$5,500 – $17,500

🛠 What Drives the Cost Up (and Down)

Here are the major factors that influence how much a tankless system will cost:

1. Unit cost & brand
   Higher‐flow units, premium brands, and gas/condensing models cost more up-front

2. Fuel source
   Gas tankless typically offers better performance in Denver’s colder climate but requires proper venting/gas line work. Electric tankless may require major panel/wiring upgrades.

3. Home’s existing infrastructure

   • Are there existing gas lines of proper size?

   • Is the venting adequate or does it need upgrade/new route?

   • Does the work require relocating the unit, running new piping or electrical?
     These can add thousands of dollars.

4. Installation complexity & labor
   Labor in older homes, multi-level homes, crawl spaces, or where major modifications are required will cost more. Permits, inspection, code upgrades all add,

5. Size / flow requirements
   A larger household with high hot water demand needs a unit with higher GPM (gallons per minute) or multiple units. Bigger capacity = higher cost.

6. Rebates & incentives
   Some systems may qualify for rebates or tax credits, which can offset cost — good to mention to customers.

Whether you need an electrical upgrade depends on the type of water heater you’re installing. Some systems plug right into your home’s existing setup, while others require major electrical improvements to operate safely and efficiently.

Below is a simple breakdown to help you understand what to expect.

1. Tank Water Heaters (Gas or Electric)

Gas Tank Water Heater

Usually NO electrical upgrade needed.
Gas heaters only require a standard 120V outlet for ignition and safety controls. Most homes already have this.

You might need an upgrade if:

• There’s no available outlet nearby

• The existing outlet isn’t grounded properly

• You’re switching from electric to gas

Electric Tank Water Heater

Sometimes requires an upgrade.
Most electric tank heaters require 240V power on a dedicated circuit.

You will need an electrical upgrade if:

• Your panel doesn’t have a 240V breaker

• Your existing wiring is too small for the amperage (30A–50A)

• Your electrical panel is full or outdated

2. Tankless Water Heaters

Gas Tankless Water Heater

Rarely requires electrical work, but:

• It still needs a 120V outlet for ignition and freeze protection

• Older homes may not have a proper electrical outlet in the installation area

Typically, no major electrical upgrade is needed unless the area has no power at all.

Electric Tankless Water Heater

YES — almost always requires a major electrical upgrade.

Electric tankless heaters are very powerful devices. Most need:

• 3 to 4 separate 240V circuits

• 120–160 amps of available panel capacity

• Heavy-gauge wiring

If your home has a 100–150 amp panel, it will almost certainly need an upgrade to 200 amps before installing an electric tankless system.

This is the #1 reason most homeowners choose a gas tankless instead.

3. Hybrid Heat Pump Water Heaters

These units often require:

• A dedicated 240V circuit

• Proper grounding

• Sufficient electrical panel capacity

If you’re replacing a standard electric tank heater, you’re usually fine. If you’re switching from gas → hybrid, you’ll likely need a new circuit installed.

So, Do You Need an Upgrade? (Quick Guide)

Need Help Deciding?

At Mini-Splits by Joseph, we install tank, tankless, gas, electric, and hybrid systems—and we handle all plumbing and electrical, so your upgrade is safe and up to code.

📞 Call Today: 970-798-0096
Serving Denver, Edgewater, Lakewood, Wheat Ridge & the metro area.

Counties We Serve

• Denver County

• Arapahoe County

• Jefferson County

• Adams County

• Douglas County

• Boulder County

• Broomfield County

• Weld County

• Larimer County

• El Paso County

Cities & Towns We Serve

• Denver

• Aurora

• Lakewood

• Littleton

• Englewood

• Centennial

• Highlands Ranch

• Arvada

• Westminster

• Thornton

• Northglenn

• Golden

• Broomfield

• Boulder

• Longmont

• Louisville

• Lafayette

• Erie

• Brighton

• Commerce City

• Parker

• Castle Rock

• Lone Tree

• Fort Collins

• Loveland

• Greeley

• Colorado Springs

Neighborhoods & Local Communities in the Denver Metro

• Capitol Hill

• Washington Park (Wash Park)

• Congress Park

• Cherry Creek

• Park Hill

• Sloan’s Lake

• Highlands / LoHi (Lower Highlands)

• RiNo (River North Art District)

• Five Points

• Baker

• Belcaro

• Hilltop

• University Hills

• Stapleton (Central Park)

• Green Valley Ranch

• Montbello

• Hampden South

• Harvey Park

• Sunnyside

• Berkeley

• City Park

• Downtown Denver