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Tankless water heaters are not a simple “swap out.” Most conventional gas water heaters were not installed with a tankless retrofit in mind. In fact, your home’s gas piping, gas meter and gas line to the meter may not be sized appropriately to handle the high gas load that will be replacing the conventional storage gas water heater.
Most conventional natural-draft water heaters vent exhaust completely different than any tankless water heater, and though they are a fuel burning appliance, they do need power to operate.
When a homeowner is unhappy with a tankless water heater, it usually concerns the issues above, and managing expectations about how their tankless water heater should perform. Not all tankless water heaters are the same. An improperly installed unit may not only underperform, but be a safety hazard as well.

Each water heater installation cost is different then the other. They can range from a $500 to a whopping $2200. This is just the installation cost and not the price of the water heater included with it. The cost depends on the type of installation and its unique for each situation. A person may prefer to install the unit in a certain location and the installer may have to work extra based on the location it is being installed in. Hiring with help of a licensed contractor is a must due to the fact that water heater installation can be hazardous to a large extent. Furthermore, almost all the the counties require some sort of permit to be able to install the water heater, which your installer would be able to arrange for you.
Hence, when it comes down to it, installation of a water heater may range you more then the repair of the unit. If it is possible to get your unit repaired for a cheaper cost, one would suggest to just that instead of replacing the entire unit.