05 Aug How Much Does a Tankless Water Heater Cost?
As a southeast Michigan homeowner considering a tankless water heater, you may be curious about the cost. Most of us never give our water heaters a thought – until it malfunctions. At that time, you will need to decide between a conventional storage tank water heater and a tankless water heater. While the tankless variety may be higher initially, the savings down the road may make it worth the investment.
Here’s why you and your bank account may be happy with the purchase of a tankless water heater:
In the past, a storage tank was far less expensive mostly because the same vent and gas lines could be used, resulting in reduced installation costs. Tankless water heaters work using a power burner that usually required larger gas/vent lines, which meant increased installation costs and an overall greater expense.
Thanks to today’s tankless technology, the difference between the cost of the two options is growing steadily smaller
The cost of today’s smaller tankless water heaters is substantially less than those of a few years ago, and do not require that you have larger gas and vent lines installed. This lowers the cost, putting it more in line with tank units.
Enjoy rebates and tax credits to save you more on a tankless water heater
If you decide to purchase a tankless model, choose one with a minimum energy factor of 0.82 whether oil or gas operated in order to earn a federal tax credit. Also, going the tankless route could mean local tax credits and rebates from your utility provider.
Over the long term, most homeowners recoup the majority of their initial investment
Over time, the energy savings most SE Michigan homeowners enjoy compensates for the higher initial cost. In fact, replacing a 50-gallon electric tank with a condensing tankless model that is gas fired can lower your energy costs by more than 60% on a yearly basis! For many homeowners, this equates to just over $300 annually. You may recoup the cost of having your tankless water heater installed even faster by finding additional rebates and/or through reduced installation costs.
Considering the convenience of having hot water available on demand and the significant annual cost savings, it doesn’t make sense not to replace your conventional water heater with a tankless model, such as those manufactured by Noritz America Corporation!