This is generally the NUMBER ONE question from people inquiring about tankless water heaters. There are a lot of things to consider when contemplating the price of a tankless system. The price will vary by brand, model, and ease of installation. It is our experience that the average price will fall somewhere between $2600 and $3600 plus tax for an average system. Top of the line systems (more horsepower and efficiency) will run a little closer to $3800/4200. Although these prices are 2-3 times more than the cost of the average professionally installed tank style water heater, you must look at all the facts before you rush to conclusions about the price of a tankless water heater.
- A tank style water heater is designed with a very specific life expectancy in mind from the start, and on average last 8-12 years. One of the most important pieces of any tank style heater is the ANODE rod. This device is usually made of magnesium, and it is the lowest property of metal in the water heater. Corrosion attacks the anode rod first since it is the easiest thing to “eat”. If you buy a tank with a 6 year warranty, you get a 6 year anode rod. If you buy a 10 year warranty, you get a 2nd anode installed in the tank. If the tank manufacturers had their way, the tank would fail one day after the warranty expires. When a tank develops a rupture and begins to leak, it cannot be repaired. In today’s dollars, a 50 gallon gas tank professionally installed will cost $900-1200 plus tax.
- A TANKLESS water heater is built with longevity in mind. Every piece of a tankless water heater can be replaced. The average life expectancy of a tankless system is 20-25 years. In 20 years time, a home will need 3 tank style heaters (on average). When you compare the cost of 3 tanks installed versus the onetime larger cost of a tankless investment, it’s easy to see the tankless is a much better value, ESPECIALLY when you consider the 30+ % energy savings a tankless will give you.
- Incentives. In years past, there have been tax credits, rebates, etc for switching to a gas fired tankless system. These programs come and go. Please contact us to learn about the current rebates and other incentives being offered for installing a gas fired tankless system.