How much does it cost to install a tankless hot water heater?

Tankless water heaters usually cost more to install than traditional tanks, because many homes need to be retrofitted to accommodate the new system. Tankless electric water heaters retail on average between $150 and $1,200, and tankless natural gas water heaters retail between $200 and $1,300 on average. The lower prices ($150-$250) are generally for point-of-use tankless heaters that can be installed to boost hot water in high-demand areas such as the bathroom or kitchen sink. Tankless water heaters designed to heat whole homes usually start under $300 at the low end and go up to $1,400 or more. Pricing for whole-home varies with the heater’s technology and features. Nationally, standard water heater installation costs average $360-$780, but tankless water heater installation costs may range from $400 to $1,000, depending on the work needed. Some perks of tankless water heaters are that they have nearly double the life expectancy of traditional water heaters and are generally more cost-efficient. Homeowners may be able to save $100 or more per year on their utility bills with an Energy Star approved tankless heater, depending on how much hot water they use.