Homeowners are drawn to tankless electric water heaters for their endless hot water, compact size and long-term energy savings. The obvious first question is cost. At CountBricks, we generate thousands of real-time residential estimates, so we have clear insight into the factors that drive pricing—and how to control them.
Across the United States, the average project lands between $900 and $3,100, including labor and materials. In markets such as Albuquerque, where we complete many installations, most CountBricks clients land near $1,950. Your exact figure depends on five cost drivers we detail below.
• Heater capacity (gallons-per-minute rating) dictates unit price
• Electrical upgrades—new 240-volt circuits or service panels—add labor and materials
• Venting requirements for indoor units can increase wall or roof penetrations
• Distance to water lines affects pipe rerouting time
• Local permit fees vary by jurisdiction and can swing totals by several hundred dollars
Materials
• Tankless electric heater: $450–$1,200 depending on flow rate
• 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
Traditional price calculators rely on static databases that age quickly. CountBricks uses live supplier feeds and a proprietary AI that updates task durations and unit costs every 24 hours. Speak your scope into our mobile app, and within seconds you receive:
• A line-item estimate with current material pricing
• Labor hour breakdowns matched to your local wage rates
• Printable proposal and invoice templates ready to email or e-sign
• Optional blueprint takeoff if you upload PDFs for more complex remodels
Most tankless electric heaters require 120–150 amps. Homes with 100-amp service often need a main panel upgrade. CountBricks users can toggle the “Service Upgrade” option during the voice intake to instantly see the cost impact. On average, a panel replacement adds $1,100–$1,800.
Municipal permits protect safety but influence the bottom line. CountBricks’ regional database shows Albuquerque residential plumbing-mechanical permits average $145, with a follow-up electrical inspection at $55. Our software inserts these fees automatically so your quote is never blindsided by red tape.
Because electric units avoid gas lines, many homeowners consider DIY. CountBricks recommends professional installation unless you meet all three criteria below:
• You hold an active residential electrical license
• You own the specialty tools—torque drivers, benders and megohm testers
• Your local code exempts homeowner work from permitting (rare)
Hiring a licensed contractor through CountBricks.com/services protects warranties and ensures proper load calculations.
An Energy Star certified tankless electric heater reduces hot-water bills by roughly 25 %. For a household spending $800 annually on water heating, that’s a $200 yearly saving, making simple payback 7–10 years. Factor in the longer 15-year lifespan versus 8–10 years for storage tanks, and ROI becomes even more attractive.
1. Voice consult and on-site photo capture via the CountBricks mobile app
2. Real-time AI estimate delivered to homeowner inbox within 5 minutes
3. E-signature approval triggers material purchase orders to preferred suppliers
4. Licensed crew completes demo, rough-in and startup, logging progress in the app
5. Final inspection photos auto-populate the closing invoice and warranty packet
• Low-interest green energy loans available through CountBricks partner lenders
• Utility rebates up to $150 for qualifying Energy Star models
• 30 % Federal Residential Clean Energy Credit (consult your tax advisor)
• Compare 3- and 4-chamber heater designs—fewer chambers often mean higher efficiency at slightly lower cost
• Mount the unit close to the main service panel to reduce wire length
• Combine installation with a bathroom remodel to share permitting fees
• Use CountBricks blueprint takeoff to size pipe runs accurately before cutting copper
If you still wonder how much it costs to install a tankless electric water heater in your specific home, open the CountBricks app or visit CountBricks.com/consultation. Speak your project scope and receive a laser-accurate estimate before your coffee cools.
Last month the Hughes family in Albuquerque swapped their 50-gallon tank for a 24 kW tankless unit. Using the CountBricks voice intake, they described:
• Garage installation on an exterior wall
• 35-foot wire run to the main panel
• No panel upgrade needed (existing 200 A service)
• Desired flow rate of 3.5 GPM
Within four minutes, CountBricks produced a $1,725 estimate—materials $1,015, labor $600, permit fees $110. The job closed at $1,730, a 0.3 % variance.
• Live supplier pricing fed directly into the estimate
• AI-predicted labor time adjusted for attic wire routing complexity
• Auto-calculated permit costs matched the City of Albuquerque schedule
