BuildX LogoBuildX Logo
  • Home
  • Features
  • AI Chat
Pricing
Get Started
Get Started
Electric Tankless Water Heater cost guide

Electric Tankless Water Heater

Discover the Benefits of Electric Tankless Water Heaters for Energy Efficiency in 2026

Get a QuoteFind Contractors

Electric Tankless Water Heater typically costs $90 to $320 per sq ft as of 2026. Final pricing depends on material quality, project scope, local labor rates, and site conditions. Use our free calculator below for a personalized estimate.

Electric Tankless Water Heater Cost Breakdown

ComponentCategoryLowHighUnit
Materialsmaterial$41$144sq ft
Laborlabor$32$112sq ft
Supplies & Othersupplies$11$38sq ft
Equipment & Disposalequipment$7$26sq ft
Prices are national averages. Enter your ZIP code above for location-adjusted estimates.

What Is Electric Tankless Water Heater?

Discover the Benefits of Electric Tankless Water Heaters for Energy Efficiency in 2026

Cost Snapshot

Typical electric tankless water heater pricing range per sq ft.

Range: $90 – $320
Low
$90
Typical
$205
High
$320

This is a directional range. Final pricing depends on scope, materials, access, and local labor rates.

Estimates are approximate and vary by location, project scope, and current market conditions. Contact a local contractor for an accurate quote.

Imagine never running out of hot water again. With an electric tankless water heater, you can enjoy on-demand hot water while saving space and energy. These compact units heat water directly as it flows through the system, eliminating the need for bulky storage tanks.

Not only do they provide endless hot water, but they can also lead to significant savings on your energy bills. While the initial cost of installation may range from $800 to $3,500, the long-term benefits often outweigh the upfront investment. You'll find that switching to a tankless system can enhance your home's efficiency and comfort, making it a smart choice for modern living.

Overview of Electric Tankless Water Heaters

Electric tankless water heaters heat water on demand, eliminating the need for a bulky storage tank. Here’s how they operate:

  • Cold water enters the unit through an inlet pipe when you open a hot water faucet.
  • A flow sensor detects the water flow and signals the electric heating element to activate.
  • The electric heating element rapidly heats the water as it passes through, reaching your desired temperature.
  • The heated water then exits the unit through the hot water outlet pipe.
  • Energy Efficiency: Electric tankless water heaters are highly energy-efficient because you only heat water when it is needed. This feature eliminates standby heat loss and cycling loss common with traditional storage tank water heaters. This efficiency can lead to energy savings of up to 60%.

Benefits of Electric Tankless Water Heaters

Electric tankless water heaters offer numerous advantages that enhance home efficiency and comfort. Below are key benefits to consider when evaluating these systems.

Energy Efficiency

Electric tankless water heaters exhibit exceptional energy efficiency, typically achieving an efficiency rating of 98% or more. This significantly surpasses gas tankless water heaters, which generally range from 80% to 85% efficiency. By heating water only as needed, electric models eliminate standby heat loss associated with traditional tank systems. This can lead to energy consumption reductions of up to 34%. The Department of Energy estimates that households can save $100 or more annually on energy bills with a high-efficiency tankless water heater.

On-Demand Heating

Electric tankless water heaters provide hot water on demand, ensuring you enjoy a continuous supply whenever required. When a hot water faucet opens, cold water enters the unit, triggering a flow sensor that activates the electric heating element. This allows water to heat rapidly as it passes through, eliminating the need for bulky storage tanks and enhancing convenience. You won’t encounter the inconvenience of running out of hot water during peak usage times.

Key Features to Consider

When selecting an electric tankless water heater, several key features require careful consideration to ensure optimal performance in your home. Focus on aspects like flow rate, temperature control, and size and installation requirements for a well-informed decision.

Flow Rate

Electric tankless water heaters typically deliver hot water at a rate of 2-5 gallons per minute (GPM). This range suits moderate hot water demands but may not meet simultaneous needs for multiple appliances. For households requiring 4-6 GPM, consider electric models, but larger families or those with greater hot water needs might require multiple units or gas-fired alternatives to meet their demands effectively.

Temperature Control

Many electric tankless water heaters feature advanced temperature control capabilities. For instance, the Eccotemp SHiE-27 model allows you to adjust temperature settings using a smart app, which ensures precise control over water temperature. This feature enhances user satisfaction by allowing easy adjustments to meet personal preferences or specific usage occasions.

Size and Installation Requirements

Electric tankless water heaters generally occupy less space compared to traditional models, making them excellent choices for smaller homes or tight areas. Installation requirements can vary based on the unit's power demand and available electrical service. Assess your home's electrical capacity before installation, as some models may need dedicated circuits or additional upgrades to function correctly. Ensuring compatibility will prevent potential issues during and after installation.

Popular Brands and Models

Several brands lead the market in electric tankless water heaters, showcasing efficiency, reliability, and advanced features. Here are some notable brands and their standout models.

Brand A: Rheem

Rheem offers a diverse selection of electric tankless water heaters recognized for their durability and high performance.

  • Rheem Performance Tankless Electric Water Heater: This compact model is easy to install, perfect for smaller homes or point-of-use applications. It features a digital temperature control system, ensuring continuous hot water delivery on demand.

Brand B: Stiebel Eltron

Stiebel Eltron is known for innovative features and top-notch energy efficiency in electric tankless water heaters.

