Cost to Install or Replace Tankless Water Heaters

Many homeowners love tankless water heaters because they are energy efficient, and instantly supply hot water. The one drawback is the upfront investment it takes to install them. The master plumbers at Reliant Plumbing provided this guide to help you understand the cost to install a tankless water heater. 

Note: All pricing on this page is based on average prices we see around Austin and San Antonio Texas. Applicable to our service area including Westlake, Round Rock, and Cedar Park. Your costs could vary depending on the price of plumbing labor and supplies in your local area.

Cost to Install a Gas Tankless Water Heater

The average cost to have a licensed plumber install a gas tankless water heater is about $7,250 – based on prices in the Austin, Texas area from 2020. Prices may have changed slightly due to inflation. See the table below for the breakdown:

When you are installing a tankless water heater for the first time, several things will need to be changed to accommodate the new unit. This is why the cost of installation varies so much depending on your existing setup. Here are a few things that will need to happen during the installation of your new tankless unit:

• Reposition water lines & circulation line
• Add condensate drain
• Add wall hung pan drain
• Reposition Temperature Pressure Relief valve
• Add bracket and ensure wall support to hang the tankless water heater on
• Increase in pipe size for gas line going to the water heater
• Convert venting from metal to PVC
• Install flashing to ensure no leaks in the gas pipe (may require a roofer)
• Install 110 volt electrical outlet to control the igniter & temperature control panel

Be sure to discuss with your plumber what your specific installation will require and see that the price quoted aligns with your needs.

Cost to Install an Electric Tankless Water Heater

The average cost to have a licensed plumber install an electric tankless water heater is about $8,850 – based on pricing in the Austin, Texas area from 2020. Prices may have changed slightly due to inflation.

However, our master plumber generally does not recommend going with an electric tankless water heater. This is because most homes don’t have enough AMPs to support the needs of an electric tankless. You need about four 40AMP breakers. This usually requires several thousand dollars of electrical work before a plumber can even begin to install the unit.

Even if you do have the electrical support needed, our experience has seen that elements within the water heater go out and need to be replaced often, which shortens the lifetime of your unit. We’ve also seen electric units struggle to supply the hot water necessary for most homes In general, gas units outperform electric units in many ways.

There are two situations in which we’d recommend going with an electric tankless water heater. They are great for vacation homes or cabins that are only used occasionally. With less demand on the unit, you likely won’t have issues with its longevity or water supply. Electric tankless heaters could also potentially work well in a condo with only one bathroom. 

Cost to Replace a Gas Tankless Water Heater

The average cost to have a licensed plumber replace a gas tankless water heater is about $4,700 – based on pricing in the Austin, Texas area from 2020. Prices may have changed slightly due to inflation.

It is much less expensive to replace a tankless water heater since your location has already been configured properly for tankless. However, these water heaters should last 15+ years without needing to be replaced. If you’re having an issue with your tankless water heater, check out these common problems. You might be able to repair the unit instead of replacing it all together.

Cost to Replace an Electric Tankless Water Heater

The average cost to have a licensed plumber replace an electric tankless water heater is about $4,200 – based on pricing in the Austin, Texas area from 2020. Prices may have changed slightly due to inflation.

It is much less expensive to replace a tankless water heater since your location has already been configured properly for tankless. However, these water heaters should last 15+ years without needing to be replaced. If you’re having an issue with your tankless water heater, check out these common problems. You might be able to repair the unit instead of replacing it all together.

If you are sure you need to replace your electric tankless water heater, we’d recommend you consider converting it to a gas unit. The electric styles tend to have more issues and lower longevity. We prefer gas tankless heaters for their quality & durability. If you do convert from electric to gas, your cost is going to be more similar to the Cost to Install a Gas Tankless Water Heater above.

How to Get an Estimate for Your Tankless Water Heater

It’s difficult to guess the price of plumbing projects because every home varies so much. Often, we get on a job and find the existing plumbing needs to be brought up to code before we can even get started. You should always discuss pricing with your plumber up front. They should come visit your house to evaluate your project & provide an estimate. This is not a free process unfortunetly. It takes time for a plumber to come out to your house and they often need to do some diagnostics before getting to your price.

If a plumber is not able to provide you with an upfront estimate, you should still discuss pricing. Do they charge for labor hourly or use flat rate pricing? If a plumber charge hourly, you might want to call a few different plumbers to compare rates. 

Your water heater health is important for many of your home’s plumbing fixtures. Take a look at these bathtub choosing tips and enjoy your hot water in style and comfort!

If you’re in the Austin or San Antonio area, we’d love to help you with your tankless water heater install! Give our office a call to discuss your project.

How to Apply for Tankless Water Heater Rebates in Austin Texas

• Purchase a new qualifying natural gas water heater.
  • a new natural gas tankless or super high-efficiency water heater with a uniform energy factor (UEF)
    of 0.81 or higher or a thermal efficiency (TE) of 82 percent or higher.
  • a new solar water heater with natural gas backup
• Have an installer put in your new water heater
  • The installer MUST comply with manufacturers instructions as well as safety and code requirements. If this step is skipped you can lose your rebate opportunity.
• Submit the signed application with receipts for tankless water heater and the install invoice within 180 days. You can send receipts online or by mail.
• Make sure to review eligibility requirements. If you do not meet the requirements you may not qualify for the rebate.