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How Much Does It Cost to Install a Tankless Water Heater in Denver?

The cost to install a tankless water heater in Denver ranges from $6,500 to $8,500+.

However, what you’ll actually pay depends on the following six factors:

  1. The type of tankless unit you choose.
  2. The flow rate of the tankless water heater.
  3. The efficiency of the water heater.
  4. The fuel source of the tankless unit.
  5. The warranty you choose.
  6. Various labor costs.

Let’s go into more detail about each of these cost factors.

Factor #1: The Type of Tankless Unit You Choose

You can buy two types of tankless water heater units:

  1. Whole-home units: Like their name suggests, this type of water heater is meant to service all the faucets and water appliances in your home.
  2. Point-of-use units: These water heaters are only meant to service one water appliance or room of your home.

If you have a smaller home, it’s generally cheaper to get a whole home unit rather than multiple point of use units because it requires less labor. But, if you just need a dedicated unit for one appliance or room, go with a point-of-use water heater.

If you have a large home, you may need a whole home unit in addition to a couple of smaller point of use units, which would be installed near water appliances that draw a lot of hot water every day or are far from the whole house unit.

Factor #2: The Flow Rate of the Tankless Water Heater

Flow rate refers to how many gallons of hot water a tankless unit can provide in one minute (gallons per minute, or GPM).

The greater the flow rate, the more expensive the tankless unit will be.

However, when it comes to shopping for a tankless water heater, a higher flow rate isn’t always your best option.

If you get a water heater with a really high flow rate, but your household doesn’t actually use enough hot water to match it, you’ll waste money on an expensive unit you’ll never fully use.

To know what flow rate you need, you can visit’s page to learn more about sizing a tankless water heater, or you can contact us. We’ll send over one of our Plumbing Care Professionals to calculate the GPM you need to provide enough hot water for your family.

Factor #3: The Efficiency of the Tankless Water Heater

The energy efficiency of tankless water heaters is measured by the energy factor. Some older models may be measured in energy factor (EF), but newer models will be measured in uniform energy factor (UEF).

The higher the energy factor, the more expensive the tankless water heater will be upfront. But water heaters with higher energy factors also cost less to run, which means you’ll save money on your utility bills.

Most tankless water heaters have an energy factor of 0.82 to 0.95+.

You can find a water heater’s energy factor in the marketing materials, as seen in the screenshot below:

Screenshot from

Factor #4: The Fuel Source of the Tankless Unit

When it comes to choosing a fuel source for your tankless water heater, you can either choose between:

  • Gas.
  • Electricity.

Even though gas water heaters have a higher upfront cost, we typically recommend going with a gas unit because gas is a cheaper fuel source than electricity in Denver. So, in the long run, you’ll save money by going with gas because you’ll have lower monthly energy bills.

However, if your home doesn’t already have gas lines, it’s usually more cost efficient to go with an electric tankless unit. That’s because the cost of adding gas lines can raise the total cost of the install by $3,000+.

Related reading: Are Gas Tankless Water Heaters Worth It in Cold Climates like Denver?

Factor #5: The Warranty You Choose

With an extended warranty, you’ll pay more upfront, but you won’t have to pay as much out of pocket if a part breaks down on your water heater.

You see, every tankless water heater automatically comes with a limited parts warranty from the manufacturer that will cover faulty parts for two to five years.

But if you opt for an extended warranty, the warranty may cover parts for up to 10 years, depending on the manufacturer.

Factor #6: Various Labor Costs

The following labor factors also determine things that will influence what you’ll pay to install a tankless water heater:

  • Difficulty of the installation: If the plumber you hire has to do more work to install your tankless unit, the overall cost of the installation will increase. Examples of labor-intensive installations include:
    • Adding a new gas line to the tankless unit.
    • Building new ventilation through the roof or a wall.
    • Running new plumbing to your tankless unit.
  • Code upgrades: Every home in Denver must adhere to plumbing codes mandated by the local government. If the plumber who installs your tankless water heater finds your home’s plumbing isn’t up to code, they’ll have to fix it before installing a new tankless unit which could raise the total cost of the project.
  • Pulling permits: Any plumbing contractor in Denver is required to pull permits with the local government. This additional fee is typically added into the cost of the project, and it varies depending on the municipality you live in.
  • The contractor you choose: Not all contractors charge the same for their installation services. Beware of plumbing contractors who offer a super low installation cost because what you pay for is typically what you’ll get in terms of service. A poorly-installed tankless water heater will just lead to expensive repairs and breakdowns, so it’s better to pay for a quality contractor — even if they charge more upfront.

Need help from a Colorado Plumbing, Heating, Cooling, or Electrical Specialist? 

For your convenience, you can request an appointment in one of two ways:

  • Call us at (303) 436-2525 for immediate assistance.
  • Click on the button below to schedule your appointment online.


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