Does this pricing sound fair for tankless water heater install?
My gas company (TECO Peoples Gas) has a subsidizing program for a tankless water heater. They will pay select contractors up to $1650 towards a unit/install. In return, they bill me $24.99 over 60 months, which comesout
to $1499.40. So there's a $150 savings from that. TECO says that that cost typically cover the entire unit and a basic install.
TECO's primary contractor for my area called me and gave me a rough price of $1800-$2600, indicating 9 out of 10 times that the install comes in at the middle range of $2200-2300. That pricing does not jive with what TECO says about $1650 covering it.
This contractor uses Rannai and Nortiz units only. They said that they prefer to do exterior installs, I'd assume so they don't have to deal with venting through the roof. My current water heater is in the garage, less then 10 feet from the outside of the garage where the gas meter is, so there is not a lot of piping that needs to be run. Additionally, my entire house was re-piped with PEX, so the piping is all in the attic now.
I asked the contractor what effects the price and the said 3 things: electrical work, amount of plumbing needed, size of unit. The contract said I'd likely be at the 7.5/gpm range and they would need to run dedicated electrical for the unit.
Lastly, if I do this program through TECO, they provide their own 5 year warranty on the ENTIRE unit. They basically piggy back on the 10 year heat exchanger only warranty offered by the manufacturer and cover the entire unit for the first 5 years. Labor is no covered.
At the end of the day, when all my costs are paid (up front and over 5 years), I'm looking at around a max of $2000-2100 paid out of pocket.
So, what I'm looking to know if this pricing structure sounds reasonable and if I should go down this road.