Replacing an existing water heater with a new tankless system typically costs between $3,000 and $6,000 for total equipment and professional installation, though complex retrofits can push costs higher. The wide price range depends heavily on whether your home requires labor-intensive modifications such as upgrading undersized gas supply lines to handle higher BTU demands, installing specialized stainless steel venting flues, or upgrading your electrical panel. Because tankless units require precise sizing and code compliance, professional installation by a licensed plumber is necessary. Verification: Obtain multiple written contractor estimates detailing gas line, venting, and unit equipment costs.
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