Part 4: How Much Does a Tankless Water Heater Cost in 2024

Tankless water heaters, also known as “on-demand” water heaters, have grown in popularity over the past years due to their space-saving and energy-efficient qualities. On top of that, because of their almost instantaneous ability to produce hot water on demand as needed, many homeowners have opted to go the tankless route. At this point, you might be considering getting a tankless water heater and wondering just how much it will cost you.  

The following is a comprehensive guide from your Five Star Home Services local professionals to help you as a homeowner make the best decision for your home and family. 

Factors That May Impact the Cost of a Tankless Water Heater 

As with most things, even tankless water heaters have a few factors that must be considered due to their impact on costs. These factors are water heater, size, location, and energy efficiency. 

Type: The first thing to understand is that there are two types of tankless water heaters. These are gas and electric water heaters. 

• Electric Tankless Water Heaters: Electric water heaters are great options if you do not have a high hot water need in your home. The reason for this is that these types of tankless water heaters are best suited for homes with limited to no storage space and limited water heater locations. In addition, they have a lower flow rate and lower efficiency, making them ideal options for a limited market. 
• Gas Tankless Water Heaters: Gas tankless water heaters, on the other hand, are highly efficient energy-wise. If your household does require a high rate of heated water, a gas tankless water heater might be the ideal fit for your home as they provide what some refer to as a “a never-ending” supply of hot water on demand. With a gas tankless water heater, you won’t have to worry about running out of hot water for your family or waiting for water to heat up again. 
• Size: Remember the size of your house, the number of people in your home, and how many bathrooms and plumbing fixtures you have does matter. All these things will affect your hot water needs and how much hot water you will need on demand. As a result, this will also impact what size tankless water heater will be best for your home.  

As certified Navien installers (our recommended tankless water heater brand), here is a guide to help you estimate your sizing needs. Bear in mind, this is only a rough idea of the size you may need. Our licensed professionals can give you exact recommendations once they assess your home and provide a free estimate. 

• 3.5 GPM for 1-2 fixtures operating at the same time 
• 5 GPM for 2-3 fixtures operating at the same time 
• 7 GPM for 3-4 fixtures operating at the same time 

Location: Placement must be considered in the decision-making process as it will also affect the labor and installation costs. Tankless water heaters are typically installed on a wall in an easy-to-access location. Although tankless water heaters are versatile in that they can be installed almost anywhere, if there is no other choice for one to be installed in a less-than-ideal hard-to-reach area, this could impact installation costs. 

Energy Efficiency: Some tankless water heaters are known for being more efficient than other tankless models. More energy-efficient units can sometimes cost more upfront, but as an initial investment, you will definitely see the savings come full circle by way of your energy bills each month.  

Cost of a Tankless Water Heater in 2024 

Now that you know what factors can affect the cost of a tankless water heater, here is a general guide of tankless water heater prices in 2024. Just remember, these prices are merely meant to give you a very general idea of what to expect concerning the cost of these units. As mentioned above, these price points are subject to change based on factors and yearly costs. 

The cost of a tankless water heater replacement in 2024 starts at around $5,500 but can go up to about $8,000. To give you a better idea, the average amount most homeowners pay for a new replacement is $6,750. If you would like to get a customized price for your home, contact us to book that free estimate at your convenience! 

Different factors will cause the cost of a new tankless water heater to vary. Remember that your tankless water heater’s total cost can fluctuate based on size, type, location, and energy efficiency. Luckily, you don’t have to go about this big decision-making process all alone. Your Five Star Home Services professionals are here to back you up every inch of the way.  

If you are feeling overwhelmed with all the nitty-gritty details of tank versus tankless water heaters, we can help ease your mind and answer all your questions! Reach Five Star Home Services today at (833) 405-8009 or click here to schedule an appointment!