How to Install a Tankless Water Heater

Posted: October 06, 2024

How to install an on-demand water heater? Tankless water heaters, often called on-demand water heaters, are becoming increasingly popular due to their energy efficiency and space-saving design. Unlike traditional storage water heaters, they provide hot water only when needed, eliminating standby energy losses. Installing a tankless water heater may seem like a daunting task, but with proper guidance and tools, it can be a manageable DIY project. This comprehensive guide will walk you through the process of installing a tankless water heater, ensuring a seamless and efficient setup.

What Is a Tankless Water Heater and How Does It Work?

A tankless water heater, also known as an on-demand water heater, heats water directly without the need for a storage tank. The process begins when you turn on a hot water tap. A flow sensor detects the flow of water and activates the control panel. In gas-powered units, the control panel opens the gas valve, ignites the burner, and draws in outside air for combustion. The heat exchanger, a key component of the system, absorbs the heat from the burner and transfers it to the water flowing through the unit.

The control panel activates electric heating elements for electric models to warm the water. The heated water then passes through a mixing valve that adjusts the temperature to your desired level. A temperature sensor monitors the water temperature and makes real-time adjustments to maintain the set temperature. Finally, exhaust gases from gas units are expelled through a vent, while electric models simply operate without combustion byproducts, ensuring efficient and precise hot water delivery.

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What Are the Benefits of Installing a Tankless Water Heater?

Electric tankless water heater installation brings forth a multitude of benefits that redefine your hot water experience. Here are the advantages of tankless water heater install:

  • Energy efficiency: Tankless water heaters only heat water as needed, reducing energy consumption and resulting in significant cost savings.
  • Continuous hot water: Enjoy an uninterrupted supply of hot water, eliminating the need to wait for a storage tank to refill and reheat.
  • Space savings: With no bulky storage tank, tankless water heaters are compact and can be installed in smaller spaces, freeing up valuable square footage.
  • Longevity: Tankless units typically have a longer lifespan than traditional water heaters, reducing the frequency of replacements and maintenance.
  • Reduced risk of leaks: The absence of a storage tank minimizes the risk of catastrophic leaks, providing peace of mind for homeowners. Advanced temperature sensors and controls allow precise adjustments to meet specific hot water needs.
  • Lower environmental impact: Reduced energy consumption and longer lifespan contribute to a smaller carbon footprint compared to traditional water heaters.
  • Advanced features: Modern tankless water heaters come with features like built-in recirculating pumps and wireless connectivity for added convenience and control.
  • Improved safety: Tankless units often have enhanced safety features, such as automatic shut-off mechanisms and precise temperature controls.
  • Cost savings over time: While the initial investment may be higher, the long-term energy savings and reduced maintenance costs make tankless water heaters a cost-effective choice for many homeowners.

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How to Install a Tankless Water Heater Step-By-Step?

Tankless water heaters have become increasingly popular due to their compact design, energy efficiency, and on-demand hot water supply. Whether powered by gas or electricity, these heaters provide a space-saving alternative to traditional tank-style water heaters. Here is the step-by-step process on how to install on demand water heater, emphasizing the importance of safety and adherence to local codes.

Before installing a tankless water heater

Tankless water heater installation is a complex and potentially hazardous task. Before we delve in & find out how to install a tankless water heater, we strongly recommend hiring a licensed professional plumber to handle the job. Always comply with local plumbing and electrical codes, which may vary by location. Tools needed:

  • Tankless water heater unit
  • Pipe cutter
  • Adjustable wrench
  • Teflon tape
  • Shutoff valves
  • Gas line (for gas models)
  • Electrical wiring (for electric models)
  • Venting kit (if required)
  • Drill with appropriate bits
  • Measuring tape

Safety precautions:

  • Turn Off Utilities: If you are replacing an existing water heater, make sure to turn off the water supply and gas or electricity before starting.
  • Check Local Codes: Ensure that the installation complies with local building and plumbing codes. In some areas, a professional plumber may be required to handle the gas lines.

Step 1: Select the Installation Location

The first step in the process is choosing the right location for your tankless water heater. Unlike traditional units, tankless heaters can be installed on walls, and they require access to power or gas and proper ventilation.

Consider the Following Factors:

  • Proximity to Water Lines: The heater should be close to the water sources to minimize heat loss.
  • Ventilation: For gas-powered units, adequate ventilation is essential to avoid the buildup of harmful gases like carbon monoxide.
  • Accessibility: Choose a location where the unit is easily accessible for maintenance and repairs.
  • Wall Strength: Ensure the wall can support the weight of the unit.

After selecting the location, mark the areas where you'll need to drill holes for water and gas lines, as well as ventilation if necessary.

Step 2: Install the Water Lines

Shut Off the Water Supply:

Before making any cuts or adjustments to the water lines, turn off the main water supply.

Connect the Cold and Hot Water Lines:

  • Use a pipe cutter to cut the existing cold water line.
  • Attach a shutoff valve to the cold water supply line. This will allow you to control the water flow to the heater.
  • Install a pipe leading from the cold water line to the tankless unit.
  • Repeat the process for the hot water line, installing a valve between the heater and the hot water output to control the flow.

