Tankless Water Heater vs. Tank

Are you ready to upgrade your water heater and wondering whether a tankless water heater vs. tank is right for you? There is plenty to consider when you’re ready to upgrade your water heater, as it’s a long-term, expensive investment, and its efficiency will impact your daily life in countless ways. Read on for some key information to help make the right decision for you, your home and your family. 

How Does a Tankless Water Heater Work? 

A tankless water heater works by heating the water that flows through it, as and when it does so. This means that hot water is available instantaneously, and there is little wastage in terms of energy use.  The main things to consider in terms of how your tankless hot water heater will work and what this will mean for you are:

• There will almost always be hot water available for use immediately as you need it. You will have a constant supply, no matter how much you use and need.

• Less energy will be wasted, making a tankless water heater the better choice in terms of environmental concerns.

• Less energy wasted means lower energy bills.

A standard water heater on the other hand stores the water it heats and maintains its temperature until it is ready for use. Although the hot water moves to the top of the water heater ready for use, this means two things:

• A standard hot water heater holds between 40 and 60 gallons of water. Although this is a very sizeable amount it is possible to run out of hot water if a lot is used at once. This is particularly likely if multiple chores take place at the same time – for example if members of your family chose to shower, do the dishes and run the washing machine at the same time. This is a bigger problem for larger families who use more water.

• 40-60 gallons of water is a large quantity of water to keep warm. This means that with a standard water heater, a lot of energy is wasted in keeping stored water hot, ready for use.

Is a Tankless Water Heater More Expensive than a Tank Water Heater? 

A tankless hot water will initially be a more expensive investment than a tank water heater.

A standard hot water heater with a tank will cost around $650-$850. A tankless water heaters can vary between $1000 and $3000 for cost of purchase and installation, depending on whether you chose the cheaper electric tankless hot water heater or more expensive gas-powered one.  

 

Do Tankless Water Heaters Save Money? 

Despite the initial cost of investment and installation, tankless water heaters can save you money in the long run

• One of the main ways a tankless water heater saves you money is on your energy bills. $100 annual savings on energy are common, but this figure has the potential to be higher depending on the amount of water you family tends to use.
• A tankless water heater is likely to last double the amount of time a tank water heater will. With a tank water heater, you’re looking at an 8-12 year lifespan, and a 20 year lifespan for a tankless water heater. This means it could be double the time before you have to pay for a new water heater and installation all over again.