What Does It Cost to Run a Tankless Water Heater in Texas?
Running a tankless water heater in Texas costs about $42.88 a month — $521.66 a year — at the state's average rate of 15.88 ¢/kWh. That's roughly $79.83 a year less than a household paying the national average pays for the exact same tankless water heater. The estimate assumes a typical 18,000-watt tankless water heater running 0.5 hours/day, at the all-in average rate (delivery, fixed charges, and utility fees already included; locally billed taxes vary by area).
Key metrics
| Metric | Value |
|---|---|
| Average wattage assumption | 18,000 W |
| Typical usage assumption | 0.5 hours/day |
| Estimated monthly electricity use | 270.0 kWh |
| Estimated monthly cost | $42.88 |
| Estimated yearly cost | $521.66 |
Tankless Water Heater cost vs U.S. average
At the state average rate, a tankless water heater in Texas costs $6.56 less a month than it would at the U.S. average rate.
How much electricity does a tankless water heater use?
A tankless water heater draws roughly 10,000-27,000 W; we use 18,000 watts running 0.5 hours/day. That comes to 9.00 kWh a day — 270.0 kWh a month, or 3285.0 kWh over a year — using kWh = watts × hours ÷ 1000. For the wattage range, amps, and how that math works, see how many watts a tankless water heater uses.
Tankless units draw very high wattage but only while hot water is flowing — typically well under an hour of actual heating per day for most households. Total cost tracks hot-water use, not time of ownership, and there are no standby tank losses. Texas prices that energy at 15.88 ¢/kWh, against a 18.31 ¢/kWh national average.
Tankless Water Heater operating cost estimate in Texas
| Time period | Energy use | Cost |
|---|---|---|
| Per hour | 18.0 kWh | $2.86 |
| Per day | 9.00 kWh | $1.43 |
| Per month | 270.0 kWh | $42.88 |
| Per year | 3285.0 kWh | $521.66 |
These figures use the all-in average rate. Your actual bill can run higher when separately billed taxes, seasonal pricing, and fixed monthly fees apply.
What changes the cost the most?
Two things move this number: your state's rate, which you can't change, and how hard the appliance works, which you often can. For a tankless water heater, that mostly comes down to groundwater inlet temperature, daily hot-water minutes, unit sizing.
Using yours more lightly or heavily than our assumption? The state calculator and usage-cost pages below model your exact scenario at the same rate.
For calculator-style comparisons, use the Tankless Water Heater calculator in Texas to compare light, typical, and heavy usage profiles.
Comparison entry points
Browse related comparisons from the energy comparison hub:
City pages for selected metros in Texas
These city pages add local rate context for the same appliance assumptions. City values are estimates.
| City | City rate | Monthly estimate | Yearly estimate | More detail |
|---|---|---|---|---|
| Houston | 16.52 ¢/kWh | $44.59 | $535.09 | City electricity context |
| San Antonio | 16.52 ¢/kWh | $44.59 | $535.09 | City electricity context |
| Dallas | 16.52 ¢/kWh | $44.59 | $535.09 | City electricity context |
| Austin | 16.20 ¢/kWh | $43.73 | $524.80 | City electricity context |
| Fort Worth | 16.20 ¢/kWh | $43.73 | $524.80 | City electricity context |
| El Paso | 16.20 ¢/kWh | $43.73 | $524.80 | City electricity context |
City electricity pages focus on local rate context. The table above uses the statewide average rate.
Related appliance cost pages for Texas
- Space Heater cost in Texas — Typical 750-1,500 W estimate with state-specific pricing
- Window AC cost in Texas — Typical 500-1,500 W estimate with state-specific pricing
- Portable AC cost in Texas — Typical 700-1,400 W estimate with state-specific pricing
- Central AC cost in Texas — Typical 2,000-5,000 W estimate with state-specific pricing
Frequently asked questions
How much does it cost to run a tankless water heater in Texas?
At 0.5 hours/day and the state average rate of 15.88 ¢/kWh, you'd pay about $42.88 a month.
Does this estimate include delivery fees and taxes?
Yes — the all-in average rate already includes delivery, fixed charges, and utility fees; locally billed taxes vary by area.
Where else can I compare this appliance?
See the appliance comparison guide, or the Texas bill estimator for whole-household profiles.
State cost and bill pathways for Texas
- Texas electricity price per kWh — What a kWh of electricity costs in Texas
- Texas electricity rates & prices — Core authority page with statewide pricing context
- Texas electricity cost analysis — State-level cost, affordability, and value overview
- Houston electricity estimate (Texas) — City electricity page with methodology notes where city coverage is available
- Average electric bill in Texas — What a typical monthly bill looks like
- Texas household bill estimator — Estimate your bill from your monthly usage
Historical and trend pages
- Texas electricity price history — Historical context and trend interpretation
- Electricity inflation in Texas — State electricity inflation analysis
- Texas electricity price volatility — Volatility and rate movement profile
Fixed-usage and calculator pathways
- Electricity cost for 250 kWh in Texas — Cost for this usage amount in the same state
- Electricity cost for 300 kWh in Texas — Cost for this usage amount in the same state
- 400 kWh cost in Texas — Cost for this usage amount in the same state
- Texas electricity cost calculator — Custom kWh and scenario cost calculation
Appliance and estimator pathways
- Refrigerator cost in Texas — Appliance operating-cost page for this state
- Refrigerator calculator in Texas — Calculator page for adjusting wattage and usage for this appliance
- Space Heater cost in Texas — Appliance operating-cost page for this state
- Space Heater calculator in Texas — Calculator page for adjusting wattage and usage for this appliance
- Window Ac cost in Texas — Appliance operating-cost page for this state
- Window Ac calculator in Texas — Calculator page for adjusting wattage and usage for this appliance
State comparison pathways for Texas
- Texas electricity comparisons — State-to-state comparison hub
- Texas vs Alabama electricity cost — Head-to-head comparison page
- Texas vs Alaska electricity cost — Head-to-head comparison page
Discovery and navigation hubs
- Texas electricity hub — Guide to this state's electricity rate, usage, comparison, and tool pages
- Electricity cost scenario hub — Entry point for residential and industry scenario pages
- Texas electricity cost overview — State-level electricity cost page with rates and typical bill context
- Average electric bill in Texas — Typical monthly bill estimate using a standard household usage assumption
- Texas electricity bill estimator — Household profile bill scenarios for this state
- Electricity usage hubs — Browse cost pages by common household usage tiers
Consumer electricity drivers
- Price drivers in Texas — Understand what influences state electricity prices
Source & Method
Source: U.S. Energy Information Administration (EIA) Retail Sales of Electricity. Updated: July 2026. Estimates use the EIA all-in average residential rate — energy, delivery, fixed charges, and utility fees together, not just the electricity itself. Fees are inside the rate, not an extra on top; how your own bill splits fixed versus per-kWh charges varies by utility. For what's inside the all-in rate, see hidden electricity fees; for how rates and estimates are defined, see the methodology hub.