Use Teflon Tape on Fittings:

Wrap Teflon tape around the pipe fittings before connecting them to ensure a tight seal and prevent leaks.

Step 3: Install the Gas Line or Electrical Connection

Depending on whether your tankless water heater is gas or electric-powered, you’ll need to install the appropriate power source.

For Gas-Powered Heaters:

  • Turn Off the Gas: Make sure the gas supply is off before starting.
  • Install a new gas line or extend the existing line to the heater. Be sure to follow local codes for gas line installation.
  • Use Teflon tape designed for gas fittings to secure connections and prevent leaks.
  • After installation, use a gas leak detector to ensure there are no leaks before turning the gas on.

For Electric-Powered Heaters:

  • Turn Off the Power: Shut off the electricity at the breaker box.
  • Install a dedicated circuit for the tankless water heater, as it requires a significant amount of power.
  • Connect the unit to the circuit using appropriate wiring and breakers, ensuring compliance with local electrical codes.

Step 4: Install the Ventilation System

Gas-powered tankless water heaters require proper ventilation to safely expel combustion gasses. Venting is typically installed through an exterior wall or roof, depending on the layout of your home.

Vertical or Horizontal Venting:

  • Horizontal Venting: Most common, it expels gases through an exterior wall. You'll need to drill a hole in the wall and install the venting kit provided by the manufacturer.
  • Vertical Venting: If horizontal venting isn’t an option, vent the gases through the roof. This process is more complex and may require professional assistance.

Follow the manufacturer's instructions carefully for vent installation. Ensure all joints are sealed tightly to avoid leaks.

Step 5: Install the Pressure Relief Valve

All water heaters, including tankless models, require a pressure relief valve to prevent excess pressure buildup.

  • Install the valve according to the manufacturer’s specifications.
  • Connect a discharge pipe to the valve and ensure that it drains into a safe location.

Step 6: Connect the Water Heater to the Power or Gas Source

Once the water lines, gas line or electrical wiring, and ventilation are in place, it’s time to connect your tankless water heater to its power source.

Gas Heaters:

  • Open the gas valve slowly and check for leaks using a soapy water solution. If bubbles appear, shut off the gas and tighten the connections.

Electric Heaters:

  • Turn on the power at the breaker box and ensure that the unit is receiving power correctly.

Step 7: Test the Water Heater

Before fully completing the installation, you should test the tankless water heater to ensure everything is working correctly.

  1. Turn On the Water Supply: Open the water shutoff valves and allow water to flow into the unit.
  2. Check for Leaks: Inspect all connections for any water leaks. Tighten fittings if necessary.
  3. Activate the Heater: For gas models, light the pilot or turn on the ignition. For electric models, power on the unit.
  4. Check Hot Water Flow: Turn on a hot water faucet and ensure the water is heating up as expected.

Step 8: Final Adjustments

After successfully testing the unit, make any final adjustments to the temperature settings. Most tankless water heaters allow you to adjust the temperature to suit your household needs.

By following these steps and emphasizing safety, you can easily install tankless hot water heater. Always consult with professionals and adhere to local codes for a reliable and efficient hot water supply in your home.

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How Much Does Installing a Tankless Water Heater Cost?

The cost of installing a tankless water heater depends on several factors, including the type of unit, its capacity, and installation complexity. Below is a detailed breakdown of the costs associated with both gas-fired and electric tankless water heaters, including the unit price and installation expenses.

Type

Unit Cost

Average Installation Cost

Total Estimated Cost

Gas-Fired Units

 

 

 

Small Units

Starting at $170

$500 - $1,000

$670 - $1,170

High-Output Models

Up to $2,000

$1,000 - $1,500

$3,000 - $3,500

Electric Units

 

 

 

Small Units

Starting at $90

$300 - $600

$390 - $690

High-Capacity Models

Up to $900

$600 - $900

$1,500 - $1,800

Breakdown of Costs:

  • Unit Cost: This is the price of the tankless water heater itself. Gas-fired units tend to be more expensive, especially high-output models that can support multiple outlets simultaneously. Electric units are generally more affordable, with costs varying based on capacity.
  • Installation Cost: First-time installation is often more expensive than replacing an existing tank-style heater due to the need for new plumbing, electrical work, or gas line adjustments. The complexity of the installation will impact the overall cost.
  • Total Estimated Cost: This combines the cost of the unit and installation. While the upfront cost can be significant, tankless water heaters offer long-term savings through improved energy efficiency and reduced utility bills.

Additional Considerations:

When budgeting for a tankless water heater, consider potential additional costs such as:

  • Upgrading Electrical or Gas Systems: If your current system needs modifications to accommodate a tankless unit, this can increase costs.
  • Maintenance and Repairs: Regular maintenance is necessary for optimal performance, and replacement parts such as igniters, heat exchangers, or thermostats may incur additional expenses over time.

Despite the initial investment, the energy savings and benefits of a tankless water heater often make it a cost-effective choice in the long run.

