5 Things to Consider with Regards to Tankless Water Heater Cost in Austin, Texas

Are you considering purchasing a tankless water heater for your Austin, TX home? There are numerous benefits to switching from the traditional tank-style water heater to the tankless variety, including lower energy bills, less waste, and virtually endless hot water. The upfront cost is typically higher, but the long-term savings are substantial. With any major household purchase, there's a lot to consider. Here are five key things to consider when it comes to tankless water heater cost.

1. Installation Costs vs. Upgrade Costs

The initial cost to install a tankless water heater in an existing home is typically higher than the cost to upgrade from an existing tank-style heater. In most cases, you'll have to pay for new venting materials, as well as the cost of a new unit. There's also the cost of the necessary installation labor. This can often add up to a substantial investment. This also may include upgrade to plumbing fixtures.

2. Heating Fuel Options

In addition to the cost of the unit itself and installation, there are the ongoing operating expenses to think about. You have the choice of a gas-fired or electric tankless water heater, and each type has associated costs. Electric tankless heaters cost more upfront and require more energy, but generally, they're more efficient long-term than gas-fueled. Gas-fueled tankless heaters require more upfront costs, have lower operational costs, but during peak periods, they may require electric support.

3. Size Matters

A tankless water heater needs to be sized to the specific needs of your home. The larger it is, the higher the cost. Generally speaking, you'll need 1 to 1.4 gallons of hot water per minute for each shower or faucet in the house. This must be factored into the cost equation. If your current tank-style heater is undersized for the demand of your home, you may need to invest more upfront in a larger and more expensive tankless model.

4. Potential Utility Rebates

Many utility companies off rebates for the installation of energy-efficient models. Depending on the type you choose, you may qualify for a utility company rebate. Such incentives could substantially offset the cost of installation.

5. Tax Incentives

In addition to utility company rebates, some local and federal governments may offer tax breaks for installing energy-efficient models. Again, depending on the type of tankless water heater you choose, you may be eligible for a tax break of up to 30 percent of its cost.

When it comes to purchasing a tankless water heater, the upfront costs can seem prohibitive. But by factoring in the long-term savings and potential additional government or utility company rebates and tax incentives, you may find the out-of-pocket expense more palatable. When considering a tankless model for your Austin, TX home, it may be wise to get several quotes from local providers and to factor in the potential long-term savings.

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