Tankless water heaters can provide you with endless hot water. They work more efficiently than tank heaters because they only heat water when it’s needed, reducing energy costs. They’re also compact, so they take up less space, and they have a significantly longer lifespan than tank water heaters.
They do cost a bit more than a tank unit, and the cost of tankless water heater installations in Scottsdale can vary depending on several factors. Typically, expect tankless water heater installation cost to range between $2,500 and $7,000 or more. Why the wide range of costs? We’ll explain.
Average Tankless Water Heater Installation Cost in Scottsdale
There are several factors that affect the final cost of tankless water heater installation. Total project costs include:
- The tankless water heater unit
- Labor
- Any necessary electrical or gas modifications
- Permits and inspections
Tank Type
The type of tankless system you choose will also have an impact on overall installation cost.
Electric Tankless Units
Electric tankless water heaters generally have lower equipment costs and a compact footprint. However, they require significant electrical capacity, and you may need an upgrade to your electrical panel to accommodate the extra load.
Gas Tankless Units
Gas tankless units typically cost more upfront but often deliver better performance for larger homes. They require proper gas supply, venting, and combustion air, which can increase the complexity of the installation.
Labor Costs
Labor costs depend on how much work is required. Installation typically includes removing the existing water heater, mounting the new unit, modifying plumbing connections, running electrical or gas lines, coordinating inspections, and performing startup testing.
Homes with older infrastructure or limited access may require additional labor time. For example, many Phoenix area homes built before 1990 often don’t have panels with enough space or capacity to handle the additional electrical load and may require upgrades.
Do You Need an Electrical Upgrade for a Tankless Water Heater?
The answer depends on your current electrical system, but because they draw large amounts of power, tankless heaters often require multiple dedicated circuits. Recent code changes in Scottsdale may also require 400-amp electrical services for some installations. These panels frequently do not include busing for sub-breakers, which can increase installation time and costs.
Gas Line and Venting Upgrade Costs
Gas tankless water heaters often require modifications that are not needed for traditional tank systems. Installation might require:
- Upsizing the gas line to handle higher demand
- Installing new venting materials rated for tankless operation
- Adding condensate drainage
Permits and Inspections in Scottsdale
Tankless water heater installations require permits and inspections to ensure code compliance. A highly trained plumber will typically handle the permitting and coordinate inspections as part of the cost of tankless water heater installation.
Additional Cost Factors That May Affect Total Price
Beyond the major components, there are some other factors that can affect the cost, including:
- Size and layout of your home
- Distance from the water heater to fixtures
- Access to walls
- Aging wiring and plumbing
Larger and high-end homes often require additional planning to maintain consistent hot water delivery. For example, some homeowners in large homes find that a single tankless unit may not be sufficient. Multiple units may be installed to serve different areas or floors, which increases both equipment and labor costs.
Recirculation Pumps
One popular option, especially in larger homes, is a recirculation pump. Recirculation systems periodically circulate hot water to your fixtures to replace cool water sitting in your pipes. It can significantly reduce the wait for hot water when you turn on the tap.
Long-Term ROI and Energy Savings
The cost of tankless water heater installation will be higher than for a traditional tank water heater, but your new heater will deliver significant cost savings over time. Tank water heaters keep water hot while sitting in the tank; tankless water heaters only heat on demand and can last much longer. For example, Navien tankless water heaters can also last 15–20 years, with proper maintenance, up to twice as long as tank units.
Because there are so many variables in how much a tankless water heater installation costs, you need a professional evaluation. Get same-day service from George Brazil Plumbing & Electrical for a detailed, accurate quote for tankless water heater installation in your Scottsdale home.