Energy Costs
Energy Costs | Tankless Water Heater Install | Plumbing | Chattanooga
Ditch the bulky tank and slash monthly bills with HEP’s energy-smart approach to hot water. Our Chattanooga team specializes in tankless water heater install services that deliver endless, on-demand hot water while cutting energy waste by up to 40%. Compact units free up valuable space, and advanced flow control means you’ll never schedule showers around reheating cycles again.
From the first consultation to the final pressure test, our licensed pros handle everything—sizing, venting, gas or electric hookups, and hauling away the old tank. We back every install with transparent pricing, solid warranties, and 24/7 support, so you can enjoy worry-free comfort for years to come. Ready to tap into lower utility costs and limitless hot water? Give HEP a call today and feel the difference the moment you turn on the tap.
FAQs
How much can I expect to save on energy bills with a tankless water heater in Chattanooga?
Most families switching from a standard 40- or 50-gallon tank to a high-efficiency tankless unit see 20-35 % lower water-heating costs. In Chattanooga that typically means $90–$160 in yearly savings for a four-person household, based on local natural-gas rates of about $1.30 per therm or electricity rates near 11¢/kWh. Savings come from eliminating stand-by heat loss—tankless heaters only fire when you open a tap—so the larger your hot-water demand, the greater the payback.
Are tankless water heaters eligible for any tax credits or rebates in the Chattanooga area?
Yes. Through 2032 the federal Energy Efficient Home Improvement Credit provides up to 30 % of the installed cost, capped at $600, for qualifying ENERGY STAR gas or electric tankless models. Locally, Tennessee Valley Authority (TVA) occasionally offers $50–$100 bill credits for high-efficiency electric units, and Chattanooga Gas has run seasonal rebates of $200–$300 for ENERGY STAR natural-gas models—contact us for the current schedule. Combining these incentives can trim 10–20 % off your upfront cost.
Is a natural-gas or an electric tankless water heater more cost-effective in our market?
Natural-gas tankless heaters usually deliver the lowest operating cost because gas in Chattanooga averages 25–30 % cheaper per delivered BTU than electricity. Gas models reach 0.82–0.95 Uniform Energy Factor (UEF), while the latest electric units hit 0.95–0.99 UEF. If your home already has a gas line and venting is straightforward, gas typically offers the fastest payback. For all-electric homes, high-amperage electric units avoid the expense of new gas service, but you may need a 150–200 A panel upgrade. We run a site-specific load calculation to compare both options before you decide.
Does the higher upfront price of a tankless system really pay off?
Installed costs for a whole-house tankless system in Chattanooga run $2,800–$3,600, versus $1,300–$1,700 for a comparable tank. With energy savings of $90–$160 per year, plus potential tax credits/rebates of $300–$900, typical payback falls between 5 and 8 years. Because the life expectancy of a quality tankless heater is 18–20 years—about twice that of a storage tank—the net lifetime savings can exceed $1,500, even after factoring periodic descaling maintenance.
Will installing a tankless water heater lower my home’s carbon footprint?
Yes. By firing only when hot water is needed, a gas tankless unit can cut CO₂ emissions 20–30 % compared with a standard storage tank. An electric tankless heater paired with EPB’s Green Power Switch—or rooftop solar—can drive your water-heating emissions near zero. Over a 20-year lifespan, the average Chattanooga household can prevent 5–7 metric tons of CO₂ from entering the atmosphere.
How does Chattanooga’s climate affect tankless water-heater efficiency and operating cost?
Our groundwater enters the house at roughly 55 °F year-round, warmer than much of the U.S. That means a tankless unit needs to raise water temperature only about 65 °F to reach a 120 °F set point, allowing high flow rates without maxing out the burner or heating elements. During short cold snaps below freezing, flow may dip slightly, but overall system efficiency stays above 80 % (gas) or 95 % (electric). The moderate incoming-water temperature keeps monthly operating costs 5–10 % lower here than in northern climates.