The allure of unlimited hot water and the thought of saving energy on water heating costs have led many homeowners to consider installing a tankless water heater to replace their conventional storage type water heater. Tankless water heaters can be a great choice for many applications, but they are not a “no-brainer” type of purchase especially if you are considering an electric tankless water heater. There are some disadvantages to consider before you take the plunge on a tankless water heater installation.
A storage type water heater wastes energy by continuously keeping a tank of water hot, even when there is no demand for hot water. Tankless water heaters (also called “on-demand” water heaters) save energy by only heating water when it is needed. Since they heat water on demand, they can continuously supply hot water and will not run out like a storage type water heater.
However, if you are considering an electric tankless water heater, you may not see any cost savings on your energy bill and may even spend more on electric energy for water heating. The reason is that electric tankless water heaters use a lot of electricity when hot water is needed which is often during peak usage periods such as during the day when people are bathing or doing laundry.
Some utility companies charge higher rates for electricity usage during high demand periods. You may end up using less electricity with the tankless water heater, but paying higher rates for electricity which would wipe out any energy cost savings.
In addition, because they use large amounts of electricity when they are heating water, installing an electric tankless water heater may require upgrading the electrical wiring in your home. Your plumbing professional can help you decide if an electric tankless water heater is good choice for your home.
