Install a tankless water heater
Tankless water heater. (Ecosmart / February 24, 2014)
Installing a tankless water heater is similar to installing a regular gas water heater; you'll connect to a gas line, water line and vent, but the tankless system also has an electrical connection to power the computer and venting system. If you put the new tankless unit in the same space as an old gas tank water heater, you don't have to redo any plumbing lines. A plumber will charge $1,100 to replace a traditional gas water heater with a new tankless unit which can produce 180 gallons of hot water per hour. That includes the labor and material. You'd pay $750 for the unit and save 30 percent if you did it yourself, but it's a complicated installation requiring the tools and talents of a professional with experience.
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Pro Cost -- DIY Cost -- Pro time -- DIY Time -- DIY Savings -- Percent Saved
$1,100 -- $750 -- 3.6 -- 4.5 -- $350 -- 32 percent
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