How Much Does A Tankless Water Heater Cost In 2024? – Forbes Home

Several factors can affect the overall cost of a tankless water heater. The type of tankless water heater, BTUs, GPM rate, available tax credits, condensing vs. non-condensing units, and installation determine the price of a tankless water heater. Some increase costs, others decrease costs.

Type of system

Tankless water heaters can operate as whole-house systems or as point-of-service units. A whole-house tankless water heater costs more than one or more point-of-service units, but installing single-point units may incur additional installation costs. It's best to determine your home's hot water needs before deciding on a system type.

BTUs

The cost of gas-powered tankless water heaters can vary depending on the amount of British Thermal Units (BTU) they can produce. Units with a capacity of 199,000 BTUs cost more than those with lower numbers. Devices with higher BTUs can heat water faster than devices with fewer BTUs.

GPM

Gallons per minute or flow rate affect the price of a tankless water heater. More capacity means you can run more appliances that require hot water at the same time. So if you have a larger house or household, you will need a device with a high flow rate. Flow rates range from 2 GPM to nearly 10 GPM for home models.

Tax credits

Tax credits may be available for the purchase of tankless water heaters. Under the Inflation Reduction Act of 2022, you can claim 30% of your project costs when purchasing a gas-powered, Energy Star-certified tankless water heater $600. This can offset some of the initial investment if you're trying to reduce your utility bills.

Condensing vs. non-condensing

Condensing tankless water heaters use a second heat exchanger to transfer more heat to the water. Condensing units lower the exhaust gas temperature to the point where they condense, which can help increase flow rate. Since the exhaust temperature has dropped, this may also mean the possibility of using other venting devices.

Condensing units tend to be more expensive than non-condensing units, but also run more efficiently than non-condensing units. The additional heat exchanger increases the cost of a condensing water heater. Non-condensing devices require proper ventilation to withstand higher temperatures.

installation

Tankless water heater installation costs vary, but are typically between $1,000 and $3,500. Remodels cost more, as do any plumbing and electrical work. If you decide to install a tankless water heater, this can impact the cost, especially if you are moving it from a previous location.

(Note: All information and prices are as of publication and are subject to change.)

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