When it comes time to consider a new water heater, you might consider a tankless water heater. These heaters typically use 30-50% less energy than more familiar units with tanks. This can save a typical family about $100 or more per year, depending on water usage. Tankless units (sometimes known as “on demand” units) heat water only when you turn on the faucet and usually run on natural gas or propane.
Advantages to a Tankless Water Heater:
- They eliminate the extra cost of keeping 40 to 50 gallons of water hot, thereby saving you money.
- They offer a continuous supply of hot water which is perfect for filling a big hot tub or a whirlpool.
- They mount on a wall, saving space because of their compact size.
- Most tankless water heaters have a life expectancy of about 20 years, much longer than any conventional type of water heater.
- They also eliminate the risk of tank leaks and water damage.
- Tankless water heaters usually can’t supply enough hot water for multiple activities such as showering and doing laundry at the same time.
- Unless they are equipped with a modulating temperature control, the heater may not heat water to a constant temperature at different flow rates.
- Electric tankless water heaters can draw a relatively high electric power draw in order to heat the water to the desired temperature very quickly.
Cost and Savings
Tankless water heaters range anywhere from $200 for a small under sink unit to as much as $1000 or more for a more efficient model. But because they last up to twice as long as a conventional unit, you’ll save money on replacement costs. In fact, by eliminating the loss from the standby tanks can cut your hot water costs by 10-15%.
If you have decided to go tankless, you will need to choose between and electric and natural gas model. Tankless water heaters that use natural gas are about 60% efficient according to the Department of Energy. Check to see if there are rebates and incentives either on the state or federal level.
Contact us if you’re interested in learning more about switching to a demand water heater to increase your energy efficiency which will save you money and space.