How Much Does a Tankless Water Heater Installation Cost?

Tankless water heaters—also known as on-demand water heaters—are becoming increasingly popular among homeowners who want endless hot water, better energy efficiency, and space-saving design. But one of the biggest questions people ask is:

"How much does it cost to install a tankless water heater?"

Let’s break it down and help you understand what to expect.

💲 Average Cost of Tankless Water Heater Installation (2025)

In the Greater Toronto Area, the average total cost to install a tankless water heater ranges between:

💰 $2,800 – $4,800+ (CAD)

This includes:

• The tankless water heater unit

• Professional installation by a licensed technician

• Basic plumbing and venting

• System setup and testing

For larger homes, high-efficiency models, or complex installations, the price can exceed $5,000+.

🔧 Factors That Affect the Cost

Here are the main variables that influence your final price:

1. Type of Unit

• Gas Tankless Heaters: More powerful, great for whole-home use, but may require venting upgrades.

• Electric Tankless Heaters: Lower installation cost, but may need electrical panel upgrades.

2. Flow Rate & Capacity

Larger homes or households with multiple bathrooms need higher GPM (gallons per minute), which means more expensive units.

3. Installation Complexity

• Replacing a tank with tankless may require changes to gas lines, water lines, or venting.

• Electrical panel upgrades (for electric units) can cost $500–$1,500 extra.

• Wall-mounting or tight spaces may require extra labour.

4. Brand & Efficiency

High-end brands like Navien, Rinnai, or Noritz come at a premium but often last longer and offer better energy savings.

🔁 Operating Cost Savings

While the upfront cost of a tankless unit is higher than a traditional tank system, it can save you $100–$200 per year on energy bills. Plus, it lasts longer—15 to 20 years compared to 8–12 years for tanks.

♻️ Rebates & Incentives

In Ontario, homeowners may qualify for rebates when switching to a high-efficiency ENERGY STAR® tankless water heater, especially through:

• Enbridge Gas

• Canada Greener Homes Initiative

• Local municipality programs

These rebates can save you up to $1,000 or more, depending on the program and model you choose.

🧰 What’s Included in a Professional Installation?

When you hire a licensed technician, you should expect:

• Delivery and installation of the unit

• Disconnection/removal of your old tank

• Gas or electric connections

• Venting installation or upgrades

• Full testing and system commissioning

• Warranty support and registration

✅ Final Thoughts

Tankless water heaters are a smart investment if you’re looking for:

• Unlimited hot water

• Lower monthly energy bills

• Longer-lasting equipment

• Space-saving convenience

While installation costs range from $2,800 to $4,800+, the long-term savings, efficiency, and comfort make it worthwhile for many GTA homeowners.

📞 Ready to Upgrade?

If you’re considering a tankless water heater, contact us at +1-(289)-306-0542 today for a free consultation and quote. We’ll help you choose the right unit, qualify for rebates, and install it professionally—so you can enjoy worry-free hot water for years to come.