
Tankless water heaters are a great option for those looking to save energy. They can be 8-14% more energy-efficient than traditional tank-style water heaters.
One of the main benefits of tankless water heaters is their ability to provide hot water on demand, eliminating the need for a storage tank. This can be a game-changer for households with multiple users.
According to the US Department of Energy, tankless water heaters can last up to 15-20 years, significantly longer than traditional tank-style water heaters which typically last around 8-12 years.
For your interest: Flush Hot Water Heater Tank
Advantages and Disadvantages
Demand water heaters can be 24%β34% more energy efficient than conventional storage tank water heaters for homes that use 41 gallons or less of hot water daily.
Tankless water heaters will typically last longer than conventional storage water heaters, with a life expectancy of more than 20 years, and easily replaceable parts that may extend their life by many more years.
On a similar theme: Water Heater Storage
In contrast, storage water heaters last 10β15 years.
Gas-fired tankless water heaters can waste energy if they have a pilot light, which can sometimes offset the elimination of standby energy losses when compared to a storage water heater.
Look for models that have an intermittent ignition device (IID) instead of a standing pilot light to save energy.
Additional reading: Energy Efficiency in Buildings
Choosing a Tankless Water Heater
Selecting the right tankless water heater involves considering a few key factors. Size is a crucial aspect, as it directly affects the unit's efficiency and ability to meet your hot water demands.
You'll need to think about the fuel type and its availability in your area, as this will impact the installation and maintenance costs. Energy efficiency, measured by the energy factor, is also a vital consideration.
Here are the key factors to consider when choosing a tankless water heater:
Remember, proper installation and maintenance are essential to optimize the energy efficiency of your tankless water heater.
Choose Heater
Choosing a tankless water heater requires some careful consideration.
First, think about the size of the heater you need. This will depend on the number of people in your household and their hot water needs. Proper sizing is crucial to ensure the heater can meet demand.
Next, consider the fuel type and availability. Some tankless water heaters run on electricity, while others use gas. Make sure you have access to the fuel type you choose.
Energy efficiency is also a key factor. Look for a heater with a high energy factor (EF) rating, which measures how efficiently the heater uses energy to heat water. A higher EF rating means less energy waste.
Maintenance costs should also be a consideration. Regular maintenance can help extend the life of your tankless water heater and reduce repair costs.
Here are some key factors to consider when choosing a tankless water heater:
Space Savings
Tankless water heaters are a great option for those with limited space, as they take up significantly less room than traditional storage water heaters. A typical storage water heater is about five feet tall and about two feet in diameter.
Expand your knowledge: Rain Gutter Heat Cable
This makes them ideal for smaller homes, apartments, or condos where space is at a premium. You can easily install a tankless water heater in a closet or laundry room, freeing up space for other essentials.
Their compact size also makes them a great choice for older homes, where storage space may be limited or awkwardly shaped. Many tankless water heaters are wall-mounted, making them easy to hide away from view.
Their sleek designs also make them a stylish addition to any room, even if they're left out in plain sight.
You might like: Frozen Pipes Tankless Water Heater
Cost and Efficiency
Tankless water heaters are often touted as a more efficient option, but the truth is a bit more complicated. They can be 24%-34% more energy efficient for homes that use 41 gallons or less of hot water daily.
The Department of Energy estimates that a gas-fired tankless water heater can save an average of $108 in annual energy costs, while an electric tankless water heater can save around $44 per year. However, these savings come with higher front-end costs.
Intriguing read: Does Sodastream save Money

