Tankless Water Heater Cost in Philadelphia [2025 Data]

Normal Range: $1,604 - $3,412

A tankless water heater in Philadelphia, PA costs $2,493 on average. Depending on size, fuel type, quantity, and on-site issues, you could spend between $1,604 and $3,412.

How we get this data
A technician kneels on the floor to inspect a water heater in a garage, surrounded by tools, hoses, and equipment.
Ian Tuttle / Angi
A technician kneels on the floor to inspect a water heater in a garage, surrounded by tools, hoses, and equipment.
Ian Tuttle / Angi
Highlights
  • Philadelphia's higher-than-average cost of living increases the overall costs for appliances and labor when installing tankless water heaters.

  • While a permit is always required to replace or install a new water heater of any kind in Philadelphia, the cost is typically only a few dollars.

  • While upgrading to a solar tankless water heater can offer the biggest energy savings compared to gas and electric, performance can be unpredictable for Philadelphia homeowners due to the region's lack of year-round sunshine.

With Philadelphia's higher cost of living in mind, homeowners need to budget accordingly when having tankless water heaters installed. Tankless water heater cost in Philadelphia is $2,493 on average, with most homeowners paying between $1,604 and $3,412. The largest factors affecting costs include the type and size of water heater selected. Read below to see what you can expect to pay for this upgrade at your home.

Tankless Water Heater Cost Factors 

Pricing for this project can vary widely based on the type and size of tankless water heater that's recommended to you by a local Philadelphia, PA plumbing pro.

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 TypeIdeal UseAverage Cost RangePros ConsPermit Required?
Single-Point SystemSingle apartments, bathrooms$700–$1,200Low upfront cost, easy to install, good for additionsOnly serves one fixtureYes
Whole-House SystemMedium to large homes with multiple bathrooms$2,300–$3,400Handles multiple fixtures at once, ideal for larger homesHigher upfront cost and may require upgrades to gas/electric systemYes

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 TypeAverage Cost RangeProsCons
Natural gas$1,000–$2,400On-demand, consistent water outputComplex installation due to venting and gas lines
Electric$700–$1,900Space-saving, energy-efficient, and long-lastingLess dependable temperature output
Solar$1,300–$3,200Energy-efficient and environmentally friendlyRequires significant sunlight that may not be available in Philadelphia

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).

Gallons per minute (GPM)UsageAverage Cost Range
1–2 GPMPoint of use$700–$800
2–4 GPMWhole house (small)$900–$1,200
5–7 GPMWhole house (medium)$1,200–$2,400
8–10 GPMWhole house (large)$2,300–$3,400
  • 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:  An 80-gallon solar tankless water heater that's ideal for a household with three to four people costs an average of $2,900 in Philadelphia when installed with a 60-foot collector. Boosting that up to a 120-gallon solar tank with an 80-foot collector might cost closer to $3,350. With tankless water heater pros and cons heavily influenced by location, Philadelphia's lower-than-average sunshine levels can make performance unpredictable.

Tankless Water Heater Pro Costs

In Philadelphia, tankless water heaters must be installed by licensed plumbers. Hourly and project rates for local plumbers reflect the time and cost involved with obtaining a journeyman or master plumber license. On average, a local plumber in the city is required to complete nearly 600 hours of classroom training at an accredited school and four full years of on-the-job training.

Labor Costs

On average, water heater installers in Philadelphia charge between $90 and $115 per hour. Labor for gas tankless water heaters is usually on the higher side due to the added complexity of working with natural gas lines.

Permits

A permit for plumbing work in Philadelphia is required for every installation, alteration, renewal, replacement, and repair. The current cost for a Philadelphia plumbing permit for a new water heater is $34.

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?

In general, the return on investment for upgrading to a newer, more efficient water heater in Philadelphia is 75% to 90%. Overall, upgrading to an ENERGY STAR tankless water heater provides the biggest return on investment both in terms of how a tankless water heater increases a home's value and a current homeowners ability to save on utility bills. It's possible for a four-person household in Philadelphia to save $300 to $400 annually after switching to a tankless water heater.

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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