More Evansville homeowners are making the switch to tankless water heaters, and it's easy to see why. Endless hot water, lower energy bills, and a unit that lasts 20+ years instead of 10. But tankless installation is very different from swapping out a standard tank unit. Whether you're in a century-old home in Jacobsville or a newer build in Newburgh, here's what to expect when going tankless in Evansville.
Gas vs Electric: Which Makes Sense in Evansville?
The first decision is fuel type. Each has different installation requirements and costs.
Gas tankless units are more popular in Evansville because natural gas is readily available and affordable in most of the city. They heat water faster and can serve multiple fixtures simultaneously. However, they require proper venting — typically stainless steel or PVC venting through an exterior wall.
Electric tankless units are simpler to install (no venting needed) but require significant electrical capacity. Many older Evansville homes in Stringtown and Riverside have 100-amp or 150-amp service panels that can't support a whole-house electric tankless unit, which may draw 120+ amps at peak. Upgrading to a 200-amp panel adds $1,500–$3,000 to the project.
What the Installation Process Looks Like1. Assessment and Sizing
A professional will assess your home's hot water demand — how many bathrooms, how many people, and your peak usage patterns. In Evansville, groundwater temperature enters at about 55°F in winter. Tankless units are rated by how many degrees they can raise water temperature at a given flow rate (GPM). For a 120°F shower with 55°F incoming water, the unit needs to provide a 65°F temperature rise at your desired flow rate.
2. Removing the Old Tank
The existing tank water heater is disconnected and removed. If it's in a basement — common in older Evansville homes — this may require navigating tight spaces and stairs.
3. Gas Line or Electrical Upgrades
Gas tankless units require a larger gas line than tank heaters — typically 3/4-inch or 1-inch line instead of 1/2-inch. If your home's gas line is undersized, it must be upgraded from the meter to the unit. This is often the most unexpected cost in the installation.
4. Venting Installation
Gas units require dedicated venting through a sidewall or roof. In Evansville's older homes with plaster walls and finished basements, routing venting can be challenging. The vent must terminate at least 3 feet from any operable window and 12 inches above ground or snow line.
5. Mounting and Connection
The tankless unit is mounted on the wall — typically an exterior wall near the gas and water lines. Water connections are made, a drain pan is installed (for condensate), and the unit is tested.
Cost Breakdown for Evansville Installations
- Gas tankless unit: $1,200–$2,500
- Electric tankless unit: $500–$1,500
- Installation labor: $1,000–$2,500
- Gas line upgrade (if needed): $300–$800
- Electrical panel upgrade (if needed): $1,500–$3,000
- Venting materials: $200–$600
Total project cost typically ranges from $2,500 to $5,500 for a gas installation and $1,500 to $4,000 for electric, depending on what upgrades your home needs.
Rebates and Incentives
Evansville residents may qualify for federal tax credits of up to $300 for Energy Star-certified tankless water heaters. Check with Vectren (CenterPoint Energy) for any gas appliance rebates, as utility incentives change annually.
Realistic Expectations
Tankless water heaters do provide endless hot water, but they have a flow limitation. If you're running two showers and the dishwasher simultaneously, a single unit may not keep up. For larger families in McCutchanville or Newburgh with high simultaneous demand, consider installing two units or a unit with a high GPM rating.
Also know that tankless units require annual descaling in Evansville. Our hard water causes mineral buildup in the heat exchanger, which reduces efficiency and can damage the unit. A vinegar flush takes 45 minutes and costs $100–$150 if done by a plumber, or you can do it yourself with a descaling kit.
Is It Worth It?
For most Evansville homeowners, the answer is yes — if you plan to stay in your home for 5+ years. The energy savings (typically $80–$150/year), longer lifespan, and endless hot water justify the higher upfront cost. But if your home needs significant gas or electrical upgrades, factor those into your payback calculation.