Side-by-side comparison of gas and electric tankless heater features

Tankless Water Heater Installation Cost: Gas vs Electric

Tankless installation usually costs between $1,000 to $5,000 range, though actual cost varies by home setup and local permit requirements. Gas installs are typically more expensive up front than electric installs because of venting and fuel line requirements but support higher hot water demand. Actual quotes depend on the home’s existing gas or electric infrastructure and local code requirements.

How much does tankless water heater installation cost in San Antonio?

Tankless water heater installation costs around $1,000 to $5,000 for most homes. Gas tankless systems usually range from $2,000 and $5,000 installed, while electric tankless systems typically range from $1,000 to $3,000 installed depending on electrical upgrades and unit size.

These ranges apply to whole-home systems. Actual price depends on several variables:

  • Unit size measured in gallons per minute (GPM) or BTU/kW rating
  • Whether gas or electric infrastructure already exists
  • Need for venting (for gas) or panel upgrades (for electric)
  • Local permits and code compliance requirements

How Much Gas Tankless Water Heater Installation Cost?

Gas tankless water heater installation costs between $2,000 to $5,000 because the project combines a high BTU unit with upgraded venting and gas supply work.

Gas tankless heaters use powerful burners to reach the flow and temperature needed for whole home service. These high BTU burners require safe venting and sufficient gas capacity, which adds material and labor cost. Many installations take around six to ten labor hours from start to finish.

Key cost components include the following items:

  • Gas tankless heater sized by BTU rating and target flow
  • Stainless steel or approved vent system routed to the exterior
  • Gas line extension or upsizing so the burner receives enough fuel
  • Condensate drain for condensing models and any needed pump
  • Combustion air evaluation to confirm that the unit has enough fresh air within code limits

Gas tankless heaters cost more because they require upgraded venting and gas capacity. The final price depends on vent length, access to the gas meter, and how much new piping is required to meet safety and efficiency standards.

How Much Electric Tankless Water Heater Installation Cost?

Electric tankless water heater installation cost ranges from $1,000 to $3,000 installed, with lower unit cost than gas models but possible electrical panel and wiring upgrades.

Electric tankless units generally cost less to purchase because they do not need burners or venting. Costs rise when the heater requires multiple high amp breakers and heavy gauge wiring. A panel that already runs near its limit may need an upgrade, which adds both material and labor.

Important cost drivers include the following points.

  • Electric tankless unit price, based on kilowatt rating and expected demand
  • Number of dedicated circuit breakers and wiring runs required to feed the unit
  • Electrical panel size and any need to move from a one hundred amp panel to a larger service
  • Labor for electrical work and plumbing connections at the installation site
  • Permits and inspections for new circuits or changes to the service equipment

Electric tankless heaters cost less upfront but may require significant electrical upgrades in older homes or homes with limited panel capacity. They work best where the main panel has reserve capacity and hot water demand is moderate.

Cost Comparison: Gas vs Electric Tankless Water Heaters

A simple comparison shows that gas tankless systems usually cost more to install but deliver higher hot water output, while electric tankless systems cost less upfront yet may have higher operating costs and lower flow capacity.

The table below summarizes common differences for many homes:

Feature Gas tankless Electric tankless
Installation cost $2,000 to $5,000 $1,000 to $3,000
Operating cost Lower monthly energy cost Higher monthly cost where electricity is high
Upgrades required Gas line and venting adjustments Electrical panel and wiring upgrades
Lifespan Around twenty years with maintenance Around fifteen years with maintenance
Output High gallons per minute Moderate gallons per minute

Gas models deliver higher flow rates and suit larger families with many fixtures running at once. Electric models install faster when panel capacity is sufficient and fit smaller homes or locations where venting is difficult.

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What Affects Tankless Water Heater Installation Cost?

Installation cost depends on several universal factors that influence both gas and electric tankless systems. Technicians evaluate the heater size, infrastructure, and layout before calculating a final quote.

What Affects Tankless Water Heater Installation Cost?

Installation cost depends on system size, energy demand, upgrade requirements, and how easily technicians can connect the heater to existing utilities. Technicians evaluate fuel supply, electrical capacity, venting, and plumbing layout to determine total project cost. Total cost increases when upgrades, long runs, or hard water protection are required.

