Cost of Tankless Water Heater Installed: Upgrading Your Home’s System

Upgrading to a tankless water heater is one of the smartest home improvement choices a Central Ohio homeowner can make. With on-demand hot water, greater energy efficiency, and space-saving design, it’s easy to see the appeal.
But before you commit, it’s important to understand the full cost of tankless water heater installed versus the cost of how water heater repair—including unit pricing, labor, and hidden fees— is not always easy to compare. In this post, we’ll break down everything you need to know about the installation process, what affects your total cost, and how to ensure a smooth, cost-effective upgrade.
What’s the Average Cost of a Tankless Water Heater Installed?
In Central Ohio, the cost of installing a tankless water heater generally falls between $2,500 and $4,500. This price range accounts for the unit itself, labor, necessary parts, and any required upgrades to your plumbing or electrical systems. Understanding these costs is crucial for homeowners considering this upgrade.
Breaking down the costs, a mid-efficiency gas tankless water heater typically costs between $2,500 and $3,200, while a high-efficiency gas model ranges from $3,000 to $4,000. For those opting for an electric tankless water heater, the installation cost is usually between $2,200 and $3,500, though it may necessitate electrical panel upgrades.
Despite the higher initial investment compared to traditional tank models, tankless systems offer substantial energy savings. This is particularly beneficial for homes with high hot water usage, making the investment worthwhile in the long run.
What Impacts the Installation Cost?
There are numerous elements that can significantly impact the overall expense of installing a tankless water heater. These factors encompass a variety of considerations that homeowners should be aware of before proceeding with the installation.
Type of Fuel Source
Gas units are generally more expensive to install due to venting and gas line work. However, high efficiency gas water heater models are ideal for families needing a high volume of hot water. Electric models are simpler but may require electrical panel upgrades if your system doesn’t meet power demands.
Labor Cost to Install Water Heat
Labor is one of the largest parts of your total cost—typically ranging from $800 to $1,500 depending on the complexity. Older homes, tight utility spaces, or locations requiring venting upgrades may increase the price.
Additional Parts & Code Upgrades
In numerous situations, you might find it crucial to include additional components or modifications, such as:
- A new gas line or electrical wiring
- Venting or exhaust system upgrades (for gas units)
- Expansion tanks or water shut-off valves
- Permits required by Central Ohio municipalities like Dublin or Worthington
Is a Tankless System Worth the Investment?
The initial cost of a tankless water heater may seem high, but the long-term benefits make it a smart investment. These units save energy by heating water only on demand, reducing waste and lowering utility bills. They provide unlimited hot water, ideal for large families, and their compact design saves space.
Tankless systems last up to 20 years, nearly double that of traditional heaters, reducing replacement needs. Many Crawford Mechanical Services clients report lower energy bills and increased comfort soon after switching. The energy efficiency, reliability, and convenience of tankless systems make them a great choice for homeowners.
How to Choose the Right System (and Save)
If you’re considering a tankless upgrade, follow these tips to stay within budget:
- Get Multiple Estimates: When installing a tankless water heater, compare pricing, scope of work, and warranty coverage from multiple contractors. Obtain detailed quotes to understand costs and ensure no hidden fees. Check warranty coverage for peace of mind and verify that all necessary code upgrades are included. These steps help you make an informed decision, balancing cost, quality, and compliance for a successful upgrade.
- Ask About Incentives: Contact your utility provider about rebates for ENERGY STAR® water heaters. These incentives can lower the cost of upgrading and reduce energy bills. Some companies offer additional discounts for energy-efficient appliances. Check for any requirements to qualify for these savings.
- Work with a Licensed Installer: Proper installation is vital for the longevity and efficiency of your tankless water heater. Choose a team experienced in both installation and updating plumbing and electrical systems to current codes. This ensures secure connections, correct calibration, and safe, efficient upgrades. By selecting knowledgeable professionals, you can trust your system will operate smoothly and safely, providing reliable hot water for years.
- Bundle Services: If you're upgrading fixtures or plumbing systems, consider bundling services in one visit to save on labor costs and reduce disruptions. This approach updates all systems simultaneously, enhancing efficiency and functionality, making it a smart choice for comprehensive home improvements.
A Real Central Ohio Success Story
A homeowner residing in Powell contacted us with concerns about experiencing inconsistent water temperatures while taking showers. After conducting a thorough evaluation of their existing 12-year-old tank water heating system, we identified that the fluctuations were likely due to the aging system's inefficiencies. We recommended upgrading to a modern tankless water heater, which offers numerous advantages over traditional tank systems.
The installation process was efficiently completed within a single day, ensuring minimal disruption to the homeowner's daily routine. The total cost for this upgrade was $3,800, a worthwhile investment considering the long-term benefits. Immediately after installation, the homeowner noticed a significant improvement in their water heating experience. They enjoyed a steady supply of hot water without the previous temperature fluctuations, enhancing their comfort during showers.
The new tankless system contributed to a noticeable reduction in their energy bills, as it only heats water on demand rather than maintaining a large reservoir of hot water. This energy efficiency not only lowers monthly utility costs but also reduces the household's environmental footprint. Additionally, the tankless water heater operates more quietly than the old tank system, providing a more peaceful home environment.
Another advantage of the tankless system is the space-saving design. By eliminating the bulky tank, the homeowner gained valuable storage space in their utility closet, allowing for better organization and use of the area. Overall, the transition to a tankless water heater provided the homeowner with a more reliable, efficient, and convenient solution to their water heating needs.
Partner with Central Ohio’s Trusted Plumbing Experts
At Crawford Mechanical Services, we’ve been helping homeowners across Columbus, Bexley, Grove City, and beyond with honest guidance and reliable water heater installation for over 30 years. Whether you need a standard replacement or want to explore energy-efficient options, our team is here to walk you through every step of the process.
At Crawford Mechanical Services, we take pride in having assisted thousands of homeowners throughout Central Ohio with our swift and professional water heater repair services. Our team of experienced technicians is dedicated to ensuring your home remains a haven of warmth and comfort, no matter the season.
Whether your water heater requires a minor adjustment or a complete replacement, we are committed to delivering solutions that meet your needs efficiently and effectively.
Don't let a faulty water heater disrupt your daily routine. Reach out to us today to schedule a visit, and let our trusted experts restore your hot water supply with the care and expertise you deserve.