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tankless water heater

How Much Does Tankless Water Heating Cost?

Have you ever found yourself shivering in the shower, waiting for the hot water that seems to take ages to arrive? Or maybe you’ve had to schedule your morning routine around having a sufficient hot water supply so everyone in the family gets a turn. If so, it might be time to consider tankless water heating.

Before diving in, it’s essential to understand what tankless water heating is and the advantages it has over its traditional counterpart. Let’s embark on this journey together, looking at the ins, outs, and, importantly, the costs of making such a switch.

While the decision ultimately lies with you, we aim to provide you with all the information you need to make an informed choice. 

What is tankless water heating?

What exactly is a tankless water heater? As the name suggests, it’s a type of water heater that doesn’t use a storage tank. Instead, it heats the water directly as it flows through the device. 

This means that it only heats the water you’re actually using, so it’s far more efficient than traditional water heaters, which have to continuously heat a whole tank of water regardless of how much you’re actually using.

Let’s paint a picture. Envision your morning routine—you wake up, make a pot of coffee, and maybe run the dishwasher. With a traditional heater, you’d have to wait for the tank to refill and reheat after each of these activities. But with a tankless heater, there’s no waiting. The water is heated instantly, as you need it. It’s like having a personal hot water concierge right there in your home!

Compared to its traditional counterpart, a tankless water heater is a modern solution to an age-old problem: how to get hot water on demand without the wait. Unlike traditional water heaters that store hot water in a tank for later use, tankless water heaters heat the water on demand, supplying you with hot water when you need it, and only when you need it.

The advantages of a tankless water heater

Here are the main advantages of opting for a tankless water heater in your home.

Energy efficient

Energy efficiency is a major advantage of tankless water heaters. Since they only heat water when required, they avoid the energy losses associated with traditional water heaters that continuously heat and reheat water. 

This design means less idle energy consumption, which can translate to significant energy savings. The U.S. Department of Energy in particular states that tankless water heaters can be much more energy efficient than storage tank models.

This means potential savings on your energy bills.


Tankless water heaters are compact and can be mounted on a wall, saving valuable space in your home. Imagine replacing that bulky water tank in your basement with something no larger than a suitcase and having extra room for your workout equipment, storage, or other appliances.

The price of a tankless water heater

For homeowners, the initial cost of a tankless water heater can indeed be higher than that of a traditional water heater. The purchase price of a tankless system can range in a few thousand dollars.

However, it’s crucial to consider the significant long-term savings. Given their energy efficiency, tankless water heaters can save you a huge amount on your annual energy bills depending on your usage.

Additionally, with a lifespan of 20 years or more—up to twice that of traditional models—the higher upfront costs can be offset by a longer period of service and less frequent replacement. 

So while the initial investment can seem steep, the future savings and service life make tankless water heaters a financially sound choice for the long haul.

Want a tankless water heater installed? Get in touch with American Home Water & Air

The next time you’re shivering in the shower or running out of hot water, remember that there’s a more efficient, space-saving, and cost-saving option out there: the remarkable tankless water heater.

Remember, upgrading to a tankless water heater is an investment, and it’s important to get it installed correctly to reap all these benefits. We strongly recommend involving an HVAC professional, who can guide you through the process and ensure everything is done right. 

In this regard, for homeowners residing in the Phoenix, Arizona area, American Home Water & Air is the best choice. We’ve been operating for over 30 years to help homeowners with all of their HVAC needs, from repairs to replacements to installations.

If you’re looking to invest in efficiency, space-saving, and long-term cost savings, reach out to us and let our team of professionals guide you through the process of having a tankless water heater installed. You’re guaranteed satisfaction!

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