For construction professionals, understanding the cost dynamics of installing a tankless electric water heater is crucial. The installation costs typically range from $900 to $3,100, depending on various factors such as location, heater capacity, and necessary electrical upgrades. In areas like Albuquerque, the average cost is around $1,950. Let's delve into the specifics that influence these costs.
• Heater Capacity: The gallons-per-minute rating affects the unit price.
• Electrical Upgrades: New 240-volt circuits or service panels can add significant costs.
• Venting Requirements: Indoor units may require additional wall or roof penetrations.
• Distance to Water Lines: Longer distances increase pipe rerouting time.
• Permit Fees: These vary by jurisdiction and can impact the total cost significantly.
Materials
• Tankless electric heater: $450–$1,200
• Dedicated breakers, wiring, and conduits: $120–$450
• Shut-off valves, unions, and fittings: $60–$180
• Mounting hardware and sealants: $40–$90
Labor
• Demolition and removal of the old tank: 1–2 labor hours
• Rough-in plumbing and electrical: 3–5 labor hours
• Mounting, connection, and startup: 1–2 labor hours
• Average blended residential labor rate: $65–$95 per hour
CountBricks provides real-time estimates using live supplier feeds and AI technology, ensuring up-to-date pricing and labor hour breakdowns. This approach helps construction professionals avoid overestimating costs and ensures precise budgeting.
Many installations require electrical service upgrades, especially if the home has a 100-amp service. Upgrading to a 200-amp panel can add $1,100–$1,800 to the project cost. CountBricks allows users to factor in these upgrades during the estimation process.
Permit fees are necessary for compliance and safety but can vary widely. In Albuquerque, for example, plumbing-mechanical permits average $145, with electrical inspections at $55. CountBricks automatically includes these fees in estimates to prevent unexpected costs.
While some may consider DIY installation, professional installation is recommended unless the installer has the necessary licenses and tools. Professional installation ensures compliance with local codes and protects warranties.
Energy Star certified tankless electric heaters can reduce hot-water bills by approximately 25%, offering a payback period of 7–10 years. With a lifespan of 15 years, these units provide a solid return on investment compared to traditional storage tanks.
• Opt for fewer chamber designs for efficiency and cost savings.
• Install units close to the main service panel to minimize wiring costs.
• Combine installations with other projects to share permit fees.
• Use CountBricks tools for accurate pipe sizing and material estimation.
In a recent project, the Hughes family in Albuquerque replaced their 50-gallon tank with a 24 kW tankless unit. The installation included a garage setup, a 35-foot wire run, and no panel upgrade due to existing 200 A service. The desired flow rate was 3.5 GPM.
CountBricks provided a precise estimate of $1,725, with materials costing $1,015, labor $600, and permit fees $110. The final cost was $1,730, demonstrating the accuracy of CountBricks' estimation process.
• Real-time supplier pricing integration
• AI-adjusted labor time for specific installation complexities
• Accurate permit cost calculations based on local regulations