Key Cost Drivers with Cost Impact:

BTU rating or kilowatt rating:

  • Higher BTU gas models add $300 to $800.
  • Higher kilowatt electric models add $200 to $600.

Electrical panel capacity and available amperage:

  • Panel upgrade: $800 to $2,500.
  • New wiring to support electric tankless: $300 to $900.

Gas line size, distance, and code requirements: 

  • Gas line upsizing: $400 to $1,200.
  • Long or complex runs: $1,500.
  • Code required shutoff valve or sediment trap: $50 to $150.

Venting type and vent placement:

  • Standard venting kit: $300 to $700.
  • Condensing PVC venting: $150 to $400.
  • Long vent runs or roof penetration: $500 to $1,000.

Water hardness and pre filtration needs:

  • Scale reduction filter: $150 to $400.
  • Full descaling system: $300 to $700.

Distance to fixtures and plumbing layout:

  • Basic piping connection: $300 to $600.
  • Relocation or long pipe run: $600 to $1,500.
  • Recirculation pump or return line: $400 to $900.

Labor rates and regional code requirements:

  • Labor for installation: $450 to $1,500 depending on system type.
  • Permit and inspection fees: $100 to $300.

Each of these variables changes installation difficulty, accessibility, and upgrade cost. Homes with compatible utilities and short routing paths fall at the lower end of the cost range, while homes needing extensive upgrades fall at the higher end.

What is included in tankless water heater installation cost?

Tankless installation cost includes the unit, labor, materials, and any code required upgrades to the gas or electric service.

Key cost components include the following items.

  • Tankless unit in gas or electric form, sized for the home’s flow needs
  • Mounting, piping, and valves, including isolation valves for future maintenance
  • Venting and condensate components for gas units, routed through a wall or roof
  • Gas line or electrical work if the home needs a larger gas line or additional electrical capacity
  • Permits and inspections required by local code for fuel, venting, and safety measures

A retrofit from a tank to a tankless system usually costs more than replacing a tank with another tank because existing lines may not match the demands of a modern tankless unit. Installation cost covers the full scope of plumbing, fuel routing, venting, and compliance steps needed to operate the tankless heater safely.

Which is more cost-effective for your home: gas or electric tankless?

Gas tankless is often more cost effective for homes that already have a gas supply and high hot water demand, while electric tankless can be cost effective in smaller homes with strong electrical service and lower simultaneous usage.

Cost effectiveness depends on several factors.

  • Upfront installation cost, where gas is usually higher because of venting and gas line work unless the home needs a large electrical panel upgrade for electric
  • Operating cost over time, which depends on local gas and electricity rates and the efficiency rating of the unit
  • Household size and simultaneous hot water use, since gas tankless units handle higher flow for larger families
  • Existing infrastructure, where homes with strong electrical panels favour electric, and homes with solid gas lines favour gas

Consider a few scenarios. A large family with multiple bathrooms and an existing gas line often finds a gas tankless system more cost effective because it supports higher flow and reduces upgrade work. A small home with electric only service and a modern panel may find an electric tankless system more cost effective because installation cost stays low and demand stays moderate.

A widely referenced energy efficiency guideline notes that tankless systems reduce standby losses compared with traditional tanks, which can improve long term operating cost when matched correctly to household usage. For many homes, the best choice balances installation cost, fuel rates, and the number of fixtures that run at the same time.

How does Anchor Plumbing Services install tankless water heaters in San Antonio?

Anchor Plumbing Services follows a clear and flat pricing process for tankless water heater installations across San Antonio and nearby communities. The visit begins with an in-home inspection of the current heater, gas or electrical setup, venting options, and space available for a wall mounted unit. The technician explains whether the home is better suited for gas tankless or electric tankless based on infrastructure and demand.

A flat rate quote is provided for each option. The quote covers the tankless unit, labor, venting or electrical work, isolation valves, and code requirements. The technician also discusses water quality and maintenance because hard water in the region affects long term performance and may require a water softener or additional protection.

Service areas include San Antonio, Helotes, New Braunfels, Stone Oak, and West and Northwest San Antonio. Every installation receives Master Plumber oversight and is performed by licensed and insured technicians. Emergency service is available twenty four hours a day with a satisfaction guarantee.

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