Which one is better for your home, a tankless water heater or a traditional water heater? If you were to ask this question to ten different persons, you are likely to get ten different answers. But should it really matter which kind of water heater you choose for your home?
The answer is yes. Your choice of water heater influences your energy costs and the overall efficiency of your home, says Drew Doheny Property Management. That’s because water heaters are a big part of what makes your home function. The hot water you use for everyday tasks like washing and bathing comes from the water heater.
You want to be sure that any water heater you spend your hard-earned cash on will be able to meet your family’s needs. Will a tankless water heater meet your home’s requirements, or should you buy a traditional water heater? That depends on your specific situation.
Below we list the pros and cons of tankless and traditional water heaters. Based on the information you can make a decision on which system suits your home better.
Traditional water heaters vs Tankless water heaters
We access the two types of water heaters based on several criteria.
How the water heater works
Traditional water heaters
These continuously heat a tank of water to ensure a constant supply of hot water. The tank can contain between 30-60 gallons of water, with 50 gallons being the most common size. Because they heat water, even when you don’t need it, the cost of running a storage tank is slightly higher.
Tankless water heaters
These don’t need to store water because water is rapidly heated as it passes through the heat exchanger inside the unit. Tankless water heaters heat water on demand. Unlike, a storage tank, you won’t have to deal with standby energy loss. However, if the demand for hot water is high a tankless system may not be able to keep up.
Purchase price and installation costs
Traditional water heater
Storage water heaters are more affordable than tankless water heaters. A standard 50-gallon tank-style water heater will cost $570 – 600, for electric and gas systems respectively. Installing the tankless water heater system is fairly straightforward and will cost you an extra $600 – 800 if you use the existing hookups.
Tankless water heater
Tankless water heaters, being newer technology, are costlier. The cost of a unit is between $525 and $1,150. Depending on the water usage in your home, you may need more than one unit. Installing a tankless water heater cost anywhere from $800 to $1,500. In addition to installation costs for the system, you may need to upgrade your home’s electrical service to 200 amps.
Water heater energy usage and efficiency
Traditional water heater
For storage tanks that run on electricity, you can expect the unit to consume around $580 of electricity on average per year if the cost of electricity is $0.132 per kWh. Gas-powered storage tanks, on the other hand, has an annual operating cost of $245, whereas the average price of natural gas is $10.86 per 1,000 cubic feet. Gas-powered storage tanks are far more efficient than units that use electricity.
Tankless water heater
Generally, tankless water heaters are more efficient than storage tanks if both units use the same fuel type. Gas-operated tankless water heaters have lower operating costs than electric ones; with an annual cost of $195 versus $535. But this is really due to the higher cost of electricity; tankless water heaters that run on electricity are actually more efficient.
Water heater performance
Traditional water heater
Because storage tanks are constantly running, water is already hot by the time it is needed. There is no wait time when you use traditional water heaters. Regardless of whether the unit is gas or electricity-powered, a storage tank will always deliver a steady supply of water at your required temperature.
Tankless water heater
The rate at which a tankless water heater delivers hot water depends on the temperature of the groundwater and your home’s water demand. In most cases, it is not possible to run the dishwasher and washing machine at the same time that someone is taking a shower, when there is just one tankless water heater in the home.
Photo Courtesy of mattexservice.com
Other considerations
Space
With a traditional water heater, you need space for the tank. Water heater tanks can be as high as 5 feet and 2 feet wide or more. Additionally, they must be installed in spaces with adequate ventilation. This is not a requirement for tankless water heater installations.
Safety and maintenance
Traditional water heaters need repairs and maintenance more often than tankless water heaters. With storage tanks, there is always a risk of corrosion, leaks, and safety issues due to overheating. These issues do not exist with a tankless water heater.
Which water heater should you buy?
Tankless systems cost more in the beginning but less going forward. The reverse is true for traditional water heaters. If space is an issue for you, a tankless system clearly makes more sense. Another thing tankless systems have going for them is their superior energy usage and efficiency.