Instant Hot Water, Instant Install: A Step-by-Step Guide

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Why More Homeowners Are Making the Switch to Tankless

On demand water heater installation is a popular upgrade for families tired of running out of hot water or paying high utility bills. A tankless water heater heats water only when you need it, eliminating the standby energy losses of a traditional tank and delivering a continuous supply of hot water.

Quick Overview: On Demand Water Heater Installation

  1. Choose the Right Unit: Match the heater's flow rate (GPM) and fuel type to your household's needs.
  2. Prepare Infrastructure: Gas lines, electrical circuits, or venting may need upgrades.
  3. Remove the Old Heater: Shut off utilities, drain the tank, and disconnect all lines.
  4. Mount and Connect New Unit: Secure the heater to the wall and connect water lines with necessary valves.
  5. Finalize Installation: Connect the fuel supply, install venting, test for leaks, and start the system.
  6. Maintain for Longevity: Perform annual descaling, especially in hard water areas.

A tankless water heater can save up to 30% on energy costs, last 15-20 years, and free up valuable floor space. For households with high water usage, a properly sized unit delivers endless hot water without the fear of running out mid-shower. Understanding the installation process helps you feel confident in this valuable home investment.

For a complete look at upgrading your home's plumbing, check out our Complete Plumbing Fixture Installation Guide. To schedule your installation, visit our Contact Us page.

I'm Mike Townsend, a U.S. Army veteran who brings years of technical expertise to home services. I've guided countless homeowners through on demand water heater installation, ensuring every step meets strict safety codes and delivers the comfort families deserve.

infographic comparing tank water heater with standby heat loss to tankless water heater with on-demand heating only - on demand water heater installation infographic comparison-2-items-casual

Why Upgrade to an On-Demand Water Heater?

Tired of your shower going cold when someone starts the dishwasher? An on demand water heater installation solves this by delivering hot water whenever you need it, without the limits of a traditional tank.

The primary benefit is endless hot water. A tankless unit heats water instantly, so you never run out. This means no more scheduling showers or rushing your morning routine. The hot water keeps flowing even if you're running the dishwasher and laundry simultaneously, a major convenience for busy households.

Next are the energy savings. Tankless systems eliminate the "standby heat loss" of traditional tanks, which constantly reheat water. By heating water only on demand, they can cut energy use by up to 30%, leading to significant savings on your utility bills.

The space-saving design is another advantage. Traditional tanks are bulky, but a tankless unit is about the size of a suitcase and mounts on the wall. This frees up valuable floor space for storage or other uses.

Tankless water heaters also have a longer lifespan, lasting 15-20 years with proper maintenance, compared to 10-15 years for traditional tanks. Since they don't store large amounts of water, the reduced risk of leaks and catastrophic water damage from a tank failure provides valuable peace of mind.

Government incentives like energy-efficiency rebates and tax credits are often available for tankless water heaters. We can help you explore current programs in your area.

An on demand water heater installation is especially ideal for large families or households with high water usage, as a properly sized unit ensures everyone has hot water whenever they need it.

For more guidance on upgrading your home's plumbing systems, take a look at our Complete Plumbing Fixture Installation Guide. When you're ready to explore if a tankless system is right for you, we're here to help.

Choosing the Right Unit: Sizing and Fuel Type

Choosing the right on-demand water heater isn't a one-size-fits-all decision. Matching the unit to your household's hot water needs is key to ensuring reliable performance. To properly size your unit, we analyze your water usage patterns and household needs to ensure your system can meet peak demand. Working with a qualified Plumbing Contractor ensures you get expert guidance through these sizing factors.

gas and electric tankless water heaters - on demand water heater installation

Gas vs. Electric Models

Your first choice is between a gas or electric model, depending on your home's fuel source and needs.

Gas heaters typically offer a higher GPM (gallons per minute), making them ideal for homes with high, simultaneous hot water demands. They require proper venting requirements to exhaust combustion gases and an adequate gas line to supply the necessary BTUs. If you have existing gas service, this is often the most powerful choice.

Electric heaters are simpler to install because they don't require venting. However, they have significant electrical panel demands, often needing dedicated circuits or an upgrade. With a generally lower GPM, they are best for smaller households or single-point-of-use applications.

Sizing Your Tankless Water Heater

Correctly sizing your unit ensures you always have enough hot water. This depends on two critical numbers:

  1. Flow Rate (GPM): This is the maximum volume of hot water the unit can deliver. We calculate this by adding the GPM of all fixtures you might use during peak demand (e.g., a shower is ~2.5 GPM, a faucet ~1 GPM). If you plan for simultaneous use, your unit must meet that combined GPM.
  2. Temperature Rise: This is how much the heater must warm your incoming cold water. In Colorado, cold groundwater means a higher temperature rise is needed, which affects the unit's GPM output. A higher rise requires a more powerful unit to maintain the desired flow rate.

We also consider your household size and actual usage patterns, not just the number of people, to find the perfect fit.

