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Tankless Water Heater Installation Cost Guide [Updated 2022]

Looking to install a tankless water heater but not sure what the cost will be? You’re in the right place.

Tankless water heaters are becoming more and more popular, but many people are unsure of what they should expect to pay for one.

In this article, we will provide you with an updated cost overview of what you can expect to pay for a tankless water heater. We will also discuss the factors that can affect the cost of installation so that you can make an informed decision. So let’s start!

How Much Does The Average Tankless Water Heater Cost?

Average Tankless Water Heater Installation Cost

The cost of a tankless water heater will vary depending on the size, model, and brand that you choose. However, the average cost of a tankless water heater is between $3,500 and $7,500 for gas models. On the other hand, an electric tankless water heater is cheaper, which costs between $2,500 and $6,500.

The estimated cost includes the price of the unit as well as the cost of installation. Installation costs will vary depending on the complexity of the job, but for installation and labour alone, you can expect to pay between $1,000 and $3,000.

Tankless Water Heater Installation Cost Factors

There are several factors that will affect the cost of installing a tankless water heater. These include:

1. The Brand of Tank You Are Installing 

If you’re looking for a high-end tankless water heater, you can expect to pay more for the unit as well as the installation. Brands like Navien and IBC are known for their quality, so they will cost more than less popular brands.

Here are some average prices for some of the most popular brands:

  • Bradford White: $1,050 – $1,700
  • Navien: $1,000 – $2,000
  • American Standard: $990 –$1,010
  • Bosch: $480 – $2,350
  • Noritz: $550 – $2,600
  • Rheem: $350 – $2,000
  • Rinnai: $500 – $2,300
  • EcoSmart: $450 – $680

2. Fuel Type

electric vs gas model

The fuel type of your tankless water heater will also affect the cost. Gas tankless water heaters are more expensive than electric, but they’re also more energy-efficient. Also, gas rates are much cheaper than electricity in some states and provinces, so it’s important to factor that into your decision.

There are additional costs that you might incur for installing a gas or electric tankless water heater, and these are:

  • Gas installation: If your home doesn’t have a gas line, you will need to pay to have one installed. If your home doesn’t have a gas line that reaches your desired installation location, you will need to have the gas line extended, which adds up to the total cost.
  • Venting: Gas tankless water heaters require proper venting, and if you don’t have the proper ventilation in your home, you will need to install it. This can be costly, depending on the complexity of the job.
  • Electric installation: Electric tankless water heaters are less expensive to install than gas because they don’t require any special hookups. However, you will need to factor in the cost of running an electrical line to your desired installation location.

3. The Size of Unit You Need

The size of the tankless water heater you need will be determined by the flow rate of the unit as well as the number of bathrooms in your home. For a standard 3-bedroom home, you will need a unit that has a flow rate of between 7 and 11 gallons per minute (GPM).

If you have a 4- or 5-bedroom home, you will need a unit with a flow rate of between 11 and 15 GPM. A unit with a larger flow rate will, of course, be more expensive.

4. The Type of Company You Choose To Do The Installation 

The company you choose to install your tankless water heater will also affect the cost. If you hire a professional company, you can expect to pay more than if you do it yourself or hire a handyman.

Professional companies have overhead costs that they need to cover, so their prices will be higher. However, they will also have the experience and knowledge to install the unit correctly, so it’s worth paying more for a professional installation.

5. Running New Gas Lines For The Tankless Water Heater 

If you’re installing a gas tankless water heater, you may need to run new gas lines to the unit. This will add to the cost of installation, but it’s necessary to ensure that the unit is installed professionally because gas lines are complex and might cause an explosion if not installed properly.

6. City Permits

Some cities require a permit for installing a tankless water heater, and this will add to the cost of installation. The permit fee is usually around $50 to $400, depending on the city. Also, if you are consulting a contractor, they should be able to tell you if a permit is required.

7. Tax Credits and Rebates

You may be eligible for a tax credit or rebate if you install a tankless water heater. The amount you’ll receive will depend on the type of unit you install and the state or city you live in.

