How Much Does an On-Demand Water Heater Cost?
Known as a demand-type, tankless water heater, or instantaneous water heater, you can take advantage of hot water only as it is required. One good thing – or perhaps, the best thing – about the on demand hot water heater is that it does not generate power losses, unlike the typical storage water heater does. Therefore, you can substantially save on your energy bill. Traditional water heaters will have a tank in which water is continually kept hot. This allows the used to turn on the faucet and have hot water at any time. However, this also uses a lot of energy since the water heater is running constantly throughout the day. An on-demand water heater will heat the water as you use it, but will not store any hot water in a tank. While this method may take a little longer for the water to heat up, there are many advantages to this system as well.
How much does it cost?
- On average, an on-demand water heater is going to cost anywhere from $500 to as much as $1,200 without the installation. To play it safe, consider adding at least $1,000 to that price if you want to have it professionally installed.
- According to home.howstuffworks.com, a whole-house electric model costs around $500 to $700, while its gas model counterpart costs between $1,000 and $2,000.
- BobVila.com claims that the average on-demand heater should be around $800 to $1,150 without installation.
What is going to be included?
- An on-demand water heater only heats the water you use at the moment.
- It provides a constant supply of hot water.
- It does not lose heat from the surrounding cool air.
- It does not give room for sediment to build up.
- Life expectancy is more than 20 years.
- On-demand hot water heater is about 8% to 34% more energy efficient than a storage water heater.
- An on-demand water heater is usually powered by either gas or electric.
- In some cases, shipping can be free of charge.
- All models of on-demand hot water heater come with warranty.
What are the extra costs?
- If your home consumes a lot of hot water everyday, you will likely need to install more than one unit of the on-demand type of water heater.
- In case the online store does not shoulder it, you will have to pay for shipping fee of your online order. Depending on your needs, you may even have to pay for delivery from the store to your home.
- Be prepared to spend extra if you need a professional to install the device. Depending on the setup, it should be around $1,000 for the total install. To get an exact quote, it is recommended that you use free quote search engines such as HomeAdvisor.com. If extra electric wires have to be installed, additional wiring fees may apply. This cost can double if you are installing more than one on-demand water heater.
Factors that influence the price:
- Prices vary according to brand, model, and size of the water heater.
- The geographical location of the store from where you purchase your water heater unit also counts in the pricing scheme.
Tips to know:
- Water heating costs around 20% of a typical home energy budget.
- It is much easier to install an electric-run tankless water heater than a gas operated unit. However, the monthly costs of running a gas powered water heater will be less than an electric one. You decision will be based on whether you want to save money now or in the future.
- While an on-demand hot water heater may be cost-effective and offer several benefits, it also has a few drawbacks. For one, it costs up to three times more than a storage water heater. Besides, simultaneous use of hot water can stretch its limit, resulting in the limited flow rate of water. This means that if someone is taking a shower and someone is trying to do dished using warm water at the same time, neither one will get as much hot water. But this can be remedied by installing two or more of the on-demand type of water heater fixed in parallel or separate ones for machines that consumes a lot of hot water.
- When choosing one, make sure that you know how big the unit has to be, the efficiency of the product and what it will cost overall.
How can I save money?
- With on-demand hot water heater, you can save at least $100 a year of your energy bill, depending on the amount of hot water your home utilizes each day.
- Determine first the amount of hot water your home uses daily before deciding on the size or number of on demand hot water heaters to purchase. Also consider the type of fuel and its availability, energy factor, and the cost.
- Watch out for special sales promotions.
- Most of the on demand water heater units have a federal tax rebate of $300.