 on the purchase of a gas-powered certified tankless water heater. This tax credit can substantially decrease the initial costs of setting up a tankless water heater in your house.

Maintenance Costs

Tankless water heaters require maintenance on an annual basis, which increases the overall expenses of operating a tankless water heater. A plumber generally undertakes the maintenance work for a tankless water heater for $45 to $200 per visit. As usual, this cost will differ from location to location. Sometimes your local water company can help set up an annual price you can budget for.