If it’s time to replace your existing water heater or if you are building a new home, talk to a good plumbing contractor who handles water heater installation and repair about whether a standard tank-type water heater or a tankless water heater would be the best choice for your situation.
Tank-type water heaters have been the standard for residential applications for decades, but in the last ten years or so tankless or “on-demand” water heater have become a popular choice for a water heating system. The allure of tankless water heaters include lower energy costs and an endless supply of hot water. In addition, tankless water heaters take up less space than standard water heaters.
There are advantages and disadvantages of both types of water heaters to consider before choosing a system. The initial outlay for a tank-type water heater is much less than for a tankless water heating system. In addition, modern tank-type water heaters are more efficient than those produced ten years ago which reduces the difference in energy usage between the two types of water heaters.
Tankless water heaters are more efficient and use less energy because, unlike standard water heaters, they do not constantly keep a tank of water hot. They only heat water as it is needed. However, with an electric tankless water heater, some of the cost savings can be lost if hot water is used during peak demand times and the utility company charges a demand premium. This is not a concern for natural gas or propane tankless water heaters.
Also, a tankless water heater produces endless hot water only as long as the flow rate is not exceeded. If the tankless water heater is undersized, then using too much hot water such as doing laundry while taking a shower or two showers running at the same time can be a problem.
