Numerous advantages make tankless water heaters preferred by many users: They supply hot water on demand, thus avoiding the use of water storage containers like water tanks. However, before making the transition from a conventional water heater, it is important to comprehend the different factors that determine the price of a tankless water heater. This will be a detailed analysis of installation costs of tankless water heaters including price influencing aspects, installation choices, labor costs, and cost savings in the future.
What is a Tankless Water Heater?
A tankless water heater also known as an on-demand water heater or instant water heater does not use a water tank to heat the water. Cold water is supplied by the turn of the hot water tap in the unit, and is thereafter, heated by either gas or electricity. This leads to a constant flow of hot water and the only drawback is if the flow rate of the system is utilized.
Tankless water heaters are more efficiency than tank water heaters systems since they do not need to retain a heated water reservoir. Other benefits stem from this; one of them being that the amount of money one uses on electricity and other utilities may reduce as time goes by. Nonetheless the relative cost of a tankless water heater; the acquisition price inclusive of the installation price could be higher than that of a conventional unit.
Start-up costs of a Tankless Water Heaters:
It is always wise to do a price comparison on various models of tankless water heaters and other factors including brand, type of fuel whether gas or electric, and size of the unit. It brings an average range of $500-$2,000 for the water heater without including the installation costs. The main disadvantage of the gas as an energy source for these units is their higher cost as compared to the electrical ones; this is because the gas-driven units are more complicated in terms of installation.
Electric vs. Gas-Powered Units:
Electric Tankless Water Heaters:
These are relatively cheaper and can be installed easily as compared to a conventional four-wheeled cart. But they may have some drawbacks in the sense that they are not effective in heating water especially when there is a large household. Electric models are available at prices ranging from $500 to $1,500 inclusive of the costs of installation.
Gas-Powered Tankless Water Heaters:
These units cost more than others and these units need proper ventilation, gas line installations, and other additional equipment. They usually are much higher in initial cost, which can range from $ 1,000 to $ 2,000 and above.
Installation Costs:
Tankless water heaters can be very expensive to install ranging between $250 to $500 or even more depending on the project difficulty and your location. One apparent thing is that the tankless water heater can prove to be a more demanding installation than the conventional storage tank unit and this job should best be handed to a licensed plumber or contractor.
Factors Affecting Installation Costs:
- Fuel Type: These heaters are more complicated to install than the electric units; although they are gas-powered, the installation process is relatively more complicated than the other types of tankless water heaters. They demand proper air circulation and probably modification of the gas line, which forms additional costs for installation.
- Location: The installation position of the installation of the water heater may affect the amount of money charged. If your new tankless system is to be located far from the source of your water supply or there are already existing gas or electrical lines that are to be run longer than usual, the installation cost is likely to increase.
- Permitting: In most areas, there are legal requirements that one has to adhere to, one of them being the need to acquire necessary permits for the installation of the tankless water heater.
Electrical and Gas Line Upgrades:
If the existing electrical and gas system of the home requires modification to accommodate the tankless water heater then the cost is sure to go up. Electric units may require a better circuit breaker or wires than the standard set or even better electrical wiring while gas units may need a bigger pipe to supply the gas and proper ventilation which may cost an additional $500 to $2000 extra.
Water Heater Size:
The size of the tankless water heater will also influence the installation cost since the cost of a large unit will be higher than that of a small unit. Larger units that can accommodate several bathrooms or a big house may need extensive installations to meet the required requisites hence increasing the cost of both labor and material.
Labor Costs:
Natural labor is one of the components that make the cost of installing tankless water heaters higher. Installing such systems is a little bit more complicated since it involves plumbing, electrical, and at times gas lines; therefore, skilled labor is inevitable. The professional installation ranges from area to area and complexity level averagely costing between $500 up to $2,500.
Breakdown of Labor Costs:
- Plumbing: How far away the dwelling is from the source of water and if pipes have to be redirected, plumbing may cost anything from $200 to $1,500.
- Electrical Work: For electric units, there will be a need to install a new circuit breaker or rewiring which will cost about $500-$1,500.
- Gas Line Work: If you are to install a gas-powered unit, it will also cost between $500 to $2,000 for longer or new line installation.
Expense on Use of Accessories and Other Subsystem:
Some other features may also be needed while installing the tankless water heater and some of these are expensive thus contributing to the cost of this system. These accessories enable the system to operate both effectively as well as effectively in a safe manner. Some common components include:
- Ventilation Systems: I already pointed out that gas tankless water heaters call for proper ventilation. Level three the expense for both the venting materials and installation is $300 to $1,500.
- Water Softeners: Where hard water is used, the presence of minerals might be a problem; where this is an issue, a water softener might be required. Water Softeners cost between $500 to $2000 with the cost including installation.
- Expansion Tanks: Even in some cases, it is not obligatory to install the expansion tank for handling thermal expansion in the plumbing system which ranges from $100 – $ 300.
Money Saved from Energy Use:
While the purchase of a tankless water heater is more expensive than that of a traditional tank heater, it has the added benefit of saving money in the long run on energy expenses.
Conventional tanks heat water and keep it hot in a cylindrical storage tank even when not in use. However, a tankless water heater to provide hot water only at the time it is required may result in savings of between twenty-four percent and thirty-four percent of the energy used.
Savings on Utility Bills:
According to a general agreement, users of tankless water heaters can save between $100 to $200 per year on their energy utility bills depending on the number of persons in the home and their utilization rate of hot water. For the entire life of the unit, such costs can save some thousand of dollars or more for your business.
Lifespan and Maintenance:
Tankless water heaters also are known to have a longer lifespan as compared to normal units. Even if the average life expectancy of a tank type water heater ranges from 10 to 15 years, a tankless type can last for as long as 20 years and above, depending on its usage. They also contribute to the longevity of the resource thus making less frequent replacements hence positively contributing to the lifelong economy.
Incentives and Rebates:
The other thing to think of, when coming to the costing of the tankless water heater installations, is the two-way rebate incentive. Some of the rebates involve incentives that come from the utility companies and local governments whereby they provide rebates or tax credits for fitting energy efficient appliances such as the tankless water heaters.
For example, federal tax credit can also maximize at a maximum of $600 of the total cost allowed by the homeowner to claim 30% cost of purchase and installation of a tankless water heater. Also, some state and local plans for renewables can offer extra cash rebates that cover part of the cost of fitting.
Conclusion:
It is necessary to analyze many factors and aspects starting from the price of the tankless water heater and finishing by the total cost of installation and work performed by the specialist as well as the cost of future savings. It is true that the initial cost of tankless water heaters may be more than that of traditional systems but their efficiency, durability and rebate encourage homeowners to use them.
Thus, taking into consideration the amount of hot water your household requires, locality cost and installation difficulty, it will be possible to decide whether to purchase a tankless water heater.
