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.
Tankless Water Heater Cost in Indianapolis [2025 Data]
Normal Range: $2,881 - $8,566
A tankless water heater in Indianapolis, IN costs $5,723 on average. Depending on size, fuel type, quantity, and on-site issues, you could spend between $2,881 and $8,566.
How we get this data
Ian Tuttle / Angi
Ian Tuttle / Angi
Highlights
Indianapolis winters can strain tankless water heaters, especially during prolonged cold spells.
Solar water heating in Indy is unreliable year-round and almost always needs a backup system.
Older homes in neighborhoods like Irvington and Meridian-Kessler may require gas or electrical upgrades to support tankless systems.
Indiana’s freeze-thaw cycles and aging housing stock can make tankless water heater installations more complex than they first appear. While newer homes may be ready for a straightforward install, older properties, especially those built before modern efficiency standards, can require electrical upgrades, gas line extensions, and/or venting modifications that can drive up the total cost. This guide covers what tankless systems actually cost in Indy and how your home’s age, layout, and fuel setup can affect your final price.
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 cost to install a tankless water heater in Indianapolis, including the type of system and the fuel it uses. The system’s size also significantly affects costs.
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–$1,800 |
| Average cost with installation | $500–$1,000 | $1,800–$3,500 |
| 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) |
| Indianapolis considerations | Often used in older Indianapolis homes, especially in neighborhoods like Broad Ripple and Fountain Square, where installing a whole-house system would require costly updates | Whole-house systems are typical in Indianapolis homes, but switching to tankless can require gas line or venting upgrades, especially in houses built before the 1990s. |
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 | Widely available and simple to set up, especially in smaller Indianapolis homes and areas without gas service. | Slower heating and limited capacity can be an issue for larger households, especially during cold snaps. |
| Natural Gas | $500–$2,200 | Readily accessible across most of Indy, offering fast, efficient heating and lower operating costs. | Some older homes may need gas line modifications or venting updates before installation. |
| Propane | $500–$2,200 | A practical choice in outer suburbs and rural areas around Indianapolis where natural gas lines don’t reach. | Requires onsite fuel storage and regular refills, with prices that can vary widely. |
| Solar | $1,800–$6,500 | Can offset long-term energy costs during Indiana’s sunnier seasons, especially with a good south-facing roof. | Winters and overcast days limit output, so solar setups still require a reliable backup system. |
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 |
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 $900 and can handle enough volume for an expansive home.
Solar Water Heaters: Indianapolis doesn’t get consistent enough sunshine year-round for solar water heaters to work on their own, so you’ll still need a backup system. Smaller systems with one or two panels cost $1,800 to $3,500 and can supplement hot water during sunnier months. Mid-sized setups range from $3,500 to $5,000, and larger ones usually run $5,000 to $6,500.
Tankless Water Heater Pro Costs
Installing a tankless water heater in Indianapolis typically involves several service fees beyond the unit price itself. Knowing these upfront costs helps avoid sticker shock when the final invoice arrives.
Labor Costs
In Indianapolis, plumbers usually charge around $100 to $120 per hour. A simple tankless swap often takes from 4 to 6 hours, so you’ll pay around $400 to $720 in labor costs. But if your home needs venting work, a gas line expansion, or electrical upgrades, installations can take much longer, pushing labor costs up to $1,800.
Permits
Nearly all Indianapolis tankless water heater installations require a plumbing permit, and if the installation involves gas, venting, or electrical changes, additional permits and inspections may be required. Permit fees typically range from $50 to $100, depending on job scope. Many contractors include these fees in their total estimate, but make sure to ask ahead of time.
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 by 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?
A tankless water heater won’t dramatically raise your home’s value, but it can make your listing more appealing, especially to energy-conscious buyers. With utility costs top of mind for many buyers given Indiana’s long winters, efficient systems help homes stand out in the market. Particularly in neighborhoods where modern upgrades are becoming the norm, having one can help your home sell faster.
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.
The homeowners guide to water heater services
From average costs to expert advice, get all the answers you need to get your job done.
While solar water heater costs are a bit higher than a standard system, this energy-saving option could pay for itself in a few years. Here’s what you need to know.
Running out of hot water too quickly or hearing strange noises when you call for hot water? Use this water heater repair cost guide to see what a fix will cost.
If your water heater isn't heating up properly, you could have a drainage issue. These common causes of water heater not draining could be to blame.
Sediment buildup and loose valves are common reasons for a hot water heater that’s making noise. Here are the most common causes and their fixes.
If your tankless water heater is not heating, there are several common reasons why. Learn the possible causes along with practical troubleshooting tips.