Tankless water heaters are growing in popularity, largely due to their energy efficiency, compact size, and ability to provide an endless supply of hot water. Before you decide to install one in your home, you need to know if they are really worth the investment. The answer depends on your home, your budget, and your expectations.
What Makes Tankless Water Heaters Different?
Conventional water heaters store 40 to 80 gallons of water and keep it heated at all times. Tankless models heat water on demand. When you turn on a hot water tap, cold water runs through a heat exchanger that is powered by either natural gas or electricity. As the water passes through the heat exchanger, it is instantly heated. No storage tank means no standby heat loss and no constant use of either electricity or gas.
The Advantages of a Tankless Water Heater
If you’re thinking about installing a tankless water heater, you’ve probably already heard about the advantages. Let’s take a look at them.
- Energy Efficiency: Tankless water heaters are more efficient than traditional tank-style water heaters, especially if your household doesn’t use a lot of hot water throughout the day. According to the U.S. Department of Energy, tankless units can be 24%–34% more energy-efficient for homes that use 41 gallons or less of hot water daily. That means lower energy bills month after month.
- Endless Hot Water: Since tankless units heat water as needed, you’ll never run out of hot water in the middle of a shower. This is a big selling point for families with multiple people showering one after another or if there are multiple hot water-using appliances running at the same time.
- Space-Saving Design: Tankless heaters are compact and usually wall-mounted, freeing up floor space. This makes them ideal for smaller homes, apartments, or condos where every square foot counts.
- Longevity: On average, a tankless unit lasts about 20 years, which is five to 10 years longer than a traditional tank-style water heater. Some parts are also replaceable, potentially extending the unit’s life even further.
Potential Drawbacks of a Tankless System
While tankless heaters are great for some homes, they’re not right for everyone. Here are some other factors you need to consider before making a decision.
- Higher Initial Cost: The purchase and installation cost of one of these units can be significantly higher than the cost of a traditional unit. Installation costs may also include the costs of any plumbing or electrical upgrades required. Gas models often require a larger gas line and proper venting, while electric models may require an upgraded electrical panel.
- Flow Rate Limitations: While tankless heaters supply water on demand, they have a maximum flow rate. If multiple showers, laundry, and a dishwasher are all running at the same time, a single unit may not keep up. In larger homes or homes with high water demand, I usually recommend installing multiple units or one high-capacity model.
- Maintenance Requirements: Tankless systems need regular maintenance to stay efficient. Hard water can cause scale buildup, which affects performance and lifespan. These units will need routine inspections and maintenance to prevent breakdowns.
- Delayed Payback Period: While you’ll save on energy over time, it can take several years to recoup your investment through lower utility bills. If you’re planning to move to a new residence in the near future, you may not see the full financial benefit of the upgrade.
Making the Right Decision on a Tankless Water Heater
Tankless water heaters can be an excellent choice, but let’s look at who they’re best suited for:
- Homeowners planning to stay in their home for many years
- Households that use a moderate, consistent amount of hot water
- Families that want to save space and reduce energy use
- People willing to commit to routine maintenance
However, for households with high water demand, hard water issues or a limited budget, a high-efficiency tank-style heater might make more sense.
Rocketman Plumbing Can Help You Make the Switch
We have helped many Albuquerque families make the switch to tankless water heaters and we’re glad to help you through this process. Let’s talk about your home’s layout, water usage, and plumbing infrastructure to determine which unit will best meet your needs. Tankless water heaters can be a great investment—but only if they’re the right investment for you. Call us at Rocketman Plumbing when you’re thinking about making a change!