When it comes to replacing your water heater in today’s modern age, it’s no longer just about choosing the right size and brand, but also about selecting the right type. Long gone are the days when standard heaters have a monopoly on the market, with tankless water heaters rising in popularity more than ever before.
Why? Thanks to rising utility costs, homeowners are making the switch and investing in the cost of tankless water heaters. So, what exactly can a Riverside, CA tankless water heater installation run you in 2025? We’ll answer that question and more in our complete guide to tankless water heater costs.
Keep reading as we cover the topic in-depth, including who to call when you’re searching for Moreno Valley, Corona, or Redlands tankless water heater installers in the Riverside, CA area.
Average Tankless Water Heater Costs in Riverside, CA
Having to replace any major appliance or undertake a home repair always raises one question: how much will this cost? So, to get to the point quickly, how much does a tankless water heater cost? On average, tankless water heater units cost anywhere from $800 to $3,000 by themselves.
Prices vary depending on size, brand, and whether you’re shopping for an electric or gas model. In general, gas-powered units are typically on the higher end of the cost spectrum due to their higher efficiency ratings and larger capacities. On the other hand, electric models are a more budget-friendly investment upfront.
Another factor affecting the cost of tankless water heaters is their size or capacity. Whole-house systems capable of serving multiple fixtures simultaneously will naturally cost more than point-of-use units designed for a single bathroom or kitchen. Of course, that’s just the unit. Next, let’s go over installation costs.
Cost to Install Tankless Water Heater
Riverside, CA tankless water heater installation costs on average range from $1,500 to $3,500. Adding the cost of the tankless water heater itself, the total project cost ranges from approximately $2,300 to $6,500.
While in line with national averages, some tankless water heater costs in Riverside and the Inland Empire may cost more due to California’s stringent permitting requirements and prevailing labor rates in Southern California.
Factors that can push installation costs toward the upper end include the need for additional work or repairs for:
- Gas line modifications
- Electrical panel upgrades
- Venting system changes
- Bringing older homes up to current building codes.
Factors That Affect the Cost to Install a Tankless Water Heater
Now that you have a better idea of what goes into the cost of the job as a whole, let’s break down all the expenses that go into the job, including the rebates and incentives you can receive for going tankless.
Types of Tankless Water Heaters: Gas vs. Electric vs. Hybrid
One of the first decisions you’ll need to make when upgrading to a tankless water heater is whether to select a gas, electric, or hybrid model. This choice will significantly impact the overall cost of installing a tankless water heater.
In general, gas-powered tankless units range from $1,000 to $2,500 for the unit itself, while electric models are generally more affordable at $500 to $1,800. When using a combination of both electric and gas, or hybrid models, the cost falls in between those two ranges with a small storage capacity. So, what are the significant differences to know?
- Gas units often deliver higher flow rates, making them ideal for larger households; however, they require proper venting and may necessitate gas line upgrades.
- Electric tankless heaters are easier to install in some cases, but may require electrical panel upgrades to handle the increased amperage demand.
A professional HVAC contractor will help you decide by aligning what will work best with your home’s existing infrastructure and your household’s hot water needs.
Size & Capacity
Another decision you’ll need to make is determining the proper size of that tankless water heater for your Riverside area home. This decision will rely upon your peak demand for hot water, which is measured in gallons per minute (GPM).
As an idea, here’s what a typical Riverside household should account for simultaneous usage would be:
- Running a shower (2.5 GPM)
- Running a dishwasher (1.5 GPM)
- Running a washing machine (2 GPM)
Meaning the home would require a unit capable of delivering at least 6 GPM. Most families in the area find that units ranging from 6 to 10 GPM meet their needs adequately. Of course, the larger the capacity, the more the unit cost will be upfront, typically increasing the price by $200 to $500 for each additional GPM of capacity.
Labor Costs
As we mentioned earlier, labor also accounts for a significant portion of the costs associated with installing a tankless water heater in the Riverside area. In the Riverside area, professional plumbing rates typically range from $75 to $150 per hour, with most installations taking between 6 and 10 hours, depending on complexity. That means you can expect to pay anywhere from $800 to $1,500 for a straightforward installation.
If your job requires extensive modifications to your plumbing or electrical system, its can push labor costs higher, sometimes exceeding $2,000. Working with licensed, experienced plumbers familiar with Riverside’s specific requirements ensures the job is done correctly and in compliance with code, potentially saving you money on future repairs or compliance issues.
Permits and City Regulations
Next question: Do I need a permit to install a tankless water heater in CA? Yes, in California, including Riverside and surrounding municipalities, permits are required for tankless water heater installations. Proper permitting ensures your installation meets local and state building codes, gas safety requirements, and electrical standards.
In the Riverside area permits range from $50 to $200 all depending on the work required and the specific municipality you reside in. When working with a professional HVAC and plumbing contractor, they’ll handle the permit process including the plan submission, pre- and post- job inspections, and final approvals.
Existing Plumbing and Electrical Upgrades
Lastly, Redlands tankless water heater installers may have to make repairs or upgrades to your home’s existing infrastructure. Many older homes in the Riverside area often require electrical panel upgrades to support electric tankless units, which can add $1,000 to $2,500 to your project cost.
