Advantages of a Tankless Water Heater

Posted on: October 11, 2018 | by: October 12, 2018

When replacing a water heater, you have two options: a conventional tank water heater or a tankless water heater. Tankless water heaters are newer technology, offering many convenience and energy-saving advantages. See how installing a tankless water heater can improve your hot water experience!


About Tankless Water Heaters


Tankless water heaters do not require a hot water storage tank – hence the name. They produce hot water on demand, when your taps are turned on. Versus homes using conventional tank water heaters, tankless water heaters offer potential energy savings of up to 34 percent. They also offer longer service life, lasting over 20 years with proper care (tank water heaters offer a service life between 10 to 15 years in most cases).


Tankless water heaters lower energy consumption by not storing hot water like a tank model does. Tank models require consistent energy consumption to keep stored water at the desired temperature. With a tankless water heater, you’ll avoid energy waste associated with standby heat loss.


Depending on the model of tankless water heater you purchase, you may be eligible for residential energy efficiency tax credits. Check with your tax professional to see if your tankless water heater qualifies you for this savings. Your local utility provider may also offer incentives for upgrading to higher efficiency water heating equipment – check with your provider for more information.


Electric Tankless Water Heaters


Electric tankless water heater uses electrical elements to heat water on demand. Electric models are cheaper to purchase than gas models. They also are typically cheaper to install as they do not require additional venting. Electric models are smaller than gas tankless water heaters, making them a smart choice in applications where space is limited.



The savings downside is the cost of electricity – in many areas, electricity is more expensive than gas. With the cost of electricity, heating your water may not generate quite the cost savings with electricity versus gas. But, electric models do not emit byproducts that are harmful to the environment like gas models do.


Electric tankless water heaters only supply about 5 gallons of hot water each minute. This is usually enough to meet the demands of a small family. It will not be adequate to supply multiple hot water demands at the same time. Electric tankless water heaters do not require maintenance.


Gas Tankless Water Heaters


Gas tankless water heaters are more expensive than electric models to purchase and install. Installation typically requires extra venting to accommodate the tankless water heater in your home. Additional venting is required for combustion emissions. If you purchase a condensing gas tankless water heater, a condensate drain system must be installed to accommodate condensed water.



Gas is typically cheaper than electricity, so heating water with a gas tankless water heater is more affordable for most homes than using an electric model.


Gas water heaters offer on average between 8 and 10 gallons of hot water each minute. This can supply multiple hot water needs at the same time and meet hot water demands for a larger family. Gas tankless water heaters require minimal annual maintenance to preserve performance.


Find a Tankless Water Heater Installer on makes it easy to find a qualified tankless water heater installer near you. Use our HVAC Contractor Directory to find a plumbing professional who offers tankless water heater installation and service nearby. Search you ZIP code to see a complete list of local pros!


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