Potential customers should always look at tankless water heater costs before deciding whether or not to purchase this type of system. Initial cost isn't the only consideration, however. Installation, maintenance, and operating costs all combine to make the total cost of owning a tankless water heater.
Upfront Tankless Water Heater Costs
A tankless water heater costs anywhere between $800 and $1,200. This includes both electric and natural gas units. Compared to a tank storage unit costing between $300 and $500, this is extremely expensive.
Potential buyers should also understand that tankless water heaters also need professional installation in addition to the cost of the actual unit. Installation costs well over $1000. This includes upgraded gas lines or electric service, new electrical outlets, and a new ventilation system. Models with tank storage units cost only about $300 in installation and homeowner can easily do the job on their own saving them money.
Operating Costs for Tankless Water Heater
The operations for both gas and electric tankless water heater cost between $380 and $450 annually. This means all year, once a home turns on their hot water, it costs less than $500 each year. This is much less than water storage models.
All water heaters also have a standby cost. Tank water heaters cost hundreds of dollars each year to store hot water. Tankless systems, however, cost much less. They cost between $10 and $20 per year in standby mode.
Water Heater Maintenance
Over the long term, an electric tankless water heater cost for maintenance sits over $300. According to an October 2008 Consumer Reports article called, "Tankless Water Heaters, They're Efficient but not Necessarily more Economical", the maintenance cost occurs over a long period of time. This test simulated 11 years worth of usage, so it isn't like an owner pays $300 each year for maintenance.
Hard water is another maintenance consideration. These water heaters need soft water to run smoothly. If the buyer doesn't install a water softener, sometimes the tankless water heater company reduces the warranty period. Add the cost of a water heater into your price consideration.
Although tankless water heaters cost less per month, the initial price and installation costs make it a less economical option in the long run. It would take over 20 years to make up the difference of buying a cheaper tank water heater. If energy efficiency is your only goal, however, tankless models beat the pack.
Sources
- Seisco, "Tankless Water Heater Cost Comparisons", accessed October 25, 2010.
- Consumer Reports, "Tankless Water Heaters", accessed October 25, 2010.
Kendra Dahlstrom - Kendra has been a freelance writer for over 5 years. Her subjects of choice include personal finance, health, and family. Before working ...
Join the Conversation