We decided to bite the bullet and purchase a tankless water heater. We found one at a fair price on the internet. However, we have had 3 plumbers (2 recommended by the manufacturer as "approved installers" in our area) give us a price to install the unit, which is natural gas. The work involves less than 10 feet of gas line extension, installing the unit on the wall, extending the water lines (also close by and exposed) and horizontal direct vent. We are providing the heater, vent kit, and valves. The install prices are coming in at over $2,000! That's twice the cost of the heater etc, and I'm just flabergasted to say the least. Help! Why are the bids so high?!?

Sounds like you are getting bids from people that don't want to do the work. My suggestion is to keep looking for bids until you find someone who is a little lower than that. I can't imagine it should be much more than $1000 to install one of those.

First off Approved installer. Any plumber can put this in. You do not have to use an approved installer.
2nd Becaues they can.
3rd. They have insurance to pay for, workmans comp insurance. Trucks, tools, etc.
4th. Because of the type of install, you will need most likely an electical contractor to wire the syetem if it has electical spark. So your paying them as well and they have insurance trucks tools etc to pay for as well.
5th Because your providing the heater and install kit. These folks make a living by selling product for less then what you purchase it for. This allows them to warranty the device. By you purchasing this item and asking them to install, they must put into the price someting to cover themselvs with just in case something goes wrong. As a contractor I always charge more if the client supplies the material. I do not want to start and find out they purchased the wrong attachment or something and end up having to start and stop the job until everything I need to there to finish the job.
The price however seems a little high, but not seeing your basement and not knowing if you have poured concrete walls or proper clearances for the flue exhaust vent or not can change that opinion rather quickly.
Good luck with the new heater, I will save you a lot of cash on energy.

quote "The install prices are coming in at over $2,000!" You said priceS That tells me that you've gotten more than one price. If the prices are competitive, then I'd have to beleive that you've gotten the going rate for the job.

quote:

Originally posted by MacD:
We decided to bite the bullet and purchase a tankless water heater. We found one at a fair price on the internet. However, we have had 3 plumbers (2 recommended by the manufacturer as "approved installers" in our area) give us a price to install the unit, which is natural gas. The work involves less than 10 feet of gas line extension, installing the unit on the wall, extending the water lines (also close by and exposed) and horizontal direct vent. We are providing the heater, vent kit, and valves. The install prices are coming in at over $2,000! That's twice the cost of the heater etc, and I'm just flabergasted to say the least. Help! Why are the bids so high?!?

You have basically told us nothing.

You have not told us what type of vent would be installed...

The height of the vent...

The total length of the vent and vent connector...

Whether the vent and connector will be installed outside the structure or within the structure up through the attic and/or roof....

Under what Code you operate...

So give us some clue as to make, model, Code, fuel type and specific manufacturer's installation instructions and a lot more information and we may be able to help...

One suggestion is to contact your local gas company and see if you can arrange for them to install it. Many gas/propane companies are pushing these tanks and since they're going to get future revenue off it, they may be willing to give a discount.

We purchased a tankless water heater and received a rebate for changing from a conventional water heater to this one and there was an additional rebate for going gas as well as tax savings on your tax return. We also had prices all over the place to install, but kept checking until we found one that was reasonable, also we did some of the work ourselves, the vent and mounting the unit- we only had the gas guy do the required

Is this a Rinnai? I live in Delaware and when we were building our house in 2003 the gas company said 1,400 installed, 1,650 installed, then 1850 installed. Since they couldn't get their prices correct, I just put in a regular gas water heater. Now, my best friend's son is a plumber and offered to get it wholesale for me and put it in for 200.00. He said the materials and tank for the middle grade are about 1200 with the vent kit, etc.

I had a Rinnai multi-use tankless water heater installed in my Pittsburgh home just after the tax rebate was instated (now expired) three years ago. The heater was natural gas, with the standard horizontal direct vent kit (about three ft. in length) and, like you, had a short length to tie in to existing water and gas lines - the new unit went on the wall where the old tank was. My installer also had to run a longer length of gas line (about eight feet) to re-tie my gas clothes dryer. I got eight bids for the job which ranged from $1000 (two bidders at this price) to $2000 (four bidders at this end). All of the guys that gave the $2000 bids seemed to have a chip on their shoulders about tankless units. All they did was bad-mouth them for being unreliable and ineffective. They didn't want the work for some reason. It took about eight man hours for the install which is obviously much longer than a tank install. By the way, I have not had a problem with the unit in three years. The only complaints that I have is that, by design, you have to run at least a half gallon a minute for the heater to kick on and, sometimes, if the flow rate is right around a half gallon, the heater kicks off and on, even without turning the handle at the point of use. When that happens, turning the hot water volume up a little solves the problem. These are minor problems for me and the latter may be a problem with my plumbing. My advice is to keep getting bids until you get something reasonable and go with a plumber that has installed tankless before. Good luck.

