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Tankless Water Heater Cost in Houston [2025 Data]
Normal Range: $1,977 - $4,462
A tankless water heater in Houston, TX costs $3,206 on average. Depending on size, fuel type, quantity, and on-site issues, you could spend between $1,977 and $4,462.
How we get this data
Ian Tuttle / Angi
Ian Tuttle / Angi
Highlights
Houston’s warm climate makes tankless water heater systems more efficient than they are in cooler regions.
Older homes may require retrofits for venting, gas, or electrical upgrades.
Solar heaters perform relatively well thanks to Houston’s long sunny seasons, but they still require backup for cloudy stretches.
Houston’s warm climate means tankless water heaters don’t have to work as hard to deliver hot water, making them a more energy-efficient option than traditional tanks. With natural gas readily available in most neighborhoods and rising interest in eco-friendly upgrades, many Houston homeowners are making the switch. But costs can vary depending on factors like your home’s age and whether you live in a historic Heights bungalow or a newer build in Sugar Land. A tankless water heater costs about $3,206 on average in Houston, but it can range from $1,977 to $4,462. This guide covers what you’ll pay for a tankless water heater in Houston and which local factors affect the 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
Tankless water heater costs in Houston depend on the system type, fuel source, and size. For instance, whole-house systems cost more than single-point units, and gas models are typically more expensive to install than electric ones.
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) |
| Houston considerations | Useful in older inner-loop homes where plumbing runs are long and segmented | Popular in newer suburban builds with multiple bathrooms and high demand for hot water |
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 | Simple and affordable to install | Can struggle to keep up in large households during peak usage hours |
| Natural gas | $500–$2,200 | Taps into Houston’s extensive gas infrastructure, offering strong performance at a low operating cost | May require costly retrofitting in older homes with outdated or undersized gas lines |
| Propane | $500–$2,200 | Offers off-grid flexibility during outages, which can be helpful in hurricane-prone areas | Requires on-site fuel storage and regular refills; typically more expensive than natural gas |
| Solar | $1,800–$6,500 | Performs well in Houston’s long sunny seasons, reducing long-term energy bills | High humidity and hurricane exposure can increase maintenance and repair needs |
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 British thermal units (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 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 gallons per minute (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: Houston averages around 204 sunny or partly sunny days per year, making it a viable option for solar water heating. But the city’s cloud cover and high humidity mean that most homeowners should still install an electric or gas backup to maintain consistent performance. Smaller systems with one to two panels typically cost between $1,800 and $3,500 and work well for smaller households. Larger setups with five or more panels run from $5,000 to $6,000 and can meet the hot water demands of a big family or household.
Tankless Water Heater Pro Costs
In Houston, your tankless water heater installation can account for a big portion of your total cost. Things like labor costs, permit fees, and how accessible the site is can all impact your final price.
Labor Costs
Houston plumbers typically charge $85 to $150 per hour for tankless water heater installations, with total labor costs typically ranging from $600 to $1,850. The installation time depends on the project. Basic replacements are often done in a few hours, but upgrades in older homes or unit relocations can take all day.
Permits
In Houston, most tankless water heater installations require a plumbing permit, especially if the work involves adjusting gas lines, adding venting, or modifying your existing electrical system. Basic replacements typically fall on the lower end of the permit fee range, around $50 to $100, while more involved projects may involve extra charges or multiple permits. A licensed plumber will usually take care of the paperwork and inspections, but it's still worth confirming that permitting is included in your 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?
In Houston, installing a tankless water heater can boost your home’s appeal to prospective buyers, especially to those looking for energy efficiency and modern upgrades. So while it may not dramatically raise your home’s value, it can make your home more competitive in the local market, particularly in newer builds and renovated properties where energy-conscious features are a significant selling point.
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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