Why Is It So Expensive to Install a Tankless Water Heater?

One of the main reasons why it is so expensive to install a tankless water heater is because these systems require a lot of specialized installation work. For example, the water heater has to be located very close to the point of use, and the venting system needs to be installed in such a way that it does not create any air leaks.

Additionally, tankless water heaters are often more expensive to purchase than traditional water heaters. This is mainly because tankless systems require a lot of specialized components, such as a gas valve and a digital controller. As a result, the total cost of installing a tankless water heater can be quite high.

Water heaters are an integral part of a home’s plumbing infrastructure. Using a tankless water heater, as opposed to a standard unit, can have higher purchase costs. However, because tankless systems only heat the water you are using, as opposed to standard units which continually heat a large quantity of water, your run costs will be lower. Overall installation costs depend on several factors such as the size of your unit, the location of the heater as well as the location of the venting system.

Water Heater Replacements

With all replacements, the first step is always to drain and remove your existing system’s tank. Once removed increased costs may be recognized since a new electric outlet or a new and larger gas line may be needed. This sometimes entails removing drywall and trim from walls and ceilings so the repair of these areas must be calculated into the cost of installation.

Size Matters

The size of a tankless water heater can vary and matching your water heater size to your hot water requirements is crucial. A too-small tank will result in cold showers and inadequate hot water and a tank that is too large will waste energy. Using a combination of your flow rate (how much water is needed at any given time measured in gallons per minute) and your temperature rise (the difference between the temperature of groundwater and your ideal water temperature in the home)  you can determine the optimal size water heater.

Venting

Tankless water heaters require an exhaust system to the outdoors to eliminate the resulting hot air. There are two basic types of vents. The first type is called a power-vent which uses indoor air for combustion and exhaust is released outdoors. The second venting system is referred to as a direct vent. Direct-vent systems use the outside air for combustion so require two vents. One vent is the intake vent bringing in outside air and a second vent is used to remove the hot air through expensive stainless steel or heavy aluminum pipes. This venting requirement will add additional costs to your installation.

Conclusion

Tankless water heaters are more expensive to install than standard water heaters but their savings over the long haul are real. Evaluating your home’s capabilities and your family’s needs will help you determine if a tankless system is for you. Need help pricing out a tankless water heater project? Contact us today!