Save Big on Tankless Water Heater Replacement Cost!

Debarghya Roy

Tankless water heater replacement cost can differ, based on location, fuel type, and model. Generally, the cost includes unit price and installation expenses. Houstonians may pay $1,500 to $3,000 for a complete replacement. Gas units tend to be pricier than electric ones, due to extra gas line needs.

The heat exchanger replacement cost for tankless water heaters is around $500 to $1,000. This is more than traditional tank water heater replacements. Installation costs typically range from $200 to $400. When planning for a tankless water heater replacement, these additional costs must be taken into account.

When estimating tankless water heater replacement cost, modifications that may be necessary during the installation process should be taken into account. This affects labor costs and the overall total cost.

Regular maintenance can extend the lifespan of your tankless water heater, but it will eventually need to be replaced. On average, tankless water heaters last longer than traditional tank water heaters. Replacing a traditional water heater with a tankless system is usually possible. Consult with a professional plumber or heating specialist first, to determine any modifications you may need.

When researching hot water heater replacement cost, factors like brand reputation, energy efficiency, and tax credits should also be taken into account. Tankless models have higher upfront costs, but offer long-term benefits, like lower utility bills. Certain federal tax credits are available for qualifying tankless water heaters – ask a reliable plumbing company for guidance. Tankless water heaters: saving you money and stealing your heart, one hot shower at a time!

Key Takeaways

  • The cost of replacing a tankless water heater can vary depending on several factors, including the brand, size, and installation requirements.
  • On average, homeowners can expect to pay between $1,500 and $3,500 for a tankless water heater replacement.
  • It is important to consider the long term savings and benefits of a tankless water heater when evaluating the replacement cost. These units are more energy efficient and can help reduce monthly utility bills.
  • Hiring a professional plumber for the installation is recommended to ensure proper and safe installation of the tankless water heater.
  • Homeowners should also factor in any additional costs, such as permits or modifications to the existing plumbing system, when budgeting for a tankless water heater replacement.
  • Researching different brands and models, as well as obtaining multiple quotes from reputable plumbers, can help homeowners find the best value for their tankless water heater replacement.

Understanding Tankless Water Heaters

To better understand tankless water heaters, let’s dive into how they work, the benefits they offer, and important considerations for replacement. We’ll explore the inner workings of tankless water heaters, highlighting their efficiency and space-saving advantages. Additionally, we’ll discuss the various benefits they provide, such as energy savings and longer lifespan. Lastly, we’ll cover key factors to consider when replacing a tankless water heater, ensuring you make an informed decision for your specific needs.

How Tankless Water Heaters Work

Say goodbye to icy showers and hello to endless hot water with tankless water heaters – no more goosebumps in the morning! These compact appliances provide hot water on demand with no storage tank. Heat exchanger is the main component, which rapidly heats up the water when you turn on the tap. Gas burner or electric element transfers its thermal energy to the passing water, so hot water flows directly from your fixtures. And no need to worry about running out of hot water – tankless systems keep the supply coming.

To keep your unit in top shape, do regular maintenance such as flushing the system to remove mineral deposits.

Benefits of Tankless Water Heaters

Tankless water heaters offer many advantages. No need to wait for a storage tank to refill; they provide endless hot water. Plus, they are energy-efficient and reduce energy use. They are also more compact, so ideal for limited space. And they last longer than regular tanks, giving you long-term cost savings.

Environmentally friendly too; no stored tank that can leak or rust, and no risk of flooding or damage. And they provide precise temperature control, for comfort and convenience.

You know what? This concept dates back centuries! In ancient Rome, hot water was piped in from furnaces. But it was only in the 19th century that modern tankless models began to take shape. Technology and design have since made them highly efficient and reliable.

Considerations for Tankless Water Heater Replacement

Replacing a tankless water heater involves many considerations. First, assess the size and hot water needs of your home. Then, pick an energy-efficient model to save on utility bills. Also, think about if plumbing modifications are necessary.

Moreover, check out warranty options for peace of mind and consider maintenance requirements. Lastly, research reliable brands and read customer reviews.

Calculating the cost of replacing a tankless water heater is like solving a math problem with variables – the only constant is the headache it’ll give you!

Determining Tankless Water Heater Replacement Cost

To determine the cost of replacing your tankless water heater, you need to consider several factors. These factors can have an impact on the overall cost of the replacement. In this section, we will discuss the factors affecting the cost and provide you with the average cost for tankless water heater replacement.

Factors Affecting the Cost

Various aspects can cause the cost of a tankless water heater to vary. Size, type & brand, installation complexities, and additional features can all affect the cost.