Potential Challenges to Consider

  • Flow rate limitations: A tankless unit provides endless hot water, but it can only heat a specific volume at once. Exceeding its GPM capacity may result in lower water temperature or reduced flow. This is why proper sizing is critical.
  • Infrastructure upgrades: Many homes require upgrades. Gas models often need larger gas lines, while electric models may need new dedicated circuits or a panel upgrade. These are essential for safety and performance.
  • Hard water impact: Mineral buildup (scale) from hard water can reduce efficiency and shorten a unit's lifespan. This is a key consideration during selection.

A professional assessment is the best way to take the guesswork out of choosing a unit. We'll evaluate your home and needs to recommend a system that delivers the performance and savings you expect.

Preparing for Your On-Demand Water Heater Installation

Careful preparation is paramount for a safe and successful on demand water heater installation. Since the process involves your home's gas, water, and electrical systems, we strictly adhere to all building codes to ensure a safe, efficient, and lasting installation. Proper planning at this stage prevents frustrating surprises and extra costs. We start with a thorough assessment of your home's infrastructure to identify necessary upgrades. For questions about your home's readiness in the Littleton area, check out our Plumber Littleton page.

plumber assessing gas lines and electrical panel - on demand water heater installation

Assessing Your Home's Infrastructure

Your home's infrastructure is the biggest factor in installation complexity. Here's what we check:

  • Gas Line Upgrades: For a gas tankless unit, your gas line likely needs an upgrade. A tankless heater uses far more BTUs than a traditional tank, and the existing line is often too small to safely meet these BTU requirements. Upgrading to a larger diameter line is a critical safety step that requires a licensed professional.
  • Electrical System Upgrades: Electric tankless units are power-hungry and require dedicated circuits and high amperage, which may necessitate an electrical panel upgrade. Even gas units need power for their electronics. We evaluate your system's capacity and perform necessary upgrades to safely handle the new load.

Location and Venting Requirements

The compact, wall-mounting design of a tankless heater offers flexible location options. However, the placement must be strategic to ensure safe operation and easy maintenance. We strictly follow the manufacturer's specified clearances for heat dissipation and service access.

For gas units, venting is a primary consideration. They require direct-vent systems and cannot use an existing chimney because their cooler exhaust can cause condensation and damage. We install a dedicated vent pipe through a wall or roof that both expels exhaust and draws in fresh combustion air from outside, protecting your home's air quality.

Electric units simplify installation as they produce no exhaust and require no venting, making them ideal for tight spaces. Our initial assessment covers all these factors to find a safe, code-compliant location, ensuring a smooth installation and a flawlessly performing system.

The Professional On-Demand Water Heater Installation Process

An on demand water heater installation requires professional expertise due to the risks associated with gas, electrical, and water lines. It's not a DIY project. Our meticulous, step-by-step process follows strict safety protocols to ensure your system works flawlessly. For more on our plumbing services, see our Plumbing Repair Lakewood Ultimate Guide.

technician connecting copper pipes to a newly mounted tankless water heater - on demand water heater installation

Step 1: Safely Removing the Old Unit

First, we safely remove your old unit. This begins with shutting off utilities—water, gas, and electricity. Next, we begin draining the old tank, which can hold 40-80 gallons of water. With the tank empty, we proceed with disconnecting lines. This delicate work, especially with gas connections, is handled with precision by our trained technicians. Finally, we handle the proper disposal of the old, bulky tank, ensuring it is recycled responsibly.

Step 2: Mounting and Connecting the New Unit

Secure wall mounting is next. We use heavy-duty brackets to attach the unit to a sturdy wall, ensuring it's level and meets all code and manufacturer clearance requirements. Then, we focus on connecting water lines, using new piping where needed to ensure leak-free, efficient connections. Installing shut-off valves on both water lines is a critical step we never skip, as it simplifies future maintenance. A code-required pressure relief valve is also installed as a crucial safety feature to automatically release excess pressure.

Step 3: Finalizing the On-Demand Water Heater Installation

The final stage brings your new system to life. We begin by connecting gas/electrical supplies with absolute precision. For gas units, vent pipe installation is critical; we install the specialized direct-vent piping according to manufacturer specifications. Next is sealing connections and leak testing, where we check every joint and pressurize the system to inspect for any gas or water leaks.

Finally, we perform the system startup. We follow the manufacturer's procedure, purge air from the lines, check ignition, and test hot water flow to multiple fixtures to verify correct performance. Before leaving, we'll show you how to operate your new system. Your installation is complete only when you're confident and comfortable.

Post-Installation Care and Maintenance

Your new on-demand water heater is installed, but proper care is needed to ensure it delivers peak performance for years. Regular maintenance is a small investment that protects your home's comfort and efficiency. Maintaining a tankless unit is straightforward with professional help, and regular care ensures longevity, especially in Colorado where hard water is common. For maintenance questions or to schedule service, please Contact Us.

technician performing a descaling flush on a tankless water heater - on demand water heater installation

Annual Maintenance and Descaling

Over time, minerals from your water supply can build up in the heat exchanger, making annual maintenance essential. The most critical task is descaling, or removing mineral buildup. During a system flushing, we circulate a solution through the heat exchanger to dissolve scale. Without this, scale buildup reduces efficiency and forces the unit to work harder.

