• Home Home

California homeowner gets $7,000 tankless quote, learns rebates can slash total by over half

Several users focused less on the sticker price and more on what the estimate covered.

Tools and plumbing connections are arranged on top of a water heater.

Photo Credit: iStock

A $7,000 quote for a tankless water heater can sound reasonable or excessive depending on what's included.

For one Southern California homeowner, the answer was essentially "it depends."

Here's what to know

On Reddit, they asked other users to weigh in on the contractor's estimate to switch from a traditional tank water heater to a Navien tankless unit.

The home was 1,100 square feet with two bathrooms, and the existing water heater was in the garage against an exterior wall.

"That's cheap," one user responded.

Someone else said: "$7k is honestly a little steep. Not raking you over the coals, but I feel like for a small family shop it'd be around $5,500-6k."

"I had a Navien installed last month. Paid $4,750 with labor and material, then also got a rebate from SoCalGas, so my total with federal tax credit was like $2,200," another commenter wrote.

More background

Tankless systems can be appealing because they save space and provide hot water on demand. However, switching from a tank unit can require work, including new venting and a larger gas line, that drives up the price.

FROM OUR PARTNER

Save $10,000 on solar panels without even sharing your phone number

Want to go solar but not sure who to trust? EnergySage has your back with free and transparent quotes from fully vetted providers in your area.

To get started, just answer a few questions about your home — no phone number required. Within a day or two, EnergySage will email you the best options for your needs, and their expert advisers can help you compare quotes and pick a winner.

Solar panels can save you more than $50k over their 25-year lifespan, and EnergySage can help you save as much as $10k on installation. Which begs the question — isn't that worth an email or two?

Several users focused less on the sticker price and more on what the estimate covered.

"Are they running a new gas line for that price as well? Exhaust changeout? What's all in that quote?" one commenter asked.

Someone else raised another practical concern: maintenance.

"The average life of a good tank water heater is around 12 years; a bit longer if you change out the anode rod every five years. The expected life of a tankless is closer to 20, but that's if you routinely flush it to remove the mineral buildup," they wrote.

What can be done?

The first step is to gather quotes and ask each installer to break out line items for venting, gas line upgrades, permits, and labor. This makes it easier to compare estimates.

Rebates may shift the math, too. "SoCal Gas offers rebates for tankless water heaters. Largest if it's a condensing tankless water heater," one commenter wrote.

Another user suggested a heat pump water heater could unlock even more assistance.

Cala's customizable smart heat pump water heaters help homeowners decrease their energy bills by heating water when it's needed. Because the systems are designed to match a home's hot-water use, they can reduce wasted energy and improve long-term operating costs. For anyone trying to minimize both bills and pollution, adding Cala to a quote list could be useful.

Where can I learn more?

When a water heater quote falls into that murky range between fair and overpriced, rebates and equipment alternatives can make a difference.

• In California, officials rolled out enhanced rebates for residents upgrading HVAC units and plumbing.

• Duke Energy reminded Florida customers that its money-saving home improvement program cuts upgrade costs.

• Vermont utilities gave away money-saving appliances to help residents curb home energy use.

Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.

Cool Divider