Tankless Water Heaters
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A tankless water heater, also called an on-demand or instantaneous water heater, has no storage tank to keep hot. It fires up only when a tap opens, heats the water as it passes through a compact heat exchanger, and shuts down again when the tap closes. Mounted on a wall rather than standing on the floor, it frees up space in a basement or utility room, and as long as the unit is sized for the household, a long shower or a full bath doesn't drain a reserve.
Getting that result in a Canadian home takes more than hanging a new box on the wall. A gas unit needs a gas supply large enough for its burner and its own venting to the outdoors; an electric unit draws a large amount of current and may call for new circuits or a bigger service. The water coming into the house is also much colder in January than in July, and the heater has to be chosen for the coldest months, not the mildest.
The sections below go deeper into tankless units only: gas versus electric, sizing for winter, hard water, condensing and combi models, and who may install them, from licensed plumbers to authorized gas contractors working under the permits your province or municipality requires.
How a tankless water heater works: gas, electric and combination models
Natural Resources Canada describes a tankless water heater as a unit that heats water only when it is needed, as it flows through, with either a gas burner or an electric element. A flow sensor detects that a hot tap has opened and signals the burner or the elements to start; the unit then adjusts its output to reach the set temperature and stops as soon as the flow does.
Natural gas and propane models are often chosen to serve a whole house, since a burner can deliver a great deal of heat from a small cabinet. Electric models are easier to place because they need no venting, but heating cold water instantly with electricity takes a lot of current, so a whole-house electric unit can require several heavy circuits and sometimes a larger service. Smaller electric units are often installed at a single sink or a distant bathroom, as point-of-use heaters.
A combination, or combi, unit is a gas appliance that heats both the household's water and the house, usually through radiators or in-floor heating; because its sizing has to balance both loads, it calls for a contractor experienced in hydronic heating as well as plumbing.
Tankless vs. tank water heater: the pros and cons of going tankless
- Pro: hot water keeps flowing for as long as demand stays within what the unit can heat, which suits back-to-back showers and filling a deep tub.
- Pro: no stored water sits waiting to be reheated, and NRCan notes that tankless units are typically more energy efficient than storage tank models.
- Con: the flow it can heat at once is limited, and NRCan cautions that several showers running at the same time can exceed what it provides.
- Con: switching from a tank usually means new venting, a larger gas line or new electrical circuits, so the job is more involved than a like-for-like swap.
- Con: most gas models need electricity for their controls and fan, so they stop heating during a power outage.
Sizing a tankless water heater for flow rate and cold Canadian winters
A tankless unit is sized by flow and temperature rise, not by volume. The plumber needs to know how much hot water your household draws at once at its busiest moment, and how many degrees the unit has to add to the incoming water to deliver it. Every model has a maximum heating capacity: the colder the water coming in, the more of that capacity goes into warming it, and the less flow the heater can supply at the temperature you want.
That is why winter matters so much here. Water from a municipal main or a private well is at its coldest in the depths of winter, and a unit that easily runs two showers in September may manage only one in February. A careful installer sizes for the coldest incoming water you can expect where you live, lists the fixtures that realistically run together, such as two showers and the dishwasher, and checks the flow of your showerheads. NRCan advises consulting an experienced plumber to estimate your home's hot water demand before you buy.
Gas lines, venting, electrical service and permits for a tankless water heater
While it runs, a gas tankless burner uses much more gas than a typical tank burner, so the gas piping, and sometimes the meter, may have to be enlarged. Most models vent through a side wall or the roof with a sealed intake and exhaust. Condensing units cool their exhaust until it condenses, so they can vent through plastic pipe but produce acidic condensate that must be piped to a drain, often through a neutralizer. The outdoor terminals must stay clear of snowbanks and ice, and Health Canada recommends a working carbon monoxide alarm in homes with fuel-burning appliances.
A whole-house electric unit shifts the load to the panel: the electrician checks whether the service can carry it on top of heating and other large loads and runs the dedicated circuits, and if a service upgrade is needed, that can tip the choice toward gas or another type of heater.
Who does the work is regulated. In Quebec, gas work must be carried out by a specialized contractor who is a CMMTQ member, even in an owner-occupied house, and plumbing contractors need a licence from the Régie du bâtiment du Québec. In Ontario, only fuels contractors registered with the TSSA may install a gas appliance. In British Columbia, Technical Safety BC requires a permit to install or replace a gas water heater, gas piping or a vent system; a licensed contractor you hire applies for it on your behalf, and at least one inspection must be requested within 180 days of the permit being issued.
Descaling and flushing a tankless water heater in hard-water areas
Hard water, common where homes are supplied by a well or by groundwater, carries dissolved minerals that come out of solution when it is heated and cling to the hottest surfaces; in a tankless unit, those are the narrow passages of the heat exchanger. Scale acts like insulation, so the unit works harder, its hot water output drops, and it may eventually shut itself down with an error code to protect the exchanger.
Descaling is a job for a technician: they isolate the heater with its service valves, circulate a descaling solution through the heat exchanger, flush it and clean the screen at the water inlet. How often depends on your water's hardness and how much hot water you use, so follow the manufacturer's schedule; NRCan recommends having a water heater serviced every year or two by a qualified professional. Where the water is very hard, the plumber may suggest a softener or a scale-reduction device upstream of the heater.
