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electric tankless water heater

How To Install an Electric Tankless Water Heater?

5 min Read 10/14/2025

If you’re thinking about how to install an electric tankless water heater, it’s important to understand that the process is more complex than simply swapping out a traditional tank system. These units are energy-efficient, space-saving, and provide hot water on demand, but installation requires careful planning, proper tools, and often professional expertise to ensure safety and reliability.

  • On-demand convenience: Tankless systems provide endless hot water without waiting for a storage tank to refill.
  • Energy savings: Electric units only heat water when needed, reducing wasted energy.
  • Space efficiency: Compact designs free up space compared to bulky tank water heaters.

Why Install an Electric Tankless Water Heater?

Electric tankless systems are becoming more popular for homeowners who want efficiency and performance. Instead of keeping dozens of gallons of water hot at all times, these units heat water instantly as it flows through the system. That means lower energy bills, longer-lasting equipment, and a more modern solution for your home’s hot water needs.

Man washing hands in bathroom sink at home checking temperature touching running water with hand. Closeup on fingers under hot water out of a faucet of a sink.

Benefits of Going Tankless

Switching to an electric tankless water heater comes with advantages beyond energy savings. They last longer than traditional tanks, usually around 20 years with proper maintenance. Because they’re wall-mounted, they save valuable space in basements, garages, or utility rooms. Plus, there’s no risk of tank leaks or water damage that can occur with aging storage heaters.

Factors to Consider Before Installation

Before starting the installation process, homeowners should think about their hot water demand, electrical panel capacity, and the location of the new unit. Unlike tank heaters, tankless systems often require significant electrical upgrades, which is why professional assistance is strongly recommended.

10 Step Electric Tankless Water Heater Installation

Here’s an overview of the process professionals typically follow to set up a new system safely and effectively.

  1. Turn off power and water supply: Safety comes first, so the electrical breaker and main water line are shut off before work begins.
  2. Choose an installation location: The unit is wall-mounted in a utility area, garage, or basement with access to plumbing and electrical lines.
  3. Remove old water heater (if applicable): If replacing a tank unit, the old system is disconnected, drained, and removed.
  4. Mount the new unit: The tankless heater is securely attached to the wall using the provided brackets.
  5. Install shut-off and pressure valves: Valves are added before connecting plumbing to protect the unit and allow easier maintenance.
  6. Connect cold and hot water lines: Cold water lines are routed into the heater, and hot water lines are connected to supply fixtures throughout the home.
  7. Set up the drain line (if required): Some models need a drain line for condensation or pressure relief discharge.
  8. Upgrade electrical wiring: A dedicated circuit is often required, with proper voltage and amperage to handle the unit’s demand.
  9. Connect electrical wiring: The wires are safely connected to the heater’s terminals, ensuring a secure and code-compliant connection.
  10. Program and test the system: Once installed, the unit is programmed, breakers are turned back on, and water is run through to confirm correct heating and flow.
An adjustable wrench, screwdriver, and pliers rest on a white water heater amidst a network of metal pipes and valves

DIY vs Professional Installation

Because of the electrical demands and safety concerns, installing an electric tankless water heater is often beyond the scope of a typical DIY job.

Risks of DIY Installation

Improper electrical wiring can lead to dangerous hazards, including fire risks and system failure. Incorrect plumbing connections may also result in leaks, water damage, or poor performance. Even a small mistake can reduce efficiency or void manufacturer warranties.

Why Professional Installation Makes Sense

Licensed plumbers and electricians have the training to handle complex water and power connections safely. They’ll also make sure your system complies with local codes, ensuring long-term reliability. Professional service means peace of mind knowing your new water heater will operate correctly and efficiently from day one.

Maintaining Your Electric Tankless Water Heater

Routine care helps maximize performance and extend the life of your system.

Key Maintenance Tasks

  • Flush the system annually: Prevents mineral buildup and scale that reduce heating efficiency.
  • Inspect wiring and connections: Ensures the unit continues to operate safely.
  • Check water filters: Some units have filters that need cleaning or replacing to maintain flow.
  • Monitor water temperature: Consistent output helps detect issues early.

Cost Considerations for Installation

The cost of installing an electric tankless water heater varies depending on unit size, electrical upgrades, and labor. While upfront costs are higher than traditional tank models, homeowners often save money in the long run through energy efficiency and reduced risk of water damage.

Factors That Influence Price

  • Unit size and brand: Larger systems with higher capacity cost more.
  • Electrical panel upgrades: Many homes require additional breakers or wiring.
  • Labor and permits: Hiring licensed professionals adds to the investment but guarantees safety.
  • Ongoing efficiency savings: Lower monthly bills offset the higher initial expense.
team member posed by truck

Trust Lorenz for Expert Water Heater Installation

Installing a water heater can give your home modern efficiency, reliable hot water, and long-term savings. But because installation involves both plumbing and electrical work, having it done by trained professionals is the safest and smartest choice. To further protect your investment from the damaging effects of hard water and scale buildup, you may also want to consider a professional water softener installation. Combining these two services ensures your new heater remains efficient and scale-free for years to come.

At Lorenz Plumbing Heating & Air, we handle water heater installations with expertise and care, ensuring your system is set up correctly from the start. Our team takes the guesswork out of the process so you can enjoy endless hot water and total peace of mind. Contact Lorenz today to schedule your installation and upgrade your home’s comfort with trusted service.

Lorenz: Your Friends in Heating Plumbing & Air

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