How Much Does It Cost to Install an Electric Tankless Water Heater?
Part of our Ventilation & Hot Water guides.
Total cost = the product + extra parts + labor. Product prices below are VEVOR list prices we checked in November 2026. Labor rates vary enormously by city, so instead of guessing a dollar figure we list which trades you need and how long the job typically takes: multiply by local hourly rates and get at least two quotes.
Cost breakdown
| Cost item | What to budget |
|---|---|
| Unit (VEVOR 8-36 kW) | $149.90-$419.90 |
| Breakers, heavy-gauge wire | depends on size |
| Panel/service upgrade (if needed) | can exceed the unit cost |
| Isolation valves | small |
| Permit | varies by city |
Labor: who and how long
| Trade | Typical time on the job |
|---|---|
| Electrician: new circuits | Half day+ |
| Electrician: service upgrade | 1-2 days |
| Plumber: connect + valves | 2-4 hours |
Ways to save
- Get the load calculation before buying.
- Point-of-use units avoid big electrical work.
The hidden cost: electrical capacity
The unit price ($149.90-$419.90) is often the smaller part of the project. Whole-house electric tankless heaters need very large circuits; if your panel or service can't support them, upgrading can cost more than the heater.
Plumbing extras
- Isolation valve kit with service ports (for future descaling).
- Pressure relief valve where required.
- Removing and disposing of the old tank.
Lower-cost alternatives
A point-of-use heater (often 120 V) for one bathroom, a recirculating pump for faster hot water, or a propane tankless unit where gas is available may deliver the benefit you want at lower total cost.
Frequently asked questions
Why is electrical the big cost?
Whole-house units need 100+ amps of capacity, which many homes don't have spare.
Do I need a permit for a tankless water heater?
Many cities require permits for water heater replacement and new electrical circuits; check locally.
Can I keep my old tank as backup?
Some homes keep a tank as a buffer or preheater, but it adds complexity; consult a plumber.
How long does installation take?
Often a day including electrical work; longer if a service upgrade is needed.
Will tankless lower my bills?
It eliminates standby losses; savings depend on usage and energy prices.