As for gas installations some homes may need new gas lines entirely, or the job will require upgrades to existing lines to accommodate the higher BTU requirements of tankless systems, costing between $500 and $1,500.
Other upgrades to consider include added costs and modifications required for the new system, such as new:
- Water lines
- Pressure valves
- Recirculation systems
Keep in mind that homes built before 2000 are more likely to require these upgrades. However, again, by hiring a professional contractor, a thorough assessment during the initial consultation will help you understand which upgrades are necessary for your specific situation and budget accordingly.
Tankless Water Heater Installation Cost Breakdown
Now that we’ve covered all the factors that influence your tankless water heater installation, let’s summarize the key cost components you can expect for your Riverside project:
- Equipment Cost: $500–$2,500 depending on type (electric, gas, or hybrid), capacity (GPM), and brand
- Labor Cost: $800–$1,500 for standard installations in the Riverside area; complex jobs requiring significant upgrades may cost more
- Permit and Inspection Fees: $50–$200 required by Riverside County and the City of Riverside to ensure code compliance
- Existing Infrastructure Upgrades: $500–$2,500 for electrical panel upgrades, gas line modifications, or plumbing improvements, depending on your home’s current setup
- Rebates and Incentives: Your contractor will advise on any eligible SoCal Gas rebates on high-efficiency models that can save you several hundred dollars and reduce your overall investment
Altogether, the total cost for a complete tankless water heater installation in Riverside typically ranges from $2,000 to $6,500, with most homeowners investing between $3,000 and $4,500 for a quality system professionally installed.
Get a personalized tankless water heater installation quote in Riverside today.
Tankless Water Heater Cost Savings Over Time
Beyond your upfront costs, one last factor to consider is the long-term savings that tankless water heaters provide. Tankless units are much more energy-efficient compared to traditional units, using 24% to 34% less energy in homes that use 41 gallons or less of hot water daily, and 8% to 14% less in homes with higher usage.
This translates to annual savings of $100 to $200 on your energy bills, which adds up to thousands of dollars over the unit’s lifetime. Furthermore, when it comes to longevity or lifetime value, tankless water heaters typically last approximately 20 to 25 years with proper maintenance, nearly twice as long as traditional tank heaters, which usually need replacement after 10 to 15 years.
This extended lifespan means fewer replacements and lower long-term costs. Riverside’s climate also works in your favor, as the area’s mild winters mean your tankless system doesn’t have to work as hard to heat incoming water compared to colder regions, maximizing efficiency year-round.
When you factor in energy savings, extended lifespan, and available rebates, many Riverside homeowners find that their tankless water heater pays for itself within 5 to 10 years, providing endless hot water and increasing their home’s value.
DIY vs Professional Tankless Water Heater Installation in Riverside
For something as important as your home’s hot water supply, you don’t want to leave the work to non-professionals. That’s why it’s incredibly crucial for safety, code compliance, and overall efficiency and success to use only licensed plumbers and contractors for the job.
These professionals not only know how to complete the job correctly but also possess city-specific knowledge of the regulations and permits required for the job. A few risks associated with DIY installation, you should be aware of include:
- Safety Hazards: Improper gas line connections can lead to dangerous gas leaks, while electrical errors may cause fires, shocks, or electrocution
- Code Violations: DIY installations often fail to meet California building codes and Riverside’s specific requirements, resulting in failed inspections and costly corrections
- Voided Warranties: Most manufacturers void equipment warranties if the unit isn’t installed by a licensed professional, leaving you financially responsible for repairs or replacement
- Inefficient Performance: Incorrect sizing, improper venting, or inadequate water pressure adjustments lead to poor performance and higher energy costs
- Expensive Fixes: Mistakes during DIY installation often require professional intervention to correct, costing more than hiring an expert from the start
- Legal and Financial Liability: Unpermitted work can complicate home sales, result in fines, and create liability issues if problems arise
- No Insurance Protection: If a DIY installation causes property damage or injury, your homeowner’s insurance may deny coverage due to unpermitted work
Professional installation protects your investment, ensures safety, and guarantees your system operates at peak efficiency for years to come.
Choosing a Tankless Water Heater Installer in Riverside, CA
So, you’ve decided to upgrade to a tankless water heater… what’s next? Choosing a tankless water heater installer in Riverside, CA that you can trust. To ensure the local installer you choose is reputable, be sure to conduct thorough research on the experiences of prior customers through reviews and referrals, and confirm that they have all the required licenses.
Why is selecting a local installer so important? Expertise in the local area, weather, and city regulations is essential for completing the job efficiently. In the Riverside area, there’s no better selection than Magnolia HVAC, serving the area since 1951 and with 100% total customer satisfaction for the last 15 years.
Contact Magnolia’s team for a free estimate now.
Surrounding Areas We Serve
If you’re in the Riverside area, or any of the following municipalities:
- Moreno Valley
- Corona
- Redlands
- Perris
- Rancho Cucamonga
- And the greater Inland Empire
There’s only one tankless water heater installer to trust: Magnolia HVAC. Searching for Riverside, CA tankless water heater installation, now? Schedule an inspection for an estimate with the area’s leading HVAC provider, Magnolia Heating & Cooling!
