Maybe someday tankless water heaters will be cost effective. They have a very high installation cost and a large upfront price.
I could buy 3 or 4 regular water heaters which usually last at least 10 to 15 years for the price of installation and 1 tankless water heater.
Consider: Rheem’s 40-gallon
natural gas tank water heater (a best-seller at Home Depot) costs $429. The same company’s tankless propane water heater (Rheem RTG-84DVP), which
Popular Mechanics recommends, costs $799.
Another model the magazine likes, the
Noritz EZ 98, which runs on either natural gas or propane, costs $1,385 (albeit with a 25-year warranty and WiFi capability for you to control the temperature and view your water usage).
Installation costs
These appliances should be installed by a professional plumber (at a
national average cost of $2,000, according to HomeAdvisor.com). While the Noritz model we mentioned is designed to hook up to the existing incoming cold and hot water pipes, much like a conventional existing water heater, other retrofitting could involve creating a vent for exhaust or re-routing piping. Plus, there may be a fee for disposing of the current heating system.
Cost will outweigh savings initially
Setting aside any allure for potential buyers, you’re likely to need a new water heater before the energy savings of a tankless water heater equal your initial expense. One study for the Minnesota Office of Energy Security found that these appliances pay back their initial costs after
about 21 to 26 years.