So you bought the heater and parts yourself and now wonder why installation is high. Try taking your own steak and potatoes to a restaurant and see what they say. I just love people who buy all the parts they think they need at Home Depot or online and want you to sort out the mess out for a bargain price. Maybe next time just ask one of these guys for a whole price.

As posted already, there are alot of factors. Since the units usually use 3-5X more gas (when working, but less overall), there may need to be a pipe upgrade. My heater is at the end of the line. It just happened to be part of a large addition, so moving the gas line was in order, but if I had to pay to upgrade from 3/4" to 1 1/4" line for 50' just to install the heater, I would have seen rediculously high quotes, too. Turns out I put the gas line in myself, but negotiated with my plumber to do the pressure test for the inspection when he installed the unit. That way I used his expertise where needed, but my repetitive labor where it would have sucked up his time. BTW, it cost me $600 in labor.

As a corollary, it sounds like you are mounting to a new location, possibly outside. Part of the sticker-shock could be that these guys are factoring in tearing into the walls to move the water lines, patching the wall, possible unexpected venting complications & most likely a bigger gas supply line. No one wants to dig up a gas line, especially in frozen ground where utilities may be present so it must be dug by hand. The quotes may be better in the summer or if you DIY the wall access.
Also, some of these guys may not want to do tankless. They may have had lots of callbacks from past customers who didn't understand that performance would be different. Think "I bought a Ferrari, but it shifts harder than my Toyota, so it must be broken." Customer callbacks suck. No one wants to keep coming back for no reason.

Unfortunately, installation costs can come as a rude surprise to homeowners, especially if they are replacing an existing conventional water heater.

I have 5 Takagi tankless heaters installed at my home, office and rentals, all five are working well, but we had multiple installation issues. I’ve put up a web page about the issuers we encountered and how to avoid them, as well as some issues I’ve encountered at home inspections here in Chicago. You may find it helpful in understanding some of the work that may be needed to achieve a satisfactory installation, and why this can be a substantial expense:

Tankless installation problems FAQ - Paragon Inspections Chicago

I installed a Bosh tank less water heater and the installation was loooong and expensive in the parts that I needed.
1.- I had a ½” natural gas line to the original water heater, the new one requires ¾” gas line… so the line was changed from the “T” were the ½ “ was connected to the main line.
2. - Next I replaced the exhaust vertical line that I had, with a 3” diameter stainless steel pipe (two 45*elbows + one 2’ pipe + one 4’ pipe + cap + roof flashing + storm collar…..$ 350.00 internet, $450.00 plumbing supply store) I used 3” PVC pipe for the intake of combustion air ($ 30.00).
3. - Need a 120 volts electrical plug for the heater – it has an exhaust fan – so I installed a new electrical line from the breaker box.
4. - The water lines needed to be modified, in my case they come and go from the concrete slab, so I cut the lines and put them in a lower position in the same closet so there is less water presser loss (less turns).
5. – Got a government rebate of $300.00 (2007taxes) and I will save 30 to 40% of the gas that I was using before… (maybe less... because the showers may be now longer…).
6. – Turn on the water and had a hot shower after my two children had one…. (** priceless **) !!BUENA SUERTE!!

just over a year ago we also UPGRADED to a tankless prompted by noticing moisture uder the old style water heater and rising gas costs. At the same time we replaced the water pressure tank to a bigger one and a whole house filter while also dealing with an issue for the pump switch for the well. total cost for ranni tankless, house filter, pressure tank, removal, parts and man hrs was just over 3200. There were 3 different people here at different times. 1 of them was electrical due to the wall mount and switching part here only 3 hrs. 1 was a junior that did most of the reroute for the water line and gas line and was here all day. and the third was here for about 2 hrs to help remove and begin the process. all this work was done within a range of 8 feet and the area was open and they did have to make a hole through the wall for the exhaust. The electrical box is about a foot or so from the heater and the heater is now located about 5 feet from where the original one was. This may give you some idea as to my scenerio, however factors are different in every situation. It is important to discuss with companies all situations and detailed charges they plan to charge so you know exactly what you are in for. Also sometimes it is better to go with previous companies you have used if you have been satisfied with their work and they can handle all parts to install completely. Be sure to ask lots of questions. Hope this helps a little.

