Most advertisements for tankless water heaters focus on the joys of having an endless supply of hot water. Tankless water heaters heat water as it is needed instead of keeping a large tank of water hot like a standard storage type water heater.
Since tankless water heaters can heat water on demand, they can provide as much hot water as you want as long as you don’t place too large of a demand on the water heater. Depending on the size of the water heater, it may be able to keep up with two showers or a shower and the dishwasher, but if you try washing dishes while two separate showers are going, you may hear some complaints.
While it is great to be able to take a long shower without being concerned about running out of water, one of the greatest advantages of a tankless water heater is the energy savings. A standard storage type water heater wastes energy by keeping the full tank of water hot so it will be available when needed. The problem is that most of the time, the hot water won’t be needed for hours such as overnight or while you and your family are away from home during the day. The energy wasted keeping the tank of water hot when it is not needed is called “standby heat loss”.
By replacing your existing standard water heater with a tankless water heater, you can eliminate standby heat loss and save up to 30% on the energy you use for water heating. Your actual savings will depend on many factors including the efficiency of your existing water heater and your hot water usage patterns, but the EPA estimates that an average family of four can save about $100 per year by switching to a tankless water heater.
