Tankless water heaters have come a long way in recent years. Though many people assume they’re too expensive or too complicated, the reality is that modern technology has made them more affordable and easier to install than most might suspect. In fact, in some cases, a well-chosen tankless model can be more economical than a traditional tank-style unit. Below, we’ll explore the truths behind tankless systems—covering cost, installation, efficiency, and the role of professional training—so you can decide if a tankless approach makes sense for your home or business.
Are Tankless Water Heaters Really Expensive?
One of the most enduring myths surrounding tankless water heaters is their supposed high price. Yes, a few years ago, the cost difference between a standard storage tank heater and a tankless model was fairly large. But in today’s market, non-condensing tankless options can actually compete closely with (or even be priced below) certain high-capacity tank units. Meanwhile, tank-style heaters have seen continuous price increases, narrowing the gap further.
Upfront Cost vs. Long-Term Value
When someone says “tankless is too expensive,” they may only be looking at the sticker price. But the conversation should include the unit’s lifespan, energy consumption, and maintenance needs. Here’s what to keep in mind:
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Unit Cost: A non-condensing tankless model can be surprisingly comparable to a new, larger-size tank heater. Innovations in manufacturing have driven down production costs for tankless systems.
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Installation Time: Although some tankless systems used to require extensive retrofitting, modern designs often simplify things—reducing labor hours and total cost.
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Energy Efficiency: While standard tank heaters generally hover around 65% efficiency, a non-condensing tankless heater might achieve around 85%, and a condensing one can reach about 95%. Over years of operation, that efficiency difference can save a substantial amount on utilities.
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Longevity: A well-maintained tankless water heater can last significantly longer than a typical storage tank, which often needs replacement at around 8–12 years.
Ease of Installation for the Modern Plumber
Some installers have resisted tankless models, believing them to be overly complex. The truth is that leading manufacturers have made dramatic improvements in design and build quality, allowing a faster, more straightforward setup. There’s often a single mounting bracket or a simple system that makes these heaters easy to place on the wall. With many units weighing less than a large tank heater, a single plumber can often handle the install without requiring extra help.
Step-by-Step Example
Imagine a scenario where you have a mounting bracket attached to the wall in the desired location. You lift the tankless heater into place, line up the bracket with a channel or notch on the back of the unit, and slide it until it clicks securely. At that point, you can add a few screws or anchors to ensure no lateral movement. Then, it’s just a matter of connecting the inlet and outlet for water, hooking up the gas or electrical lines (depending on the model), and running a vent if it’s gas-fired. This process can be done quickly once a plumber is familiar with the system.
Making Installation Profitable
A crucial question for any plumbing professional is: “How can I integrate these units into my business in a profitable way?” Here’s the key:
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Less Time: If a plumber can cut down install hours, they reduce labor costs, making the final invoice more attractive while keeping margins healthy.
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Customer Satisfaction: Offering modern, high-efficiency units enhances your reputation as a knowledgeable expert. Clients who are happy with a tankless upgrade often return for future work or refer the plumber to friends.
Efficiency and Energy Savings
Many people switch to tankless systems primarily to reduce monthly utility bills. After all, a tankless model only heats water on demand, rather than keeping a large tank hot around the clock. Traditional storage tanks average around 65% efficiency, meaning they lose a decent chunk of heat through standby losses.
Understanding Efficiency Ratings
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Tank Heaters (65% Efficiency): They keep reheating water in the tank, even if you’re not home or not using hot water.
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Non-Condensing Tankless (Around 85% Efficiency): They reduce waste by providing hot water only when a faucet or shower is turned on.
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Condensing Tankless (Up to 95% Efficiency): A secondary heat exchanger recycles excess heat, making them the most efficient gas-powered units available.
Recirculation Capabilities
Some newer tankless heaters also feature built-in recirculation pumps. These pumps can “learn” usage patterns—such as when the household typically showers—and circulate hot water preemptively so that it’s available at the tap within seconds. This “smart” circulation means less water down the drain while waiting for it to heat up, which can be especially valuable in larger homes with long piping runs.
The Role of Professional Training
Another hurdle for widespread adoption of tankless systems has been the limited familiarity many plumbers have with these units. Fear of the unknown sometimes leads professionals to push standard tank replacements instead. However, top-tier tankless manufacturers now invest heavily in training programs—both online and in-person. These courses walk through:
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Installation Basics: How to mount the unit, run venting, and connect water/gas lines.
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Troubleshooting: Common error codes, pump or sensor issues, and best practices for upkeep.
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Maintenance: Flushing the system annually or as recommended, checking for sediment buildup, and ensuring venting remains clear.
