Traditional water heaters, also called tank and storage water heaters, store and heat water in a tank. Tankless water heaters don’t store hot water. Instead, they heat the water as you request it. There are pros and cons to both approaches. Let’s explore them to determine which is the better choice for your home.
Household Water Consumption
How much hot water does your household use daily? It can be a deciding factor in whether a tank or tankless system is more practical. The average American home uses 60 to 80 gallons of hot water daily. Households that use less than the average will almost always benefit from a tankless system. If you’re within the average range, tankless is probably a good fit, and if you’re above it, it probably isn’t. There are various other factors, and peak demand and energy efficiency are among the most important.
Peak Demand
Sizing a tank water heater is relatively easy. We can generally size it based on the number of people and bathrooms in the home. With a tankless system, we size based on a peak demand estimate. This is how much hot water you use during your busiest hour. Tank water heaters are better at dealing with simultaneous demand. For a tankless system, you need to ensure the full flow rate for every fixture and appliance you want to run at the same time.
There is an advantage here to tankless systems. Let’s say you want to size your water heater for those big family get-togethers you host. That’s way more practical with a tankless system. You pay for it up-front and when you use the additional capacity but not in between. That isn’t the case with a tank water heater. You’d be paying for the bigger tank every day.
Energy Efficiency and Operating Costs
Tankless water heaters are more energy efficient in their design. They consume electricity or fuel only when you need the hot water. Tank water heaters, on the other hand, must maintain the temperature of a tank full of water. They’re consuming energy all the time. Tankless water heaters will generally reduce a household’s carbon footprint and lower its water heating costs. If a home uses 41 gallons of hot water or less, a tankless water heater will lower energy usage by 24% to 34%. As you use more hot water, those savings shrink. A household that uses more than 80 gallons may save only 8%. That’s a much smaller margin, and there are other factors, such as home size.
Electric and Fuel-Fired Water Heaters
Electric tankless water heaters are more efficient in small homes with low hot water usage. In almost all other scenarios, a fuel-fired water heater is better. It will cost more up-front but save money over time. This is true of both tank and tankless water heaters. In both cases, you have the option of a high-efficiency water heater. The industry also refers to these as condensing water heaters. They save by reclaiming heat energy from their exhaust.
Large Homes
The hot water delay refers to how long it takes hot water to reach a faucet. It takes longer in a tankless system, but if your plumber has sized the system appropriately, it shouldn’t be inconvenient. That said, finding the right location for a tankless system can be challenging in larger homes. What we often recommend is installing multiple tankless systems. This approach delivers a better experience and is typically cheaper over the life of the equipment. The problem is that it significantly increases the up-front cost.
Installation Costs
Installing tankless water heaters is more complex, and the installation costs will be higher. There are also additional costs for the initial conversion. Most homes are already set up for tank systems. For tankless systems, we often have to add to the existing plumbing. Some homes may also need an electrical panel upgrade or replacement. Note that even fuel-fired tankless water heaters use electricity.
Installation Footprint
Tank water heaters take up a lot more space. There are space-saving options, such as compact and tall, but they’re still relatively bulky. Tankless water heaters require only a small area on a wall. You can easily install them in an attic, a garage, or even outdoors. If you have a water heater closet, you can also repurpose that space.
Hard Water
Moderately to very hard water has high concentrations of calcium and magnesium. Those minerals accumulate and harden into limescale over time. Hard water is bad for all water heaters. It increases maintenance and repair costs and reduces energy efficiency and equipment lifespan. This is why tank water heaters have a sacrificial anode rod, and you should flush them annually.
Tankless water heaters are even more susceptible to scaling. It can significantly shorten their lifespans, which is why we recommend annual descaling. If your water is hard or very hard, we recommend installing additional equipment. One option is a dedicated anti-scale device for the water heater. Another is a whole-home water softening system.
Lifespan
Tankless water heaters cost more to purchase and install. Despite that, they’re usually better values over the long term. One reason is the lower operating costs. Another is longevity. Most tank water heaters last about 12 years. Tankless water heaters can last 25 years or more. Another issue is how they age. Tank water gets inefficient over time. It’s better to replace old units even if they still work. Tankless system generally don’t have this problem with regular maintenance.
Maintenance and Repairs
We recommend annual maintenance for both tank and tankless systems, but tankless water heaters require less care. They’re also less prone to needing repairs. If you ever do need a repair, it’s typically going to be more expensive with the tankless system. The components are costlier, and the installation is more involved.
Warranty
The warranty coverage for tankless water heaters tends to be more robust. There’s just a lot less risk for the manufacturer. The average tank water heater has a six-year warranty. Many tankless water heaters have a 12-year warranty. There’s even a model on the market with a 25-year warranty. Manufacturers also tend to provide more options with tankless systems to extend and expand the protection.
Energy Rebates and Tax Credits
The U.S. Environmental Protection Agency (EPA) provides ENERGY STAR certification for water heaters and other appliances. Most rebates require you to choose an ENERGY STAR model. With both tank and tankless water heaters, you need to buy a fuel-based system. With tank water heaters, you typically must opt for a high-efficiency system. That can increase your cost a lot. If you meet these conditions, there is also a federal tax credit for both tank and tankless water heaters.
Would You Like a New Water Heater in Dallas?
Precision Heating & Air is a family-owned and -operated business that’s served Dallas, GA homeowners for over 30 years. Our plumbers install and service all makes and models of tank and tankless water heaters. We have a team of HVAC experts, too. Our NATE-certified HVAC technicians install and service furnaces, heat pumps, air conditioners, and ductless mini-splits. We’re available 24/7 for emergency repairs. We also specialize in duct cleaning, thermostats, dehumidifiers, humidifiers, air purifiers, and ventilators.
Call today or contact us online to schedule a service appointment or in-home consultation for water heater installation.
