quote:

Originally posted by Michael Thomas:
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

----------

Later:

As of 3/18/2008 I am still having problems getting the kickout page to display properly is Ver. 6 and earlier of Microsoft Internet Explorer (it works fine in IE 7 and Firefox).

If you are using IE 6 or earlier and do not wish to update, a version of the page is available in PDF format here:

http://www.paragoninspects.com/pdf/kickout.pdf

I looked at Michael's web site. His discussion there concerning the costs and payback prmpted a couple of questions on my part:

What is the difference in cost in a new build? Might that be easier than trying to replace a conventional heater with a tankless?

I have read that a tankless should last a lot longer than a conventional water heater. When a conventional water heater fails, one has to replace the whole thing, while the stuff I have read says that a failure on a tankless heater means that you just have to replace the failed part. Is there any truth to what I have read? How does that effect the payback analysis?

I just came across this post doing a search on google on high priced installation of tankless systems.

Here is my experience.

I called a local plumber running an ad on a radio station. After his sales pitch, I was blown away by his price tag. Here are the details that I know:

Nashville TN home install
3000 square feet home
Crawl space
1 adult, two children
Gas line needed - less than six feet
Outdoor installation - no special venting
Closest 3/4" water tap in location - 8 feet
Two electric and control lines run - 45' max

The price tag? $4300. I couldn't believe it. I told him it was twice what I expected. He proceeded to tell me it would take four hours for himself and a helper to do it. I asked for him to break it down for me - unit, parts, labor. He hemmed and hawed and gave me enough to figure out that it was about $2000 for the labor at a minimum. That comes to about $250 an hour. Give me a break.

As I was showing him the door, the price started to come down with a $300 coupon, etc... I said that I would be sure to call him.

I'll keep hunting for a better price, but I am getting tired of not being able to just buy a widget and have the widget installed. I don't want warranties, service contracts, preferred clubs, special this, special that.

Part of the problem is that I could probably install this product in it's entirety if I wanted to, but I don't want the hassle - that's why I'll pay someone else - If I don't get RIPPED off.

My advice is to go to www.contractors.com and look for a plumber in your area. You will get up to three licenced plumbers in your area willing to provide you with a price without all of the hassle.
You can also choose from a list of folks on their website by choosing the zip code and type of work needed. A list of quality plumbers will show up on this list. You can read all about them on this site.

You could have installed 2 or 3 tank type water heaters with the money you are going to wrap up into this product. There is a thing called life cycle cost. With the cost of the product, operational cost and repairs over the life of the product what is it going to cost? There was a good article in OCT consumer Reports on these types of products. Not very favorable from a life cycle cost value.