We recommend an annual descaling process, or more often with very hard water. During these visits, we also perform efficiency checks, inspecting all components, testing the system, and verifying proper temperature and flow. This annual service protects your investment, keeps energy bills low, and helps your unit reach its 15-20 year lifespan.

Managing Hard Water

Hard water is the primary enemy of tankless water heaters. The scale buildup effects include more than just lost efficiency; deposits can restrict water flow and damage internal components, leading to premature failure. The best of all hard water solutions is a water softener, which removes minerals before they reach the heater. This is the most comprehensive way of protecting your investment.

If you notice reduced flow, strange noises, or fluctuating temperatures, scale buildup may be the cause. Schedule a descaling service and ask us if a water softener is right for your home. With proper maintenance, your on demand water heater installation will provide efficient, endless hot water for years.

Frequently Asked Questions about On-Demand Water Heaters

Here are answers to the most common questions we receive about on demand water heater installation.

How long does a tankless water heater last?

Tankless water heaters have an impressive lifespan of 15-20 years, sometimes longer with proper maintenance. This is a significant improvement over traditional tank heaters, which typically last 10-15 years. Their longevity comes from their on-demand operation, which reduces wear and tear. The maintenance impact is significant; regular descaling, especially in hard water areas, is key to reaching and even exceeding the 20-year mark while maintaining efficiency.

Can a tankless unit provide enough hot water for my whole family?

Yes, with proper sizing, a tankless unit can provide unlimited hot water for your entire family. The key is matching the unit's GPM capacity to your family's peak demand. We analyze your routines to account for the simultaneous use of multiple hot water fixtures. A 7 GPM unit, for example, can typically handle 3-4 fixtures at once. For very large homes or those with extremely high demand, installing multiple units can ensure everyone has hot water without compromise.

Do I need special plumbing for an on-demand water heater installation?

Most on demand water heater installation projects require some potential upgrades to your home's existing systems.

  • Gas line size is a common upgrade for gas units. They require significantly more BTUs than tank heaters, so the existing gas line is often too small and must be enlarged for safety.
  • Electrical circuits for electric units must be powerful and dedicated, which may mean upgrading your electrical panel. Gas units also need a standard outlet for their electronics.
  • Venting requirements for gas units are specific. They need a dedicated direct-vent system piped to the outside and cannot use an existing chimney.

A professional assessment is essential to identify all necessary upgrades for gas, water, and electrical systems. Our evaluation provides a complete picture, ensuring a safe, code-compliant installation with no surprises.

Conclusion: Enjoy Endless Hot Water with Confidence

Switching to an on demand water heater installation is an investment in comfort, energy savings, and peace of mind. It means an end to rationing hot water and surprise cold showers, replaced by a reliable, continuous flow from a smarter, longer-lasting system. The benefits are clear: endless hot water, significant energy savings, a space-saving design, and a 15-20 year lifespan. These are daily improvements to your home's function and reliability.

At Veteran Heating, Cooling, Plumbing & Electric, our veteran-led team brings military precision to every installation. We ensure every connection is secure and all code requirements are met. We earn your trust by handling every detail with care and backing our work with a lifetime warranty and money-back guarantee.

Safety and compliance are the foundation of our work. We handle all necessary upgrades for gas, venting, and electrical systems with expertise and attention to detail.

Whether you're in Denver, Greenwood Village, Arvada, Aurora, Broomfield, Castle Rock, Centennial, Columbine, Golden, Highlands Ranch, Lakewood, or Littleton, our team is ready to help you make the transition to tankless hot water.

Ready to say goodbye to cold showers? Visit Our Services to explore what we offer, or head to our Contact Us page to schedule your consultation. Let's get your home the hot water system it deserves.

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CUSTOMER TESTIMONIALS

I had such a great experience with Veteran. My AC stopped working during a heat wave, and they sent a technician out the same day. He was on time, friendly, and explained everything in plain language so I actually understood what needed to be fixed.

Drew T.

We had two sinks backing up in our home that were very challenging to clear but Jim Knight was persistent and kept working on it until it was completely fixed. Though he had other calls to make that day, he made sure we were comfortable with the outcome before leaving.

Jane F.

What stood out most was their integrity—no upselling, just honest advice and top-tier workmanship. As a veteran-owned business, they bring a strong sense of pride and reliability to their work, and it shows.

Emily R.

Mike’s rethinking how home service should work. No trip or dispatch fees, you only pay when the job begins. Lifetime warranty on all parts and labor. And if you're not satisfied, you get your money back. It's a refreshingly honest approach that puts the customer first.

Orion S.