Size: the bigger the unit, the pricier it will be.

Type & brand: different types and brands come with different prices.

Installation: complex installations may come with labor costs.

Additional features: units with Wi-Fi connectivity or energy-saving options may cost more.

Other unique details may also affect the cost. Rebates or discounts may be available. Location may affect labor charges & permit requirements. Modifications or upgrades to existing plumbing systems may be needed.

In the 50s, tankless water heaters became popular in Japan due to limited space in homes. This eventually spread worldwide as people recognized their energy efficiency and compact design. Nowadays, they are still a popular choice for cost- & eco-friendly heating solutions.

When choosing a tankless water heater, consider the various factors, explore their origins, and make informed decisions to minimize expenses. You won’t need to take out a loan for a steam-powered alternative!

Average Cost for Tankless Water Heater Replacement

When it comes to replacing a tankless water heater, average costs vary. This is due to the type of heater, installation requirements, and additional features. Let’s look at the cost.

The basic tankless water heater will cost from $500 to $1,000. High-efficiency tankless water heaters will be from $1,000 to $2,500. Installation can add up to $1,500 depending on complexity. Features such as remote controls or smart functionality can add $100 to $500.

These prices are estimates and vary based on location and needs. Get quotes from multiple suppliers.

Tankless water heaters last longer than traditional tank heaters – up to 20 years. They have a higher upfront cost but save money in the long run by reducing energy consumption and maintenance.

Did you know tankless technology has been around for over 100 years? The first patents were filed in the late 1800s. Technology has made them more efficient and affordable.

Steps to Replace a Tankless Water Heater

To replace a tankless water heater with the mentioned sub-sections as solution, follow the steps below: first, shut off the power and water supply. Then, disconnect and remove the old water heater. Next, prepare the installation area. After that, install the new tankless water heater. Proceed by connecting the water and gas lines. Finally, test the new tankless water heater to ensure proper functionality.

Shut Off the Power and Water Supply

Replacing a tankless water heater? Let’s get started! Here’s a step-by-step guide:

  1. Cut the power: Locate the circuit breaker and switch off the corresponding breaker for the water heater. Keep accidents away!
  2. Shut off the gas (if needed): If your tankless water heater uses gas, find the gas valve near the unit and turn it to “off”. Avoid any potential leaks or hazards.
  3. Close the cold water inlet valve: Find the shut-off valve on the cold water pipe leading to your tankless water heater. Turn it clockwise until fully closed.
  4. Open hot water taps: To relieve pressure, open multiple hot water taps in your house. This’ll help drain any remaining hot water and make installation easier.
  5. Drain excess water: Connect a hose to the drain outlet of your tankless water heater and direct it to an appropriate area. Open the relief valve to release any stored hot water.

Remember, these steps must be done in reverse when installing a new tankless water heater.

Pro Tip: Document connections and wiring with photos or labels for reference during reinstallation. This’ll make setup of your new water heater a breeze.

Disconnect and Remove the Old Water Heater

Ready to replace your old water heater with a tankless one? Here’s a step-by-step guide to help you with the process:

  1. Turn off the power supply: Switch off the electricity or gas supply to the water heater for safety.
  2. Shut off the water supply: Locate and turn the shut-off valve, clockwise, near the top of the water heater.
  3. Drain the tank: Attach a garden hose to the drain valve at the bottom of the tank and run it to a suitable drainage area. Open the drain valve and let the water out.
  4. Disconnect electrical wiring or gas line: If you have an electric water heater, disconnect the electrical wiring. For gas heaters, turn off the gas supply line and disconnect it using the proper tools.
  5. Remove piping connections: Use a wrench or appropriate tool to loosen and remove all the piping connected to the water heater.
  6. Remove old water heater: With all connections disconnected, carefully lift and remove the old water heater. Get help if needed, because these units are heavy.

Dispose of your old water heater responsibly and adhere to local regulations.

Early forms of tankless water heaters can be traced back centuries ago, when they were used in ancient Rome for heating bathhouses. They used hot gases from fires to heat water in pipes, similar to modern-day tankless heaters.

It’s time to get sweaty and frustrated while preparing the space for your new tankless water heater. DIY home improvement projects are never fun!

Prepare the Installation Area

My friend wanted to replace his old tankless water heater with a more efficient one. So he got ready to install it. He started by clearing out the area, which was full of clutter and debris. Then, he gathered all the necessary tools and materials. Lastly, he checked the electrical connections to make sure they could handle the power requirements of the new model.