A study by Consumer Reports found that low-end tankless water heaters can cost comparably to storage water heaters, but others can be as much as $550 more expensive. Installation costs can also be higher, ranging from $200 to $700 more than traditional storage water heaters.
Tankless water heaters can eventually pay for themselves with energy bill savings, but the payback period may be long: 22-27 years for a gas tankless heater, and 12-20 years for an electric. They tend to last longer than storage heaters, with a lifespan of 20 to 25 years.
Here's a rough breakdown of the costs and savings:
Keep in mind that actual savings may vary depending on your household's hot water usage, incoming temperature of groundwater, installation, maintenance frequency, and regional energy rates.
Benefits and Features
Tankless water heaters are a great option for those looking to save energy. They are more efficient than traditional storage tank water heaters.
Broaden your view: Hot Water Heaters Located
The lifespan of a tankless water heater is 20 to 30 years, which is twice as long as that of a storage tank water heater. This means you'll have to replace it less often, saving you money and hassle.
Tankless water heaters avoid standby heat losses associated with storage water heaters, which can waste a lot of energy. This is especially true for homes with a lot of hot water usage.
For homes that use 41 gallons or less of hot water daily, tankless water heaters can be 24%β34% more energy efficient than conventional storage tank water heaters. This can make a big difference in your energy bills.
The initial cost of a tankless water heater is higher than that of a traditional storage tank water heater, but it will typically last longer and have lower operating and energy costs. This can offset its higher purchase price over time.
By choosing a tankless water heater with an intermittent ignition device (IID) instead of a standing pilot light, you can avoid wasting energy on the pilot light. This is a great feature to look for when shopping for a tankless water heater.
Worth a look: Tankless Water Heater Not Heating Water
How it Works
Tankless water heaters heat water instantly without a storage tank, using a heat exchanger to warm the water as it flows through.
Cold water flows through the heat exchanger as soon as a hot water faucet is turned on, and a gas burner or electric element heats the water. This means you don't have to wait for a tank to fill up with hot water.
Tankless water heaters deliver a constant supply of hot water, but their output limits the flow rate, typically ranging from 2 to 5 gallons per minute. Gas-fired models can produce higher flow rates than electric ones.
The largest gas-fired models can still struggle to supply enough hot water for simultaneous, multiple uses in large households. For example, taking a shower and running the dishwasher at the same time can stretch a tankless water heater to its limit.
A fresh viewpoint: Flow of Water in Pipes
Guidance and Considerations
Planning ahead is key when considering a tankless water heater. To make your life easier, plan ahead for your next water heater replacement and you will have time to research and select the best technology for your situation.
You'll need to check product availability by viewing the ENERGY STAR Product List and visiting manufacturer Web sites, calling local installers, or visiting your local retailer to determine who carries these units in your area.
Estimating the capacity you'll need is crucial. Tankless models are rated by how many gallons of hot water they produce per minute (GPM). A larger GPM is needed if you have multiple appliances running at once.
Here are some average figures to consider:
Before making a purchase, schedule an in-home estimate with an installer to confirm the optimal GPM size for your home and determine if your existing natural gas line is sufficient.
Buying Guidance
When choosing a demand water heater, consider the size of the unit to ensure it meets your household's needs. A larger unit may be more expensive, but it can also be more efficient in the long run.
The fuel type and availability of the demand water heater are also crucial factors to consider. You'll want to choose a unit that runs on a fuel type you have access to, such as natural gas or propane.

Proper installation and maintenance are key to optimizing the energy efficiency of your demand water heater. This can save you money on your energy bills and extend the life of the unit.
Here are some key factors to consider when buying a demand water heater:
- Size
- Fuel type and availability
- Energy efficiency (energy factor)
- Costs
Longer Life
A tankless water heater can last up to 25 years, which is twice as long as a typical storage water heater.
Storage water heaters usually only last for 8 to 12 years, and their warranties typically expire after 6 years.
Tankless water heaters often come with 10-year warranties, giving you added peace of mind.
Most parts in a tankless water heater are replaceable, which makes repairs a lot easier and less expensive.
Key Considerations for Whole-Home Gas Heater Purchase
Buying a whole-home gas tankless water heater can be a daunting task, but with some planning and research, you can make an informed decision. Plan ahead and research the best technology for your situation, as it may take longer to install than a standard water heater.
To find the right model, check the ENERGY STAR Product List to see what certified models are available. You'll need to visit manufacturer websites, call local installers, or visit your local retailer to determine who carries these units in your area.
The capacity of a gas tankless water heater is measured in gallons per minute (GPM), not gallons like traditional water heaters. You'll need to estimate your hot water demands, but it's best to consult with an experienced plumber to get an accurate estimate.
Here are some average figures to consider: Number of usersAverage GPM needed1-2 people3-4 GPM3-4 people5-6 GPM5 or more people7-8 GPM or more
Scheduling an in-home estimate with an installer is crucial to get a customized price and ensure the optimal GPM size for your home. They'll also check if your existing natural gas line is sufficient and whether electricity is available near the water heater.
Don't forget to search for rebates that can help reduce your costs. Be sure to review the eligibility rules before making your purchase.
Comparison and Verdict

Tankless water heaters are a more efficient option for households with low to moderate hot water usage.
The Environmental Protection Agency (EPA) estimates that a tankless water heater uses up to 34% less energy than a storage tank water heater if you use 41 gallons or less of hot water daily.
However, if your household uses a lot of hot water, a tankless water heater might not be the most efficient choice. The EPA estimates that a tankless water heater will be up to 14% less efficient if you use 86 gallons of hot water a day.
Research from Consumer Reports found that tankless water heaters were 22% more efficient than gas-powered tank water heaters. This distinction is important because gas-powered tank water heaters are more efficient than electric tank water heaters.
One thing to watch out for is gas-powered tankless water heaters with a continuously burning pilot light, which can waste energy and cancel out the energy savings. A better option is to get a tankless water heater with an intermittent ignition device (IID) that's switched on as needed.
If this caught your attention, see: No Water Coming into Toilet Tank
Environmental Impact
Energy saving water heaters tankless are a great choice for the environmentally conscious homeowner.
They reduce greenhouse gas emissions, which is a big deal for our planet.
Dual condensing stainless steel heat exchangers in these tankless water heaters recover and repurpose extra heat that would otherwise be lost.
This results in lower CO2 emissions.
Low exhaust temperatures also mean you can use less expensive venting materials like Schedule 40 PVC.
This is a win-win for your wallet and the environment.
Featured Images: pexels.com


