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Use a union fitting to connect the threaded gas pipe to the heater. Run copper pipe from the existing water-supply line to the heater. Solder all copper connections. Open the main water valve, and check your work for leaks. Turn on the propane and plug the heater into a nearby electrical outlet. Set water temperature to 120 degrees F at the.. Tankless water heaters provide hot water on demand, wherever and whenever you need it. They run on gas or electricity, provide higher energy efficiency, have a longer lifespan, and are more compact than tank models, which makes them optimal for use in smaller spaces.. "You can find electric and propane units in the $500 to $2,500 range.