Tankless water heaters are commonly known as on-demand water heaters. They have gained popularity due to their energy efficiency and space-saving design. Homeowners often face the decision of whether to opt for these systems over traditional storage tank models.
In this blog, we'll look into the true cost of gas tankless water heaters. This includes installation, fuel types, and long-term savings, and choosing the right unit for your home. This guide will also cover the environmental benefits, government incentives, and additional factors to consider when investing in a gas tankless water heater.
Benefits of Tankless Gas Water Heaters
Gas tankless water heaters offer numerous advantages over traditional storage tank systems. While the initial costs might seem higher, the long-term benefits more than makeup for it. Here are the key benefits of opting for a tankless gas water heater:
Energy Efficiency
Tankless water heaters heat water only when needed. It reduces the energy waste associated with maintaining a hot water supply in a tank. According to the U.S. Department of Energy, gas tankless water heaters can be up to 34% more energy-efficient than traditional models. This can lead to noticeable savings on utility bills.
Longer Lifespan
With proper maintenance, a tankless gas water heater can last up to 20 years. They have double the lifespan of most storage tank heaters. This longevity means fewer replacements, adding to the long-term savings.
Space-saving Design
Unlike bulky tank water heaters, tankless models are compact and can be installed in small spaces like closets or attics. This feature is especially beneficial in homes where space is limited.
Continuous Hot Water Supply
Tankless water heaters provide a continuous supply of hot water. It eliminates the concern of running out during peak usage times. Whether you're running multiple showers or appliances, a properly sized tankless unit can meet your household's needs.
Environmentally Friendly
Reducing energy consumption and using less fuel enables tankless water heaters to help lower carbon emissions and conserve natural resources. Additionally, they contribute to water conservation by eliminating the waste that comes from waiting for water to heat up.
Factors Affecting the Cost of a Gas Tankless Water Heater
When considering the overall investment in a gas tankless water heater, several factors impact the total cost. Understanding these factors will help you make an informed decision and budget appropriately for the installation and operation of your new system.
Installation Costs
Installation costs for tankless water heaters typically range from $500 to $3,000. This depends on factors such as the difficulty of the installation, local labor rates, and any required modifications to your home’s plumbing or gas lines. It's important to hire a professional plumber with experience in installing these systems for a safe, efficient setup.
Unit Size and Capacity
The size of the tankless water heater directly affects the cost. Larger units with higher flow rates will be more expensive but are necessary for homes with higher hot water demands. A professional plumber can help determine the right size based on the number of bathrooms, household size, and typical water usage patterns.
Fuel Type
Gas tankless water heaters are generally more expensive upfront than electric models but offer lower operating costs over time. While installation might involve extending gas lines, the long-term savings make gas models a popular choice. This is particularly true in areas with higher electricity rates.
Location and Accessibility
The location of your home and where you plan to install the unit can affect installation costs. Homes in remote or hard-to-reach areas may incur additional charges. If the unit is difficult to access, labor costs may increase.
Tankless Gas Water Heater Pricing
The cost of tankless gas water heaters varies significantly depending on size, brand, and features. Here's a breakdown of average costs based on unit capacity and household size:
- $1,000 - $1,500: Up to 3 GPM, suitable for small to medium households.
- $1,500 - $2,500: 3 - 5 GPM, ideal for medium to large households.
- $2,500 - $4,500: Above 5 GPM, often used in large households or commercial settings.
It's important to select a model that meets your household's hot water needs without exceeding your budget. Lower-priced units might not provide sufficient hot water for larger homes. Whereas, higher-end models offer advanced features like Wi-Fi connectivity and smart home integration.
Installation Costs Breakdown
In addition to the unit itself, there are several other costs associated with installing a gas tankless water heater:
Permits and Regulations
In some areas, you may need to obtain a permit to install a gas tankless water heater. Consult with a professional to ensure compliance with local building codes, as permits can add to the overall installation cost.
Old Water Heater Removal and Disposal
If you're replacing an existing unit, there may be additional fees for removing and disposing of the old water heater.
Additional Materials and Modifications
Depending on the existing infrastructure in your home, modifications to the gas lines or venting system may be required. These can significantly increase installation costs, especially in older homes or homes that were not previously equipped with gas lines.
