Should I Get a Tankless Water Heater?
To go tankless or not to go tankless… that is the question. Sure, an on demand water heater offers numerous benefits compared to a traditional water heater. However, the upgrade to tankless requires a significant upfront investment. Is it worth it?
How Tankless Water Heaters Work
Before we get into the costs and benefits of tankless water heaters, it is important to understand how tankless water heaters work.
Tankless water heaters produce hot water on demand by heating water as it travels through a pipe through the unit then to the desired fixture. Traditional water heaters heat the water then store it inside of their tank.
Tankless units produce water based on flow rate measured in gallons per minute (GPM). Keep in mind that the flow rate depends on the temperature rise between groundwater temperature and the desired water temperature. Colder areas require a higher flow rate than warm climates.
The higher the flow rate, the more people can get unlimited hot water at the same time. The flow rate gets split among every open fixture. If you purchase a tankless water heater with too low of a flow rate, you may end up with inconsistent hot water during periods of high demand.
Costs Associated With Tankless Water Heaters
One of the main things to consider before a tankless upgrade is the cost associated with the upgrade for both the unit itself and the complex installation.
Cost of the Unit
The average cost of a tankless electric water heater falls between $500 - $2,000, and the average cost of a tank electric water heater falls between $350 - $2500.
There are numerous factors that play into the cost of a unit, including size, features, and brand.
See the
average cost of electric water heaters based on brand:
- Bosch
- $500 - $1200 (tankless)
- N/A (tank)
- Bradford White
- $1000 - $2500 (tankless)
- $650 - $2100 (tank)
- EcoSmart
- $425 - $1600 (tankless)
- N/A (tank)
- Reliance
- N/A (tankless)
- $400 - $600 (tank)
- Rheem
- $400 - $1000 (tankless)
- $400 - $800 (tank)
- Stiebel Eltron
- $700 - $1700 (tankless)
- N/A (tank)
- Westinghouse
- $900 - $1700 (tankless)
- $800 - $1300 (tank)
The numbers indicate that the cost of a tankless water heater is higher than the cost of a tank water heater.
Cost of Tankless Water Heater Installation
In most cases, upgrading to a tankless water heater will require a specialized tankless water heater installation, bringing up the cost.
A new gas tankless water heater may require a new gas line or new ventilation. In the case of an upgrade from a standard atmospheric tank water heater to a tankless, upgraded ventilation may require coring holes and the use of special tools. A new electric tankless water heater may require checking to see if the current electrical service can carry the amps (or electrical “load”) required or if any wiring needs to be upgraded.
We offer a
flat rate for installations
starting at $1850 for a standard atmospheric tank water heater and $2649.99 for a tankless unit. Keep in mind that when upgrading from a tank unit to tankless, there may also be an additional fee for a site inspection.
After your home gets set up for the tankless heater, the infrastructure should support the water heater for the duration of its life and the life of the next water heater - assuming you don’t move it, change models, or change the fuel source. However, an upgraded unit may require different venting or piping adjustments.
Benefits of Tankless Heaters
Now that we’ve covered the costs, let’s take a look at the benefits you’ll get after you install your tankless water heater.
Longer Life Expectancy
According to the U.S. Department of Energy, , tankless water heaters have an
average life expectancy of 20 years. Storage tank water heaters only last an average of 7-10 years. Over a 40 year period, you’ll have to buy 4 tank water heaters compared to only 2 tankless water heaters, which leads to significant savings (if you plan on staying at the house for 40 years).
Higher Energy Efficiency
Tankless water heaters run more efficiently for a number of reasons. For example, tankless water heaters produce water on demand instead of storing warm water in a tank. When warm water gets stored in a tank, some of the heat can escape, despite insulation. Standby heat loss generally costs homeowners
$36 - $61 a year.
The process itself is also more efficient, bringing savings up to $100 per year for households that use tankless units.
To increase the efficiency of a tank water heater while you wait to upgrade to tankless, consider insulating the tank: Water Heater Blanket Insulation on Amazon.
Findings: Is a Tankless Hot Water Heater Worth It?
Based on our findings, you will save with a tankless water heater. However, it will take some time. You’ll slowly make up the initial investment in monthly gas savings. You’ll see a larger return when you’d need to pay for a replacement tank water heater.
If you plan to stay in your current home for a long time (10+ years), a tankless water heater will save you money.
Tankless Water Heater FAQs
Our Tankless Water Heater Install Gallery
U.S. Water Heating Solutions
Whether you decide to make the upgrade to a tankless system or stick with a conventional water heater, we at U.S. Water Heating Solutions can provide both residential and commercial water heater services, including:
- Water heater repair
- Water heater installation
- Tankless upgrades
- Water heater maintenance
- Warranty services
Contact U.S. Water Heating Solutions
today to schedule a service call or get a quote!
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