Why Are Tankless Water Heaters So Expensive?

If you’ve been scouring the web looking for a tankless water heater, you may have experienced some sticker shock. Tankless water heaters aren’t the cheapest water heating option, but there are some good reasons for that price disparity.

We’ve specialized in tankless water heater installation for over 20 years, and in Los Angeles, we can tell you that the prices for tankless water heaters are just as high as they are around the country.

In this article, we’ll break down why the higher price of a tankless water heater isn’t necessarily a bad thing and what a fair price is to have one installed. After reading through this brief article, you’ll be able to make a more informed investment should you choose to run with a tankless water heater.

Let’s jump in with addressing the elephant in the room and get down to why tankless water heaters are so expensive.

Factors that Impact Tankless Water Heater Cost

There are a couple of different aspects of tankless water heaters that lead them to cost more than a traditional tank-style water heater. While there’s no denying the price difference, tankless water heaters make a pretty solid argument for themselves when it comes to the higher upfront investment they require.

Complexity

Starting with the factor that is harder to defend, tankless water heaters are far more complex than their tank-style counterparts. Typically, a tank-style water heater is comprised of only a few key components: a tank, gas valve, burner, and pilot assembly.

Tankless water heaters feature more components because the process they use to heat water is a bit more intricate. You’ll find a flow sensor, computer board, gas valve, heat exchanger, burner, fan, and bypass valve in every gas tankless water heater.

But complexity is only one piece of the puzzle. Another aspect of tankless water heaters that amps up the price is how long they’ll serve you and your family.

Longevity

Most tank-style water heaters will last you for about 6 to 10 years if cared for properly. That may seem like a pretty good run, but considering a tank-style water heater costs between $1,600 to $3,500, you could be making the same investment several times in one home. And this price range doesn’t cover installation.

Tankless water heaters last between 15 and 25 years, which helps justify their price. Instead of replacing your water heater every 6-10 years, you get far more mileage from your tankless water heater investment. Some brands even have warranties that cover the entirety of that 25-year lifespan.

Beyond the longer lifespan, there’s one more key factor that informs tankless water heater pricing: installation.

Specialized Installation

Not everyone can install a tankless water heater. The process is fundamentally different than that of a tank-style water heater. You likely won’t even be able to reuse your existing venting if you replace your tank-style water heater with a tankless water heater.

For this reason, not every plumber will be able to install a tankless water heater. Instead, you’ll need to find a certified installer with the right training for the job. This may sound like a corner to cut, but we highly advise you to seek out a trained technician instead of going with the cheapest installation option.

That’s a wrap on the aspects of tankless water heaters that cause them to come in above tank-style alternatives. Let’s check out some fair prices at several different tiers so you can have a better idea of what to expect if you contact an installer.

Fair Prices for Tankless Water Heater Installation

Tankless water heater installers are like any other business, meaning prices vary. To some extent, you can look at these prices as a “you get what you pay for” situation. While saving money here and there is possible, sometimes going with the more premium service can ensure that your tankless water heater is installed right the first time.

On the low end, a fair price for a tankless water heater installation is about $4,500. If you’re looking for a more middle-of-the-road option, you can expect to pay out around $6,500, which is about the national average for tankless water heater installation. Looking at the high end, you’ll be investing somewhere around $8,500.

Some installers may be smaller companies with less overhead, allowing them to charge a bit less. The higher end of the range also includes installers that offer premium and base installation packages that will ensure your tankless water heater is armed with the necessary add-ons to reach that 25-year mark.

Tankless Water Heater Pricing Demystified

Now you know why are tankless water heaters so expensive compared to tank-style water heaters and what you can expect in terms of fair pricing at several tiers. With the knowledge under your belt, you can confidently decide whether a tankless water heater is worth your time and money. You’ll also have a better idea of what to expect if you choose to schedule a consultation with a tankless water heater installer.

After more than 20 years of installing tankless water heaters, we’re confident that they’re the way of the future. But, while we think the investment is worth it, we also understand that everyone’s needs are different. However, if you feel like tankless is the way to go, then call us at (818) 213-1773 or visit our tankless water heater service page to learn a bit more about the hardware and its benefits or to schedule a consultation.

If you’re still on the fence, it’s worth considering whether tankless water heaters are right for you. Exploring the benefits of a tankless water heater can also help you find a direction when weighing your options.