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.
How Much Does a Tankless Water Heater Cost in Minneapolis? [2025 Data]
Normal Range: $1,919 - $6,072
A tankless water heater in Minneapolis, MN costs $3,823 on average. Depending on size, fuel type, quantity, and on-site issues, you could spend between $1,919 and $6,072.
How we get this data
Ian Tuttle / Angi
Ian Tuttle / Angi
Highlights
In general, a gas tankless water heater is the most practical and efficient option for Minneapolis households with heavy water demand.
While a point-of-use tankless water heater in Minneapolis can cost as low as $650 to $1,900, installing a whole-house unit that's adequate for a household of four to five people can cost up to $9,000.
You’ll need to budget for the hourly rate of licensed plumbers, the cost of the chosen water heater, and the city's required plumbing permits for this project.
For homeowners looking to upgrade their hot water heaters due to age or low efficiency, the average tankless water heater cost in Minneapolis is $3,823. However, you might expect to pay between $1,919 and $6,072 for different options. Everything from a tankless water heater's size to its fuel method can impact cost. Keep reading to learn more about what you can expect to pay for your home's new tankless water heater.
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 will determine how much you pay for installation in Minneapolis, MN. When determining the right model, a local plumbing pro will assess your household's water usage to help you find the best fit for your budget and household size.
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 in Gallons per Minute (GPM) | Average Cost Range |
|---|---|---|
| Single-Point System | 1–2 GPM | $650–$1,900 |
| Whole-House System | 3–10 GPM | $3,200–$9,000 |
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:
| Fuel Type | Average Cost Range | Pros | Cons |
|---|---|---|---|
| Natural gas | $1,200–$4,500 | Most reliable performance | Complex installation |
| Electric | $650–$2,800 | Easier, more affordable installation | Temperatures can be less consistent |
| Solar | $4,000–$6,000 | Energy efficiency | More expensive installation, mixed performance in Minnesota’s climate |
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). A more appropriate measure for comparing the capacity of gas and electric water heaters is gallons per minute (GPM).
| Gallons per Minute (GPM) | Usage | Average Cost Range |
|---|---|---|
| 1–2 GPM | Point of use | $650–$1,900 |
| 2–4 GPM | Whole house (small) | $1,000–$3,000 |
| 5–7 GPM | Whole house (medium) | $3,200–$5,500 |
| 8–10 GPM | Whole house (large) | $6,500–$9,000 |
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 of 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 you're adding solar power to your tankless water heater as backup for an electric unit, sizing for electric water heaters applies. In addition, solar water heaters are available in varying capacities with average pricing ranging from $3,900 to $8,900.
Tankless Water Heater Pro Costs
Water heater pros in Minneapolis provide custom quotes for homeowners based on the type of water heater being installed and the complexity of the project. If you aren't sure about the type of water heater that's best for your household, a local pro can make recommendations based on the size of your household, your average water usage, and the water heater brands with the best products and warranties.
Labor Costs
Only plumbers registered through the Minnesota Department of Labor and Industry (DLI) can perform plumbing work in Minneapolis. In general, plumbers in Minneapolis charge $75 to $109 per hour. If you're having a gas tankless water heater installed, a master plumber charging closer to $80 to $115 per hour may be needed.
Permits
In Minneapolis, a plumbing permit is needed to replace or install a water heater. While this project comes with a minimum fee of $85.20, homeowners may pay an additional $73.30 for a gas water heater and $41.40 for any changes to water distribution piping.
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, a tankless water heater can increase your home value by as much as 1.2%. The value is there whether you decide to sell your home or remain in it for years. In addition to being a good selling point for potential buyers who want a new and efficient water heater, this upgrade can save you money on utility bills each month that you live in the home.
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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