H1: Cost of a Tankless Water Heater in 2025
If you're considering upgrading your home's water heating system in Atlanta, understanding the cost of a tankless water heater is a great place to start. More homeowners in 2025 are switching to tankless water heater systems because of their superior energy efficiency, reliability, and long-term energy savings compared to traditional tank water heaters.
In this article, our licensed Atlanta plumbers at Estes Services explain what impacts the cost of tankless water heaters, what benefits you can expect, and how a new tankless water heater can save you money on your utility bills.
H2: Benefits of Tankless Water Heaters
Although the initial installation costs of a tankless water system can be higher than traditional tank water heaters, the long-term benefits are substantial.
✔ Energy Efficiency: Tankless models only heat the water when you need it, reducing standby energy loss and lowering your energy bills.
✔ Unlimited Hot Water: With a tankless unit, you'll never run out of hot water again — perfect for large families or multiple showers running simultaneously.
✔ Longer Lifespan: A tankless water heater can last over 20 years, compared to 10-15 years for tank models. Replaceable heat exchangers and components extend longevity even further.
✔ Space-Saving Design: Compact tankless models take up less room and can be installed in tight spaces.
If you're looking for a water heating system that's energy-efficient, reliable, and convenient, installing a tankless water heater with Estes Services is a smart investment for your home.
H2: How Much Does a Tankless Water Heater Cost?
The cost of a tankless water heater varies depending on several factors, including the type of unit, labor, and installation complexity. Let's break down the main considerations:
H3: Type of Unit
Your choice of system — gas, electric, or hybrid — directly affects your overall tankless water heater costs.
Gas Tankless Water Heaters: Offer higher flow rates and faster heating. Gas models are ideal for large households but may cost more upfront due to venting requirements.
Electric Tankless Water Heaters: Typically have a lower installation cost and are easier to set up, but may have a slightly lower flow capacity.
Heat Pump Water Heaters: Use ambient air to heat the water, offering top-tier energy savings and eco-friendly performance.
At Estes Services, we install and service Rheem and Navien tankless water heaters — both trusted brands known for efficiency, durability, and advanced technology.
H3: Brand and Fuel Source
When comparing Rheem and Navien tankless water heaters, both brands offer high-quality tankless units with efficient heating performance.
Navien tankless water heaters are known for their advanced controls and high efficiency, making them a great choice for homeowners looking for premium performance.
Rheem tankless systems are reliable, widely available, and compatible with both electric tankless water heaters and gas tankless water heater systems.
Your Estes Services plumber will help you determine which tankless model best fits your home's energy source, water usage, and layout.
H3: Flow Rate and Layout
Flow rate determines how much hot water your tankless system can deliver at once. This is measured in gallons per minute (GPM). A higher GPM means you can run more appliances simultaneously — showers, dishwashers, and laundry machines — without losing pressure or temperature.
You can also choose between:
Point-of-Use Tankless Systems: Installed near specific fixtures (like sinks or showers).
Whole-House Tankless Systems: Serve your entire home, typically from one central tankless unit in your garage or utility area.
Whole-home systems are more cost-effective for larger households, while point-of-use systems are great for small spaces or additions.
H3: Labor and Installation Complexity
The installation costs of a tankless water heater depend on whether it's a replacement or a completely new setup.
Replacing an existing tankless system is generally faster and less expensive.
Installing a tankless water heater for the first time may require electrical upgrades, venting adjustments, or new plumbing connections, which can increase the total cost.
Always have your tankless water heater professionally installed by a licensed Atlanta plumber. Proper installation ensures code compliance, safety, and warranty protection for your investment.
H3: Rebates and Special Offers
You may be eligible for tax credits or rebates on energy-efficient tankless water heaters. Programs such as the ENERGY STAR® Rebate Finder and Georgia Power incentives can help reduce your upfront costs.
Additionally, Estes Services offers seasonal promotions and financing options to make your new tankless water system more affordable. Ask our team about current rebates when you schedule your consultation.
