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Technologies

Gas tankless, and the number the marketing leaves out

Endless hot water, a much smaller footprint, and the lowest running cost of the gas options. It is also the technology most often sold to people it does not suit, because the install is where the money goes and the headline flow figure describes a condition your house never sees.

How it works

There is no stored water. A burner fires only when a tap opens, heating water as it passes through a heat exchanger, which is why the hot water never runs out and why the unit costs nothing to run when nobody is home.

The limit is not volume, it is flow. A tankless unit can raise water by a certain number of degrees at a certain number of gallons per minute, and those two figures trade against each other. Ask for more flow and you get less temperature rise.

Good fit when
  • Several showers or fixtures genuinely run at once
  • You want the floor space back
  • Your gas service is already adequate for the load
  • You are replacing an existing tankless unit
  • You expect to stay in the house long enough to see the payback
Think twice when
  • Gas line, venting or electrical work can double the job
  • It needs annual descaling, and hard water makes that non negotiable
  • You are buying it mainly to lower the bill
  • Nobody local services the brand you are being quoted

What it costs

We model the installed price from the equipment price, because you can look up the box and you cannot look up everything that gets added to it. Ranges only, and never a single average.

Rule of thumb
roughly 3 to 4 times the price of the unit on a conversion
Equipment, retail
$1,300 to $2,800
Typical installed
$4,200 to $9,000
Time on site
4 to 8 hours, sometimes across two days and two trades

What the work portion buys

  • Labour, a much longer job than a tank swap
  • Permit and inspection
  • New venting, which a conversion almost always needs
  • Gas line work where the existing line cannot carry the unit
  • A dedicated electrical circuit for condensing models
  • Condensate routing
Source: Water Heater Advisor price model, calibrated against Stanislaus County contractor pricingChecked 7 Aug 2026

What it costs to run

About $296 a year in fuel on our Turlock model, the cheapest of the two gas options and roughly $163 a year better than a gas tank. Divide that into the conversion premium before you treat it as a saving.

Those figures come from our Turlock fuel model, which is the one market where we hold both published utility rates. They will be in the right region for anywhere nearby and they are not a national average, so treat them as a comparison between technologies rather than a prediction of your bill.

Who makes it

Brand comes after technology, always. Once you have settled on this one, these are the manufacturers we hold research for.

Solid entries have a page. Dashed entries are in the research but not yet written up, and we would rather show you that than link you nowhere. All brands

Ask your installer these

  • What flow does this model give at my winter design rise?
  • Will this run on my existing gas line, or does it need upsizing?
  • What venting does it need, and does my run allow it?
  • Does a recirculation loop change my warranty?
  • Who descales it, how often, and what does that cost?