Are you tired of running out of hot water during your showers? Installing a tankless electric water heater could be the perfect solution for you. These compact units heat water on demand, providing a continuous supply without the bulky storage tank. Not only do they save space, but they can also significantly reduce your energy bills.
While the initial cost of a tankless electric water heater can range from $800 to $3,000, depending on the brand and installation complexity, the long-term savings make it a worthwhile investment. With proper installation and maintenance, you’ll enjoy endless hot water and lower energy costs for years to come. Let’s explore how to make this upgrade a seamless part of your home.
Benefits Of Tankless Electric Water Heaters
Tankless electric water heaters offer numerous advantages that enhance the efficiency and convenience of your home. Transitioning to these systems can lead to significant improvements in energy usage and hot water availability.
Energy Efficiency
- Save energy with on-demand heating, which heats water only when needed. This leads to lower energy bills compared to traditional tank heaters, which continuously maintain hot water.
- Optimize space with smaller units that can be installed in locations where traditional tanks might not fit, maximizing usable space in your home.
- Reduce environmental impact, as tankless systems typically consume less electricity, translating to decreased greenhouse gas emissions.
- Enjoy limitless hot water for showers, washing dishes, and laundry, preventing the frustration of running out during peak usage times.
- Experience consistent water temperature without fluctuations since tankless systems respond quickly to demand changes, providing hot water instantly.
- Increase comfort in your daily routine, allowing multiple outlets to run simultaneously without affecting performance.
Installation Process

Installing a tankless electric water heater involves specific tools and a step-by-step approach for a successful setup. Follow the guidelines below to ensure a smooth installation.
Required Tools And Materials
- Adjustable Wrench: For tightening connections and securing fittings.
- Screwdriver Set: A variety of screwdrivers, including Phillips and flathead, are necessary for mounting brackets and covers.
- Hose: Use a hose for draining the old water heater if applicable.
- Pipe Insulation: Helps maintain the water temperature and increases energy efficiency.
- Teflon Tape: Seals threaded plumbing connections to prevent leaks.
- Voltage Tester: Ensures the power is off before starting the installation.
- Safety Gear: Includes gloves and safety goggles for personal protection during installation.
- Cut Off the Power And Water Supply: Turn off the circuit breaker controlling the old water heater and shut off the main water supply valve. This prevents potential water flow or electrical accidents during installation.
- Drain The Old Water Heater: If replacing an old tank-style water heater, connect a hose to the drain valve and direct the water to a suitable drainage area. Ensure the tank is entirely drained.
- Choose The Right Location: Select a location that is easily accessible, allows for proper ventilation, and avoids areas where liquids could drip on the unit. Mount the unit securely on a wall or another sturdy surface.
- Install A Dedicated Circuit: Depending on your model's requirements, install a dedicated circuit to provide adequate power. Check the specification for the appropriate amperage.
- Connect Water Lines: Use the appropriate fittings to connect the cold water supply line to the inlet valve and the hot water line to the outlet valve. Apply Teflon tape on threaded connections to ensure a proper seal.
- Test For Leaks: Open the water supply valve and check for leaks around the connections. Tighten any loose fittings as necessary.
- Power Up The Heater: Once connections are secure and there are no leaks, restore power at the circuit breaker. Follow the manufacturer’s instructions to set any desired temperatures or configurations.
- Insulate Pipes: Apply pipe insulation on the hot water pipes to help maintain the temperature and reduce energy loss.
- Perform A Final Check: Review all connections, settings, and make adjustments as necessary. Ensure proper ventilation is in place.
Following this comprehensive guide ensures a safe and efficient installation process for your tankless electric water heater, maximizing its benefits for your home.
Factors To Consider Before Installation

When installing a tankless electric water heater, consider various factors to ensure efficiency and compliance with regulations. The following points detail essential aspects of the installation process.
Location
- Choose an accessible location to facilitate maintenance and ensure proper ventilation. Avoid mounting on exterior walls in colder climates to decrease the risk of freezing.
- Ensure the unit mounts securely on a sturdy wall or surface for stability, which optimizes performance and safety.
Local Codes and Regulations
- Check local and national electrical codes before installation. Compliance with standards, such as the National Electrical Code NFPA 70 (USA) or CSA C22.1 (Canada), is crucial for safety and legality.
Safety Precautions
- Turn off the power supply to the existing water heater at the circuit breaker or fuse box. Also, shut off the water supply valve to prevent leaks during installation.
Sizing The Unit
- Determine the appropriate size for your tankless electric water heater based on your household's hot water demand. Calculate the flow rate in gallons per minute (GPM) needed for simultaneous fixtures and activities, such as showers, dishwashing, and laundry.
- Refer to manufacturer specifications to match the heater's capacity with your peak flow rate. Choosing an undersized unit may lead to insufficient hot water during high-demand periods.
- Assess your home's electrical system to ensure compatibility with the tankless electric water heater. Consider the unit's wattage and voltage requirements, typically ranging from 240 volts to 36 kilowatts.
- Install a dedicated circuit to provide sufficient power while minimizing the risk of tripped breakers. Ensure proper wire gauge and circuit protection, following local electrical codes.
Common Issues And Troubleshooting

