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How Much Does a Tankless Water Heater Cost in Detroit? [2025 Data]
Normal Range: $2,421 - $3,976
A tankless water heater in Detroit, MI costs $3,158 on average. Depending on size, fuel type, quantity, and on-site issues, you could spend between $2,421 and $3,976.
How we get this data
Photo: Ian Tuttle / Angi
Photo: Ian Tuttle / Angi
Highlights
Installing a tankless water heater in Detroit costs from $2,421 to $3,976.
A single-point system is cheaper than a whole-house system, but homes in Detroit may benefit from both.
The size and fuel type also impact the overall cost.
You’ll need to hire a professional water heater installer, who can pull the right permit required by Detroit building code.
The cost to install a tankless water heater in Detroit runs between $2,421 and $3,976, with the average Michigander paying $3,158, fully installed. While prices can range from just 2% to as much as 73% more than the national average, installation costs are, on average, 32% higher in the Motor City than the typical U.S. city. Costs will vary depending on the type and size of the tankless water heater system, among other factors.
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
The cost to add a tankless water heater to your Detroit, Michigan, home depends on several factors, including whether you’re installing a single-point or whole-house system, how the water heater is powered, and its size and performance. Labor rates can also vary among Detroit plumbers.
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.
| Tankless Water Heaters | Single-Point | Whole-House System |
|---|---|---|
| Cost in Detroit | $125–$400 | $600–$1,975 |
| Hot water distribution | Single fixture (faucet or showerhead) | Provides water throughout the entire house |
| Efficiency | Water heater installed near fixture for short-distance travel | Water heater installed in one central position and flows throughout house |
| Heating power | 0.5–2 gallons per minute | 5–10 gallons per minute |
Given how cold Great Lakes winters can get, it might make sense to install a whole-house tankless water system in your Detroit home, but also add a single-point system in your primary bathroom. This makes it easier to take showers while also running the dishwasher or clothes washer.
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 | Cost in Detroit | Pros | Cons |
|---|---|---|---|
| Electricity | $600–$1,975 | Most affordable option; Simple installation; More energy-efficient than other fuel types | Performance can suffer in high-demand scenarios |
| Natural gas | $1,325–$1,975 | Performance remains strong during in-demand scenarios; More energy-efficient than traditional tank water heater systems | Costs more than electric |
| Propane | $1,325–$1,975 | Performance remains strong during in-demand scenarios; More energy-efficient than traditional tank water heater systems | Costs more than electric |
| Solar | $2,375–$7,925 | Results in greater energy savings over time; Super low maintenance | Costs more upfront; Detroit has fewer-than-average sunny days than the US |
Size
A primary cost factor is the size of the tankless 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).
| Type of Water Heater | Typical Cost to Install in Detroit |
|---|---|
| Gas | $650–$1,575 for small; $1,200–$2,900 for large |
| Electric | $125–$325 for small; $275–$825 for mid-sized; $550–$1,050 for large |
| Solar | $2,375–$7,925 (varies by performance) |
Gas Water Heaters: Smaller water heaters of 120 to140 BTUs cost $650 to $1,575, which is enough for a one- or two-bedroom home. Larger water heaters of 180 to 200 BTUs or more cost $1,200 to $2,900, 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 to 8 kWs cost $125 to $325, 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 $275 to $825 and can efficiently service a two-bedroom home. Large heaters of 27 to 36 kWs cost $550 to $1,050 and can handle enough volume for an expansive home.
Solar Water Heaters: In Detroit, tankless solar water heaters cost between $2,375 and $7,925; you can recoup some of those costs through federal tax credits, however. Detroit gets fewer days of sun when compared to the U.S. average, but solar is still very viable in the Motor City. Rather than measure the power of a solar tankless water heater in gallons per minute, we can instead look at the solar fraction: the percentage of solar energy created by the water heater compared to the actual amount of energy needed to heat the water. (You’ll need a backup water heater source to meet your full energy needs.) Look for a model that has a solar fraction between 0.50 and 0.75.
Tankless Water Heater Pro Costs
We do not advise homeowners to attempt to replace water heaters on their own, especially if you’re switching from a tank to tankless. Instead, hire a well-reviewed, licensed, and insured water heater installer in Detroit.
Labor Costs
Labor costs make up about half the cost to install a tankless water heater in Detroit. From your overall budget, that will likely be $800 to $2,450, depending on the complexity of the install and the time of year. Get quotes from multiple local plumbers or water heater companies to find the lowest price.
Permits
The city of Detroit requires a licensed contractor to purchase a plumbing permit to replace a water heater. A water heater replacement permit costs $43 and is likely baked into the price of your contractor’s quote, but you should always ask to be sure.
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, installing a tankless water heater increases home value. According to a study by Zillow, adding a tankless water heater to your home could boost your home’s value by as much as 1.2%, assuming the system is a good brand and large and powerful enough to efficiently distribute hot water when needed. When listing your property, be sure to advertise the new tankless water heater as a perk for potential buyers.
Even if you don’t plan to list your home any time soon, a tankless water heater is still well worth the investment. According to the U.S. Department of Energy, a tankless water heater can save you between 8% and 34% on energy costs, so you can expect a lower gas or electric bill after installation. A solar tankless water heater could lead to even greater savings, though it has a higher upfront cost to install.
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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