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A tankless water heater can last up to 20 years, which is nearly double the lifespan of a conventional tank heater. However, their longevity is highly dependent on several factors. With proper installation and regular maintenance, such as descaling to prevent mineral buildup from hard water, you can expect a lifespan of 15 to 20 years. Without proper care, a tankless unit may begin to fail in as little as 12 years. Other factors that affect its lifespan include household usage and the quality of the local water supply. While they have a higher upfront cost, their energy savings, smaller size, and longer life make them a worthwhile investment for many homeowners.

One of the primary benefits of a heat pump water heater is how cost-effective it is. How much you save will depend on your water usage and electricity costs. That being said, we can ballpark savings for the average home of between $100 and $500 per year. You can increase that savings rate by researching and applying available energy incentives available in your area. If you really want to focus on cost, consider a tankless water heater.

The average cost to install a new water heater is approximately $1,300, with a typical price range between $880 and $1,800. The final cost depends on several factors, including the type and size of the unit, its location and accessibility, and the amount of labor required. For example, installing a unit in a tight space like a crawl space can increase labor costs. The type of water heater significantly impacts the price: while a conventional gas heater might cost less than $1,000, tankless models can cost around $2,600 to install (and up to $3,500), and solar heaters can cost upwards of $3,700. Other factors that can affect the total price include the fuel type, vent system requirements, permits, and whether any additional plumbing work or repairs from previous water heater damage are needed.

Water expands when heated and also when freezing. When water is heated, it expands by around 4%. For a full water heater, this is one of the main reasons malfunctions occur—the hot water has nowhere else to go but out. Due to the constant expansion and reduction in volume, it’s recommended (required in most places) that an expansion tank be installed.