Understanding Tankless Water Heater Installation Costs

Understanding Tankless Water Heater Installation Costs

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Tired of big water heaters? Want endless hot water without big bills? The solution you’ve been seeking is right here. Enter tankless water heaters – they’re efficient and comfy. But, what about the installation costs and benefits? Scroll down and find out.

At HVAC Service Solutions, we’re not just installers – we’re your partners in optimizing your home’s warmth and convenience. So, let’s discover the average tankless water heater installation cost and how this HVAC system can benefit you.

What Are the Different Types of Tankless Water Heaters?

When it comes to upgrading your home’s water heating system, the type of tankless water heater you choose plays a pivotal role in determining the installation costs. Electric, gas, and hybrid tankless water heaters each bring their unique set of benefits and considerations to the table. Let’s delve into the intricacies of these types and find out which one might be your ideal fit.

Electric Tankless Water Heaters

Electric tankless water heaters are the go-to option for smaller households or localized hot water needs. They are relatively compact and can be installed closer to the point of use, reducing the time it takes for hot water to reach the tap. These units are known for their ease of installation and simplicity, making them an excellent choice for homeowners looking for a hassle-free upgrade. Additionally, electric tankless water heaters are known for their energy efficiency, as they heat water only when needed, minimizing energy wastage.

Gas Tankless Water Heaters

Gas-powered tankless water heaters are the workhorses of hot water systems, catering to larger households with demanding hot water needs. Their rapid heating capabilities and consistent performance make them perfect for homes where multiple faucets or appliances might require hot water simultaneously. So, if your daily routine involves back-to-back showers and heavy hot water usage, a gas tankless water heater could be the right solution to ensure everyone enjoys a steady supply of warmth.

Deciding whether is better to buy or rent a water heater? Check out our previous article.

Hybrid Tankless Water Heaters

For those seeking a harmonious blend of energy efficiency and versatility, hybrid tankless water heaters are an excellent choice. By combining electric and heat pump technology, these units offer impressive savings on energy bills while still delivering a robust hot water supply. Hybrid tankless water heaters excel in larger homes where efficiency is a priority, offering the flexibility to adjust between electric and heat pump modes based on demand.

The type of tankless water heater you choose significantly impacts installation costs and long-term comfort. Whether it’s the compact convenience of electric, the robust performance of gas, or the efficiency of hybrid, HVAC Service Solutions is here to guide you toward the perfect fit for your home. Schedule a free consultation with our HVAC experts via the link below.


What Factors Impact the Cost of Tankless Water Heater Installation?

What Factors Impact the Cost of Tankless Water Heater Installation

Understanding the factors that sway tankless water heater installation costs is a crucial step. It’s not just about the unit itself – several main elements contribute to the final tally. Let’s explore the key determinants of tankless water heater cost installed together.

Types of Tankless Water Heaters

As we have described before, the type of tankless water heater you opt for significantly influences the overall installation costs. Each type comes with its own installation requirements and considerations, impacting both labor and material costs. Factors like gas line connections for gas-powered units or electrical setup for electric units can impact the complexity of installation, and, accordingly, the price.

Size and Capacity of the Unit

Selecting the right-sized tankless water heater is paramount to efficient operation and installation. For example, imagine you have a medium-sized household with multiple bathrooms and a busy morning routine. Opting for a tankless water heater that’s too small might mean that hot water runs out during the morning rush, leading to discomfort and frustration. On the other hand, installing a unit that’s larger than what you need not only costs more upfront but also consumes excess energy to heat water that goes unused.

A proper assessment of your household’s hot water needs ensures you choose a unit that fits snugly, optimizing performance and installation efficiency.

Energy Efficiency

Investing in energy efficiency upfront can yield substantial long-term savings on utility bills. Higher energy-efficient models might have a slightly higher initial cost, but they tend to be more economical in the long run. When calculating install tankless water heater cost, consider the potential payback through reduced energy expenses over the life of the unit.

Brand of the Water Heater

Brand reputation matters, and it can impact the cost of a tankless water heater installed. Well-established brands might have higher upfront costs, but they often come with better warranties, performance, and reliability. While opting for a reputable brand might add a bit to the installation budget, the overall value and peace of mind can make it a worthwhile investment.

Explore the wide diversity of energy-efficient tankless water heaters on our website via the link below.


Complexity of Installation

The complexity of installation depends on factors such as the unit’s type, your home’s existing plumbing and electrical setup, and any modifications required. For example, retrofitting a new unit into an existing space might involve additional labor and materials, affecting the overall installation cost.

Labor Costs

Labor costs can vary based on your location and the expertise of the professionals you hire. More complex installations or those requiring specific skills might have higher labor expenses. Seeking quotes from multiple installation professionals can help you gauge a reasonable labor cost for your project.

While several factors influence tankless water heater installation costs, the type of unit, size, and complexity of installation often take center stage. When planning your installation budget, consider these elements carefully to ensure a seamless and cost-effective transition to a more efficient water heating solution.

