Why You Should Consider A Tankless Hot Water Heater
If you are planning to replace your old water heater, you may be debating whether to get a standard hot water system or a new tankless water heater one.
When you consider the total cost of tankless devices, including installation costs, it’s no surprise that these models can cost 30-50% more than standard hot water heaters.
Tankless hot water heaters have many advantages:
Saving Energy with a Tankless Hot Water Heater
The average home uses 30% of its energy budget to heat water. Savvy homeowners often look for ways to lower this cost and one choice is to install an energy-efficient tankless heater. These devices, when compared with the more traditional tank-style gas heaters, are approximately 22% more energy-efficient.
This efficiency raises to 24-34% if your household only uses 40 gallons of water or less per day after choosing a tankless heater. How much does this put back in your wallet? Research has shown that this 22% higher energy efficiency equals approximately $70 to $80 in savings each year. Taking into consideration the price difference of $1,000 calculated above, saving $80 each year would mean that the initial expense of the tankless heater could be recouped in just over 12 years.
Research also shows that in reality, it would take closer to 22 years to recoup the cost. This is mostly because the difference in cost for these heaters is generally more than $1,000 and you are more likely to spend more maintaining a tankless heater compared to a storage heater.
The average lifespan for the majority of tankless devices is about 20 years and so it is likely that a tankless water heater will reach the end of its service life before enough time has passed to recoup the initial expenses in energy savings.
It is worth noting that many gas tankless water heaters qualify for a state tax rebate. This is equal to around $300 and does not apply to electric tankless heaters.
Always check the rebate rates and requirements in your area.
Electric Tankless Heaters Savings from electric models of tankless heaters are even less than from gas-powered devices.
According to the US Department of Energy, on average an electric tankless heater saves just $44 per year compared to tank-style heaters.
Thinking About More Than Finances
If you consider this issue just in terms of the dollar amounts involved, it does not make sense financially to get a tankless hot water heater. However, there are many reasons that people still buy and love tankless water heaters:
- Service life: a tankless water heater will last 20 years or more, while traditional models last just 8-12.
- Longer Warranty Period: A 15-year warranty is standard for most tankless models, while tank-style heaters come with a 6-year warranty.
Tankless heaters have a compact design that saves space which allows for more flexibility regarding where it can be installed. It can even be installed outside, or in many areas in the home. In comparison, traditional models of hot water heaters are much bigger and need a specific large space, usually in the basement.
Endless Supply of Hot Water:
Hot water when you need it is one of the biggest positives of tankless water heaters. However, the supply possibilities do depend on household size and water usage so you should consider this beforehand. For very large households or households with a frequent demand on both the shower and appliances that use hot water, a tankless heater may not fit the bill. Depending on the amount of water required, two tankless heaters could be a good idea to meet high demand for hot water but clearly this will be quite the expense.