When it comes to upgrading or replacing your water heater, homeowners in Massachusetts have several options to choose from, each offering different benefits in terms of installation costs, operation, and energy efficiency. Among these, tankless water heaters are becoming an increasingly popular choice due to their space-saving design, energy efficiency, and longer lifespan. In this blog, we’ll explore the cost of tankless water heaters in Massachusetts, with a focus on two leading brands—Rinnai and Navien—and compare their prices to traditional tank water heaters and heat pump water heaters in terms of both installation and operation.

What is a Tankless Water Heater?

A tankless water heater—also known as an on-demand or instantaneous water heater—heats water only when you need it. Unlike traditional water heaters, which store and continuously heat water in a large tank, tankless units heat water directly through an electric or gas-powered heating element. This means no standby energy loss, and you only pay for the hot water you actually use, making tankless water heaters an energy-efficient option for many homeowners.

Cost of Tankless Water Heaters in Massachusetts: Rinnai and Navien

Two of the most popular and trusted brands of tankless water heaters in Massachusetts are Rinnai and Navien. Both offer high-quality, efficient models that are designed to meet the needs of Massachusetts homeowners. Here’s a breakdown of what you can expect in terms of pricing for these brands.

Rinnai Tankless Water Heaters

Rinnai is a well-known brand that offers both gas-powered and electric tankless water heaters. Their systems are known for their reliability, energy efficiency, and long-lasting performance.

  • Installation Costs: The cost of installing a Rinnai tankless water heater typically ranges from $5,999 to $9,000, depending on the model, type (gas or electric), and any additional modifications required to your home (e.g., upgrading gas lines or electrical systems). Gas models tend to have slightly higher installation costs due to the need for venting and gas line modifications.

  • Operational Costs: Rinnai tankless water heaters are known for their energy efficiency, which can significantly reduce your water heating bills. The average cost to operate a Rinnai tankless water heater is about $250 to $500 per year, depending on usage and the energy source (gas vs. electric).

Navien Tankless Water Heaters

Navien is another highly respected brand, offering a range of condensing tankless water heaters that are known for their excellent energy efficiency and lower environmental impact. Navien’s models are often used in homes with high hot water demands, like multi-family dwellings.

  • Installation Costs: In 2025 Navien tankless water heaters typically cost between $5,999 to $10,500 for installation in Massachusetts. Similar to Rinnai, the final price depends on the complexity of the installation, including any required modifications for venting and gas line upgrades.

  • Operational Costs: Navien’s condensing models are among the most energy-efficient on the market. Operating costs generally range between $200 and $500 per year (179.0 therms $195*), depending on water usage and whether the unit is powered by gas or electricity. Due to their high efficiency, Navien units can help save homeowners a significant amount on utility bills over time.

Cost of Traditional Water Heaters

Traditional tank water heaters are still the most common choice for many homeowners in Massachusetts. These systems store a large amount of water and keep it heated at all times, which can result in higher energy bills due to standby heat loss.

  • Installation Costs: The cost to install a traditional tank water heater typically ranges from $1,000 to $3,500, depending on the size and brand of the unit, as well as any necessary plumbing modifications. These systems generally have a lower upfront installation cost compared to tankless systems but are less efficient over time.

  • Operational Costs: Traditional water heaters tend to have higher operational costs due to the constant heating of water. On average, a traditional water heater can cost around $500 to $800 per year to operate, depending on water usage, the size of the tank, and local energy rates.

Cost of Heat Pump Water Heaters

Heat pump water heaters are another energy-efficient option that uses electricity to move heat from the surrounding air into the water, rather than directly generating heat. While heat pump water heaters are more expensive to install than traditional tank heaters, they are highly efficient, especially in well-insulated spaces.

  • Installation Costs: The installation of a heat pump water heater typically costs between $3,500 and $7,500, depending on the brand and model. While the initial installation is higher than that of traditional systems, the long-term savings on energy bills can be substantial.

  • Operational Costs: Heat pump water heaters are one of the most energy-efficient options available, with operational costs ranging from $200 to $400 per year. This is significantly lower than traditional water heaters and, in many cases, even lower than the costs associated with tankless water heaters.

Comparing Tankless Water Heaters to Traditional and Heat Pump Water Heaters

Installation Costs

  • Tankless Water Heaters (Rinnai/ Navien): $5,999 – $10,500
  • Traditional Water Heaters: $1,000 – $2,500
  • Heat Pump Water Heaters: $3,500 – $7,500

Tankless water heaters have a higher upfront installation cost than traditional water heaters, but they can save money in the long run through lower operating costs and longer lifespan. Heat pump water heaters fall somewhere in between, with higher installation costs but significant operational savings.

Operational Costs

  • Tankless Water Heaters (Rinnai/ Navien): $250 – $500 per year
  • Traditional Water Heaters: $500 – $800 per year
  • Heat Pump Water Heaters: $200 – $400 per year

Tankless water heaters generally offer lower operational costs compared to traditional models, with both Rinnai and Navien offering highly efficient units. Heat pump water heaters also provide excellent energy efficiency, similar to tankless systems, but may be less suited to colder climates due to their reliance on ambient air temperature.

Lifespan and Maintenance

  • Tankless Water Heaters (Rinnai/ Navien): Typically last 20+ years with proper maintenance.
  • Traditional Water Heaters: Typically last 10-15 years.
  • Heat Pump Water Heaters: Typically last 10-15 years.

Tankless water heaters have a longer lifespan compared to traditional and heat pump systems, making them a good investment for homeowners looking for a long-term solution. However, they require regular maintenance to ensure optimal performance.

Final Thoughts: Which Water Heater is Right for You?

In Massachusetts, the choice between a tankless water heater, traditional water heater, or heat pump water heater depends on your budget, hot water needs, and long-term energy goals. Rinnai and Navien tankless water heaters offer excellent energy efficiency and long-term savings, but they come with a higher upfront cost compared to traditional water heaters. Heat pump water heaters strike a balance between installation costs and energy savings but may be more suited to homes with ample space and mild temperatures.

If you’re considering a tankless water heater installation in Massachusetts, Endless Energy is here to help. Our expert HVAC professionals can help you choose the best water heating solution for your home, and we’ll ensure a smooth installation process. Contact us today to learn more about your options, including top brands like Rinnai and Navien, and explore how we can help you save on energy costs with a high-efficiency system tailored to your needs.