How Tankless Water Heater Works and Installation Cost [2022 Guide]

A water heater is an essential appliance in residential homes and commercial buildings. This system provides you with heated water for shower and making different types of foods such as coffee, tea, etc. In the market today, the most recognized water heater is the tankless water heater. This product comes in a compact design that suits any place of installation perfectly. Also, it is energy efficient and produces efficient heated water for you and your home. This article has been written to help you with the knowledge of how a tankless water heater works and what it cost to install one.

Tankless Water Heater

The tankless water heater is also referred to as on-demand units or an instant water heater. This system heats water only when you put on the faucet, unlike the tank water heater that store hot water from an extended period. This system turns on and provides the hot water necessary immediately the shower valve is open.

Although this water heater comes in different forms, it usually operates on natural gas or propane. With a tankless water heater, you do not need a large area for installation has it comes most of the time in a compact design.

Also, this unit gets rid of the stress of keeping about 40 to 50 gallons of heated water in a storage tank, that is, energy wastage is prevented. Furthermore, this unit provides you with an adequate water heater that is enough to fill up a large hot tub or a whirlpool.

More importantly, tankless water heaters are portable and lightweight. You can easily carry them along on your next outdoor activities such as camping, hunting, or boating with a high level of assurance that you would never go shortage of hot water.

How a Tankless Water Heater Work

This first thing you should know about tankless water heaters is that they work without the use of s storage tank. Whenever there is a need for hot water, the hot water tap or faucet is turned on, and the cold water moves through a pipe into the system, and it instantly heats your water.

If you are using either gas, propane, or electric tankless water heater, you can be sure that you and your home would be provided with the adequate hot water needed. However, the cost and energy efficiency of these products differs from one another.

Even though this unit does not store water for an extended period, it produces endless water supply for residential homes and commercial buildings. With it, you don’t need to wait for so long to have heated water. This system produces hot water within a jiffy. Thus, a tankless water heater’s output reduces the flow rate.

Generally, tankless water heaters produce heated water at a flow rate of about 2-5 gallons of water per minute. Also, this flow rate ranges flow one tankless water heater type to another. If you are using a gas system, this unit has a higher flow rate than both electric systems.

Therefore, a gas unit with a high level of flow rate produces lesser water than an electric unit with a low level of flow rate. For example, you would be able to supply adequate heated water to at least a shower and a kitchen sink with an electric water heater. For a gas model, you might have to purchase two different units in other for you to take a shower and run the dishwasher at the same time. In this type of situation, you would need to install separate tankless water heaters for appliances such as a clothes washer which tends to consume a lot of water.

Installation Cost

The installation cost of a water heater varies based on the power source, capacity, and function. The price of installing a gas system is different from the amount paid to the installation of an electric unit. Hence, it is essential to know that all tankless water heaters require only a small space for installation.

If you are installing a central water heater which is also known as a whole-house system, you would be spending between $800 and $1200 for installation. This is because the system heats the water at a central point before sending the flash-heated water to another location in the home.

For a point-water heater, you would be spending between $120 and $220. This is because the point-of-use system provides hot water at a single sink, shower or bath in the building and are placed near the area where it is supplying heated water.

The cost for the installation of an electric water heater ranges between $1100 and $1300. However, you might need to spend more if the house requires rewiring or new outlets to accommodates the system. The cost for the installation of a gas or propane water heater ranges between $17500 to $2000. Hence, you might need to pay more if the house requires modification to vent the system