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Looking to upgrade your home’s energy efficiency? Have you been asking yourself how you can decrease your water use and utility bills? If you haven’t considered a tankless water heater, you should! Many people worry about how much tankless water heater installation cost can run you, but consider not just the initial cost of a tankless water heater but how much it will save you over time.

What is a tankless water heater?

The tankless water heater design might be a little difficult for some people to grasp without seeing one. Most of the water heaters we’re familiar with – whether gas or electric – use these heat sources to heat up a large storage tank of water. Water tanks can vary from 50 to 100 gallons, or even larger, depending on the size of your home and what your hot water needs are. For most people, the tank design is wasteful. Typically, your water heater has to work hard to keep a large storage of water hot and ready for you to use, which means you pay to heat water over and over.

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Tankless water heaters have more intense heating elements that are able to heat water directly out of your pipes without having to hold it for an extended period of time. Some designs are truly tankless, and some function with smaller capacity tanks. But either way, the energy savings can be huge.

How do tankless water heaters save you money?

Save Energy

Tankless water heaters save you money in two ways: First, they don’t waste energy by reheating water over and over. Their ability to heat water quickly as it passes through their pipes and stays in motion means that your water actually gets hot faster and stays at the temperature you set it, meaning you spend less time (and waste less water) waiting for the temperature to “get right.”

Tankless water heaters save money and energy

Help Your Health

Secondly, tankless water heaters save you money because they are less likely to leak, retain moisture, or release chemicals into the air over time. Traditional water heaters are subject to rust, which can cause them to leak, and when that moisture builds up, it can result in a cascade of problems. Water heater closets are traditionally known for being dank, mildewy, and smelling like metal. This is because the water damage to the water heater’s tank means that your water heater is a huge metal box of problems just waiting to spring open and flood you with them.

Tankless water heaters may require less repair, release less environmental factors into your home (they collect less dust, are easier to clean, and less likely to release minerals than traditional water heaters). And they may overall contribute to a cleaner, healthier home.

In dollars: What does tankless water heater installation cost?

Ok, so here’s a hard number: AROUND $2,500. You can probably do some quick shopping and see that traditional water heaters are hundreds of dollars less. But, consider why:

Removing the Old Tank

When you replace your traditional water heater with a tankless water heater, your plumber may have to run new pipes or close off unnecessary valves. You will also have to pay for them to remove the old water heater – although you should ask if they offer a credit for it as scrap metal. Of course, these are one-time expenses that you won’t have to incur again when you replace your tankless water heater.

Plumber installing tankless water heater

Installing the New Tank

The costs of installing a tankless water heater aren’t much different from the costs of installing a traditional water heater – it may take the plumber more time, so if there’s an hourly rate involved, you may expect that.

The cost of the new tank is largely the tank itself. Upgraded technology comes with advanced engineering, and your new tankless water heater is lightyears ahead of the design of your current, wasteful water heater.

So imagine, cutting your utility bills by 25%, 35%, even as much as 50%. Knowing that month after month, you’ll be living a less wasteful life that’s better for the environment and your wallet. Remember, it’s not about the tankless water heater installation cost, it’s about how much the tankless water heater will save you over time.