I want to have installed (by a pro) a propane tankless water heater-mainly because I am sick of the high electric cost plus constant running out of hot water from the electric one curently in. There was a propane water heater (no natural gas in this rural area) but was changed to electric when I bought the house. It appears all the "necessary stuff" w.r.t gas line and hopefully plumbing is adeqaute for this installation-also the main electric panel is about 6 feet from the water heater-this is all in the "furnace room" which also has the Lenox propane heater- SO-can one of you helpful pros who understand installation of these tell me if I can expect to have a $1,000 installation fee with this set up? ALSO-why did I get such negativity on these-I was told by the "expert" Sears salesman that it is TOO COLD in this area for these "instant hot water heaters" to work the water is so cold-(I have well water) it just can't keep up with the hot water need for a long shower! Is there any truth in this?
Thanks for any help.

Tony, the Sears guy might know what he is talking about. If you research the tankless units at all, you'll find that they are sized according to the temperature of the incoming water and the distance the heated water will have to travel. Well water is always colder than municipal supplies, and it may well be that well water in Michigan is cold enough that it is more energy efficient to heat a tankful at a time rather than on the fly, so to speak. I wouldn't trust a single estimate though, but would ask around, a lot.

$1000 is a lot of money, but not really when it comes to plumbing. If sufficient gas lines and venting are already in place, then I can't see the install costing you that much or even more.

Thanks LA Marlow. Seems like I need to do some research on just what the rate -like gallons/minute would be heated to 120F assuming an incoming water temp of 37-40F. I would assume these are the specs that determine the effeciency. If the water is indeed heated to 120F then the distance traveled should not be critical as I do get very hot water from the existing electric water heater-I just have to not do laundry or use the dishwasher shortly before I want to take a shower-Let you know if I find out anything.

quote:

Originally posted by MacD:
We decided to bite the bullet and purchase a tankless water heater. We found one at a fair price on the internet. However, we have had 3 plumbers (2 recommended by the manufacturer as "approved installers" in our area) give us a price to install the unit, which is natural gas. The work involves less than 10 feet of gas line extension, installing the unit on the wall, extending the water lines (also close by and exposed) and horizontal direct vent. We are providing the heater, vent kit, and valves. The install prices are coming in at over $2,000! That's twice the cost of the heater etc, and I'm just flabergasted to say the least. Help! Why are the bids so high?!?

You might be finding that the contractors are adding in a mark up on the heater as if they were providing it with the installation. I am not in the plumbing business, but I can assure you that the majority of good contractors would either do this or refuse to install it altogether. The reasons? 1. Who is responsible for warranty issues? Who is pulling the permits? Who is responsible for any liability issues? These are the factors that go into mark up factors. There are other, more obvious factors as well that have been addressed already. Many contrators equate customer supplied equipment with taking your own steak to a restaurant and asking how much they will charge to cook it for you.

quote:

Originally posted by Tony MICH:
I want to have installed (by a pro) a propane tankless water heater-mainly because I am sick of the high electric cost plus constant running out of hot water from the electric one curently in. There was a propane water heater (no natural gas in this rural area) but was changed to electric when I bought the house. It appears all the "necessary stuff" w.r.t gas line and hopefully plumbing is adeqaute for this installation-also the main electric panel is about 6 feet from the water heater-this is all in the "furnace room" which also has the Lenox propane heater- SO-can one of you helpful pros who understand installation of these tell me if I can expect to have a $1,000 installation fee with this set up? ALSO-why did I get such negativity on these-I was told by the "expert" Sears salesman that it is TOO COLD in this area for these "instant hot water heaters" to work the water is so cold-(I have well water) it just can't keep up with the hot water need for a long shower! Is there any truth in this?
Thanks for any help.

Stop talking to the part time water heater, lawn mower, paint, electric range, etc. "expert" at Sears and find a plumbing contractor with a good track record.
We live in a cold southern climate (in the mountains) and many folks around here have well water and instant water heaters installed. The ground water at my house can get into the forties this time of year. The issue may be more one of water hardness and quality than temperature. A knowledgable contractor in your area will have the answers for you. Good luck!