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How to Install Tankless Water Heaters

Having a tankless water heater is an economic, energy-saving alternative to conventional water heaters. A tankless water heater, also called a demand water heater, is a water heater that only provides hot water when actually needed.  They are either electric or gas powered and heats water without the use of a storage tank.  Installing one is moderately challenging but can be done within a day.

Things You'll Need:



  • Tankless water heater

  • Manufacturer instructions

  • Channel-type pliers or a pipe wrench

  • Bucket or pan

  • Gas venting exhaust supplies (for gas powered heaters)

  • Subpanel (for electric powered heaters)



  1. Shut off the main waterline to your home.

  2. Disconnect the water supply line from your old water heater. Use channel-type pliers or a pipe wrench to loosen and disconnect the lines from the water heater. Open the drain valve and drain the tank. Place a bucket or pan underneath the line to catch any excess water that may still be in the line.

  3. Close the gas supply valve and disconnect the line if gas is your heating source. If you have an electric water heater, shut off the circuit at the service panel and make sure the power is off. Now disconnect the wires from the appliance.

  4. Remove the old water heater and dispose of it according to local laws and ordinances.

  5. Set up the new heater in accordance with manufacturer instructions and guidelines.

  6. Install the exhaust system for proper ventilation if using gas heating or a subpanel (which may come with your water heater) if using electric. A subpanel is required to be installed next to the heater.  It has its own circuit breakers which will quickly disconnect power to the unit in case of emergency.

  7. Open the water valves and then open the faucets, allowing water to run through the unit for at least a minute.

  8. Restore electricity or turn on the gas. You are now ready to use your tankless water heater.