If you move into a house, you may find that it has an old-fashioned water heater with a tank. Old-fashioned water heaters usually hold about 30-80 gallons of water in an insulated tank. That takes up space in your basement.
You can get hot water on demand resulting in lower utility bills if you get a tankless water heater instead. Tankless water heaters don’t have that bulky tank that takes up room in your basement. They also appeal because they are more energy-efficient.
That means you are helping the environment when you install one, and you’re likely saving money over time as well. You might not know what you will pay for your new tankless water heater, though. We’ll discuss that in detail right now.
The Average Tankless Water Cost
The average tankless water heater costs somewhere between $3,100 and $6,400 in most circumstances. If you consider that the regular version with a tank usually costs $2,500 to $3,000, you can see that the tankless version won’t tax your bank account much more.
Factors that Determine the Cost
You can also look at a few factors when considering your new tankless water heater that determine the approximate cost. The brand matters. Just like with virtually any other product, you have several well-known industry brands that cost a little more, but they’re more reputable.
The water heater’s size matters. Generally, if you buy a bigger heater, it costs more. It’s at least worth considering a larger heater since you might need hot water for multiple things happening in your house at once. You might run the dishwasher or do some laundry while you’re also taking a shower upstairs.
What Other Costs Might Factor In?
What fuel source you want might come into play. You may spend a bit more if you need a natural gas like propane as a fuel source. Electricity as a fuel source often costs less.
If the plumber must modify your home in some way to accommodate the hew tankless water heater, that might tack on some extra money. For instance, the plumber may create some ventilation by modifying your ductwork. They might upgrade your electrical panel. Gas line installation will increase the price somewhat.
You might talk to the plumber about water softener solutions. The local labor rate will factor in. In some parts of the country, plumbers cost a little more or less.
Will You Find the Cost Worth It?
On average, you’ll pay more if you get a tankless water heater. That’s virtually unavoidable. However, there’s a major factor you should consider if you see that the total tankless water heater price costs more than the traditional version.
You can get more use from a tankless water heater than you will typically get from a traditional version. With an old-fashioned water heater, you might get 10-15 years. The manufacturers don’t make them to last much longer than that.
If you procure a tankless water heater, you will likely enjoy it for 20-30 years. If the tankless version costs $2,000 more upfront, you might not like that, but you’ll save money on the back end. If you’re in your current house and won’t move for a long time, you might go with the tankless version for that reason.
What About Government Rebates?
You can also get government rebates if you get a tankless water heater in some instances. Usually, you can’t get a refund on a federal level, but you may get one on a state level.
Some states have programs in place that will give you money back if you go with a tankless water heater. The state government incentivizes getting a tankless water heater because it’s better for the environment.
Sometimes, you can get as much as $800 or more back from the state if you show proof that you purchased a tankless water heater. You can usually find more information online about that. Visit your state government’s website for more details and to find out whether you have such a program where you live.
Talk to Your Plumber About the Total Cost
If you’re not feeling sure about whether you should buy a tankless water heater and whether you should pay the higher price tag, talk to your plumber. You can ask them for their frank opinion.
Usually, they’ll gladly give you their thoughts on whether they think it’s worth it. They often appreciate their customers asking them about things like this.