A tankless water heater heats water only when you turn on a tap, so it never runs out. A heat pump water heater keeps a tank but pulls heat from the surrounding air, which makes it the most efficient electric option. Call 540-200-2302 to get connected with a licensed Roanoke plumber who installs and services both.
Tankless vs. heat pump vs. tank water heaters
| Tank | Tankless | Heat pump | |
|---|---|---|---|
| Installed cost (US) | $500 – $3,500 | $1,000 – $4,000 | $1,200 – $4,600 |
| Typical life | 8 – 12 yrs | 15 – 20 yrs | 13 – 15 yrs |
| Hot water supply | Runs out when the tank empties | Continuous, up to its flow rate | Tank-based, recovers slower |
| Space | Floor space | Wall-mounted, small | Needs a large, open room |
| Fuel | Gas or electric | Gas or electric | Electric (240 V) |
Costs and tank/tankless life: Fixr water heater installation cost guide, updated January 2026. Heat pump life: PickHVAC.
Tankless water heater installation
Tankless installation usually costs $1,000 to $4,000 nationally. The unit itself is only part of it: switching from a tank often means a bigger gas line, new venting or a heavier electrical circuit.
Is tankless worth it?
- Good fit: homes that run out of hot water, need the floor space, or plan to stay long enough to benefit from the 15- to 20-year life.
- Think twice: if several showers and appliances run at once, a unit has to be sized for that peak flow, which costs more.
Tankless water heater repair and maintenance
Most tankless problems, like fluctuating temperature, error codes or reduced flow, trace back to mineral scale. Flushing (descaling) the heat exchanger, usually once a year, prevents most of them.
Plumbers also clean inlet filters, check venting and clear error codes. If your unit shows a code, note it before you call; it helps the plumber come prepared.
Heat pump water heaters
According to the US Department of Energy, heat pump water heaters can be two to three times more energy efficient than standard electric water heaters, because they move heat from the air instead of making it.
- Space: the DOE says they need at least 1,000 cubic feet of air around them and a spot that stays between 40°F and 90°F year-round, such as a basement or large utility room.
- Power: they typically need a dedicated 240-volt circuit.
- Condensate: they produce water that has to drain, sometimes with a small pump.
- Cost: about $1,200 to $4,600 installed nationally.
Source: US Department of Energy, Heat Pump Water Heaters.
Are there tax credits for heat pump water heaters?
The federal 25C energy-efficiency tax credit, which covered heat pump water heaters, ended after 2025 under the One Big Beautiful Bill Act. Utility rebates may still be available, so ask your electric company.
Source: PHCC, July 2025. Tax rules change; check with a tax professional.
Common questions
How much does a tankless water heater cost to install?
Nationally, tankless installation usually runs $1,000 to $4,000 (Fixr, January 2026). Gas line, venting or electrical upgrades can add to that.
Does a tankless water heater ever run out of hot water?
No, it heats water as it flows. But it can only heat a certain number of gallons per minute, so running several showers at once can exceed it if the unit is undersized.
How often should a tankless water heater be flushed?
Usually about once a year to remove mineral scale, or more often with hard water. Check your manufacturer's guidance.
Is a heat pump water heater worth it?
For many homes with enough space, yes. The DOE says they can be two to three times more efficient than standard electric water heaters. They cost more up front and need a large, mild-temperature space.
Is there still a federal tax credit for heat pump water heaters?
The 25C credit ended after 2025. Ask your electric utility about any current rebates.