Learn about the different factors that go into water heater gas valve replacement costs to see if you should DIY the project or call a pro.
Tankless Water Heater Cost in Denver [2025 Data]
Normal Range: $1,779 - $4,846
A tankless water heater in Denver, CO costs $3,313 on average. Depending on size, fuel type, quantity, and on-site issues, you could spend between $1,779 and $4,846.
How we get this data
Photo: Ian Tuttle / Angi
Photo: Ian Tuttle / Angi
Highlights
Denver’s long winters mean your system needs to be sized right for year-round hot water.
Natural gas systems are a good choice in Denver because they perform better in cold weather.
Single-point systems work well for smaller spaces or ADUs.
Most Denver homes need a full whole-house setup.
Tankless water heaters are a popular option in Denver thanks to their compact design and energy efficiency. In Denver, tankless water heaters cost about $3,313 on average, but it can range from $1,779 to $4,846. Installation costs can vary widely depending on your home’s layout, existing plumbing, and fuel type. Denver’s long, cold winters also make proper sizing and installation especially important to ensure you receive dependable hot water year-round. This guide breaks down what you can expect to pay in Denver and which factors will have the biggest impact on your total cost.
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
Several factors affect the total cost of installing a tankless water heater in Denver, including the type of system, fuel source, and how much hot water your home uses. Denver’s mix of older homes, multi-level layouts, and cold winters also adds complexity (and potential cost) to many installations, especially when it comes to sizing and setup.
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.
| Feature | Single-Point System | Whole-House System |
|---|---|---|
| Average unit cost | $100–$400 | $600–$2,000 |
| Average cost with installation | $600–$1,800 | $2,000–$8,000 |
| Best for | Low-use areas or as a supplemental system | Entire home’s hot water needs |
| Flow rate | 0.5–2 GPM | 5–10 GPM |
| Space required | Minimal (fits under sink or in closet) | Moderate (needs a garage or utility room) |
| Denver considerations | Useful in smaller Denver homes and ADUs where water demand is low and pipes are exposed to freezing temps | Ideal for full-time hot water supply in most homes with basements and multi-level layouts, especially during long winter months |
Fuel Type
Wondering how much you can save (or spend) on a tankless water heater? One of the best ways to calculate your expenses is by the type of hot water heater you choose. There are four types of tankless heaters to consider:
| Fuel Type | Unit Cost | Pros | Cons |
|---|---|---|---|
| Electric | $600–$1,000 | Easy installation and affordable | Limited hot water output; older Denver homes may need an electrical panel upgrade |
| Natural gas | $500–$2,200 | Ideal for high-demand households. Reduces utility costs | Installation can be more complex due to venting and gas line needs |
| Propane | $500–$2,200 | Useful in rural Colorado properties without access to natural gas; easy tank placement | Ongoing fuel delivery adds cost; propane is generally pricier than natural gas in Denver |
| Solar | $1,800–$6,500 | Environmentally friendly and may qualify for local rebates and federal tax credits | High installation cost; cold winters and snow may limit performance without backup |
Size
A 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 the British thermal unit (BTU); electric water heaters use kilowatts (kW).
| Fuel Type | Size / Capacity | Unit Cost | Recommended For |
|---|---|---|---|
| Gas | 120–140 kBTU | $500–$1,200 | Studio or 1-bath homes |
| 150–180 kBTU | $800–$1,800 | 2–3 bedroom homes | |
| 200–220+ kBTU | $1,800–$2,600 | 4+ bedroom homes with multiple bathrooms | |
| Electric | 5–8 kW | $100–$250 | Studio or 1-bath homes |
| 10–18 kW | $250–$600 | 2–3 bedroom homes | |
| 24–36 kW | $600–$900 | 4+ bedroom homes with moderate demand | |
| Solar | 1–2 panel system | $1,800–$3,500 | Studio or 1-bath homes |
| 3–4 panel system | $3,500–$5,000 | 2–3 bedroom homes | |
| 5+ panel system | $5,000–$6,500+ | 4+ bedroom homes with high hot water use |
Gas Water Heaters: Smaller water heaters of 120–140 BTUs cost $500 to $1,200, which is enough for a one- or two-bedroom home. Larger water heaters of 180–200 BTUs or more cost $900 to $2,200, and these appliances handle enough volume to service a home of five or more people. Gas water heaters have an average flow rate of up to 5 gallons per minute (GPM).
Electric Water Heaters: Smaller water heaters of 5–8 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 10–24 kWs cost $210 to $630 and can efficiently service a two-bedroom home. Large heaters of 27–36 kWs cost $420 to $800 and can handle enough volume for an expansive home.
Solar Water Heaters: Even though Denver averages over 300 days of sunshine per year, it also experiences long, cold winters with lots of snow, so most solar water heaters require a supplemental gas or electric unit for year-round reliability. Smaller solar systems with one to two panels cost $1,800 to $3,500 and can support a one- or two-bedroom home during peak sun months. Mid-sized systems with three to four panels range from $3,500 to $5,000 and can serve an average-sized Denver household, while larger systems with five or more panels cost $5,000 to $6,500.
Tankless Water Heater Pro Costs
In Denver, installation costs can make up a large part of your total tankless water heater bill. Labor, permitting. Prep work add up quickly, especially in older homes or when the job involves venting, electrical upgrades, or rerouting gas lines.
Labor Costs
In the Denver metro area, licensed plumbers typically charge $85 to $150 per hour, and most installations require around 4 to 8 hours, resulting in labor costs between $450 and $1,200 for most installs. But more complex projects, like adding gas lines, rerouting venting, or installing in difficult-to-reach areas, can extend the labor time to 8 to 10 hours or more, increasing your costs.
Permits
Most tankless water heater installations in Denver require a plumbing permit, especially if the job involves changes to gas lines, venting, or electrical systems. For straightforward replacements, a permit usually costs between $50 and $100. More complex projects may trigger additional fees or require separate trade permits. In most cases, your licensed contractor will handle the permitting process on your behalf, but make sure to ask them about it.
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?
Installing a tankless water heater probably won’t raise your home’s value in a major way, but it can make your place more appealing to buyers who care about energy efficiency and modern upgrades. In a competitive market like Denver, small features like this can help your home stand out, even if they don’t directly bump up the price.
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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