We’re always looking for ways to help our clients make informed decisions about their homes, especially regarding energy efficiency. And today, we're talking about tankless water heaters. While traditional tank water heaters continuously use energy to keep stored water hot (even when not in use), tankless water heaters offer a more eco-friendly and efficient alternative.
What Is a Tankless Water Heater?
A tankless water heater heats cold water on demand using gas or electricity, providing a continuous hot water supply without needing a large, space-consuming tank. These units take up less space, use less energy, and eliminate the wait time for hot water.
Types of Tankless Water Heaters
Tankless water heaters come in three main types:
- Non-Condensing: Uses a heat exchanger to warm water and requires venting for the hot exhaust.
- Condensing: Features multiple heat exchangers, capturing exhaust heat for greater efficiency.
- Hybrid: Includes a small tank but uses significantly less energy than traditional heaters by moving air outside the tank for heating.
Installation Considerations
While tankless water heaters offer many benefits, they come with an upfront investment. Installation costs range from $1,200 to $3,500, depending on the model and your home’s specific needs. According to Orchard, most tankless water heaters qualify for a 10% federal tax credit, helping offset some of these costs.
It is key to have a professional handle the installation, as it involves complex plumbing, electrical work, and compliance with local codes. Proper installation ensures that the system operates efficiently and safely.
Maintenance and Lifespan
With regular maintenance, including annual service and periodic vinegar flushes, a tankless water heater can last 20 years or more—much longer than traditional storage water heaters. This longevity, combined with energy savings of around $100 per year, makes tankless water heaters a cost-effective option in the long run.
Pros and Cons
Pros:
- Energy Efficiency: Tankless water heaters are 24% to 34% more efficient than traditional tanks.
- Space-saving: Compact design, ideal for homes with limited space.
- Continuous Hot Water: Provides an endless supply of hot water on demand.
- Safety: Less risk of leaks, bacteria growth, and carbon monoxide back-drafting.
Cons:
- Upfront Cost: Higher initial cost for both the unit and installation.
- Flow Sensitivity: Susceptible to scale buildup and reduced water flow, requiring regular maintenance.
- Limited Coverage: This may require multiple units for larger households.
Is a Tankless Water Heater Right for You?
For homeowners planning to stay in their homes long-term, a tankless water heater is a wise investment. It offers significant energy and cost savings over time, especially in regions with high energy costs. However, for larger households or homes prone to frequent power outages, it may be worth considering whether the benefits outweigh the upfront costs.
Nathan Group
If you’re considering switching to a tankless water heater, The Nathan Group is here to help. We can connect you with trusted professionals to assess your home’s needs and ensure a smooth installation process.