H2: Comparing Tankless vs. Traditional Tank Water Heaters
While traditional tank water heaters are less expensive to install, they store hot water in large storage tanks, wasting energy to keep it warm throughout the day. Over time, this leads to higher energy costs and shorter system life.
By contrast, tankless water heater systems heat the water only when needed, offering improved energy efficiency and energy savings. Although the upfront cost of a tankless water heater is higher, the long-term reduction in your energy bills makes it a cost-effective investment.
H2: Schedule Your Tankless Water Heater Consultation Today
Are you ready to enjoy endless hot water, lower utility bills, and long-term savings? Whether you're interested in electric tankless water heaters, gas models, or Navien tankless water heaters, Estes Services can help you choose the right system and handle professional installation.
Since 1949, Estes Services has proudly served homeowners across Metro Atlanta with trusted plumbing and HVAC expertise.
📞 Call (404) 362-6960 or schedule service today.
It's That Easy; It's Estes.
✔ Unlimited Hot Water: With a tankless unit, you'll never run out of hot water again — perfect for large families or multiple showers running simultaneously.
✔ Longer Lifespan: A tankless water heater can last over 20 years, compared to 10-15 years for tank models. Replaceable heat exchangers and components extend longevity even further.
✔ Space-Saving Design: Compact tankless models take up less room and can be installed in tight spaces.
Gas Tankless Water Heaters: Offer higher flow rates and faster heating. Gas models are ideal for large households but may cost more upfront due to venting requirements.
Electric Tankless Water Heaters: Typically have a lower installation cost and are easier to set up, but may have a slightly lower flow capacity.
Heat Pump Water Heaters: Use ambient air to heat the water, offering top-tier energy savings and eco-friendly performance.
Navien tankless water heaters are known for their advanced controls and high efficiency, making them a great choice for homeowners looking for premium performance.
Rheem tankless systems are reliable, widely available, and compatible with both electric tankless water heaters and gas tankless water heater systems.
Point-of-Use Tankless Systems: Installed near specific fixtures (like sinks or showers).
Whole-House Tankless Systems: Serve your entire home, typically from one central tankless unit in your garage or utility area.
Replacing an existing tankless system is generally faster and less expensive.
Installing a tankless water heater for the first time may require electrical upgrades, venting adjustments, or new plumbing connections, which can increase the total cost.
It's That Easy; It's Estes.
FAQs About Tankless Water Heater Costs
1. What is the average cost of a tankless water heater in 2025?
The cost of tankless water heaters can range from $2,000-$5,000 installed, depending on the type, brand, and system complexity.
2. Are tankless water heater systems worth it?
Yes. The benefits of tankless water heaters include longer lifespan, lower energy costs, and unlimited hot water — all of which can save you money long term.
3. How long does a tankless water heater last?
Most tankless models last up to 20 years, nearly double the lifespan of traditional tank water heaters.
4. Which is better: gas or electric tankless water heater?
Both are efficient. Gas tankless water heaters deliver higher flow rates, while electric tankless water heaters have lower installation costs and require less maintenance.
5. Can I get rebates for installing a tankless water heater?
Yes. Many energy-efficient tankless units qualify for federal tax credits and local rebates. Contact Estes Services to learn about available incentives in your area.
The cost of tankless water heaters can range from $2,000-$5,000 installed, depending on the type, brand, and system complexity.
Yes. The benefits of tankless water heaters include longer lifespan, lower energy costs, and unlimited hot water — all of which can save you money long term.
Most tankless models last up to 20 years, nearly double the lifespan of traditional tank water heaters.
Both are efficient. Gas tankless water heaters deliver higher flow rates, while electric tankless water heaters have lower installation costs and require less maintenance.
Yes. Many energy-efficient tankless units qualify for federal tax credits and local rebates. Contact Estes Services to learn about available incentives in your area.