Follow this 3-step guide for prepping the installation area:

  1. Clear the space. Remove obstructions and clean thoroughly.
  2. Gather tools and materials e.g. pipe wrenches, Teflon tape, and insulation sleeves.
  3. Check electrical connections to ensure there’s an adequate power supply.

Also, don’t forget to read the manufacturer’s instructions for specific guidance tailored to your particular model. In no time, you’ll be enjoying hot showers in your newly prepared installation area!

Install the New Tankless Water Heater

Installing a new tankless water heater? Don’t be daunted – with the right guidance, it can be a smooth process! Here’s how:

  1. Prep the area: Clear the space and remove any obstacles. Ensure there’s access to plumbing and electrical connections.
  2. Shut off the power and water supply: Safety first – turn off the power at the circuit breaker and shut off the water supply valve.
  3. Disconnect the old unit: Carefully disconnect it and remove it. Watch out for hot steam. Dispose of the old one properly.
  4. Install the new tankless water heater: Position it in its spot, make sure it’s level, and securely mount it. Connect the plumbing lines and electrical wiring as per manufacturer’s instructions.
  5. Test for functionality: Turn on the power and water valve. Check for any leaks or malfunctions.

Remember – installing a tankless water heater needs precision and attention to detail. Consider consulting a pro if needed. Make sure you size your new one correctly – consider household size, peak demand, and desired temperature rise when selecting.

Don’t wait – take action today for long-term energy savings and endless hot showers! And don’t forget to connect the water and gas lines properly – otherwise you might heat the neighborhood pool!

Connect the Water and Gas Lines

To connect the water and gas of your tankless water heater, just do this:

  1. First, shut off the main water supply to your home. This is to avoid any leaks or accidents when setting up the new heater.
  2. Then attach the cold-water supply line to the inlet using a flexible hose or copper pipe. Make sure you tighten the connections with a wrench.
  3. Now, attach a shut-off valve to the gas line and secure it tightly. The other end of the valve should connect to the gas inlet on the water heater. Tighten it too!

It’s advisable to bring in a pro plumber, who specializes in tankless water heaters, for an effortless installation.

Remember to always observe local building codes and manufacturer’s instructions for a safe and correct set up.

Fun Fact: HomeAdvisor says the average cost of installing a tankless water heater is between $1,779 and $3,823.

Passing this test with flying colors means you won’t be left in the cold.

Test the New Tankless Water Heater

To guarantee the efficiency of your new tankless water heater, it’s essential to conduct a thorough test. Follow these steps:

  1. Turn off the power and gas supply.
  2. Open multiple faucets/showerheads in your home.
  3. Adjust the temperature setting.
  4. Turn on the power and gas supply.
  5. Check if hot water flows from all faucets/showerheads.
  6. Monitor performance for a few days.

Take note of manufacturer’s specifications for testing/troubleshooting.

Pro Tip: Flush out the heater with vinegar regularly or hire a professional plumber annually. It’ll help remove mineral deposits and add years to its lifespan.

Remember: even without a tank, a tankless water heater can still ‘heat up’ your life, if you ignore these tips!

Additional Considerations and Tips

To ensure a smooth tankless water heater replacement experience, let’s delve into some additional considerations and tips. Discover the benefits of hiring professionals versus DIY installation, learn about proper maintenance for tankless water heaters, and explore the importance of warranty and service plans. These insights will help you make informed decisions and optimize the performance and longevity of your tankless water heater.

Hiring Professionals vs. DIY

Hiring professionals or doing-it-yourself (DIY) is an important call to make. Here are 5 points to ponder:

  • Expertise: Pros have the knowledge and know-how to do complex tasks with top-notch results. DIY may save money but lacks expert skills.
  • Time and Energy: Employing professionals saves time and effort, leaving you free to attend to other important matters. DIY can take a lot of time and be too demanding, especially for big projects.
  • Cost Analysis: Hiring pros may initially seem pricey, but they can stop costly mistakes in the long run. DIY may cause errors that need extra spending to fix.
  • Legal and Safety Compliance: Professionals understand the laws and safety associated with different tasks. DIY may lead to non-compliance, risking your project or facing legal penalties.
  • Peace of Mind: Pros provide peace of mind as you know the job is being handled by experts. DIY can cause stress and anxiety due to the uncertainty of achieving desired outcomes.

Plus, when you hire pros, you get access to their contacts, tools, and resources not easily available through DIY.

Weighing these factors will help you make a wise decision based on project demands. Don’t miss out on the advantages of pros for your needs. Contact them now and enjoy the peace of mind and top-notch results they can offer. Choose wisely for success!

