Tankless Water Heaters

One way to save money on your monthly utility bill is to switch from a standard water heater to a tankless water heater. Also known as a demand-type or instantaneous water heater, a tankless water heater only produces hot water when it is needed. Since they are not constantly heating the water, even when you are not using it, they use less natural gas, up to 30% less.

How Tankless Water Heaters Work

A tankless water heater heats water instantaneously without needing a storage tank. When you turn on hot water from your faucet, the water flows through a heat exchanger inside of the water heater. Then either a natural gas burner or electric heating element rapidly heats the water. Since the water is heated on demand you will have a constant supply of hot water and will never run out.

However, a tankless water heater can only produce up to 7 gallons of water per minute. If you tend to use lots of hot water in multiple places at the same time, this might not be enough to fulfill your needs. For example, if you run the dishwasher and wash a large load of clothes on hot at the same time, you may be demanding more than 7 gpm and the a single water heater may not be able to keep up. To avoid this issue, you can install tankless water heaters in multiple areas of your home.

Pros and Cons of a Tankless Water Heater

While tankless water heaters can save you money and be more efficient than a standard hot water heater, it’s good to understand all of the advantages and disadvantages.

ProsCons
  • Can be up to 34% more efficient
  • 50% Longer Life
  • More Easily Repaired
  • Higher Upfront Cost
  • Pilot light energy loss

Other Uses

While the typical usage for a tankless water heater is to replace your standard water heater, they can also be used a few other ways. If you have a bathroom or hot tub that is remote or not near your current water heater, a tankless water heater could be used to supply hot water in that location. They can also be used to boost the amount of hot water supplied for appliances or to support a solar water heating system.

Which Tankless Water Heater is Right For Me?

There are quite a few options out there and picking the right one is key. Here are a few items to consider before making your purchase.

  • Size
    To determine which size is right for you, determine the flow rate and temperature rise you will require. To determine the flow rate, list out the hot water devices you expect to use simultaneously and add up the flow rate of each. If you don’t know the flow rate, place a bucket under your faucet and measure how much water is in the bucket after letting it run for a minute. Temperature rise is the difference between the desired temperature (usually between 120 and 140 degrees) and the temperature of the incoming water (typically 50 degrees).
  • Costs
    The upfront cost of a tankless water heater is typically much higher than that of a standard water heater. You can estimate energy efficiency and annual operating costs by looking on the yellow energy label to compare how much you can save on your energy bill. Choose the one that makes the most sense for your household.
  • Heating Type
    Choosing what will power your new tankless water heater is extremely important and can determine operation costs and energy efficiency. You may be somewhat limited in your options, depending on what is available in your area. Electricity, natural gas and propane are the most widely available in the United States. Consult your local utilities to determine costs and what makes the most sense for you.
  • Energy Efficiency
    Some tankless water heaters are more efficient than others. The yellow energy label on the water heater will help you compare energy efficiency between water heaters.

Once you’ve chosen which tankless water heater is right for you, the next step is getting it installed. It’s probably best to contact a licensed contractor for installation. Make sure you get a written estimate before starting the project, so that you understand the costs beforehand. Periodic maintenance can also extend the life of your new water heater. The owner’s manual will provide you with recommendations on maintenance.