Had a Reliance rented power-vent water heater for 11 years. Monthly rental was $38.99 — so over 11 years we’d paid $5,143 and still owned nothing. Finally bought it out and switched to owned tankless.
Buyout cost:
Called Reliance to get the buyout amount — $480 with 11 years elapsed on a 15-year contract. Much lower than I expected. Paid it.
Tankless quotes:
- Rinnai RU199eN (natural gas condensing): Quote A $4,100 installed, Quote B $3,700 installed
- Navien NPE-240A: Quote A $4,400 installed, Quote B $3,900 installed
- Local brand (Noritz): $3,300 installed
We went with the Rinnai RU199eN at $3,700. The contractor had done 60+ Rinnai installs and knew the system well — familiarity with the brand was a factor.
Additional costs:
- Gas line upgrade (3/4-inch required, we had 1/2-inch to the furnace room): $420
- Condensate drain installation: $180
- New venting (2-inch PVC concentric): included in quote
Total investment: $3,700 + $480 buyout + $600 gas/venting = $4,780
Monthly savings:
Old Reliance rental: $38.99/month + slightly higher gas bills (tank standby loss)
New tankless: $0/month rental + estimated $15-20/month lower gas
Annual savings: approximately $560 ($468 rental + $90 energy)
Payback period: 8.5 years
After payback, the Rinnai runs for another 10+ years with no rental cost. The math is clear: if you’re within 5 years of rental contract end, buy out and switch to owned.