Can tankless water heaters be installed inside?
Daniel Moore
Published Jan 08, 2026
Electric tankless water heaters are designed to be installed indoors in the garage, basement, or interior wall. Both natural and propane gas tankless water heaters have indoor and outdoor models. Indoor models can also be installed in the garage, basement, or the exterior wall's interior side to provide venting.
Where should tankless water heaters be installed?
The ideal location for your water heater is inside the home. Most installations are small and unobtrusive so they will easily fit in a pantry, under the stairs, or under your sink. If you must place the water heater outside, make sure it's safe from direct sunlight, rain, and insects.
Should a tankless water heater be inside or outside?
If you don't have room inside your home for a tankless water heater, installing it outside will save you space. This is the best option for homes that have a lack of wall space.
What is the downside of a tankless water heater?
The main disadvantage of tankless water heaters is their upfront cost (unit and installation) is significantly higher than tank-style heaters. Including installation, tankless water heaters cost 3 times more than tank-style water heaters on average.
Does a tankless water heater need to be vented?
Tankless hot water heaters require special venting to blow hot exhaust gas outside, where it dissipates. Unlike traditional tank-style water heaters, gas tankless hot water heaters offer far more versatile venting options.
15 related questions foundCan an indoor water heater be installed outside?
Electric and gas tank-style water heaters are not designed to be installed outside without shelter. On the other hand, gas tankless water heaters have exterior models installed outside. You can also install electric tankless water heaters outside with some sheltering recommended to protect the unit from the weather.
Can an outdoor tankless water heater be installed in a garage?
As long as enough combustion air is provided, tankless water heaters can be installed in place of your old water heater or anywhere in your home. This includes utility rooms, garages, basements, attics, or mounted on outside walls. They can even be installed in locations where a storage water heater wouldn't fit.
How far does a tankless water heater need to be from a window?
A tankless water heater requires a 4-foot clearance from the side or below a door or window that opens, unless the unit is directly vented to the outside. If the water heater is installed above the door or window, it needs 12 inches of clearance.
How close can a tankless water heater be to an electrical panel?
The only code requirements I've found regarding clearances around an electrical panel are allowing at least a 30" working space (side to side).
How much room is needed for a tankless water heater?
The unit heats the water as long as this is open. When it is closed, the tankless unit stops heating the water. It is true that tankless water heaters do not require a lot of space. A large unit requires an area no larger than 24 inches square and ex- tends from the wall by about 8 to 10 inches.
Can you install a tankless water heater anywhere?
Tankless water heaters can be installed anywhere inside your home. You can even have a tankless water heater in a bathroom! Some families with larger homes choose to install two, one for each floor, for example. Because of their small size, they fit in closets, cabinets, pantries or laundry rooms.
Can a tankless water heater explode?
Because there is no tank which can overheat or experience a massive spike in pressure, a tankless system doesn't have the danger of bursting or exploding. A tankless system is also a safer device to have with children around.
Can I vent my tankless water heater into chimney?
The tankless heater cannot share vent piping with any other appliance, and it cannot use a masonry chimney flue for venting. Special stainless steel pipe. The vent pipe must be made of stainless steel designed for venting corrosive gases.
Can you mount a tankless water heater outside?
Yes - there are outdoor tankless water heater units that are made to withstand the elements BUT - it is recommended that electric tankless water heaters be provided with some form of shelter. Gas powered tankless water heaters that are placed outdoors do not require any form of protective shelter.
What is inside a tankless water heater?
Inside the tankless system, a burner ignites when the system signals a need for hot water. The cold water passes over an aluminum heat exchanger and heats the water directly. When the hot water is shut off, the system goes into standby mode.
Can tankless water heaters be installed in the attic?
Because of their compact size, many tankless water heaters can be installed in a garage, attic, basement or utility closet without sacrificing floor space.
Can an outdoor tankless water heater be installed in an attic?
Simply put, as long as there is enough combustion air provided, tankless water heaters can be installed in any area of your home, from a utility room to a garage to, yes, even an old, dusty attic.
How do I keep my tankless water heater from freezing outside?
How to Prevent Your Tankless Water Heater from Freezing
- Install Your Water Heater in a Warm Place. ...
- Drain Your Water Heater. ...
- Maintain a Power Source. ...
- Consider a Recirculation System. ...
- Insulate, Insulate, Insulate. ...
- Run a Trickle of Water.
Can a tankless water heater be installed horizontally?
Horizontal Installation. Gas or liquid propane tankless water heaters can be installed either vertically or horizontally.
Can you vent tankless water heater with PVC?
In most cases, PVC makes a great venting material. It's the least expensive option and is easy to install. And it's a good reason to consider a high-efficiency condensing unit.
Can you replace a tank water heater with a tankless?
Yes. The initial cost of converting your tank water heater to a tankless is expensive. Tankless water heaters are 3x more expensive than your average tank water heater. However, the energy savings and supply of endless hot water can outweigh the cost for many.
What's the life expectancy of a tankless water heater?
Most tankless water heaters will last for up to 20 years or more, which is a long lifespan in comparison to tank water heaters, which last around 10–15 years. Tankless water heaters use new technology that helps them to stay functional and operational for much longer than some of the alternatives out there.
Do tankless water heaters release carbon monoxide?
Tankless gas water heaters release carbon monoxide gas as part of the combustion process. This is normal. Depending on if you have an indoor or outdoor model determines how your tankless water heater is vented. Carbon monoxide poisoning occurs when an indoor tankless water heater is not venting correctly.
What size tankless water heater do I need for a family of 5?
In short, a family of 5 would need a 10 GPM gas tankless heater or 27 kW electric tankless heater if you live in the northern part of the USA, where the input water has a lower temperature. The tankless heater has to work extra hard to bring the water temperature up to 110˚F or 120˚F.