Sizing a Tankless Gas Water Heater
Choosing the right size is important to making sure your home has a steady supply of hot water. The size of the tankless water heater you need is based on two factors: the flow rate (GPM) and the required temperature rise.
Flow Rate (GPM)
The flow rate determines how much hot water the unit can provide at any given time. For instance, a unit with a flow rate of 3 GPM can supply hot water for one shower and a faucet simultaneously. Whereas, a larger unit with 5 GPM can handle multiple showers or appliances running at the same time.
Temperature Rise
This refers to the difference between the incoming water temperature and the desired hot water temperature. A professional plumber can calculate this based on the climate in your area and recommend a model that meets your needs.
Fuel Types for Tankless Water Heaters
Choosing the right fuel type is another important consideration. While gas tankless water heaters are the most popular due to their energy efficiency and performance, other options include electric, propane, and solar-powered units. Here's a quick comparison:
- Gas Tankless Water Heaters: These units provide higher flow rates and are ideal for larger households. They require access to a gas line and have a higher upfront cost.
- Electric Tankless Water Heaters: More affordable initially, these units are easier to install but may have higher long-term operating costs due to electricity rates.
- Propane & Solar-Powered Units: These are less common but are good alternatives for homes without access to natural gas or electricity.
Long-term Operating Costs and Savings
While gas tankless water heaters generally have higher installation costs, they offer significant long-term savings. On average, the operating cost for a gas tankless water heater ranges from $175 to $500 annually. This depends on local utility rates and household usage patterns. In contrast, electric tankless water heaters tend to have lower upfront costs but higher operating expenses.
The efficiency of a gas tankless water heater also results in long-term savings on energy bills, especially in larger homes with higher hot water demands. By eliminating standby heat loss, these systems save energy by only heating water as needed.
Maintenance and Repair Costs
Routine maintenance is essential to keep a gas tankless water heater functioning efficiently. Professional descaling and flushing services typically cost between $45 and $200. Of course, this also depends on the details of the system and local labor rates. Regular maintenance prevents mineral buildup and other issues that could reduce efficiency or damage the unit.
In the event of a breakdown, repair costs will vary depending on the issue. Most common repairs involve replacing faulty components, such as the ignition system or control valves. Making sure you purchase a unit with a solid warranty can help offset some of these costs.
Tax Credits and Incentives
The Inflation Reduction Act of 2022 offers tax credits of up to 30% of the installation cost for ENERGY STAR-certified tankless water heaters, with a maximum of $600. By choosing an ENERGY STAR-certified model, homeowners can not only save on utility bills but also recoup some of their initial investment through tax credits.
Professional vs. DIY Installation
While DIY installation might seem appealing to save on labor costs, it's highly recommended to hire a professional for the installation of a gas tankless water heater. Improper installation can result in gas leaks, voided warranties, and potential safety hazards. Professionals make sure the system is properly connected and functioning efficiently. This minimizes the risk of future problems.
Finding the Right Tankless Water Heater for Your Home
The key to choosing the right tankless water heater is understanding your household’s specific hot water needs. This includes evaluating the number of bathrooms, the number of people in the home, and the appliances that will use hot water. Consulting with a professional plumber is essential to accurately assess these factors and recommend a suitable unit for your household.
When selecting a tankless gas water heater, consider reputable brands such as Rheem, Rinnai, and Navien. These manufacturers offer a wide range of models with varying capacities, warranties, and price points to meet your specific requirements.
Gas tankless water heaters provide a reliable and energy-efficient solution for homeowners looking to upgrade their water heating systems. While the upfront costs may be higher compared to traditional water heaters, the long-term savings, environmental benefits, and continuous hot water supply make them an excellent investment.
At Water Heaters Now, we specialize in professional-grade tankless water heaters that are built to last. Our team can guide you through the process of selecting, installing, and maintaining your new unit. We guarantee your home is equipped with a reliable and efficient hot water solution.
With our commitment to same-day service and expert installation, we are your go-to source for all your tankless water heating needs. Contact us today to learn more about the benefits of upgrading to a gas tankless water heater.