- Ask the installer to fit isolation service valves so the unit can be descaled without cutting into the piping.
- Keep the outdoor intake and exhaust terminals clear of snow, ice and leaves.
- If the house will sit empty in winter, ask a plumber how to protect the unit and its piping from freezing.
Common tankless water heater problems and what causes them
- Lukewarm water on the coldest days: the incoming water is so cold that demand exceeds the unit's capacity, a sign of undersizing or too many fixtures at once.
- A burst of cold water between two uses, sometimes called a cold-water sandwich, while the unit restarts after a short pause.
- No hot water at a trickle: the flow is too low for the sensor to switch the unit on, as often happens at a faucet opened only slightly.
- Ignition failure or shutdown on a gas model: a vent or intake blocked by snow or ice, or a gas supply problem that calls for a gas technician.
- Condensate drain trouble on a condensing model, such as a frozen or blocked line.
ENERGY STAR efficiency and rebates for tankless water heaters
According to Natural Resources Canada, an ENERGY STAR certified tankless water heater uses 30% less energy, on average, than a storage tank type. Tankless models are rated with an energy factor: the higher the number, the more efficient the heater. When you compare quotes, compare certified models with one another, and keep in mind that actual savings also depend on energy prices and on the way your household uses hot water.
Condensing gas models recover heat that would otherwise escape through the vent, which generally places them among the more efficient choices. Rebates for efficient water heating vary by province, utility and municipality and change often, so check what is open where you live, and its conditions, before you buy.
Tankless Water Heaters: frequently asked questions
How many showers can a tankless water heater run at once?
It depends on the unit's capacity and on how cold the incoming water is. NRCan cautions that when several showers run at the same time, demand can exceed what a tankless system can provide. A plumber sizes the unit for the fixtures your household actually uses together, in winter conditions.
Is a tankless water heater worth it in a cold climate?
It can be, if it is sized for winter water temperatures and the house has the gas supply, venting or electrical capacity it needs. Colder incoming water reduces the flow the unit can heat, so an undersized heater is the usual source of disappointment.
Does a tankless water heater work during a power outage?
Most gas models need electricity for their controls, fan and ignition, so they stop heating when the power goes out, and electric models stop too. Ask your installer what your model needs and whether backup power makes sense, installed by a licensed electrician.
How often does a tankless water heater need descaling?
It depends on your water hardness and usage, so follow the manufacturer's schedule. NRCan recommends having a water heater serviced every year or two by a qualified professional, and homes with hard water tend to need descaling at the more frequent end of that range.
Who can install a gas tankless water heater?
An authorized gas contractor: a CMMTQ member in Quebec, a TSSA-registered fuels contractor in Ontario, or in British Columbia a licensed contractor working under a Technical Safety BC gas permit. The water connections belong with a licensed plumber.
Sources
- Natural Resources Canada: Tankless water heaters
- Natural Resources Canada: Guide to residential water heaters
- Health Canada: Carbon monoxide, preventing exposure
- CMMTQ: Can you do your own plumbing and heating work?
- Régie du bâtiment du Québec: Plumbing licence
- TSSA: Authorized heating fuel contractors (Ontario)
- Technical Safety BC: Homeowner gas permits
Written by the LokalMatch editorial team. Last reviewed September 10, 2026.
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What affects the cost of tankless water heater
Prices depend on the details of your project. We only publish price ranges when they’re backed by real LokalMatch quote data or reliable sources. Until then, here’s what usually changes the price:
- Type of problem and how easy it is to find
- Access to pipes behind walls, under floors or underground
- Parts and fixtures chosen
- Age and material of the existing pipes
- Emergency, evening or weekend service
- Permits and inspections, where required
How to compare plumbers before you hire
- Hire a plumber who is licensed for this work in your province, especially for gas water heaters, sewer lines and new plumbing.
- Ask whether they charge a flat rate or by the hour, and what the call-out fee covers.
- For leaks and drain problems, choose someone who explains the cause and doesn't only clear the symptom.
- Get the scope in writing for larger jobs such as a water heater, sewer repair or re-piping.
- If it's urgent, ask how soon they can arrive and whether after-hours rates apply.
Questions to ask plumbers before you hire
- Are you licensed for plumbing work in my province?
- Do you charge a flat rate or by the hour, and is there a call-out fee?
- What do you think is causing the problem?
- Will this work need a permit or an inspection, and who will arrange it?
- Will you need to open walls, floors or the yard to reach the problem?
- What warranty do you offer on parts and labour?
When to call a pro for tankless water heater
- An active leak: shut off the main water valve if you can reach it safely, then call a plumber.
- Sewage backing up into drains or the basement
- No hot water, or water pooling around the water heater
- Pipes that may have frozen during a cold snap
Tankless water heater permits and local rules
Some tankless water heater work needs a permit or has to meet local bylaws. Rules vary by municipality, so ask your pro whether a permit is needed and who will apply for it — and check with your city or town if you’re unsure.
Permits and licensingSeasonal maintenance
This job is part of our home maintenance checklists for:
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