Upgrading to a tankless water heater is an excellent way to enhance your home’s energy efficiency and enjoy endless hot water on demand. While this system offers long-term savings, the upfront installation costs can be a concern without proper planning.
The good news? With thoughtful preparation and a few practical strategies, you can reduce expenses without sacrificing quality or performance.
These 10 practical tips will help you make your tankless water heater installation more affordable and effective. At Tennessee Standard Plumbing, we’re here to help Oak Ridge homeowners maximize their investment with reliable, professional services.
Ready to make the switch? Contact us today!
Why Choose a Tankless Water Heater?
Tankless water heaters are becoming increasingly popular, and it’s easy to see why. Unlike traditional systems that store and heat large amounts of water in a tank, tankless models heat water only as you need it. This eliminates energy waste, reduces utility bills, and ensures you never run out of hot water.
On average, homeowners can save up to $200 a year in energy costs by switching to a tankless system. Over time, these savings offset the higher upfront cost of installation.
When comparing electric tankless water heaters and natural gas water heaters, electric units are generally more affordable to install and maintain, while natural gas models often offer higher efficiency and capacity, making them a cost-effective choice in areas with lower gas prices.
In addition to saving money, tankless water heaters have fewer parts that require maintenance. This makes them more durable and reliable, with a lifespan that often exceeds that of traditional systems. Many energy-efficient models also qualify for tax credits or rebates, which can help reduce your initial expenses even further.
Although tankless systems can cost more to install than traditional water heaters, their long-term benefits make them a smart investment for Oak Ridge households seeking both comfort and savings.
Ways to Save on Tankless Water Heater Installation
Here are ten effective strategies to make your installation more affordable and hassle-free. These tips apply to various types of tankless water heaters, including propane tankless water heaters, and their specific installation considerations.
1. Get Quotes from Multiple Installers
Installation costs vary widely depending on the company and services offered. Costs can also differ based on whether you’re installing an electric or gas tankless water heater. Reach out to several licensed professionals in Oak Ridge, TN, to compare quotes.
Some companies may include additional services, like removing your old water heater, at no extra charge. Gathering multiple quotes allows you to find the best balance between cost and quality.
2. Hire a Professional Installer
While doing the installation yourself might seem like an opportunity to save money, it can lead to costly mistakes. Professional installation is particularly important for electric water heaters due to their specific electrical requirements. A licensed professional has the skills and experience to set up the system correctly, protecting your home and investment.
Additionally, many manufacturer warranties require professional installation, so this step helps safeguard your purchase.
3. Reuse Existing Plumbing Connections
Placing your new tankless water heater in the same location as your old system allows you to use the existing plumbing connections. If you are installing electric tankless water heaters, you may need to budget for electrical updates. This can significantly cut down on labor and material costs.
If you’re replacing old pipes, consider using PEX piping. It’s more affordable and easier to install compared to other materials, offering another way to save on your project.
4. Take Advantage of Rebates and Tax Credits
Research local and federal programs offering rebates or tax credits for energy-efficient upgrades. Solar water heaters may also qualify for significant rebates and tax credits, making them a cost-effective option in the long run. Many utility companies also offer financial incentives for installing tankless water heaters. These rebates can offset the higher upfront costs, making your upgrade more budget-friendly.
5. Choose an Energy-Efficient Model
Energy-efficient tankless water heaters cost more upfront, but their long-term savings are worth it. Maintaining the heat exchanger is crucial for ensuring the efficiency and longevity of your tankless water heater. Look for models with a high energy factor (EF), ideally 0.82 or higher. If you live in a colder region, select a unit with a higher gallons-per-minute (GPM) rating to handle lower water temperatures effectively. A well-chosen model will save you money over time while delivering reliable performance.
6. Stick to Regular Maintenance
Maintenance is essential for keeping your tankless water heater running efficiently. Propane water heaters also require regular maintenance to ensure optimal performance and efficiency. For homes in areas with hard water, annual descaling prevents mineral buildup, which can harm the system’s performance. Routine maintenance not only extends the lifespan of your unit but also avoids costly repairs down the line.
7. Keep the Installation Design Simple
Overly complicated layouts can increase labor and material costs. Keeping the design simple can help avoid unnecessary structural modifications when installing tankless units. Avoid unnecessary pipe rerouting or additional features that don’t add real value. A straightforward installation design can meet your household’s hot water needs while keeping expenses under control.
8. Pick the Best Location
The placement of your tankless water heater plays a big role in its efficiency and ease of maintenance. Placing the tankless heater near the water supply can improve efficiency and reduce installation costs. Install the unit near your water supply to minimize energy loss. A convenient location also makes it easier to access for future servicing, which can save time and money.
9. Insulate Hot Water Pipes
Pipe insulation is a simple and cost-effective way to improve your water heater’s efficiency. Insulated pipes reduce heat loss as water travels to its destination, particularly in colder spaces like basements or garages. This is particularly beneficial for electric tankless water heaters, as it helps maintain water temperature and reduce energy loss. This small upgrade can lead to noticeable energy savings over time.
10. Focus on Features That Matter
When selecting your tankless water heater, prioritize features that you’ll actually use, such as energy efficiency and reliability. While advanced options like Wi-Fi connectivity or digital controls might sound appealing, they often add unnecessary costs. Choose a model that balances functionality and affordability.
Maximize Savings Without Compromising Quality
Switching to a tankless water heater is a worthwhile upgrade that provides long-term energy savings and improved comfort. Evaluating tankless water heater costs and determining if the investment is worth it can help make an informed decision. By following these tips, you can keep installation costs manageable while enjoying all the benefits of an energy-efficient system.
The key to success is thoughtful planning and working with experienced professionals who understand your needs. At Tennessee Standard Plumbing, we specialize in making home upgrades simple and cost-effective for Oak Ridge, TN homeowners.
Call us today to start your journey toward a more efficient and cost-effective home.
