Pros and Cons of Tankless Water Heaters

Energy Savings

Because tankless water heaters do not heat and store large volumes of water, they present opportunities for significant energy savings. Tankless hot water heaters use between 30 percent and 50 percent less energy than traditional hot water heaters, reports the Family Handyman website. For a typical home, this can add up to around $100 per year in energy savings. The annual savings varies depending on the cost of the natural gas, propane or electricity required to heat the water.

Initial Costs

Tankless hot water heater systems do cost more than traditional systems, and installation is not for do-it-yourselfers. Tankless systems cost around two to three times more than traditional water heaters, with the cost of tankless varying between $1,000 and $1,200. Because installation can require rerouting gas lines as well as adding flues and ventilation systems, installation costs can double the initial price of adding a tankless system. Electric models can also incur extra installation costs. A family-sized unit requires thicker wires than conventional ones, as well as a dedicated circuit to serve it's short surge of usage, so will likely require rewiring.

Hot Water Output

While tankless systems are referred to as instantaneous, that doesn’,t mean that hot water begins flowing from the tap the moment you turn it on. Rather, the system fires up the instant you demand hot water, with another caveat. Tankless systems typically do not fire when only a trickle of hot water is required. Just as with traditional hot water heaters, cold water already in the pipes must purge before hot water flows. On the other hand, you could potentially take a shower for as long as you’,d like without running out of hot water because tankless systems heat the water as you use it instead of relying on a limited tank. Added demands from other activities, such as a dishwasher, laundry or another shower, all running at the same time, could tax a tankless unit.

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