Tankless water heaters have become very popular over the past couple of years. After all, everybody loves a hot and pleasant shower, right? Tankless water heaters are convenient to use, energy-efficient, and last much longer than a traditional water heater.
Are you planning to say goodbye to your traditional water heater and buy a new tankless water heater instead? If yes, then one of your very first questions is probably, “how much will a tankless water heater cost?” While a tankless water heater is a great piece of equipment, it doesn’t come cheap. You will have to invest a significant amount of money in buying one and getting it installed.
Today, we will take a closer look at the various factors that determine the cost of a tankless water heater. We will also talk about its benefits and whether or not it is worth it to buy one for your home. By the end of this article, you will have all the information you need to make the right choice. So, let’s get started!
Tankless Water Heater Cost: Cost of a New Unit and Factors Affecting It
The cost of a tankless water heater depends upon several factors and the scope of your project. However, if you need a rough estimate, a new unit along with the installation charges can cost you anywhere between $250 to as high as $5,000. As per Forbes, the average cost of a tankless water heater along with installation charges is $800.
With that said, let’s look at some of the major tankless water heater cost factors that determine how much you’ll have to finally pay for it.
1. System size or size of the unit
The size of the unit is the most important factor affecting your tankless water heater cost. Basically, system size refers to the volume of hot water the heater will produce. It is measured in gallons per minute or GPM. The higher the GPM, the more you’ll have to pay for the heater.
Therefore, buying the right system size is crucial for you. The best way to determine the correct heater size for your house is to calculate the total GPM for all the water outlets you want to use simultaneously. A standard tankless water heater can have a GPM ranging from anywhere around 5 to 7.5.
2. Type of fuel
Most modern-day tankless water heaters generally either use gas or electricity for fueling. Most buyers go with the electric model as it is the least expensive to purchase. Normally, gas-powered tankless heaters are two to three times more costly than electric ones. The cost of an electric tankless water heater can range anywhere between $450 to $1500. On the other hand, you’d have to pay $500 to $2,000 for a gas-powered heater.
While the upfront cost of a gas-powered unit is higher than the electric one, it is more powerful and cheaper to operate on a monthly basis. But if you are going with an electric model, you can pair it with solar panels and make it more cost-effective and increase your savings. Both of them have their advantages, and so, we recommend you carefully analyze your needs before making a choice.
3. Labor or installation charges
After buying the unit, you’ll have to pay for its installation too. The labor cost generally doubles the final price. The prices depend on multiple factors like the size of your setup, the type of heater being installed, accessibility of the location, etc.
While the basic installation charges can range anywhere from $100 to $2,000, they can go even higher. Moreover, if you need any additional thing done to the setup, you will have to pay extra charges for it.
For example, if you want to rewire your home system or convert your electric heater to a gas-powered one or vice versa, it will all add to the final cost. So, make sure to consult with a professional installer to understand the complete tankless water heater cost before making your purchase.
4. Maintenance cost
Apart from the unit price and the labor cost, you will also have to pay for its regular maintenance. So, it makes sense to include the estimated maintenance charges in your final tankless water heater cost. The usual maintenance like descaling and other preventive measures will cost you $50 to $200 per visit from a professional.
Benefits of a Tankless Water Heater
Now that we have discussed the tankless water heater cost and the factors affecting it, let’s talk about some of its major benefits.
1. You will never run out of hot water
The biggest advantage of having a tankless water heater is that you’ll never run out of hot water again. It will provide you with hot water at all times, something impossible for a traditional water heater. So, with a tankless water heater in place, you can happily say goodbye to unexpected cold showers!
While a traditional water heater won’t last more than 10 years at best, a tankless one will easily support you for more than 20 years. So, you’ll definitely get more bang for your buck with a tankless water heater.
3. Energy efficient
Generally, a tankless water heater uses 30 to 50 percent less energy than the traditional unit. So, you can easily save more than $100 per year on heating costs.
4. It requires less space
Tankless water heaters are much smaller and compact than your traditional heaters. They require very little home space and can easily be installed in any small corner of your house.
So, there you go! That was everything about tankless water heater cost and its benefits. While tankless heaters are more expensive than the traditional ones, they are more powerful, long-lasting, and offer multiple amazing benefits. So, purchasing a tankless unit for your home is definitely worth it.
If you want to buy a new tankless water heater for your home and need some assistance with it, we, at New Mexico Water & Electric, are there for you! We are a leading solar energy provider in the state and can help you install and maintain your solar-powered tankless water heater.
Contact us today!