Top Tankless Water Heater Service Companies in Chicago, Illinois Ranked

Considering a switch to an on-demand water heating system? Tankless water heaters, also known as instantaneous or demand-type water heaters, provide hot water only when you need it, eliminating the energy wasted by keeping a large tank of water constantly hot. For Chicago homeowners, this technology offers a path to lower energy bills, more space, and a longer-lasting appliance. This guide will help you understand the key considerations, from installation requirements to ongoing maintenance, so you can make an informed decision and find qualified local professionals for your project.

Excellent Plumbing

785 Oakwood Rd Suite E101, Lake Zurich, IL 60047

Excellent Plumbing is a family-owned plumbing company serving Chicago, IL, and the northern Chicagoland suburbs since 2006. They offer a wide range of plumbing services, including drain cleaning, sewer line repair, water heater installation and repair, leak detection, and water softener installation. Their team is equipped to handle specialized plumbing tasks such as high-pressure hydro jetting and comprehensive boiler and radiator services. With over 17 years of experience, Excellent Plumbing provides 24/7 emergency service and same-day appointments to address urgent plumbing needs promptly.

5.0

511 Reviews

Drain & Plumbing Services

3663 Woodhead Dr, Northbrook, IL 60062

Drain & Plumbing Services offers a wide range of plumbing and drain cleaning solutions in Chicago, IL, including water heater repair and installation, tankless water heaters, leak detection, toilet and garbage disposal repairs, and hydro jetting. Their team uses advanced technology such as sewer camera inspections and hydro jetting equipment to diagnose and resolve plumbing issues efficiently. Serving both residential and commercial clients, they provide comprehensive services tailored to local infrastructure needs. The company also offers 24/7 emergency plumbing service to address urgent repairs promptly.

5.0

267 Reviews

The All Pipes INC.

255 Holly Ln, Elk Grove Village, IL 60007

The All Pipes INC. is a licensed and insured plumbing company serving Chicago, IL. They provide a wide range of plumbing services including water heater repair and installation, trenchless sewer repair, sump pump installation, leak detection, and hydro jetting for drain cleaning. The company offers both residential and commercial plumbing solutions and specializes in tankless water heater installations to help reduce energy costs. Founded by Grigor Ganchev, who has built his career in plumbing over many years, The All Pipes INC. emphasizes integrity and clear communication with clients to maintain lasting relationships.

5.0

210 Reviews

Elevate Plumbing

2307 Edna Ave, Park Ridge, IL 60068

Elevate Plumbing is a plumbing contractor serving Chicago, IL, and the surrounding areas including Park Ridge. They provide a range of residential and commercial plumbing services such as water heater installation and repair, sewer line replacement, sump pump repair, drain cleaning, and gas line installation. The company is licensed by the Illinois Department of Public Health and is known for handling projects with permits and up-to-code workmanship. Elevate Plumbing offers expertise in sewer line replacement and tankless water heater installation, with a focus on clear communication and customer collaboration.

5.0

203 Reviews

TR Miller Heating, Cooling, Plumbing and Electrical

11917 S Aero Dr, Plainfield, IL 60585

TR Miller Heating, Cooling, Plumbing and Electrical is a family-owned company serving Chicago, IL, and the Greater Chicago Area since 2008. They provide a wide range of plumbing, heating, cooling, and electrical services, including water heater repair and installation, sump pump repair, drain cleaning, gas line installation, and toilet repair. Their licensed technicians use the latest technology to deliver professional service and offer personalized recommendations tailored to each customer's needs. TR Miller also provides HVAC services such as heat pump and ductless mini-split installation, along with indoor air quality solutions like UV lights and air purifiers.

4.9

10k Reviews

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Understanding Tankless Water Heater Technology

Unlike traditional storage tank heaters, a tankless unit heats water directly as it flows through the device. When you turn on a hot water tap, cold water travels through a pipe into the unit, where either a gas burner or an electric element heats it instantly. This means you're not paying to reheat 40-80 gallons of water all day and night, which can lead to significant energy savings ^{1 2}. For Chicago households, this efficiency is a major benefit, especially during our long, cold winters when heating demands are high.

The core advantage is the elimination of standby heat loss. A standard tank heater constantly cycles on and off to maintain its set temperature, even when no one is home. A tankless system avoids this waste entirely, which is why these units often boast a longer operational lifespan-potentially 20 years or more compared to the 10-15 year average for tank models ¹. Furthermore, installing an ENERGY STAR® certified tankless water heater may qualify you for federal tax credits under the Inflation Reduction Act, providing additional financial incentive ².

Key Considerations Before Installation in Chicago

Upgrading to an on-demand system isn't as simple as swapping out an old tank. Several critical factors specific to your Chicago home will determine the feasibility and cost of the project.

Fuel Type: Gas vs. Electric The most common types are natural gas and electric. Natural gas models are popular in Chicago due to the widespread availability of gas service and their ability to deliver high flow rates, which is ideal for larger homes with multiple bathrooms ³. Electric tankless heaters are also an option, often chosen for smaller homes, point-of-use applications, or where gas lines are not available.

