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 Dallas [2025 Data]
Normal Range: $1,852 - $4,368
A tankless water heater in Dallas, TX costs $3,029 on average. Depending on size, fuel type, quantity, and on-site issues, you could spend between $1,852 and $4,368.
How we get this data
Ian Tuttle / Angi
Ian Tuttle / Angi
Highlights
Dallas’s abundant sunshine makes it a great fit for solar water heater systems.
Water heater installation costs in Dallas often fall slightly below the national average.
Many homes in Dallas already have natural gas lines, making gas units a relatively convenient upgrade.
Tankless water heaters are a popular upgrade for Dallas homeowners looking to save space and reduce their energy use. With a mix of older homes and new construction across the metro area, demand for efficient, long-lasting systems is likely to grow. A tankless water heater in Dallas costs $3,029 on average, but ranges from $1,852 and $4,368. This guide covers the key factors that influence tankless water heater costs in Dallas so you can properly plan for this home investment.
Tankless Water Heater Cost Factors
Several factors can affect the cost of installing a tankless water heater in Dallas, TX. For instance, single-point water heater systems cost more than whole-house systems. Plus, the unit’s size and the fuel powering it can also affect the final price quite a bit.
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 | $500–$1,200 | $1,800–$4,000 |
| 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) |
| Dallas considerations | Helpful in sprawling older East Dallas homes where the water heater is often far from the fixtures | Common in newer DFW suburbs with large, multi-bathroom floor plans |
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 | Lower upfront cost, easy installation, high efficiency | Lower flow rate, may require panel upgrade |
| Natural gas | $500–$2,200 | High flow rate, great for larger homes, lower long-term operating cost | Higher upfront cost, needs venting and possibly gas line upgrades |
| Propane | $500–$2,200 | Good for off-grid or rural homes, portable fuel option | Fuel delivery required, higher long-term cost than natural gas |
| Solar | $1,800–$6,000 | Renewable energy, long-term savings, may be eligible for incentives | High upfront cost, weather-dependent, complex installation |
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; 150–180 kBTU; 200–220+ kBTU | $500–$1,200; $800–$1,800; $1,800–$2,600 | Studio or 1-bath homes; 2–3 bedroom homes; 4+ bedroom homes with multiple bathrooms |
| Electric | 5–8 kW; 10–18 kW; 24–36 kW | $100–$250; $250–$600; $600–$900 | Studio or 1-bath homes; 2–3 bedroom homes; 4+ bedroom homes with moderate demand |
| Solar | 1–2 panel system; 3–4 panel system; 5+ panel system | $1,800–$3,500; $3,500–$5,000; $5,000–$6,500+ | Studio or 1-bath homes; 2–3 bedroom homes; 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: Dallas receives an average of 232 sunny or partially sunny days per year, so it’s a great locale for solar investments. Smaller solar water heater systems with one to two panels cost $1,800 to $3,500 and can support a one- or two-bedroom home. Larger systems with five or more panels cost $5,000 to $6,000 and can usually handle full household demand. But in both cases, it’s a good idea to have gas or electric backup, just in case the system can’t keep up during early mornings, cloudy stretches, or periods of high water use.
Tankless Water Heater Pro Costs
Professional installation makes up a significant portion of tankless water heater costs in Dallas. Labor, permits, and other factors can add quite a bit to your final bill, depending on your home’s layout and the complexity of the job.
Labor Costs
In Dallas, labor for tankless water heater installation typically costs $600 to $1,850, with installers usually charging $85 to $150 per hour. More complex jobs, like retrofitting older homes or relocating the unit, can take 8 to 10 hours to complete, while more basic installs might only take a few hours.
Permits
You need a permit to install tankless water heaters in Dallas, which costs from $100 to $150. Some permits also include a post-installation inspection by the city or county to ensure code compliance. In most cases, contractors will handle permit applications and inspections for you as part of the service, but make sure to ask your water heater installer whether it’s included in the quote.
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?
A tankless water heater likely won’t raise your home’s appraised value by much, but it can make your property more appealing to buyers. In the Dallas market, energy-efficient upgrades are increasingly sought after, especially in newer and renovated homes. Features like tankless systems signal lower utility bills and modern upgrades, which can help your home stand out in the market.
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.
Servicing a tankless water heater can help it run smoothly and last for years to come. This guide explains all the factors that affect tankless water heater maintenance costs.
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.
The average lifespan of water heaters is 6 to 15 years for conventional models and up to 20 for tankless ones, but it can be less if they are not properly maintained.
Help your water heater work correctly and efficiently with a water heater inspection. We’ve got you covered with a checklist that you can do yourself.
Discover all the tankless water heater pros and cons you should know. Learn how these energy-efficient systems can save you money and space while considering their limitations.