HomeAppliancesHeating & CoolingElectric Tankless Water Heater › New York

How Much Does It Cost to Run a Electric Tankless Water Heater in New York? (2026)

Electric tankless heaters draw enormous power, 12 to 36 kW, but only while hot water is flowing. They avoid the standby losses of a tank, saving 10 to 30 percent for most households, but need heavy wiring.

A typical electric tankless water heater (18,000 W) costs $5.22 per hour, or about $117.45 per month at 0.75 hours a day in New York. Expensive to run

WattagePer hourPer dayPer monthPer year
Low (12,000 W)$3.48$2.61$78.30$952.65
Typical (18,000 W)$5.22$3.91$117.45$1,429
High (36,000 W)$10.44$7.83$234.90$2,858

Formula: watts ÷ 1000 × hours × price per kWh. Typical use is 0.75 h/day ≈ 4,928 kWh per year.

In New York, with electricity at $0.29 per kWh (source: EIA Table 5.6.A, 2026-06), a typical electric tankless water heater costs $5.22 per hour and about $1,429 per year at 0.75 hours a day. That is about 61% more than the US national average of $72.90 per month, because electricity in New York costs $0.29 per kWh against $0.18 nationally. Each $1.00 of electricity buys roughly 0.2 hours of use.

ad

How to lower the cost of running a electric tankless water heater

In standby it draws about 2 W, which adds roughly 18 kWh ($5.08) per year if it is never unplugged.

Frequently asked questions

How much does a tankless water heater cost per month?

About 400 kWh a month for a family of four, roughly 10 to 30 percent less than a tank.

Do tankless heaters use a lot of electricity?

A lot at once, but for short periods. Total use is typically lower than a tank.

Do I need a panel upgrade for an electric tankless heater?

Often yes. Whole-house units need 100 amps or more of dedicated capacity.

Compare with

Cost by region

Related appliances

Use the generic electricity cost calculator →