Proper Sizing is Crucial Sizing a tankless water heater is fundamentally different from sizing a tank model. It's not about storage capacity but about flow rate and temperature rise. A professional will calculate the required Gallons Per Minute (GPM) based on the number of simultaneous hot water fixtures you expect to use and, critically, the temperature of Chicago's incoming groundwater ^{4 3}. Our cold winters mean the incoming water can be very chilly, requiring the unit to work harder to raise it to your desired temperature, which directly impacts the size and model you need.

Space and Location One of the celebrated benefits is their compact, wall-mounted design, freeing up valuable floor space typically occupied by a bulky tank ⁵. They can be installed indoors (like in a utility room, basement, or garage) or outdoors in a weatherproof enclosure. Indoor installations require proper venting for gas models, while outdoor installations eliminate the need for venting but must be rated for the local climate.

The Installation Process: What to Expect

Professional installation is not just recommended; it's essential for safety, warranty validation, and compliance with Chicago building codes. The process often involves more than just plumbing.

Gas Line and Venting Requirements If you're installing a gas-fired on-demand heater, your existing gas line may need to be upgraded. These units require a significant volume of gas to ignite and heat water instantly, and an undersized line can lead to poor performance or safety issues ^{4 3}. The cost for this upgrade can range from $300 to $2,000+ ^{6 4}.

Venting is another major component. Modern gas tankless units typically use sealed combustion, drawing outside air directly into the burner and expelling exhaust through dedicated, concentric PVC or stainless steel venting ^{1 5}. They cannot use the old, large-diameter chimney flue that a traditional tank heater might have used. This specialized venting must be installed according to strict manufacturer and code specifications.

Electrical Demands for Electric Models Electric instantaneous water heaters have substantial power requirements. They often need multiple heavy-gauge wires run from your home's main electrical panel and dedicated high-amperage circuits ^{5 3}. Many older Chicago homes require an electrical panel upgrade to handle this new load, which adds to the overall project cost and complexity.

Labor and Total Project Cost Given these complexities, labor is a significant portion of the total cost. In the Chicago area, total installation costs for a tankless water heater typically range from $2,000 to over $8,000 ^{1 6 7}. This wide range accounts for the unit itself (which varies by brand, efficiency, and capacity) and the labor involved, which can be $1,200 to $2,500 or more for complex jobs involving gas, venting, or electrical upgrades ^{6 4}.

Ongoing Maintenance and Repair

To protect your investment and ensure a long service life, regular maintenance is key. This is especially true in Chicago due to our region's hard water, which contains minerals like calcium and magnesium.

Essential Annual Maintenance The primary maintenance task is flushing the system to remove mineral scale buildup (limescale) from the heat exchanger. This scale acts as an insulator, forcing the unit to work harder, reducing efficiency, and potentially leading to overheating and failure ^{8 9}. An annual professional tune-up should include this flush, along with checking and cleaning the inlet screen, inspecting the venting system, and testing safety valves and electrical components.

Common Repair Issues Even with proper maintenance, components can fail. Common repair issues include problems with the flow sensor, igniter (on gas models), heating elements (on electric models), or the control board ⁹. Minor repairs might cost a few hundred dollars, while more complex component failures can run over $1,000. In some cases, if a major internal part like the heat exchanger fails, the repair cost may approach that of a new unit, making replacement the more economical choice.

Weighing the Pros and Cons for Your Home

Making the decision requires a balanced look at the advantages and potential drawbacks.

The Benefits:

• Energy Efficiency: The primary draw is reduced energy consumption, as you only heat water on demand. This can translate to lower monthly utility bills ^{1 5}.
• Endless Hot Water: With a properly sized unit, you won't run out of hot water during a long shower or while running multiple appliances.
• Space Savings: The compact, wall-mounted design frees up floor space.
• Longer Lifespan: With proper care, a lifespan of 20+ years is achievable ¹.
• Potential Tax Incentives: Eligibility for federal energy efficiency tax credits can improve the return on investment ².

The Considerations:

• Higher Upfront Cost: The initial purchase and installation cost is significantly higher than for a conventional tank heater ^{6 7}.
• Output Limitations: While the hot water is "endless," the flow rate is limited. Running a shower and a dishwasher simultaneously may exceed the unit's GPM capacity if it wasn't sized correctly.
• Retrofit Challenges: The need for upgraded gas lines, specialized venting, or electrical service can add complexity and cost to installations in existing homes ^{4 3}.
• Maintenance Requirement: The need for annual flushing to combat hard water is a recurring cost and task that tank owners typically don't face.

Finding the Right Professional in Chicago

Given the technical nature of the installation, choosing the right contractor is paramount. Look for a licensed plumber or HVAC company with specific, proven experience installing tankless water heaters. They should be able to conduct a thorough site evaluation, perform the necessary load calculations for your home, pull all required permits, and ensure the installation meets all local codes and manufacturer specifications. A proper installation is the single biggest factor in ensuring the system's performance, efficiency, and longevity.

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