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Yes, you can replace a current tank water heater with a tankless model or vice versa. If you’re maintaining the same fuel source—gas or electricity—the switchover should be smooth. A conventional tank requires open floor space, while a tankless model can be wall-mounted. If you’re switching to a tank water heater, you might need to clear space for it. Gas-powered tankless water heaters need a large volume of gas when they start running to heat the water instantly. You might need to increase the size of the gas line when going from a tank to a tankless model.

In most municipalities, a license is not mandatory for water heater installation or replacement. However, we strongly recommend hiring a licensed plumber or water heater installer to handle the work. Licensed installers are far less likely to make a mistake during the installation, which means paying for the experience decreases your risk of a leak and other issues. You can use our state licensing tool to find out if a contractor you’re considering in your area holds a plumber’s license.

Yes, most municipalities have codes that require water heaters to have pans. A pan is necessary when a water heater or hot water storage tank is installed in an area where water leakage could cause damage, such as an attic, second floor, or finished basement. Tankless water heaters are not required to have a pan since there is no storage tank.

Going from a tank to a tankless water heater is one of the most effective ways to lower your utility bills. The switch also frees up more space and ensures a consistent hot water supply, as the water is heated on an as-needed basis. It costs between $5,400 and $7,400 to install a new tankless water heater. Most installation companies will also help dispose of your old water tank.