If you're researching the cost of a tankless water heater in 2026, you're not alone. Many Metro Atlanta homeowners are upgrading from traditional hot water heater models to modern tankless water heater systems for improved efficiency, longer lifespan, and consistent performance.
Understanding the cost of tankless water heaters helps you plan your investment and determine whether upgrading makes financial sense for your home.
At Estes Services, we provide professional tankless water heater installation in Atlanta, along with full water heater service and system replacements. Below, we break down pricing factors, benefits, and what influences overall installation costs.
Why Homeowners Are Switching to Tankless Water Heater Systems
Tankless systems — also called demand water heaters — heat water on demand rather than storing it in a tank. This eliminates standby heat loss and reduces energy costs.
Key benefits include:
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Endless hot water
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Lower energy bills
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Compact, space-saving design
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Longer lifespan (up to 20 years)
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Improved efficiency compared to traditional water heaters
Unlike conventional tank systems, tankless systems use a heat exchanger to heat water instantly as it flows through the unit. That means no more running out of hot water during back-to-back showers.
Learn more about professional plumbing services at EstesAir.com.
How Much Does a Tankless Water Heater Cost in 2025?
The tankless water heater cost varies based on system type, fuel source, home layout, and installation requirements.
On average, the cost of a tankless water heater in 2026 ranges between:
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$2,000 to $5,000 installed
This range includes equipment, labor, and potential upgrades.
Let's break down what affects pricing.
1. Type of Tankless System
The type of water heater you choose directly impacts the overall cost of tankless water heaters.
Gas Tankless Water Heaters
Gas tankless water heaters offer higher output and are ideal for larger households with higher water demand. They heat water quickly and provide strong flow rates.
However, installation may require:
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Upgraded gas lines
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Venting adjustments
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Combustion air modifications
These factors can increase the initial cost.
Electric Tankless Water Heaters
Electric tankless water heaters typically have:
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Lower installation costs
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Easier setup
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No gas line requirements
They are ideal for smaller homes or point-of-use applications. However, they may require electrical panel upgrades if your home does not have sufficient capacity.
Heat Pump Water Heaters
Heat pump water heaters use surrounding air to heat water efficiently. While not technically tankless, they are highly energy-efficient alternatives to traditional systems.
They reduce energy costs significantly but may require more installation space.
2. Installation Complexity
The total tankless water heater installation cost depends on whether you are:
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Replacing an existing tankless system
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Converting from a traditional gas water heater
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Installing a new system in a remodeled area
First-time installations may require:
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Gas line upgrades
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Electrical upgrades
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New venting
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Plumbing adjustments
Professional installation ensures proper code compliance and long-term system reliability.
Explore professional water heater service options at EstesAir.com.
3. System Size and Flow Rate
Tankless water heater systems are sized based on gallons per minute (GPM). The more fixtures you want to run at once, the larger the system required.
Factors include:
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Number of bathrooms
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Washing machines and dishwashers
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Simultaneous hot water usage
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Required temperature rise
Choosing the right system prevents performance issues and ensures endless hot water without running out.
4. Fuel Source and Energy Efficiency
Energy efficiency ratings impact long-term operating costs.
Gas models typically:
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Provide stronger heating performance
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Handle higher demand
Electric tankless water heaters:
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Have lower upfront installation complexity
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Offer efficient heating water on demand
While the initial cost may be higher than traditional water heaters, tankless systems reduce energy bills over time.
Tankless vs. Traditional Hot Water Heater Costs
Traditional water heaters store and continuously heat a tank of water. This results in standby energy loss and higher utility bills.
Tankless systems:
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Heat water only when needed
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Reduce energy waste
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Offer longer lifespan (up to 20 years)
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Lower long-term energy costs
Although the upfront water heater cost is higher, the reduced maintenance needs and energy savings often offset the difference.
Long-Term Savings and Value
When evaluating the cost of tankless water heaters, consider:
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Reduced energy bills
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Fewer replacement cycles
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Longer equipment lifespan
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Lower risk of running out of hot water
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Space savings
With proper maintenance, a tankless system can outlast traditional water heaters by nearly a decade.
Estes Services provides professional tankless water heater installation in Atlanta, ongoing service, and system maintenance to protect your investment.
Schedule Tankless Water Heater Installation in Atlanta
If you're ready to install a tankless water heater, our licensed plumbing team can help you compare electric tankless water heaters, gas tankless water heaters, and alternative options like heat pump water heaters.
Since 1949, Estes Services has proudly served Metro Atlanta homeowners with expert plumbing and HVAC solutions.
Schedule your tankless water heater installation in Atlanta today at EstesAir.com.
It's That Easy. It's Estes.
Frequently Asked Questions
What is the average cost of a tankless water heater in 2025?
The average cost of a tankless water heater ranges between $2,000 and $5,000 installed, depending on fuel type, brand, and installation complexity.
Are electric tankless water heaters cheaper than gas models?
Electric tankless water heaters typically have lower installation costs. Gas tankless water heaters offer higher performance for larger homes with greater hot water demand.
How long do tankless water heater systems last?
Most tankless systems last up to 20 years with proper maintenance — significantly longer than traditional water heaters.
Do tankless water heaters lower energy bills?
Yes. Tankless systems heat water on demand, reducing standby energy loss and lowering long-term energy costs.
Do you offer same day water heater installation?
Yes. Estes Services offers same day water heater installation in many cases, depending on availability and system requirements. If your hot water heater fails unexpectedly, contact our team for prompt service.
Can I find plumbers near me for tankless water heater installation?
If you're searching for "plumbers near me" in Metro Atlanta, Estes Services provides licensed plumbing professionals who specialize in tankless water heater installation and water heater service. Our experienced team is ready to help with repairs, replacements, and emergency service.
Is tankless water heater installation complicated?
Installation complexity depends on your home's gas lines, electrical setup, and plumbing layout. A licensed professional ensures safe, code-compliant installation and protects your warranty.
