The math of tankless water heaters

[Danno]

x-posted with TTips

I am living on borrowed time on my water heater, it's 21+ years old, and I'm thinking I should replace it before it demands replacement in a catastrophic incident. So here's the math.

Replacement water heater: $900-1000, lasts ~10 yrs
Tankless water heater: $2850, lasts 20 yrs.

So, in the short term it hurts. But it will last twice as long, "saving" me another water heater at 1000 (and they could be lots more that far in the future? or less?), and it looks like my savings per year will be around $100 (based on my summer gas usage, but this is a question mark admittedly). Sounds like I will "break even" at ~10yrs, when the water heater needs replacing again.

Does that math seem correct?

I'd love to have an unlimited shower, so if the thing works as advertised it will be an improvement. The only other issue is the possibility that I will rent the house out and a tenant will get the benefits, not me.

One small factor to consider is that the tankless will be more expensive after Jan 1, by a few hundred, so if I am going to do that, I need to do it asap.

Any thoughts, ideas, commiserations?

[Rideski]

Does that math seem correct?

No, I bought mine for about $600, granted it is small since I currently live in a small house, but even a bigger model could be purchased for a grand.

Why are they going up after Jan 1?

There is a big thread on it here somewhere.

[Danno]

No, I bought mine for about $600, granted it is small since I currently live in a small house, but even a bigger model could be purchased for a grand.

Why are they going up after Jan 1?

There is a big thread on it here somewhere.

Not sure if I understand your post. What did you buy for $600, tank or tankless? I have had 3 quotes now on tankless and 2 on tanks (haven't gotten the last guy's exact quote yet, but he gave me the ballpark). In any case, prices used here are including install for a 40g tank or the Rinnai 75 tankless.

Prices going up because the cheapest guy is running a $200 off special that ends Dec 31st.

[El Chupacabra]

I replaced my regular tank water heater about 4 years ago, nothing fancy (standard off-the-shelf at Home Depot, mid-line warranty), for around $500. I did the install myself.

Have prices gone up that much on regular heaters?

Tankless would be nice, but is it worth it? (do you need endless hot water? or plan on staying in that house forever?)

[Rideski]

I bought a tankless (gas model) for about $600, and then yeah I paid another $100-$200 for some help putting it in.

[khakis]

isn't there a tax incentive of some sort for buying a tankless?
And if you decide on old-school, definitely get a buddy to help you with the carrying and do the install yourself.

[nvr2deep]

I replaced my 55 gal tank heater about 2 months ago. I put in a ao smith 55 gal as a replacement. I put it in myself and paid $600 to $700 for the heater. I just don't see where it would be worth it to go tankless. Maybe see how many years in energy savings it would take to pay off the difference if you went tankless?

[mcsquared]

Don't forget about the possibility of tax credits that go into effect in 2009.
I haven't done all the homework but I saw this awhile ago.

http://finehomebuilding.taunton.com/item/4090/green-tax-credits-for-builders-and-homeowners

Also, I question your assumption that the tankless will last twice as long. Not saying it is wrong just questioning it.

I have a tankless in a rental property and it was a huge pain in the ass to vent properly.

[Danno]

I have no handyman skills and it's a gas heater, so doing the install isn't something I'm interested in doing myself. And given that it is a gas line, I'm wary of just having a buddy do it. As for the prices, like I said, these are plumbers giving me estimates. I don't know why they are higher than what some of y'all are saying, but these are reputable plumbers in my area. :shrug:

Looking at that tax-credit info, maybe the price won't go up, because the tax credit will offset the higher price of the unit?

[Danno]

Also, I question your assumption that the tankless will last twice as long. Not saying it is wrong just questioning it.

I don't know, that is just what the literature says. Unfortunately, they don't have the long track record in the U.S. to have local evidence, but they've been in other countries for ages.

[woodstocksez]

We replaced our water heater in January (after a catastrophic event while away skiing - glad it was in the garage) for a bit less than $500 installed. $1000 sounds like way too much.

Edit to add - like El Chupacabra, ours was standard off-the-shelf at Home Depot, mid-line warranty

[Beaver]

I replaced my HWT this fall for $300. Your math seems whacked.

[Rideski]

Not trying to give you a hard time, but good info here:

here

here


And yeah, if your plumbers are quoting thousands of dollars, shop around more.

[Danno]

I have had 2 reputable plumbers give me estimates, and another gave me a similar price on the phone. Do I tell them that people on the net say that is too expensive? I'm not doubting the numbers y'all are putting out there, but what am I supposed to do when the professionals are giving me a different number?

[woodstocksez]

I have had 2 reputable plumbers give me estimates, and another gave me a similar price on the phone. Do I tell them that people on the net say that is too expensive? I'm not doubting the numbers y'all are putting out there, but what am I supposed to do when the professionals are giving me a different number?

Move to the Bay Area. As you can see, everything's cheaper here.