For example, if you install a condensing tankless water heater in British Columbia, Canada, you will get up to $1000 in rebates from FortisBC, BC Hydro, and CleanBC. This is intended to encourage the use of energy-efficient technology and help customers save money on their power bills while reducing their carbon footprint.

Why You Should NEVER Look For The Cheapest Installation Cost

calling a tankless water heater contractor

When it comes to tankless water heater installation, you should never choose the contractor with the lowest price. This is because they may not be properly licensed or insured, and they might not have the experience necessary to install the unit correctly.

A poorly installed tankless water heater can cause a lot of problems, including:

  • Water Damage: If the unit is not installed properly, it can leak and cause water damage to your home and fixtures.
  • Gas Leaks: If you have a gas tankless water heater, a poorly installed unit can cause a gas leak, which can be dangerous and can cause an explosion.
  • Inefficient Operation: A poorly installed unit will not operate as efficiently as it should, and this will increase your power bills.
  • Premature failure: A poorly installed unit is more likely to fail prematurely, and this will mean that you’ll have to pay for another installation sooner than you would if the unit was installed correctly the first time.
  • Voiding the warranty: Most manufacturers will void the warranty if the unit is not installed by a professional.

So, while it might be tempting to save money by hiring the cheapest contractor you can find, it’s not worth the risk. Always choose a reputable company with experience in installing tankless water heaters.

How to Find a Certified Tankless Water Heater Installer

how to find a tankless water heater contractor (1)

When you’re ready to install your tankless water heater, here are some tips for finding a certified installer:

1. Check with the manufacturer

Most manufacturers have a list of certified installers on their websites. This is a good place to start because you know that these installers have been trained by the manufacturer and are familiar with their products.

2. Ask your friends and family

If someone you know has recently installed a tankless water heater, ask them who they worked with and if they were happy with the service. Don’t forget to get the company’s contact details to schedule an appointment or consultation. 

3. Check online reviews

By searching for the keyword “tankless water heater installation companies near me” on Google, you can get a list of companies in your area. Also, there are many websites where you can read reviews of contractors, and this is a great way to find out if people have been happy with their services. Be sure to read both the positive and negative reviews to get a well-rounded view of the contractor.

4. Ask questions

When you’re talking to potential contractors, be sure to ask questions about their experience, training, and insurance. You should also ask for references from previous customers.


Installing a tankless water heater can be a great way to save money on your power bills and reduce your carbon footprint. With the information in this guide, you should be able to get a good idea of the cost to install a tankless water heater and you will be guided in finding a certified installer in your area.

If you are living in the Lower Mainland Canada and are looking for a tankless water heater installation company, feel free to give us a call or contact us through our website. At Your Guy Plumbing, we provide our customers with top-quality plumbing services at a fair price.

We’ve been highly rated and recommended by our customers on Google and Facebook, and we’ve received hundreds of 5-star reviews. Most importantly, our team is licensed, bonded, and insured.

Schedule a free consultation today to see how we can help you save money on your power bills!

Frequently Asked Questions

How long does a tankless water heater last?

Tankless water heaters typically last 20 years or more. This is much longer than a traditional tank water heater, which only lasts 8-12 years. We’ve created a more detailed guide on how long tankless water heaters last in this article: How long Does a Water Heater Last? Your Questions Answered

How to properly maintain a tankless water heater?

One of the most important things you can do to maintain your tankless water heater is to keep it clean. A build-up of minerals can lead to corrosion and scale, which can reduce the efficiency of your unit and shorten its lifespan.

You should flush your unit regularly according to the manufacturer’s instructions. You also need to consult your owner’s manual to find out what type of water filter is recommended for your model.

Another important factor in maintaining your tankless water heater is to keep an eye on the temperature and pressure relief valve. This valve releases water if the temperature or pressure gets too high. If the valve is stuck or not working properly, it could cause serious problems. 

It is also recommended to have your tankless water heater checked by a professional every few years to make sure everything is in working order.

John Relampago

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