  • Stiebel Eltron Tempra Series: These models prioritize user-friendly operation and safety. They provide precise temperature control and operate quietly, making them suitable for various household needs.

Brand C: Eccotemp

Eccotemp stands out for its affordability and advanced technology in electric tankless water heaters.

  • Eccotemp SHiE-27: This model boasts impressive efficiency with an adjustable temperature setting managed via a smart app. It caters to significant hot water demands while ensuring energy savings.

These brands and their models provide excellent options based on your specific hot water needs and preferences.

Conclusion

Switching to an electric tankless water heater can transform your home’s hot water experience. With on-demand heating you’ll enjoy a constant supply of hot water without the hassle of bulky tanks. The energy efficiency of these units not only reduces your carbon footprint but also lowers your monthly utility bills.

When choosing the right model for your needs consider factors like flow rate and temperature control. Investing in a reputable brand ensures reliability and advanced features that enhance your comfort. Embrace the benefits of modern technology and enjoy the convenience and efficiency that electric tankless water heaters bring to your home.

Frequently Asked Questions

What are the main advantages of electric tankless water heaters?

Electric tankless water heaters provide on-demand hot water, saving space and energy. They eliminate the need for bulky storage tanks, leading to lower energy bills and reducing standby heat loss. While installation costs range from $800 to $3,500, their long-term savings and efficiency make them a smart investment for homeowners.

How do electric tankless water heaters work?

These units heat cold water as it flows through the system. When a hot water tap is opened, a flow sensor activates the electric heating element, rapidly heating the water before it exits the unit. This efficient process ensures a continuous supply of hot water without running out.

What makes electric tankless water heaters energy-efficient?

Electric tankless water heaters achieve energy efficiency ratings of 98% or more, surpassing gas models. They can reduce energy consumption by up to 34% and save homeowners over $100 annually. Their on-demand heating eliminates standby heat loss, significantly lowering energy bills.

What features should I consider when choosing an electric tankless water heater?

When selecting an electric tankless water heater, consider flow rate (typically 2-5 GPM), temperature control options, size, and installation requirements. Ensure the unit meets your household's hot water demands and assess electrical capacity for optimal performance and compatibility.

What are some popular brands of electric tankless water heaters?

Notable brands include Rheem, known for its durable Performance Tankless models; Stiebel Eltron, recognized for precise temperature control in the Tempra Series; and Eccotemp, which offers affordability and smart technology features like adjustable settings via an app. These brands cater to various hot water needs.

What Affects Electric Tankless Water Heater Costs?

Key Cost Factors

  • Materials ($40.50-$144.00/each)
  • Labor ($31.50-$112.00/each)
  • Supplies & Other ($10.80-$38.40/each)
  • Equipment & Disposal ($7.20-$25.60/each)

Tips to Save Money

  • Get at least 3 competitive quotes from licensed contractors
  • Check contractor licenses and insurance before hiring
  • Ask for itemized quotes to compare apples-to-apples
  • Schedule work during the contractor's slow season for better rates
  • Ask about package pricing when combining multiple related tasks
  • Read recent reviews and ask for references from similar projects

Frequently Asked Questions

View Electric Tankless Water Heater Costs by City

Electric Tankless Water Heater in New York, NYElectric Tankless Water Heater in Los Angeles, CAElectric Tankless Water Heater in Chicago, ILElectric Tankless Water Heater in Houston, TXElectric Tankless Water Heater in Phoenix, AZElectric Tankless Water Heater in Philadelphia, PAElectric Tankless Water Heater in San Antonio, TXElectric Tankless Water Heater in San Diego, CAElectric Tankless Water Heater in Dallas, TXElectric Tankless Water Heater in Austin, TX

Ready to start your project?

Connect with top-rated contractors in your area and get competitive quotes for your electric tankless water heater project.

Request QuotesBrowse Contractors
BuildX LogoBuildX Logo

Built by builders, for builders.

Main

  • Home
  • About
  • Features
  • Testimonials
  • Pricing
  • Blog
  • Get a Demo

Utility

  • Help Center
  • Docs
  • Terms of Service
  • Privacy Policy
  • Login

Contact

[email protected]

© 2026 BuildX Construction, Inc.

Related Services

service

3 Layer Torch Down Roof

Ultimate Guide to 3 Layer Torch Down Roof: Benefits, Installation, and Maintenance Tips 2026

$4 - $14 per sq ft

View Cost Guide
service

Acid Wash Pool

Revitalize Your Pool in 2026: The Ultimate Guide to Acid Wash Pool Benefits and Process

$1 - $1 per sq ft

View Cost Guide
service

Adjust Pressure Regulator Valve

How to Adjust Pressure Regulator Valve for Consistent Water Pressure in Your Home in 2026

$180 - $520 per sq ft

View Cost Guide
service

Adjust Pressure Regulator Valve

How to Adjust Pressure Regulator Valve for Optimal Plumbing Efficiency and Safety in 2026

$241 - $292 per each

View Cost Guide
service

Aerate Lawn

Top Benefits of Aerating Your Lawn in 2026: Tips for a Lush and Healthy Grass

$0 - $0 per sq ft

View Cost Guide
service

Aggregate Concrete Sidewalk

Enhancing Curb Appeal with Aggregate Concrete Sidewalks: Benefits & Cost Guide 2026

$180 - $520 per sq ft

View Cost Guide