Close this search box.
Best Plumbers in Pensacola
Certified Veteran Owned Plumbing Company

Tankless Electric Water Heater


tankless electric water heater

Welcome to the Pensacola Plumber’s Post, where we explore the latest innovations in plumbing technology, news, and helpful tips! In this article, we take a deep dive into tankless electric water heaters. If you’re considering a new water heater or looking to make your home more energy-efficient, this is a must-read.

Installation cost

If you’re interested in switching from tank to tankless,  you need to understand the cost involved and what you’re getting for your money.

For us, the plumber, it wouldn’t be that much more than a standard tank-style water heater. However, you may also need an electrician to upgrade your electrical panel.

Most tankless electric water heaters require 3-4 40-AMP double pole breakers and draw 25,000 watts. A standard tank-style water heater draws 5,000 watts. You’ll need to contact an electrical contractor and find out how much they would charge to upgrade your panel.

This can range between $1,500-$3,200 in the Pensacola area. The good news is you could possibly get some of that back through a tax credit. Up to $600 back for upgrading your electrical panel!

Let’s say the electrical cost is $1,500. For us to install a tankless it would be another $1,800-$2,400 depending on the model you choose. You’d probably want at least a 6GPM model if you have more than one shower and four or more members in your household, so around $2,000. Why do you need 6GPM? To put it in perspective, one shower head needs about 2GPM of hot water. If you have a one-bath home, you would be fine with something smaller than a 6GPM tankless water heater.

Unfortunately, there are no tax credits or rebates for an electric tankless water heater. 

The estimated range for a tankless electric is $3,500-$5,600 which includes the water heater, installation, and the electrical panel upgrade.

Maintenance cost

When considering a tankless electric water heater for your home you should also consider annual maintenance. Regular maintenance is crucial to ensuring optimal performance and longevity.

Tankless water heaters require annual maintenance to prevent scale build-up and other issues that could shorten the lifespan of your unit. Always read the manufacturer’s instructions carefully and plan for the required maintenance.

If you’d rather a professional perform the maintenance, most plumbing companies today offer membership plans that include annual water heater servicing and checkups. 

Hiring a professional could cost $150-$350 per visit.

Other options

You could consider a Heat-Pump style water heater. They’re the most efficient water heater you can buy and you can get up to 30% of the cost (including installation) back. A heat-pump water heater is not cheap. A 50-gallon AO Smith with a 10-year warranty cost $2,000. The piping is also a little different so the installation takes longer. Usually 4-6 hours. 

Also, heat-pumps need space. About 700 cubic feet. If your water heater is in a garage, perfect. If it’s in a closet, it won’t happen. An additional perk, or downside depending on how you see it, is that a heat-pump cools the surrounding air by removing heat. So, a heat-pump would actually cool your garage.

Our price for a new heat-pump is $3,200 to buy the unit, deliver it, remove your old unit, install the new one, and get it permitted and inspected. 

Unfortunately, FPL does not offer any rebates. Cost for a heat-pump water heater: $3,200

Finally, your cheapest option is to replace your current tank-style water heater with a newer tank-style water heater. Our flat rates are:

  1. AO Smith 40-gallon $1,650
  2. AO Smith 50-gal $1,750


Tankless electric water heaters work fine for small homes with low demand in our area. However, the cost to install can be far greater than any other style of water heater, and there are annual maintenance costs associated with them. 

If you’re ready to hire a plumber, you can schedule with us through phone, email, or our online scheduling form.