Can I Replace My Hot Water Heater With a Tankless?

Installing a tankless water heater requires professional assistance to install. This includes routing your plumbing through it and adding gas lines if you use gas as your source.

Rather than storing it, tankless units heat water on demand. It saves energy and space while requiring less maintenance than traditional tanks.

Learn more here about the installation process and various benefits of tankless water heaters.


Tankless water heaters require lower maintenance than their storage tank counterparts; however, installation costs can be higher upfront. Your electrical system may need upgrading, or new gas lines need to be run to accommodate a tankless heater – costs that may add up.

Over time, your initial setup costs can be offset by energy savings. Depending on the fuel and size of your unit, energy costs could drop hundreds or even thousands over time.

Initial installation costs can rise when adapting existing plumbing systems for a tankless water heater installation, such as reconfiguring gas lines or adding safe venting system components.

An electric tankless might require upgrading its power capacity due to increased demand; these costs are sometimes mitigated through utility, state, or federal rebates for energy-saving equipment, though annual maintenance should still be considered when budgeting costs.

Energy efficiency

Tankless water heaters don’t store hot water; hot water is instantly heated when someone turns on a tap at a sink or tub faucet. These units resemble small metal boxes similar to circuit breaker boxes and may use either gas or electricity as their power source.

Switching to a tankless system offers significant energy-efficiency advantages. These units use only a fraction of the energy consumed by traditional tanks, making them up to 50% more effective, depending on a household’s water usage needs.

Because tankless devices only heat water when it is needed and provide hot water instantly, they consume less energy than standard tank water heaters. You can control it with timers, sensors, motion detectors and smart device apps while tracking energy consumption on your phone. 

However, in cold climates, it will take longer for water to heat to its desired temperature; to combat this, seek out models equipped with built-in recirculation pumps.


Replacing a water heater requires advanced plumbing and electrical knowledge; for that reason, it should be completed by a licensed professional. Some manufacturers void warranties on units installed without proper authorization from certified installers.

If you are switching from a gas tank to a tankless model, ensure the new unit fits your home’s requirements and install a tee, sediment trap, gas shut-off valve, and any necessary gas lines to reach its heater location.


Tankless water heaters may require additional maintenance compared to tank units, including draining them regularly to prevent overflow, cleaning their filters and burners regularly, and draining their systems when needed by manufacturers’ warranties. Failure to comply may necessitate early replacement as well as void warranties from manufacturers.

It is advisable to consult a plumbing company for assistance before installing a tankless hot water heater. A free consultation may allow them to identify whether this type of system will best meet the needs of both your home and your family.

Before installing a new gas unit, turn off the gas supply. Connect the gas line, tee it, and install a sediment trap according to the manufacturer’s instructions, ensuring adequate access and safety clearance. When the installation is complete, you may turn on the circuit breaker and test all electrical connections before reattaching the cover.