Cost of Tankless Water Heater Installation in Annapolis

When it comes to home improvement in Annapolis, upgrading to a tankless water heater is one of the most significant investments you can make in your home’s long-term efficiency. However, the upfront cost is a frequent topic of conversation for homeowners in Anne Arundel County. Unlike a traditional tank replacement, a tankless installation is a sophisticated mechanical upgrade that involves more than just swapping out a unit.

At Brian B. Quick Plumbing, we believe in complete transparency. As fourth-generation master plumbers serving the Annapolis area, we want our neighbors to understand exactly what goes into a professional tankless installation quote. This guide breaks down the typical costs, the regional factors that influence pricing in Maryland, and how you can maximize your return on investment.

The Baseline: What to Expect in 2026

In the current Annapolis market, the total cost for a whole-home tankless water heater installation typically ranges from $2,400 to $5,400. While this is a broad range, it reflects the variety of home ages and infrastructure types found in our historic city.

The Unit vs. The Labor

The final price you see on an estimate is generally split between the hardware and the professional expertise required to install it safely.

• The Equipment: A high-quality gas tankless unit from a reputable brand like Rinnai or Navien usually costs between $1,200 and $2,200. These units are rated for high-demand households and are built to last 20 years or more.

• The Installation Labor: Professional labor for a tankless conversion in Maryland typically averages between $800 and $2,000. This includes the removal of your old tank, the mounting of the new unit, and the necessary plumbing and gas line modifications.

• Permits and Inspections: In Annapolis, permits are required for all water heater replacements. These fees, along with the required safety inspections, can add $100 to $300 to the total project cost.

Factors That Drive the “Annapolis Premium”

Annapolis is a city of diverse architecture, ranging from colonial-era homes in the Historic District to modern builds in neighborhoods like Hillsmere Shores. These structural differences play a major role in your installation costs.

Gas Line Upgrades

Standard tank water heaters use a relatively small gas line because they heat water slowly over time. A tankless unit, however, requires a massive “burst” of energy to flash-heat water the moment you turn on the faucet.

• Sizing Up: Many older Annapolis homes have half-inch gas lines that are insufficient for a high-BTU tankless system. Upgrading to a three-quarter inch line can add $300 to $900 to your installation cost, depending on the distance from your gas meter to the unit.

• The Master Plumber Advantage: At Brian B. Quick, we specialize in these complex gas line modifications, ensuring your home meets the latest safety codes.

Venting Requirements

Gas tankless units produce combustion gases that must be vented through the side of the house or the roof using specialized PVC or stainless steel piping.

• Rethinking the Chimney: You cannot vent a modern tankless unit through a traditional masonry chimney used by an old water heater. Rerouting the exhaust and intake vents can cost between $200 and $600 depending on the layout of your basement or utility closet.

• Historic District Constraints: If you live in a historic property, we work diligently to ensure the venting is as discreet as possible, adhering to local architectural guidelines.

Gas vs. Electric: A Price Comparison

While gas is the most common choice in our region due to its superior flow rate, electric tankless options are also available.

Electric Tankless Installation

Electric units are generally cheaper to purchase and do not require venting.

• Lower Hardware Cost: You can often find whole-home electric units for $500 to $1,000.

• The Electrical Caveat: The hidden cost of an electric tankless unit is the power requirement. These systems pull a massive amount of amperage. If your Annapolis home has an older 100-amp or 150-amp electrical panel, you may need a $2,000 service upgrade to support the water heater.

Gas Tankless Installation

Gas units are more expensive upfront but offer a much higher “Gallons Per Minute” (GPM) output, which is essential for families with multiple bathrooms.

• Efficiency Gains: High-efficiency condensing gas models are the gold standard. While they cost more initially, they qualify for the best rebates and offer the lowest monthly operating costs.

Offsetting the Cost: Rebates and Tax Credits in 2026

The high upfront cost of a tankless system in Maryland is significantly mitigated by current state and federal incentives.

The Federal 25C Tax Credit

Under the Energy Efficient Home Improvement Credit, you may be eligible for a federal tax credit worth 30 percent of the project cost, capped at $600 for high-efficiency gas water heaters. If you choose a hybrid heat pump water heater, that credit can jump up to $2,000.

EmPOWER Maryland Rebates

As a Maryland resident, you can take advantage of the EmPOWER Maryland program. Local utilities like BGE often offer rebates for switching to high-efficiency equipment.

• Standard Rebates: High-efficiency tankless models can often net you between $300 and $700 in direct rebates.

• Brian B. Quick Savings: We frequently offer seasonal coupons, such as $149 Off water heater installations, to help our neighbors make the switch more affordable.

Investing in the Future of Your Home

Is it time to stop paying to heat a tank of water you aren’t using? The experts at Brian B. Quick Plumbing are ready to help you navigate the costs and benefits of a tankless upgrade. We provide free estimates and expert guidance on local Maryland rebates. 

Contact us today to schedule your consultation and find out why Annapolis homeowners have trusted us for generations.