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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.

Yes, you can convert a gas water heater to an electric one, but it is a complex process. You will need to ensure there is adequate power for the new electric unit, as they require more power than gas models. The project also involves safely closing off the gas lines and ventilation, and some cities may require a permit for the conversion. The cost can range from $1,500 to $4,100, depending on the installation scope, plumbing and electrical work, and the water heater model. For an accurate quote, it's best to contact a local professional. Also, be aware that your monthly utility bills may increase after the conversion, as natural gas is typically cheaper than electricity.

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.

No, boilers and water heaters are not interchangeable because they serve different primary functions. Boilers are used for central heating systems, providing hot water or steam to heat your home. In contrast, a water heater's purpose is to supply hot water for daily household use, such as for faucets and showers. A water heater alone cannot supply the warm water or steam needed for a central heating system.

While they are not interchangeable, it is common to have both a boiler and a water heater. In fact, a conventional boiler often works best when a water heater system is already in place. The two systems can be combined to provide both heating and hot water, either by pairing a boiler with an indirect water heater or by installing a premade combination boiler-water heater unit. For home heating, some homeowners may also opt for a furnace instead of a boiler.