Tankless Water Heater Maintenance Tips

While tankless water heaters are known for their efficiency and longevity, regular maintenance is essential to ensure optimal performance and prevent potential issues. Follow these tankless water heater maintenance tips to keep it running smoothly:

Flushing the system

Over time, mineral deposits can accumulate in the heat exchanger, affecting efficiency. Flushing the system annually helps remove these deposits. Follow these steps:

  • Turn off the power and gas supply.
  • Connect a hose to the isolation valves.
  • Open the valves and allow a vinegar solution to circulate through the system for about 45 minutes.
  • Flush the system with clean water to remove any remaining deposits.

Check for leaks

Regularly inspect the unit for leaks, especially around connections and valves. Any sign of water accumulation may indicate a potential issue. If you notice leaks, it's crucial to address them promptly to prevent damage and ensure the unit's longevity.

Inspect the venting system

Ensure the venting system is free from obstructions and is properly sealed. Birds' nests, debris, or blockages can impact ventilation and lead to operational issues. Consult the manufacturer's guidelines for specific venting system inspection and cleaning recommendations.

Monitor for error codes

Tankless water heaters are equipped with diagnostic features that display error codes when an issue arises. Familiarize yourself with the unit's manual to understand these codes. If you observe any error codes, consult the manual or seek professional assistance to address the problem promptly.

Test the pressure relief valve

The pressure relief valve is a crucial safety component that releases excess pressure from the system. Test the valve annually:

  • Turn off the power and gas supply.
  • Lift and release the valve's lever to allow water to flow through.
  • Ensure the valve closes tightly without any signs of leakage.

Examine the water filter

Many tankless water heaters have a water filter that helps prevent debris from entering the unit. Check and clean the filter regularly, following the manufacturer's recommendations. A clogged filter can affect water flow and lead to operational issues.

Inspect gas connections

For gas-powered tankless water heaters, inspect the gas connections for any signs of leaks. If you detect a gas odor or suspect a leak, turn off the gas supply immediately and consult a professional technician to address the issue.

Keep the area clear

Ensure the space around the tankless water heater is clear of debris, combustible materials, and any obstructions. Proper ventilation is essential for the unit's performance and safety.

Professional inspection

While there are several maintenance tasks you can perform yourself, it's advisable to schedule periodic professional inspections. A licensed technician can conduct a thorough assessment, identify potential issues, and perform any necessary adjustments or repairs.

By incorporating these tankless hot water heater maintenance tips into your routine, you can extend the lifespan of your tankless water heater and enjoy a continuous and efficient hot water supply in your home. Regular attention to these details will contribute to the overall reliability and performance of your tankless water heating system. Moreover, for homes equipped with heat pump water heaters, it's crucial to pay attention to regular maintenance. Check the heat pump parts, including the compressor, evaporator coil, and refrigerant levels, as they are integral to the system's efficiency.

Troubleshooting Common Issues With Tankless Water Heaters

Tankless water heaters provide efficient hot water, but occasional issues may arise. Here is how to troubleshoot tankless water heater issues:

  • If you experience inconsistent water temperatures, check for mineral deposits in the heat exchanger and flush the system. 
  • For inadequate hot water or pressure, verify the proper gas supply and inspect the filter for blockages. 
  • Address any water leakage promptly by examining connections and valves. 
  • If your unit displays error codes, consult the manual to identify and resolve the issue. 
  • Inadequate venting may lead to operational problems, so ensure the venting system is unobstructed. 

For persistent problems, seek professional assistance to diagnose and address complex issues, ensuring your tankless water heater operates smoothly.

Installing a tankless water heater involves careful planning, adherence to local codes, and professional assistance for complex tasks. Upgrading gas lines, removing old units, and mounting the new heater require precision. Proper installation ensures efficient performance, making these compact, energy-efficient units a valuable addition to any home. Always prioritize safety and consult experts for a successful tankless hot water heater installation.

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FAQs

Is Installing a Tankless Water Heater Worth It?

Installing a tankless water heater offers significant benefits. It provides on-demand hot water, which leads to 27-50% fuel cost savings compared to traditional tank heaters, which waste 40-50% of the fuel. Additionally, the absence of a storage tank reduces the risk of leaks. Modern tankless heaters include advanced features like recirculating pumps and smartphone connectivity for real-time maintenance alerts, making them a more economical and convenient choice for hot water needs.

Can tankless water heaters be installed inside?

Yes, tankless water heaters can be installed inside. They are compact and designed to fit in various indoor locations, such as utility rooms or closets. Ensure proper ventilation and space for maintenance when installing indoors.

Can I install a tankless water heater myself?

Installing a tankless water heater yourself is possible, but it's recommended to hire a licensed professional for safety and proper installation.

Can I add a tankless water heater to an existing system?

Yes, you can add a tankless water heater to an existing system, but it's crucial to ensure compatibility and consult with a qualified plumber for installation guidance.

Are tankless water heaters installed inside or outside?

Tankless water heaters can be installed either inside or outside, offering flexibility in placement based on space and climate considerations.

Where should a tankless water heater not be installed?

Avoid installing tankless water heaters in unheated spaces prone to freezing, as exposure to low temperatures can damage the unit and compromise its performance.