Why Training Matters
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Fewer Callbacks: Properly trained plumbers are less likely to make mistakes or skip critical steps, reducing warranty or rework scenarios.
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Increased Confidence: Knowing the ins and outs of tankless systems lets plumbers recommend them more frequently and handle a wider range of service calls.
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Upselling Opportunities: Clients who trust a plumber’s expertise may upgrade to the best possible system if they see genuine knowledge behind the recommendation.
Exploring Technology: An Example from the Field
Imagine an advanced tankless heater that includes a compact form factor, integrated recirculation pump, and improved layout for easy servicing. A plumber opens the front panel and sees neatly organized components, color-coded inlets, and logical wire harnesses. This arrangement streamlines service calls—meaning the plumber can diagnose and fix issues faster, all while presenting a more polished image to the homeowner.
Specific Features to Consider
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Built-In Pump: Eliminates the need for an external recirculation system, simplifying installation and saving space.
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Smart Learning: Over a span of days, the unit records household usage to run the pump only when hot water is typically needed, cutting wasteful standby time.
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Condensing vs. Non-Condensing: Non-condensing units can be more cost-effective initially, but condensing models often pay off in the long run with higher efficiency and potential rebates.
Rebate and Financing Opportunities
Even if a tankless system was more expensive at the outset (which is becoming less and less the case), many regions offer incentives or rebates for installing high-efficiency gas or electric tankless models. Homeowners might also find financing deals that spread out the cost, making the monthly payment offset by lower energy bills.
What Plumbers Can Do
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Stay Informed: Government agencies, local utilities, and even private organizations sometimes provide rebates or tax credits for upgrading to energy-efficient appliances.
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Guide Clients: If you, as a plumber, can point customers toward resources to reduce costs—such as providing forms or links to rebate applications—you become a more valuable service provider.
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Highlight the Payback: Show how the combination of reduced monthly bills and a rebate can sometimes lead to an overall lower cost of ownership than a new traditional tank system would provide.
Common Objections and How to Address Them
Despite the benefits, some homeowners (and even some in the trade) still resist going tankless. Here are a few objections and straightforward responses:
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“The Water Heater is Far from the Bathroom”
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With built-in recirculation, tankless can deliver hot water quickly. A plumber can also discuss specialized solutions like a dedicated return line or a small buffer tank if needed.
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“Gas Lines Will Need Major Upgrades”
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Modern units often work with a range of gas pressures, and sometimes minimal changes are required. In some cases, the existing supply is sufficient, especially for lower-input tankless models.
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“I Don’t Want a Complex System That’s Hard to Fix”
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Proper training and simpler internal layouts have made many units more reliable and easier to maintain. Homeowners can even schedule an annual flush to keep it in top shape.
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“Tankless Doesn’t Provide Unlimited Hot Water”
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Actually, tankless systems do offer continuous hot water, as long as the usage does not exceed the unit’s maximum flow rate. Models are available for small condos as well as large multi-bathroom houses.
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A Glimpse into the Future of Water Heating
Tankless technology is heading toward even greater efficiency and user-friendliness. Innovations include:
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App Connectivity: Letting homeowners adjust water temperature or monitor usage from their phones.
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Solar Integration: Pairing with renewable systems for those who want to reduce carbon footprint further.
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Hydrogen and Advanced Fuels: Prototypes that can run on future fuel blends, ensuring long-term viability in an evolving energy market.
As these trends continue, more professionals are likely to see tankless water heaters as the default choice, rather than a specialty option. Plumbers who invest in education and relationship-building with reliable manufacturers are positioning themselves to meet this rising demand head-on.
Final Thoughts on Embracing Tankless
The perception that tankless water heaters are prohibitively expensive or overly complicated is becoming outdated. Non-condensing models can rival the cost of high-capacity tank systems, while condensing versions offer top-tier efficiency that often results in quick payback periods—especially when factoring in rebates.
From a plumber’s perspective, installing tankless units can be a profitable and rewarding niche. The best manufacturers now create user-friendly designs, reduce labor time, and offer robust training to keep service calls straightforward. At the same time, homeowners who choose tankless enjoy potential savings on utilities, faster access to hot water, and the knowledge that they’re using energy more responsibly.
Before you settle on another tank-style heater, reconsider the possibility of a tankless upgrade. Check whether local incentives or supply prices tip the balance in favor of going modern and on-demand. If you haven’t looked at the actual price tags lately, prepare to be surprised by how competitive tankless can be. With evolving designs and strong support from industry leaders, it’s safe to say that tankless has established itself as the future of water heating.
