How Much Does Tankless Water Heater Cost in Tennessee?
Tennessee pricing is below the national average. Updated for 2026.
Tankless Water Heater Pricing in Tennessee
In Tennessee, the average cost for tankless water heater is $2,752 installed, which is 14% lower than the national average of $3,200. Most Tennessee residents pay between $1,548 and $4,730.
Tennessee benefits from a lower cost of living than many states, resulting in more affordable pricing for tankless water heater. This makes it one of the more budget-friendly states for this service.
Tankless (on-demand) water heaters heat water only when you need it, eliminating the standby energy loss of traditional tank heaters. They're compact, last longer, and can reduce water heating bills by 20-34%.
Tennessee vs National Average
What Affects Tankless Water Heater Cost in Tennessee?
Fuel Type
Gas tankless: $2,500-$5,500 installed. Electric tankless: $1,500-$3,000 installed
Retrofitting
Switching from tank to tankless may need new gas line ($500-$1,500), venting ($500-$1,000), or electrical upgrade ($300-$800)
Brand
Rinnai and Navien: $1,200-$2,500 for unit. Noritz: $1,000-$2,000. Budget brands: $500-$1,000
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💡 Tips to Save on Tankless Water Heater in Tennessee
- 1.Electric units cost less upfront but gas units have lower operating costs
- 2.Check for federal tax credits (up to $2,000 for qualifying units)
- 3.Consider point-of-use units ($200-$500) for single fixtures instead of whole-home
- 4.Get quotes from plumbers who specialize in tankless — general plumbers may overcharge
📈 Tankless Water Heater in Tennessee Cost Trends (2020–2024)
Prices have increased +17.7% over the last 5 years
| Year | National Avg | YoY Change |
|---|---|---|
| 2020 | $2,338 | — |
| 2021 | $2,436 | +4.2% |
| 2022 | $2,594 | +6.5% |
| 2023 | $2,667 | +2.8% |
| 2024 | $2,752 | +3.2% |
Based on national averages adjusted for annual inflation. Actual costs vary by location and project scope.
💬 What Did You Pay?
Real costs reported by homeowners for Tankless Water Heater in Tennessee
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Frequently Asked Questions
Is a tankless water heater worth it?
For most homes, yes. Despite higher upfront cost ($1,500-$3,000 more than tank), they save $100-$150/year on energy and last 20+ years vs 10-12 for tank heaters. Break-even is typically 6-10 years.
Can a tankless water heater run out of hot water?
Not in the traditional sense — they heat water continuously. However, they have a maximum flow rate (typically 5-10 GPM). Running multiple showers simultaneously can exceed capacity.
Tankless Water Heater Cost in Other States
Related Cost Guides for Tennessee
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