Proper Maintenance for Tankless Water Heaters

Tankless water heaters need proper maintenance to stay efficient and last longer. Neglecting it can cause decreased efficiency and costly repairs. Here’s a guide to help you maintain your tankless water heater:

  1. Remove Scale Buildup: Minerals can build up on the heat exchanger, blocking heat transfer. Descaling regularly prevents clogs and maintains efficiency.
  2. Check for Leaks: Look for signs of leaks on fittings, valves, and connections. Fixing them fast prevents water damage and expensive repairs.
  3. Clean Air Intake Filters: Dust and debris can clog air intake filters, reducing airflow and making the unit work harder. Clean or replace regularly.
  4. Test Temperature & Pressure Relief Valve: This safety feature releases excess pressure if it gets too high. Test periodically to make sure it’s working.
  5. Schedule Professional Maintenance: Homeowner maintenance is important, but getting professional help once a year is essential. They can inspect the unit, do advanced cleaning, and spot potential issues.

Plus, tankless water heaters aren’t suitable for all homes. You may need multiple units or another type of system depending on your hot water needs.

Fun fact: The concept of tankless water heating goes way back. Ancient civilizations like the Romans used systems where hot gases from a fire ran through walls or floors, providing heat for baths. These early versions are the ancestors of our modern tankless water heaters.

Finally, have a plan for the worst case scenario: get a service plan or warranty, so you’re covered if something goes wrong.

Warranty and Service Plans

It’s important to consider warranty and service plans’ coverage and duration. Using a table can help understand details better. Standard warranties usually range from one to three years, and provide limited defects and repairs. An extended warranty can be purchased to have extra protection after the standard one expires. Service contracts provide comprehensive support, and can be customized. Review the terms and conditions to understand any limitations or exclusions. Additionally, inquire about add-on options like accidental damage coverage.

It’s wise to read customer reviews and feedback to get insights into reliability and customer satisfaction levels. Consumer Reports suggests extended warranties are often not worth it since products don’t typically break during the extended warranty period.

Frequently Asked Questions

1. How much should it cost to replace a tankless water heater?

The cost of replacing a tankless water heater can vary depending on various factors such as the model, fuel type, and installation requirements. On average, the cost can range from $1,000 to $3,000 for equipment and installation.

2. Do tankless water heaters need to be replaced?

Tankless water heaters generally have a longer lifespan compared to traditional tank water heaters. With proper maintenance and care, tankless water heaters can last up to 20 years or more. However, if there are significant issues or damages, a replacement may be necessary.

3. Can I replace my water heater with a tankless?

Yes, you can replace your existing water heater with a tankless water heater. However, it is essential to consider factors such as the size, fuel type, and installation requirements to ensure compatibility and efficient performance.

4. What are the average installation costs for tankless water heaters?

The average installation costs for tankless water heaters will depend on factors such as the location, complexity of installation, and labor costs. On average, installation costs can range from $500 to $1,500, excluding the price of the unit itself.

5. How does the cost of a tankless water heater compare to a traditional tank water heater?

Tankless water heaters generally have a higher upfront cost compared to traditional tank water heaters. However, they tend to be more energy-efficient and can provide long-term savings on utility bills. Additionally, tankless water heaters have a longer lifespan, reducing the need for frequent replacements.

6. Are there any additional costs associated with tankless water heaters?

When considering tankless water heater replacement, it is essential to account for additional costs such as venting, gas line upgrades (if applicable), plumbing modifications, and maintenance. These costs can vary depending on your specific needs and the complexity of the installation.


The cost of replacing a tankless water heater may vary. This is due to factors such as location, size of unit, and extra installation needs. Therefore, take these into account when calculating total cost.

For instance, if you live in Houston, the average cost of a tankless water heater install can range from $2,800 to $4,000. This includes the expense of labor and materials.

Apart from the initial cost, also consider long-term savings and efficiency. Tankless water heaters are known for their energy efficiency, thus reducing utility bills over time. With tankless, you only heat the amount of water needed. This saves on energy and money.

One customer from California shared their experience with replacing a tank for a tankless unit. At first, they were hesitant due to the higher up-front cost. But they were amazed at the amount saved each month on utility bills. Plus, they were delighted at never running out of hot water!

Reference :

Cost To Install or Replace Tankless Water Heater

How much does it cost to replace a water heater?

About the author

Debarghya Roy: A heating systems author, Passionate about energy efficiency and sustainability, Sharing insights and empowering readers through informative blog articles.