Tankless Water Heater Installation: My Step-by-Step Guide to an Efficient Home Upgrade

tankless water heater installation

“A stitch in time saves nine.” We’ve all heard this proverb before, but it rings especially true when it comes to home upgrades. Have you ever stepped into the shower on a freezing morning, expecting a stream of warm water, only to be met with an ice-cold shock? 

Or maybe you’ve had to race against time, finishing your shower before the hot water runs out? If you’ve been there, you know the frustration.

Let’s see—what if I told you there’s a way to say goodbye to these issues for good? That’s exactly why I decided to tankless water heater installation in my home. No more bulky tanks taking up space. No more wasted energy heating water I’m not using. No more running out of hot water when I need it most. Sounds too good to be true? 

That’s what I thought too—until I experienced it firsthand.

In this blog, I’m going to take you through my real-life experience with installing a tankless water heater, step by step. I’ll share my thought process, the challenges I faced, and the benefits I’ve been enjoying since making the switch. By the end, you’ll have a clear roadmap on how to upgrade your home’s water heating system—whether you’re a DIY enthusiast or considering hiring a pro.

But before we dive into the nitty-gritty, let me ask you this: Have you ever wondered how much energy (and money) you’re wasting every day with a traditional water heater? Let’s find out.

Why I Chose a Tankless Water Heater

I didn’t just wake up one day and decide to install a tankless water heater. It started with a realization: My traditional water heater was a silent money-drainer.

A conventional storage water heater works by continuously heating a tank full of water, whether I’m using it or not. That means every hour, every minute, every second—energy is being used to keep the water hot. And if you think about it, that’s like leaving your car engine running all night just so you can drive immediately in the morning. Crazy, right?

So I started digging into the numbers:

  • Traditional water heaters account for about 17% of a home’s total energy use, according to the U.S. Department of Energy.
  • Switching to a tankless system can reduce energy consumption by 24-34% for homes that use less than 41 gallons of hot water per day.
  • On average, a tankless water heater lasts 20 years or more, while traditional ones need replacing every 10-15 years.

With rising energy costs, I knew this was an investment worth making. But before jumping in, I had to plan carefully.

Planning the Tankless Water Heater Installation

Now, here’s where things got real. I realized tankless water heater installation isn’t just about buying the unit and mounting it on the wall. There were key factors I had to consider to make sure the installation was smooth and efficient.

1. Sizing the Unit – Getting It Right the First Time

Let’s see—you wouldn’t buy an extra-small t-shirt if you wear a large, right? The same logic applies to a water heater. If I got one that was too small, I’d run out of hot water again (which defeats the purpose). If I got one that was too big, I’d waste energy unnecessarily.

So I calculated my household’s peak hot water demand by adding up the flow rates of all fixtures we use simultaneously:

  • Shower: 2.5 gallons per minute (GPM)
  • Kitchen sink: 1.5 GPM
  • Washing machine: 2.0 GPM

On a busy morning when someone’s showering, someone’s doing dishes, and the washing machine is running—that’s about 6 GPM. So, I chose a tankless water heater with a flow rate of 7 GPM, ensuring it could handle my household’s needs without breaking a sweat.

2. Choosing the Right Fuel Type

Tankless water heaters come in electric, natural gas, and propane models. Since my home already had a gas line, a gas-powered unit made the most sense—it’s faster, more efficient, and cheaper to operate in the long run. However, if you’re in an all-electric home, an electric model might be the better choice.

3. Checking Local Codes and Permit Requirements

Here’s something I didn’t expect—not all tankless water heaters are legal everywhere. I had to check my local building codes and permit requirements to make sure my installation met safety standards. Some areas have strict venting rules and gas line upgrade requirements, so it’s always a good idea to double-check before starting.

4. Choosing the Best Installation Location

Space-saving is one of the biggest perks of a tankless water heater, but that doesn’t mean I could mount it anywhere. I needed a well-ventilated area with easy access to water and gas lines. I also made sure the location was close to my most frequently used fixtures to minimize heat loss.

Installing the Tankless Water Heater

Now, let’s see—this is where the fun began. Tankless water heater installation isn’t as complicated as it sounds, but it does require precision. Here’s how I did it:

1. Removing the Old Water Heater

This was the toughest part. After shutting off the power and water supply, I drained the old unit and disconnected it. Traditional water heaters are bulky, so moving it required a lot of effort (and an extra pair of hands!).

2. Mounting the Tankless Unit

Tankless water heaters are much lighter and more compact, so I was able to mount mine on the wall easily. I made sure it was secure and had enough ventilation clearance.

3. Connecting the Water and Gas Lines

I connected the cold water inlet and hot water outlet, using leak-proof fittings. Since I had a gas-powered model, I carefully connected it to my gas supply, using a gas leak detector to double-check everything.

4. Setting Up the Venting System

Gas-powered tankless water heaters need proper venting to prevent carbon monoxide buildup. I installed a stainless-steel vent pipe to safely expel exhaust gases outside.

5. Testing the System

Moment of truth—I turned on the water supply, powered up the unit, and waited. Within seconds, I had an unlimited supply of hot water!

The Benefits I’ve Experienced Since Installing My Tankless Water Heater

Endless Hot Water – No More “Cold Showers”

I can now take as long a shower as I want, even if someone else is using hot water at the same time.

Lower Energy Bills – Real Savings Every Month

My monthly energy bills have dropped by 20-30%, and I’m no longer paying to heat water I’m not using.

More Space – A Cleaner, More Organized Home

With the old bulky tank gone, I now have extra storage space in my utility room.

Longevity – A Smart Long-Term Investment

Traditional water heaters last 10-15 years, but a tankless unit can last 20+ years with proper maintenance.

Final Thoughts: Is It Worth It?

Let’s see—would I recommend switching to a tankless water heater? Absolutely. If you’re tired of running out of hot water, dealing with high energy bills, or losing space to a bulky water heater, this upgrade is a no-brainer.

However, it’s important to plan carefully, check local codes, and size the unit correctly to get the best results.

Thinking of making the switch? Let me know your thoughts—I’d love to hear your experience!

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Margot

Margot, the voice behind HomeServicesOffers.com, is passionate about simplifying home care. She shares practical tips, expert advice, and resourceful solutions to help homeowners maintain, enhance, and enjoy their living spaces with ease.

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