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Understanding Tankless Heater Pricing: Factors Influencing Installation Costs

  • dluger
  • Jan 6
  • 3 min read

Switching to a tankless water heater is a smart move for many homeowners. These systems offer endless hot water, save space, and can reduce energy bills. But before you make the switch, it’s important to understand what affects the tankless heater pricing. Installation costs can vary widely depending on several factors. Let’s break down what influences these costs so you can plan your upgrade with confidence.


What Affects Tankless Heater Pricing?


Tankless water heaters are different from traditional tank models, and so is their installation process. Here are the main factors that influence the price you’ll pay:


  • Size and Capacity: The size of the unit depends on your household’s hot water needs. Larger units cost more but deliver more hot water.

  • Installation Complexity: If your home needs new gas lines, venting, or electrical upgrades, expect higher installation costs.

  • Location of Installation: Installing the unit close to where hot water is used can reduce costs. Moving it to a new spot may require extra plumbing work.

  • Labor Costs: Skilled plumbers and electricians charge different rates. Choosing a trusted, experienced team can save you money in the long run by avoiding mistakes.


Understanding these factors helps you make an informed decision and avoid surprises when you get your quote.


Bradford White Gas Tankless Water Heater
Bradford White Gas Tankless Water Heater

Why Location Matters in Installation Pricing


Where you install your tankless water heater in your home can significantly impact the cost. Here’s why:


  • Proximity to Water Lines: The closer the unit is to existing water lines, the less plumbing work is needed.

  • Gas Line Access: For gas models, easy access to gas lines reduces labor and material costs.

  • Venting Requirements: Typically, these units need fresh air, all venting needs to be external. This means one pipe will need to be taking air from the outside, and one pipe will be for exhaust.

  • Space Constraints: Tight or hard-to-reach spaces can increase labor time and cost.


Choosing the right location upfront can save you money and ensure your system runs efficiently.


Tips to Manage Your Tankless Water Heater Installation Cost


We want you to get the best value for your investment. Here are some practical tips to keep your costs reasonable:


  1. Choose the Right Size: Don’t overspend on a unit that’s too large. Calculate your household’s hot water needs accurately.

  2. Compare Quotes: Get at least three quotes from licensed professionals. Look for transparency and detailed pricing.

  3. Plan for Upgrades: If your home needs electrical or gas upgrades, budget for these in advance.

  4. Consider Energy Efficiency: Higher efficiency units may cost more upfront but save money over time.


By planning carefully, you can enjoy the benefits of a tankless water heater without breaking the bank.


Why Trust Matters in Your Installation Service


When it comes to installing a tankless water heater, trust is key. You want a team that is reliable, experienced, and transparent. Here’s what to look for:


  • Licensed and Insured Professionals: This protects you and ensures quality work.

  • Local Experience: Professionals familiar with San Francisco Bay Area codes and regulations can streamline the process.

  • Clear Communication: A trustworthy team explains costs upfront and answers your questions.

  • Positive Reviews: Check customer feedback to gauge satisfaction and reliability.


Choosing the right installer means your system will work efficiently and last longer, giving you peace of mind.


Important Things to Look For in an Estimate


  • A professional installer will not cut corners to lower the estimate. There are many things to consider when upgrading to a tankless water heater in order to install up to code. A lower estimate may mean the company is cutting corners in order to get the job. Some of these can include:

    • Air intake directly from garage instead of fresh air from outdoors.

    • Using the existing gas line which is likely too small. Typically, regular gas tank water heaters use a 1/2" gas line, which can only be reused for tankless if it doesn't share with another appliance (such as HVAC), and if it's less than 20 feet from the gas meter. Most homes need a new dedicated 3/4" gas line, or bigger.

    • These units typically have a drain line which is acidic and can damage the pipes or area where it drains to. There is a product called a "neutralizer kit" which must be installed on the drain line. This kit has media in it which makes the water safe to drain.


Ready to Upgrade? What to Expect Next


If you’re ready to make the switch, the next step is to schedule a consultation. A professional will assess your home’s needs, discuss options, and provide a detailed estimate. Water Heater Boys do free site visits, typically same-day.


Investing in a tankless water heater is a smart choice for comfort and efficiency. With the right information and trusted help, you’ll enjoy endless hot water and lower energy bills for years to come.

 
 
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