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Step 1
Research the types of tankless water heaters available. Power sources for tankless water heaters include: electric, fuel oil, solar, natural gas, propane, and geothermal energy.
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Step 2
Determine the size of tankless water heater you will need. Are you adding capacity by installing a tankless water heater as a secondary hot water source? Or will the tankless system be the primary home water source?
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Step 3
Estimate the number of devices needing hot water, the flow rate, and the temperature rise to accurately determine your usage needs. See the U.S. Department of Energy website in the Resources link below.
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Step 4
Understand the energy efficiency rating of the product before you make your purchase. A highly rated energy-efficient product does not necessarily mean it will cost less to operate. Some energy-efficient models do, however, qualify for a tax credit. See tax information in Resources section below.
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Step 5
Calculate the operating cost of the tankless water heater. See the Resources section for a link to this calculation.
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Step 6
Purchase a tankless water heater from a local hardware, home store, or specialty store.














