http://www.bing.com/shop?q=cost+of+tankless+water+heater&FORM=SHOPPA&originIGUID=334F3F01133C4E7CBE721E8F1C5E4812

It 'should' cost very little more for plumbing/elect. Plumbers have been 'ripping' people off for 'tankless heaters' because it's new!!!!!!

That number seems high.

I built a 3800 sqft home last year.

Where are you and why do you want a tankless water heater? What fuel are you using?

I did a heat pump hot water heater which costs about $2500 and the utility gave me back $2000. I also put a small POU heater at the kitchen for $400 or so.

Doing 2 units and a recirc sounds like overkill for that size house. My last house was 5,000 sqft and we had a pump. I hated it but that was me.

I have a slight bias against tankless. But it depends on a lot of factors.

I can tell you that my set up will cost far less to run than yours and is more environmentally friendly (which usually is the same as cost to run). It will require less maintenance and have lower repair costs (most likely). And it will cost much less to install.

Depending on your layout, $7500 might not be terrible. Your are (presumably) running gas lines to 2 locations, electricity to 2 locations, running an insulated hot water loop throughout the house, maybe 2 exhausts, buying 2 units and a pump.

BTW, Robin thinks everything costs too much. He also didn't account for the insulated plumbing loop for the recirc pump, and presumably the gas lines/exhaust. If you are doing electric, he didn't pay for the additional panel and service upgrade. He didn't pay for the larger gas valve at the street (that is a NG only cost).

You also didn't mention where you are in construction and was this planned from the beginning. You may have already done things that are making this more expensive.

How much flexibility do you have to get more quotes?

Thanks, David.

David,
We have not started construction yet, so I want to plan it. I am in Atlanta and it will be powered by natural gas. I want a tankless heater for its efficiency but I must have a recirculating pump for instant hot water delivery. I’m not opposed to a tanked water heater if they are substantially less costly but almost as energy efficient.

You are pretty close, we paid $6500 (plus tax) for two units installed (flue out to 16' ceiling/roof) however it did not include plumbing which was handled under our plumbers contract.

We have two Navien NPE-240A units, one for each wing of the house. These are incredible units, extremely high efficiency, unlimited hot water (8 bathrooms, two Dishwashers and hot water hose bibs etc.), never run out of hot water.

Fully programable, remote wifi kits are available for remote control etc.

Annual Maintenance: Run a gallon of vinegar though them (pretty easy for a DIY person) and this is reccomended for any tankless water heater.

In Atlanta, if you can make it work, a heat pump hot water heater is often a better choice.

For me, with my utility rebate, it was a no brainer.

A heat pump hot water heater uses electricity and it cools the space it is in. Mine is in a sealed attic (but not fully conditioned. Most of the time it is hot up there and the heat pump hot water heater is cooling it.

I am in Raleigh - Atlanta being a bit warmer.

In a cold climate, it doesn't make as much sense. But in a warm to hot climate, it does.

Also with cheap electricity (and yours is) then it makes more sense.

I would ask that you define "efficiency"? Do you mean financially beneficial or environmentally beneficial?

Will your pump run 24/7 or will it be tied to motion detectors or switches? That answer trumps whatever you heat the water with when it comes to energy efficiency. ($ or environment).

Generally, in your climate and electricity cost, heat pump hot water beats everything whether financial or environment is your concern.

A recirculating pump can cancel out any savings, and is irresponsibly ungreen. It’s better to have a better plumbing route planned, with a more centralized location for any hot water production. It’s no “hardship” waiting 2 minutes for 5 gallons of cold water to be purged from your lines. You'll have that even with a tanked choice. Wait time for water has to much more do with the location of the source and distribution plan, not the method of production.

In our market, a condensing-type tankless hot water heater with integral recirculating pump goes for $1700 +/- That's just the equipment cost.

If you have the right space requirements in your design, heat pump water heater HPWH is the way to go. Not sure how many other gas appliances you are planning but there could be major cost savings by completely eliminating the cost of running gas infrastructure into the house from the street. Don't forget to account for the monthly, minimum gas fee from an added energy utility. HPWH are a no brainer in your climate (with proper space requirements) and are likely to save money on fuel costs alone.

We will be using gas for cooking, heating, and fireplaces. The property is a teardown with existing gas and other utilities. The gas rate in my area has been around 35 cents a therm for the past three years.

My neighbor just had two 200K Btu tankless units installed at his house. Cost was about $6000, parts and labor. The units retail for about $1500 each, so that was $3K labor costs for less than two days work.

I installed a small one myself to service a remote bathroom, and total material costs were about $500. If I ever get around to replacing my main water tank with a tankless unit, I'll probably install it myself to keep the costs low. I tend to agree that plumbers sometimes overcharge for installing tankless units because people are less aware that it's not very complicated.

Yes....plumbers are trying to waaaaaaaaay over charge!!! It's sickening!!!!!!

Shola - that is some cheap gas. That is basically wholesale 3 years ago but today wholesale is down to 25 cents. I pay 80 cents in Raleigh so it seems unusual (but not impossible) that your rates are that low.

I repeat this a lot on these forums and it might spark some debate. Natural gas is much worse than we like to think. The fracking is fairly horrible, the pipeline leaks have huge GHG issues. There are now several jurisdictions that are banning NG on new construction - mostly in CA (San Jose being the largest) and MA. Vancouver makes it very difficult without an outright ban.

Electricity can be generated in renewable ways. NG can be replaced by renewables but don't expect it to be cheap. Wholesale solar and wind based electricity is cost competitive with fossil fuels. So projecting out future costs will likely favor not using NG - especially for heating or hot water where electric based alternatives exist without compromise. The capital costs to change these out later will hurt.

David, yes it's amazing. See the link below:

GA Gas Price

I bought a Navien NPE-240A for about 1400 recently. The other parts for installation came to about 400.

Since the OP said will be using gas for heat, fireplaces and cooking, going with a heat pump water heater will not avoid the gas minimum service fees. It may still be advisable but going all electric is a different question.

Except that, when given the facts, the OP might change their mind on what they use.

Heat - doesn't make sense from upfront cost or ongoing cost or environment. (well - I guess with cost, 35 cents makes ongoing cost cheaper for gas).

Now - I can't be hypocritical and we have a fireplace and cooking. But when it comes to cost, all electric wins. But money isn't everything.....

My gas bills is $144 a year connection and $20 a year in usage. Stupid really but small potatoes in the grand scheme of things.

Our gas is almost $1.00 per therm. in Greensboro NC. After the 2 years what is the going rate.

Luckily, Atlanta has fairly warm winters for heating.

Update: We decided to go with the Navien Tankless water heater. My builder's subcontractor is charging $2400 for the unit and installation. I'm fine with it. Thanks to all.

That's an incredible deal if it is Navien NPE-240A

Yes it is.

That is a great price. If you get the remote control let us know how it turns out.