Pridemark Plumbing

Tankless water heaters, also known as on-demand water heaters, have been gaining popularity due to their energy efficiency and the convenience of providing hot water only when needed. However, many homeowners are surprised by the high cost of installing these units. Let’s explore why tankless water heater installation can be so expensive and what factors contribute to these costs.

High Initial Cost of the Unit

One of the primary reasons for the high cost of installing a tankless water heater is the price of the unit itself. Tankless water heaters are generally more expensive than traditional tank-style water heaters. This cost difference is due to the advanced technology and materials used in tankless models, which are designed to heat water quickly and efficiently.

Complex Installation Requirements

Installing a tankless water heater is not as straightforward as swapping out an old tank unit for a new one. Tankless systems have specific installation requirements that often necessitate significant modifications to your home’s plumbing and electrical systems. Here are some key factors:

  • Upgrading Gas Lines or Electrical Systems: Tankless water heaters, especially gas-powered ones, often require a larger gas supply line than older tank models. This means you may need to upgrade your gas line, which can be costly. Similarly, electric tankless units require higher voltage and amperage, necessitating upgrades to your home’s electrical panel.
  • Venting Requirements: Proper venting is crucial for gas tankless water heaters. Unlike traditional water heaters that use existing chimney flues, tankless models often require new venting systems. This involves running stainless steel vent pipes, which are more expensive than traditional materials, through your walls or roof.
  • Plumbing Modifications: Since tankless water heaters operate differently, the existing plumbing might need significant changes. This could include rerouting pipes to connect with the new unit, which adds to labor costs.

Skilled Labor Costs

The installation of a tankless water heater is not a DIY project for the average homeowner. It requires skilled labor, including licensed plumbers and electricians, to ensure the unit operates safely and efficiently. The complexity of the installation process means it takes longer and requires specialized knowledge, which increases labor costs. Professionals need to be paid for their expertise and the time spent ensuring that the installation meets all local building codes and safety standards.

Permits and Inspections

Another factor contributing to the high cost of installing a tankless water heater is the need for permits and inspections. Most local governments require permits for major plumbing and electrical work, including the installation of tankless water heaters. These permits ensure that the work is done safely and to code. Additionally, the installation will likely need to pass an inspection, which adds to the overall cost due to permit fees and the time required to arrange and pass the inspection.

Long-Term Savings and Benefits

While the upfront costs of a tankless water heater installation are high, it’s essential to consider the long-term savings and benefits. Tankless water heaters are more energy-efficient than traditional tank models. They only heat water when you need it, reducing energy waste and lowering your utility bills over time. Additionally, tankless units have a longer lifespan—typically around 20 years compared to 10-15 years for tank water heaters. This longer lifespan means you won’t need to replace the unit as frequently, which can save money in the long run.

Incentives and Rebates

In some cases, the high installation cost can be offset by incentives and rebates. Many utility companies and government programs offer rebates for installing energy-efficient appliances, including tankless water heaters. These incentives can help reduce the overall expense and make the investment more attractive.


In conclusion, the high cost of tankless water heater installation is due to a combination of the unit’s initial price, complex installation requirements, skilled labor costs, and necessary permits and inspections. However, the long-term savings on energy bills and the extended lifespan of tankless units can make them a worthwhile investment. For homeowners in Goodyear, AZ, considering a tankless water heater installation, it’s crucial to choose a reputable and experienced plumbing service.

If you’re considering a tankless water heater installation in Goodyear, AZ, look no further than Pridemark Plumbing. With years of experience and a commitment to quality service, Pridemark Plumbing can ensure your installation is done correctly and efficiently. Contact Pridemark Plumbing today to learn more about how a tankless water heater can benefit your home and to get a quote for installation.

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