Tankless electric water heaters may encounter specific problems. Identifying these issues early allows for effective troubleshooting and ensures optimal performance.
Error Codes
Error codes indicate specific issues with your tankless electric water heater. Refer to the manufacturer's manual for the exact meanings of error codes. Common error codes include:
- E1: Indicates a water temperature sensor problem. Check connections and replace the sensor if necessary.
- E2: Relates to a flow sensor error. Ensure the water flow is adequate and inspect for obstructions in the inlet filter.
- E3: Signifies overheating. Verify that the heater is not set to a temperature above recommended levels and check for proper ventilation.
- E4: Denotes an electrical fault. Inspect electrical connections and ensure compatibility with your system's voltage.
Regular Maintenance Tips
Regular maintenance prevents many common issues with tankless electric water heaters. Follow these tips for effective upkeep:
- Flush the System Annually: Remove mineral buildup by flushing the system with a vinegar solution. This maintains optimal heating efficiency and extends the unit's lifespan.
- Inspect Inlet Filters: Clean or replace inlet filters every six months. This prevents debris from clogging the water flow.
- Test the Pressure Relief Valve: Check the valve quarterly to ensure it operates correctly. This helps avoid pressure buildup in the system.
- Check Connections: Inspect electrical and plumbing connections for wear or leaks. Tightening loose connections or replacing damaged components prevents potential failures.
- Monitor Temperature Settings: Keep the output temperature between 120°F and 140°F. This provides adequate comfort and reduces the risk of scalding.
Adhering to these troubleshooting steps and maintenance guidelines helps ensure your tankless electric water heater operates efficiently and reliably.
Conclusion

Installing a tankless electric water heater is a smart investment for your home. You'll enjoy endless hot water while saving space and reducing energy costs. With the right installation and maintenance, you can maximize its efficiency and lifespan.
By following the outlined steps and considering important factors, you’ll ensure a smooth installation process. Plus, regular maintenance will keep your unit running optimally for years to come.
Embrace the comfort and convenience that a tankless system offers. You won’t regret making the switch to a more efficient and eco-friendly hot water solution.
Frequently Asked Questions
What is a tankless electric water heater?
A tankless electric water heater is a compact device that heats water on demand, providing a continuous supply of hot water. Unlike traditional tank heaters, it doesn't store hot water, which saves space and energy costs.
What are the benefits of a tankless electric water heater?
Benefits include unlimited hot water supply, energy efficiency, reduced environmental impact, compact size, and consistent water temperatures. These features ultimately lead to lower energy bills compared to traditional heaters.
How much does a tankless electric water heater cost?
The initial investment for a tankless electric water heater typically ranges from $800 to $3,000. While the upfront cost is higher, long-term energy savings and performance make it a worthwhile upgrade.
What tools do I need for installation?
Necessary tools include an adjustable wrench, screwdriver set, hose, pipe insulation, Teflon tape, voltage tester, and safety gear. Having these tools ready ensures a smoother installation process.
How do I install a tankless electric water heater?
The installation involves cutting off power and water, draining the old heater, selecting a good location, connecting water lines, and testing for leaks. Following a step-by-step guide helps ensure proper setup.
What should I consider before installation?
Important factors include selecting an accessible location, ensuring proper ventilation, complying with local codes, sizing the unit according to hot water needs, and assessing electrical compatibility for the heater.
How can I troubleshoot common issues?
Common issues are indicated by error codes for sensor problems, flow errors, or overheating. Regular maintenance like flushing the system and checking filters can prevent many issues and maintain efficiency.
How do I maintain a tankless electric water heater?
Annual maintenance should include flushing the system, inspecting inlet filters, and testing the pressure relief valve. Regular checks of connections and temperature settings help ensure long-lasting performance and reliability.