Cost of Installing an Instant/Tankless Water Heater in BC

Upgrading your water heating system can significantly improve energy efficiency and convenience in your home. Instant water heaters, also known as tankless water heaters, are a popular choice for homeowners in British Columbia who want an efficient, space-saving solution for hot water needs. But how much does it cost to install one? In this guide, we’ll break down everything you need to know about the cost to install a tankless water heater, what factors influence pricing, and how to maximize your investment.

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Before you read! Calculate the cost of your hot water tank installation in seconds with our free price estimator tool:
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1. What Is an Instant Water Heater?

An instant water heater, or tankless water heater, heats water on demand rather than storing it in a tank. This system eliminates standby heat loss, making it more energy-efficient and providing endless hot water for showers, laundry, and more. While the instant water heater price can be higher upfront, its long-term savings on energy bills and reduced maintenance costs often make it a worthwhile investment.

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2. How Much Does a Tankless Hot Water Heater Cost in BC?

The tankless water heater cost and installation in BC typically ranges from $2,500 to $5,500, depending on the unit's size, type, and installation complexity.

Breakdown of Costs

• Unit Price:
  The instant water heater price itself ranges between $800 and $2,500, depending on the brand, size, and energy efficiency. Gas-powered models tend to cost more than electric models but are often more efficient for larger households.
• Installation Costs:
  Installation expenses vary based on your home’s existing plumbing and electrical setup. Professional installation by a licensed contractor usually costs between $1,500 and $3,000. Homes requiring upgrades, such as new venting systems or gas lines, will incur additional costs.
• Permits:
  In British Columbia, permits are required for water heater installations to ensure safety and compliance with local building codes. These permits typically cost between $50 and $150, depending on your municipality.

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3. Factors Affecting Hot Water Installation Costs

Several factors can influence the hot water installation cost:

1. Type of Tankless Water Heater

• Gas Tankless Water Heaters: These are more powerful and suitable for larger households but require proper venting and possibly gas line upgrades, adding to the installation cost.
• Electric Tankless Water Heaters: These are often less expensive upfront and easier to install but may not provide sufficient hot water for larger homes or multiple simultaneous uses.

2. Size and Capacity

The size of the unit, measured in gallons per minute (GPM), affects the price. Larger units that can supply multiple faucets or showers simultaneously cost more. For example:

• A small 3-4 GPM unit for a single bathroom may cost $800-$1,500.
• A larger 8-10 GPM unit for a family home can cost $1,500-$2,500.

3. Installation Complexity

If your home requires extensive upgrades to accommodate a tankless water heater, such as:

• Electrical Upgrades: Homes with insufficient electrical capacity may need a panel upgrade, which can cost $1,000 to $3,000.
• Venting Requirements: Gas models require proper venting to safely expel exhaust gases. Venting installation can cost an additional $300 to $800.
• Plumbing Adjustments: Modifying pipes or relocating the unit can add $500 to $1,500 to the total cost.

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4. Energy Efficiency Ratings

High-efficiency models with better Energy Factor (EF) ratings tend to cost more upfront but offer significant savings on energy bills. Opting for ENERGY STAR-certified models may also qualify you for rebates or incentives.

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5. Location of Installation

The location of your home within BC may also affect costs. Rural areas may incur higher installation fees due to travel expenses for contractors.

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4. How Much to Install a Hot Water Tank vs. a Tankless System?

A traditional hot water tank is typically less expensive to install, with costs ranging from $1,000 to $2,500. However, tankless systems have several advantages:

• Energy Savings: Tankless systems are up to 34% more energy-efficient than traditional tanks for homes that use less than 41 gallons of hot water daily.
• Space-Saving Design: Tankless units are compact and can be mounted on walls, freeing up space.
• Longevity: Tankless water heaters last 20+ years with proper maintenance, compared to 10-15 years for tank systems.

While the hot water installation cost for tankless systems is higher upfront, the long-term savings often make them a better investment.

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5. Rebates and Incentives for Tankless Water Heater Installation in BC

BC homeowners can take advantage of various rebates to offset the tankless water heater cost and installation:

• FortisBC Rebates: FortisBC offers rebates of up to $1,000 for ENERGY STAR-certified tankless water heaters.
• CleanBC Better Homes Program: Additional incentives are available for energy-efficient upgrades, including water heater installations. Combining rebates can significantly reduce your overall costs.

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6. DIY vs. Professional Installation: What You Need to Know

While it might be tempting to save money by installing a tankless water heater yourself, professional installation is strongly recommended for the following reasons:

• Compliance with Codes: Licensed contractors ensure your system meets BC’s safety and building code requirements.
• Warranty Protection: Many manufacturers void warranties if the unit isn’t installed by a certified professional.
• Proper Sizing and Configuration: An experienced technician will assess your home’s water demand and ensure the system is properly sized and configured.

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7. How to Choose the Right Tankless Water Heater

When selecting a tankless water heater, consider the following:

• Household Size: Choose a unit with sufficient GPM capacity for your family’s needs.
• Fuel Type: Decide between gas or electric based on your home’s infrastructure and budget.
• Energy Efficiency: Look for ENERGY STAR-certified models for optimal savings.
• Warranty: Choose a model with a robust warranty to protect your investment.

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8. Conclusion

The cost to install a tankless water heater in BC depends on various factors, including the type of unit, installation complexity, and local requirements. While the upfront hot water installation cost is higher than traditional tanks, the energy efficiency, longevity, and convenience of instant water heaters make them a smart investment for many homeowners.

To ensure you get the most value, work with a licensed contractor, explore available rebates, and choose a system that meets your household’s hot water demands. By planning carefully, you’ll enjoy the benefits of endless hot water and lower energy bills for years to come.

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