What Are the Average Costs for Each Type of Tankless Water System?

One of the most pressing questions of the homeowners is: “How much does it cost to install a tankless water heater?” From electric to gas and hybrid options, each type comes with its own price range. Let’s dive into the specifics and unravel the budget implications of tankless water heater installation cost in Canada.

How Much Does It Cost to Install an Electric Tankless Water Heater?

As we said before, electric tankless water heaters offer an affordable and energy-efficient solution for smaller households or localized hot water needs. On average, the installation cost for electric tankless water heaters ranges between $800 to $2,500 and more. The relatively lower cost is partially attributed to the simplified installation process, as electric units don’t require venting or gas line connections. This makes them an attractive option for those seeking an entry point into the world of tankless water heating without breaking the bank.

Gas Tankless Water Heater Installation Cost

Gas-powered tankless water heaters, known for their rapid heating capabilities and performance, come with a slightly higher average installation cost. On average, the installation cost for gas tankless water heaters falls in the range of $1,000 to $4,500+. While the upfront cost might be higher compared to electric units, the long-term efficiency and savings often justify the investment, especially for households with higher hot water demands.

Hybrid Tankless Water Heaters: Cost of Installation

Hybrid tankless water heaters, blending the efficiency of electric and heat pump technology, offer a middle ground in terms of installation costs. On average, the installation cost for hybrid tankless water heaters ranges from $1,200 to over $3,500. The slightly higher cost is balanced by the impressive energy savings these units can deliver, making them a viable option for homeowners who prioritize both performance and efficiency.

Average Installation Cost Range
$800 – $2,500+
$1,000 – $4,500+
$1,200 – $3,500+

Keep in mind that while the upfront investment might vary, the long-term savings and comfort benefits are key factors to consider when weighing your options. Remember that our HVAC experts can provide personalized estimates based on your specific requirements. Consult with our professionals via the link below.


What Are the Different Ways You Can Save on Tankless Water System?

We know that cost to install a tankless water heater can be pretty high. This is why in this part of our article we would like to explore actionable strategies that empower you to optimize your installation budget without compromising on quality.

1. DIY Consideration:

Depending on your skills and comfort level, considering a DIY installation can potentially save you money on labor costs. However, this approach requires a good understanding of plumbing and electrical work. If you are unsure about your capabilities, it’s better to call for help from HVAC professionals to guarantee safety and efficiency.

What Are the Different Ways You Can Save on Tankless Water System

2. Energy Efficiency Incentives:

Many local and federal programs offer incentives for installing energy-efficient appliances, including tankless water heaters. Check with your utility providers or government agencies to see if you qualify for rebates, tax credits, or other incentives. These incentives can significantly offset your initial installation costs and accelerate your return on investment.

Find out how to save up to $10000 on your new energy-efficient HVAC system in Canada in our previous article via the link below.


3. Comparing Quotes:

Installing a tankless water heater involves various elements, from labor costs to materials, permits, and potential additional charges. Different installation professionals might offer varying rates for these components. By seeking quotes from multiple providers, you gain insight into the prevailing market rates and can identify potential outliers.

At HVAC Service Solutions, we encourage you to gather quotes, ask questions, and make a choice that isn’t just budget-friendly but also ensures a seamless, reliable installation that enhances your home comfort.

4. Proper Sizing and Planning:

Choosing the right-sized tankless water heater for your household’s needs is crucial. An oversized unit not only increases your upfront cost but also leads to inefficiencies and wasted energy. Proper sizing ensures optimal performance and minimizes unnecessary expenses.

For example, let’s consider a scenario where you invest in a properly sized hybrid tankless water heater that costs $1,500 for the unit and installation. While the upfront cost is higher, its efficiency means you save around $300 annually on energy bills. Over five years, you save $1,500 on utilities, which more than offsets the initial investment.

5. Maintenance and Longevity:

Maintenance and Longevity

Investing in regular maintenance can extend the lifespan of your tankless water heater, minimizing the need for replacements and associated costs. Following the manufacturer’s maintenance recommendations, such as descaling the unit, can prevent performance issues down the line.

Speaking of professional maintenance, the majority of manufacturers suggest performing system descaling annually. In cases where homes have hard water, additional maintenance might be necessary for the equipment.

Find out more about our tankless water heater maintenance services on our official website.


To conclude, the average cost of a tankless water heater installed varies based on several factors, with the type of unit and installation complexity playing significant roles. On average, tankless water heaters’ costs with installation range from $800 to 4500+. Remember that a tankless water heater is a guarantee of long-term savings and the joy of an uninterrupted hot water supply.

At HVAC Service Solutions, we’re your partners in optimizing comfort. From installation type to sizing, we ensure a seamless, budget-conscious transition, guiding you toward a future of warmth and savings. Contact us today via the link below for a professional tankless water heater installation that brings the best out of your investment.