How Much Does It Cost to Install a Tankless Water Heater in Phoenix?

Are you tired of running out of hot water in your home? Have you considered upgrading to a tankless water heater? If you live in Phoenix, Arizona, you may be wondering how much it would cost to install one. In this article, we will explore the cost of installing a tankless water heater in Phoenix and what factors can affect the price.

Understanding Tankless Water Heaters

Before we dive into the cost of installation, it’s essential to understand what a tankless water heater is and how it works. Unlike traditional water heaters that store and heat water in a large tank, tankless water heaters heat water on demand as it passes through a heating element. This means you’ll never run out of hot water and can save energy and money in the long run.

Cost Factors

Several factors can affect the cost of installing a tankless water heater in Phoenix. These factors include:

  • Size: The size of your home and the number of occupants can affect the size of the tankless water heater you need. A larger home with more occupants will require a larger unit, which will be more expensive.
  • Fuel type: Tankless water heaters can run on electricity, natural gas, or propane. The fuel type you choose can affect the cost of installation and operation.
  • Venting requirements: Unlike traditional water heaters, tankless water heaters require special venting to remove exhaust gases. Depending on your home’s layout, venting requirements can increase the cost of installation.
  • Installation location: The location of the installation can also affect the cost. If the water heater is installed in a hard-to-reach area, such as an attic or crawl space, the installation will require more time and effort, increasing the cost.

Installation Costs

On average, the cost of installing a tankless water heater in Phoenix can range from $2,000 to $4,500. This price includes the cost of the unit, installation, and any necessary permits. However, the final cost will depend on the factors we mentioned earlier.

Electric tankless water heaters are generally less expensive to install than gas-powered units. However, electric tankless water heaters may cost more to operate in the long run, depending on your local electricity rates.


Investing in a tankless water heater can provide many benefits, including an endless supply of hot water and energy savings. While the initial cost of installation may be higher than a traditional water heater, the long-term benefits make it a worthwhile investment. If you live in Phoenix and are considering upgrading to a tankless water heater, be sure to do your research, consult with a professional, and weigh the cost and benefits to make the best decision for your home and budget.