Why Are Tankless Water Heaters so Expensive?

Why Are Tankless Water Heaters so Expensive

If you’ve been searching the web for a tankless water heater, you’ve probably encountered some sticker shock. Tankless water heaters aren’t the cheapest option for water heating, but there are some good reasons for that. We’ve specialized in tankless water heater installation for years, and we can tell you that tankless water heater rates are high across the country. In this post, we’ll explain why the increased cost of a tankless water heater isn’t always bad and what a reasonable price is to have one installed. 

Tankless Water Heater Cost Influencing Variables

Tankless water heaters are more expensive than tank-style water heaters due to various factors. While there is no doubting the price difference, tankless water heaters make a compelling case for themselves regarding the greater initial expenditure.


Beginning with the most difficult-to-protect feature, tankless water heaters are significantly more sophisticated than their tank-style competitors. A tank-style water heater often comprises only a few main components: a tank, gas valve, burner, and pilot assembly.

Tankless water heaters have more components since heating water is more complex. Every gas tankless water heater contains a flow sensor, computer board, gas valve, heat exchanger, burner, fan, and bypass valve. But complexity is only one component of the puzzle. Another factor that raises the cost of tankless water heaters is the length of time they will serve you and your family.


Most tank-style water heaters will last 6 to 10 years if properly maintained. That may appear to be a nice return, but given that a tank-style water heater costs between $1,600 and $3,500, you may make the same investment multiple times in one home. Also, installation is not included in this pricing range.

Tankless water heaters have a lifespan of 15 to 25 years, which helps to explain their high price. Instead of upgrading your water heater every 6-10 years, your tankless water heater investment will last much longer. Some manufacturers even provide warranties that last the entire 25-year lifespan. Aside from the longer lifespan, installation is another important element that influences tankless water heater pricing.

Installation Expertise

A tankless water heater is not for everyone. The procedure differs significantly from that of a tank-style water heater. If you replace your tank-style water heater with a tankless water heater, you won’t be able to reuse your existing venting.

For this reason, not every plumber will be able to install a tankless water heater. Instead, you’ll need to find a professional installation with the necessary training. This may sound like a corner to cut, but we highly urge you to seek a skilled technician instead of the lowest installation option.

Final Thoughts

Although the initial expenditure will increase, you will benefit from long-term savings and improved reliability with a tankless water heater. At Gray Plumbing, we proudly offer our customers a wide range of water heater models. We can help you select the best option for your home and budget, so contact us today for more information about tankless water heaters.