Thinking of How to Install Tankless Water Heater? Here’s What the Manual Doesn’t Mention

Thinking of How to Install Tankless Water Heater? Here’s What the Manual Doesn’t Mention

So, you’re tired of the "cold water sandwich." You know the feeling—that sudden, icy blast in the middle of a hot shower because someone decided to run the dishwasher. It’s annoying. It’s enough to make anyone look at that hulking, rusted tank in the basement and wonder if there’s a better way. There is. But honestly, if you’re planning to install tankless water heater units on a Saturday afternoon with nothing but a wrench and some optimism, we need to talk. This isn't just a simple swap. It’s a total infrastructure upgrade for your home.

Most people think they’re just buying a smaller box. In reality, you're changing how your house breathes, drinks, and eats energy. I’ve seen DIY attempts that ended in "error code 11" (no ignition) within forty-eight hours because the gas line was too small. Don't be that guy.

The Gas Line Trap: Why Size Matters

The biggest mistake homeowners make? Assuming their existing half-inch gas line is enough. It isn’t. Not even close. A standard tank water heater is like a slow-burning candle; it sips gas to keep 50 gallons warm over several hours. A tankless unit is a flamethrower. It needs to jump from zero to 199,000 BTUs (British Thermal Units) the second you turn on the tap.

If your pipe is too thin, the unit starves. It might work for a few minutes, but as soon as the furnace kicks on, the water heater shuts down. You need a dedicated line, often 3/4-inch or even a full inch depending on the distance from the meter. According to the National Fuel Gas Code (NFPA 54), pipe sizing is non-negotiable. If you skip this, you’re basically trying to power a Ferrari through a cocktail straw.

And then there's the meter itself. Check yours. If it’s a standard residential meter rated for 250 CFH (Cubic Feet per Hour), and you add a 199,000 BTU tankless unit, you’re likely over capacity once you factor in the stove and furnace. You might need your utility company to swap the meter. They usually do it for a small fee or even for free because, hey, they want to sell you more gas.

Venting is No Longer Just a Metal Pipe

Remember that old galvanized vent pipe on your old tank? Toss it. You can't use it. Modern high-efficiency tankless heaters are "condensing." This means they extract so much heat from the exhaust that the gases actually turn into acidic water.

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If you vent that into an old metal pipe, the acid will eat through the steel in months. Instead, you use PVC, CPVC, or specialized polypropylene. You also have to deal with the condensate. We’re talking about a gallon or more of acidic liquid every hour of operation. You need a neutralizer—basically a little tube filled with marble chips or limestone—to raise the pH before that water hits your drain. If you don't, goodbye cast iron pipes.

Why Location Changes Everything

When you install tankless water heater systems, you have more freedom, sure. You can put it in a closet, in the attic, or even outside if you live in a climate like Florida or Arizona. But proximity to the "point of use" is the real secret to happiness.

  • The Wait Time: Tankless does not mean "instant." It means "endless." You still have to wait for the hot water to travel from the heater to the shower. If you put the unit in the garage and your master bath is on the second floor, you’re still waiting 45 seconds.
  • Recirculation Loops: If you hate waiting, look for a unit with a built-in recirculation pump like the Rinnai SENSEI or the Navien NPE-A2 series. These keep hot water moving through the pipes so it’s there the moment you turn the handle. It costs more upfront, but it’s the difference between luxury and "just okay."
  • Wall Reinforcement: These units aren't heavy like a full tank, but they vibrate. A 70-pound unit hanging on drywall is a recipe for disaster. You need a plywood backer board or you need to hit at least two studs.

The Electricity Factor

Wait, gas heaters need electricity? Yeah. The computer board, the electric ignition, and the internal fans all need power. You need a dedicated 120V outlet nearby. If you’re switching from an old-school standing pilot light tank, you might not have a plug in that dark corner of the basement. Budget for an electrician to run a line. Also, get a surge protector. A $300 control board can be fried by a single lightning strike or a power surge, turning your high-tech heater into a very expensive wall ornament.

Hard Water: The Silent Killer

If you live in a place with high mineral content—think San Antonio or much of the Midwest—your tankless heater has a target on its back. Because the heat exchanger has tiny, narrow passages to flash-heat water, calcium buildup (scale) happens fast. Really fast.

Within two years, scale can reduce efficiency by 30%. Within five, it can burn out the heat exchanger entirely.

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If your water is harder than 7 to 10 grains per gallon, you must install a water softener or at least a scale-inhibitor system. I’ve seen warranties voided because the homeowner didn't maintain the unit or treat the water. You also need to "flush" the unit once a year with food-grade white vinegar to descaling the internals. It’s a 45-minute DIY job using a bucket and a small submersible pump, but if you skip it, you're throwing money away.

Real Talk: The Cost Breakdown

Let’s be blunt. Installing a tankless unit is two to three times more expensive than a standard tank. A 50-gallon tank might cost $1,500 installed. To install tankless water heater setups correctly, you’re looking at $3,500 to $5,500.

Where does the money go?

  1. The unit itself ($1,000–$2,200).
  2. The specialized venting ($200–$500).
  3. Gas line upgrades ($500–$1,500).
  4. Labor (8–12 hours for a conversion).

Is it worth it? If you have a family of five and everyone showers back-to-back, yes. If you live alone and take five-minute showers, you’ll never see the ROI (Return on Investment) in energy savings alone. You do it for the lifestyle, not just the checkbook.

Electrical Tankless: A Different Beast

If you’re going electric, be warned. To get enough "oomph" to heat water instantly, an electric tankless heater pulls massive amounts of power. I’m talking 120 to 150 amps. Most older homes only have 100-amp or 200-amp total service. You might need to upgrade your entire electrical panel, which can add another $3,000 to the bill. In cold climates, electric tankless often struggles because the incoming groundwater is just too cold for the heating elements to keep up. Gas is almost always the superior choice for whole-home tankless.

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Practical Steps to Get it Right

Before you buy anything, do a "fixtures count." How many showers, sinks, and appliances will run at the same time? A unit rated for 9 GPM (Gallons Per Minute) in Georgia might only put out 4.5 GPM in Maine because it has to work harder to heat the freezing winter water. Check the "groundwater temperature map" provided by manufacturers like Rheem or Noritz.

Once you have the right size, hire a pro for the gas and venting. Seriously. Carbon monoxide isn't something to mess with. If the vent isn't sloped correctly, the condensate will pool and choke the motor.

Actionable Checklist for Your Installation:

  • Audit your gas capacity: Look at your meter and calculate the total BTU load of your house.
  • Plan the path of least resistance: Choose a mounting spot that makes venting to the outside easy.
  • Install a bypass valve kit: These make the annual vinegar flush possible. Without them, you can't service the unit.
  • Test your water: Buy a $10 hard water test kit. If it turns dark purple, buy a softener at the same time as the heater.
  • Register the warranty: Manufacturers are sticklers. Keep your receipts and the installer's info.

Forget the "set it and forget it" myth. A tankless heater is a piece of high-performance machinery. Treat it like a car—give it the right fuel, keep the "filters" (heat exchanger) clean, and it’ll give you endless hot showers for twenty years. Skip the maintenance, and you'll be back to that cold water sandwich sooner than you think.