Looking to replace or upgrade your water heater? Use this water heater replacement cost guide to see what the work will cost and what factors affect your total.
How Much Does a Tankless Water Heater Cost in Phoenix? [2025 Data]
Normal Range: $1,579 - $4,237
A tankless water heater in Phoenix, AZ costs $2,882 on average. Depending on size, fuel type, quantity, and on-site issues, you could spend between $1,579 and $4,237.
How we get this data
Ian Tuttle / Angi
Ian Tuttle / Angi
Highlights
On average, having a tankless water heater installed in Phoenix costs less compared to other cities of the same size.
You’ll need to pay to hire a licensed plumber for this project, because permitted work in Phoenix can only be done by licensed pros.
Permits for hot water tank installations and replacements in Phoenix can cost between $75 and $200 based on the scope of the work.
On average, tankless water heater cost in Phoenix is around $2,882. However, homeowners choosing water heaters with different capacities and fuel types might pay between $1,579 and $4,237. Overall, Phoenix's hourly plumbing rates and installation charges are on par with other major cities of the same size around the country. Keep reading to learn what you might expect to pay for this project.
Angi Tip
We highly recommend inspecting your water heater annually for signs of degradation. If you spot any potential warning signs, consider contacting a local plumber.
Tankless Water Heater Cost Factors
Overall, the size and type of tankless water heater you choose for your home will determine the cost for this project. When you contact a local water heater pro in Phoenix, they'll create a quote based on factors that include your household's water usage needs, your home size, and the budget you've set. Additionally, a plumber can go over the energy savings you might expect per month for each option to help you weigh initial cost against long-term savings.
Single-Point Tankless Water Heater vs. Whole-House System
You can choose between single-point and whole-house tankless water heater systems. Some homeowners mix and match, installing a whole-house unit to handle the primary heating duties and placing a single-point system in an additional bathroom. This allows multiple people to shower at once.
| System Type | Capacity (GPM) | Average Cost |
|---|---|---|
| Single-Point System | 1–2 GPM | $550–$950 |
| Whole-House System | 3–10 GPM | $600–$4,200 |
Fuel Type
The type of hot water heater you choose plays a big role in how much you’ll spend. There are several types of tankless heaters to consider based on the energy source used in your home:
| System Type | Average Cost Range | Pros | Cons |
|---|---|---|---|
| Natural gas | $1,200–$2,800 | Smooth, reliable water output | Complex, pricier installation |
| Electric | $600–$2,100 | Energy-efficient and easier to install | Less reliable in high-demand households |
| Solar | $2,800–$4,250 | Ideal for sunny climates, potential to reduce energy bills by 80% | Higher initial costs |
Size
Another primary cost factor is the size of the water heater. Larger heaters service a higher volume of water than smaller heaters, so count on increased costs. The amount of energy the heater can handle is one indicator of size. For tankless gas water heaters, the amount of energy they can handle is measured in British thermal units (BTU); electric water heaters use kilowatts (kW). If you’re comparing gas, electric and solar tankless water systems, another measure of system size is gallons per minute (GPM).
| Gallons per Minute (GPM) | Usage | Average Cost |
|---|---|---|
| 1–2 GPM | Point of use | $550–$950 |
| 2–4 GPM | Whole house (small) | $600–$1,350 |
| 5–7 GPM | Whole house (medium) | $2,300–$2,500 |
| 8–10 GPM | Whole house (large) | $2,600–$4,200 |
Gas water heaters: Smaller water heaters of 120 to 140 BTUs cost $500 to $1,200, which is enough for a one- or two-bedroom home. Larger water heaters of 180 to 200 BTUs or more cost $900 to $2,200, and these appliances handle enough volume to service a home with five or more people. Gas water heaters have an average flow rate of up to 5 GPM.
Electric water heaters: Smaller water heaters of 5 to 8 kWs cost $100 to $250, though this is just enough for a one-bedroom apartment or small home. Keep in mind that electric water heaters only have a flow rate of up to 2 GPM. Mid-sized electric water heaters of 10 to 24 kWs cost $210 to $630 and can efficiently service a two-bedroom home. Large heaters of 27 to 36 kWs cost $420 to $800 and can handle enough volume for an expansive home.
Solar water heaters: If solar power is used as a backup for an electric tankless water heater, the sizing will follow parameters for an electric tankless water heater. However, Phoenix homeowners may opt for solar water heaters with an 80-foot collector costing between $2,900 and $3,300 or 120-foot collectors costing between $3,400 and $4,200.
Tankless Water Heater Pro Costs
Plumbers installing hot water heaters in Phoenix need to be licensed by both the Arizona Registrar of Contractors (ROC) and City of Phoenix because of rules that require all work requiring permits to be performed by licensed plumbers.
If you're unsure about the best type of water heater for your usage needs, a water heater pro in Phoenix will be able to advise you on the size of water heater that's ideal for your household. In addition, the pro who installs your new water heater can provide tips on how to flush a tankless water heater and properly maintain its parts.
Labor Costs
The average hourly plumbing rate in Phoenix is between $80 and $150. However, some local plumbers simply charge flat rates for water heater installation that include all parts and labor.
Permits
Whether you're installing a new water heater or replacing an existing one with an in-kind model, a permit is required. There is a $75 minimum permit fee for all residential water heaters in Phoenix. However, homeowners are also charged a sliding fee based on project valuation. For projects valued up to $1,000, the fee is $150. For projects valued between $1,001 and $10,000, the permit fee structure is $150 on the first $1,000 with $9 added for each additional $1,000.
Accessibility
If the desired location of the new tankless system is difficult to access or narrow and harder to work in, this can raise the labor costs to up to 10% to 15% of your project total. Prices will vary based on the home and setup.
Current Heating System Removal
Removing an existing hot water heating system can cost $500 or more, depending on the unit's size and accessibility, as well as the contractor's hourly rate. When looking for an installation quote, make sure the quote includes the removal and disposal of your current water heater.
Does Installing a Tankless Water Heater Increase Home Value?
Yes, adding a new tankless water heater can increase home value by modernizing a home to be more efficient. A new tankless heater is a big selling point because it reduces energy bills. Overall, Energy Star water heaters offer the strongest return on investment.
How Angi Gets Its Cost Data
Home is the most important place on earth, which is why Angi has helped more than 150 million homeowners transform their houses into homes they adore. To help homeowners with their next project, Angi provides readers with the most accurate cost data and upholds strict editorial standards. We survey real Angi customers about their project costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects.
Want to help us improve our cost data? Send us a recent project quote to [email protected]. Quotes and personal information will not be shared publicly.
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