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Tankless water heater cost: what you can expect to pay

By the VettedHeater team · Last updated October 23, 2026 · How we verify

Nationally, a tankless water heater costs about $2,100 to $4,000 installed, compared with $1,200 to $2,300 for a standard tank, according to This Old House using Home Depot data (This Old House, "How Much Does Water Heater Installation Cost?" (updated 06/17/2026; cost data from The Home Depot)). These are national figures, not San Diego prices. Retrofits from a tank can cost more if your gas line, venting or electrical service needs an upgrade.

San Diego prices may differ. We're collecting written quotes from licensed San Diego County installers and will add local figures here once we have them. We won't publish local numbers until then.

Costs come from the sources listed below, not from paid placements. National figures checked October 23, 2026.

National installed cost at a glance

TypeInstalled cost (national range)Source
Tankless (demand)$2,100–$4,000(This Old House, "How Much Does Water Heater Installation Cost?" (updated 06/17/2026; cost data from The Home Depot))
Tank (storage)$1,200–$2,300(This Old House, "How Much Does Water Heater Installation Cost?" (updated 06/17/2026; cost data from The Home Depot))
Heat pump (hybrid) tank$2,500–$3,500(This Old House, "How Much Does Water Heater Installation Cost?" (updated 06/17/2026; cost data from The Home Depot))

Home Depot separately says buying and installing a tankless unit costs about 2 to 2.5 times as much as a standard water heater (The Home Depot, Tankless Water Heater Installation).

What pushes tankless installation cost up

Rebates and tax credits

Lifetime cost: tankless vs tank

DOE says demand units can be 24% to 34% more efficient than storage tanks for homes using up to about 41 gallons a day, and most last more than 20 years (U.S. DOE Energy Saver, "Which Water Heater Is Right for You?"). See tankless vs tank for the full comparison.

How to get an accurate price

Get two or three written quotes that list the unit model, gas line or electrical work, venting, permit and haul-away separately. Check each contractor's license at the CSLB first, and use our hiring checklist. Start with the licensed tankless installers in San Diego County. For tank prices, see the water heater replacement cost guide.

Methodology

The price ranges on this page are national figures published by This Old House from Home Depot data, checked October 23, 2026. We haven't adjusted them for San Diego. Local quote data will be labeled with the number of quotes and the date collected.

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Related tankless guides

FAQs

How much does a tankless water heater cost installed?

Nationally, This Old House, using Home Depot data, lists $2,100 to $4,000 installed. San Diego prices may differ, so get written local quotes.

Why is tankless installation more expensive than a tank?

Retrofits can need a larger gas line, new venting or electrical upgrades, and in the City of San Diego a plan-required permit.

Is there a rebate for tankless water heaters in San Diego?

Not that we can confirm for gas tankless. The federal 25C credit ended for installs after 2025, and TECH Clean California is for heat pump water heaters. Check SDG&E for current offers.

Sources