What Are Tankless Water Heaters and Are They Right for You?
Tankless water heaters are transforming home energy efficiency. Unlike traditional water heaters, these units heat water on demand, providing a constant supply of hot water without the bulky storage tank. This innovative technology has gained popularity in the U.S., particularly among homeowners looking to reduce energy bills. With water heating typically accounting for 20% of household energy use, tankless water heaters promise significant energy savings. But are they truly the right fit for your home?
In the following blog we will discuss the facts, benefits, and considerations so you can decide if tankless water heaters align with your needs. Let’s dive into the specifics to see how these systems work and if they offer a worthwhile upgrade.
What are Tankless water heaters and How it Works?
Tankless water heaters, also known as “on-demand” or “instantaneous” water heaters, provide hot water only when needed. When you turn on a hot water faucet cold water flows through a heat pipe in the unit. Powered by either a natural gas burner or an electric element, the heater instantly warms the water to your desired hot water temperature.
Unlike conventional storage tank water heaters, which store and continually reheat a large amount of water, tankless models heat water as it flows. This setup results in a nearly endless supply of hot water, as long as the system can keep up with demand. The absence of a tank eliminates the risk of running out of hot water and reduces standby energy losses common in traditional water heaters.
What Are the Advantages of Tankless Water Heaters?
Tankless water heaters provide multiple benefits that can improve your home’s energy efficiency and overall comfort. Here are some key advantages:
- Energy Efficiency and Savings
Tankless water heaters can be more energy efficient for homes using less than 41 gallons of hot water daily. They reduce energy bills over time by eliminating standby heat loss from stored water. - Longer Lifespan
Tankless water heaters have a longer lifespan than traditional models. While conventional storage-tank water heaters usually last between 10 and 15 years, tankless models can last 20 years or longer with proper maintenance. This enhanced durability makes them a worthwhile long-term investment. - Space-Saving Design
With no bulky tank to store, tankless water heaters are compact, which is ideal for smaller homes or apartments. Wall-mounted units save valuable floor space and offer flexible installation options. - Endless Hot Water Supply
If you have a large household or enjoy long showers, tankless water heaters provide a constant supply of hot water without any interruption. You won’t experience a sudden chill if someone else starts using hot water.
How Much Energy Do Tankless Water Heaters Save?
According to the U.S. Department of Energy, tankless water heaters can be 24-34% more energy-efficient than traditional water heaters, depending on usage. Here are some things that will impact:
- Small Households (Less than 41 Gallons/Day): A tankless water heater can reduce energy costs by 34% in these homes. For example, a family of two may save around $75-100 annually on energy bills.
- Larger Households (More than 86 Gallons/Day): For homes with higher hot water demands, tankless heaters are still about 8-14% more efficient than conventional models. Installing multiple tankless units can bring these savings closer to the 20% mark.
Are There Any Downsides to Tankless Water Heaters?
While tankless water heaters offer many perks, they’re not perfect for every situation. Below are some factors to consider:
- Higher Upfront Costs
Tankless water heater installation costs more than conventional models. The units are more expensive, and costs can rise if your home’s plumbing or electrical system needs upgrades. - Limited Hot Water Output
A single tankless water heater may struggle to supply enough hot water if multiple fixtures (like a shower and washing machine) are used simultaneously. Installing multiple units can address this issue, but it may increase your overall investment. - Building Codes and Compatibility
In some areas, building codes may affect tankless water heater installation. Before purchasing, check local requirements to avoid unexpected modifications. Additionally, gas tankless water heaters may need proper ventilation which can increase installation costs and complexity.
Which Tankless Water Heater Type is Best: Gas or Electric?
Choosing between a gas or electric tankless water heater depends on several factors, such as energy source availability and household size:
Electric Tankless Water Heaters
These are usually more compact and easier to install. Electric models don’t require venting, making them suitable for interior spaces. They’re also energy efficient, but they may struggle to keep up with high hot water demands in large homes.
Gas Tankless Water Heaters
Gas units typically provide higher water flow rates, making them a better fit for large households. However, gas tankless water heaters require proper ventilation, which can limit placement options. They’re also more powerful, ensuring a steady supply of hot water even during peak usage.
How Will You Choose the Right Tankless Water Heater for Your Home?
Selecting the right tankless water heater involves evaluating several factors, including:
- Household Size: Determine your family’s peak hot water usage to select a model that meets those needs.
- Energy Source: Assess the availability of natural gas or electric power in your home. This decision can impact your choice between a gas or electric model.
- Installation Location: Consider where you’ll install the unit. Gas models need ventilation, which may affect placement options. Electric heaters are more versatile but may have lower water output.
- Budget: Think about your long-term investment. Tankless water heaters are more expensive upfront but can offer energy savings over time.
Final Notes
Choosing a tankless water heater offers an energy-efficient solution for modern homes. With benefits like reduced energy bills, endless supply of hot water, and compact design, tankless models are a smart investment for many. Whether you opt for a gas or electric version, it’s essential to consider your family’s hot water needs, budget, and installation requirements.
If you’re ready to switch to a tankless system, Star Water Heater is here to help. Our team specializes in tankless water heater installation and offers a selection of water heaters at competitive prices. Enjoy an energy-efficient, constant supply of hot water with our trusted services. Contact Star Water Heater today to upgrade your home’s water heating solution!
You can also read: 5 steps for getting your water heater ready for winter
