Tankless Water Heater or Tank Water Heater? What's Better

Plumbing

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// Posted by Crossville Heating and Cooling, Inc.

Have you ever thought about which water heater is best for your home? Should you choose a tankless or a traditional tank-style model? With more people looking for energy-efficient appliances, this choice is key. Tankless water heaters are popular for saving energy and space. But do they really beat the classic tank water heater? Let's look at the good and bad of each to help you decide.

Key Takeaways

  • Tankless water heaters are more energy-efficient, but have higher upfront installation costs compared to traditional tank models.
  • Tank water heaters are generally less expensive to purchase and install, but may have slightly higher energy consumption.
  • Tankless heaters offer a longer lifespan of up to 20 years, while tank heaters typically last 8-12 years.
  • Tankless models heat water on-demand, reducing waste, while tank heaters store hot water, which can lead to standby heat loss.
  • Tankless heaters take up less space, but may require significant home modifications during installation.

Understanding Tankless and Tank Water Heaters

When it comes to heating water for your home, you have two main options: tankless water heaters and traditional storage tank water heaters. Knowing the differences between these can help you choose the best one for your needs.

What Is a Tankless Water Heater?

Tankless water heaters, also known as on-demand water heaters, heat water only when you need it. They use gas or electricity to quickly warm the water as it flows through a heat exchanger. This means you get hot water directly at your faucets or showers without a storage tank.

These heaters can provide hot water at a rate of 2–5 gallons (7.6–15.2 liters) per minute. They're great for homes that need hot water on demand.

How are "Traditional" Tank Storage Water Heaters Different?

Traditional storage tank water heaters have an insulated tank that holds 30-50 gallons of water. They heat and store the water until you need it. These heaters can use natural gas or electricity, with gas-fired ones being more energy-efficient.

However, they have a tank size limit. This means they can run out of hot water during high demand times.

Tankless water heaters are more energy-efficient, saving up to 27–50% of energy. They last longer too, over 20 years, compared to 10–15 years for traditional heaters.

Energy Efficiency Comparison

Choosing between a tankless and a traditional storage tank water heater affects your bills and the environment. Homeowners using less than 41 gallons of hot water daily can save 24 to 34 percent with tankless heaters. If you use about 86 gallons daily, you might save 8 to 14 percent more with a tankless system.

Tankless water heaters are more efficient. Installing one at each hot water outlet can save 27 to 50 percent of energy. They heat water only when needed, avoiding the waste of keeping a tank full of hot water.

Storage tank heaters are less efficient but can still be better. High-efficiency models, like those with the ENERGY STAR® label, save more energy than standard ones. They use new technologies and insulation to lose less heat and use less energy.

Choosing between a tankless or a storage tank water heater depends on your needs and home setup. Knowing how each type saves energy helps you pick the best for your home and the planet.

Cost and Longevity Considerations

When looking at water heaters, the cost upfront and over time are key. Tankless water heaters cost more at first than traditional ones. They also might be harder and pricier to install, especially if you're replacing an old system.

But, spending on a tankless heater can save you money later. These heaters last 20 to 30 years, which is longer than traditional ones. They can cut your energy bills by over $100 a year if you have a gas model. For electric ones, it's about $44 less a year.

Tankless Water Heater Advantages

  • Longer lifespan of 20 to 30 years, compared to 8 to 12 years for storage tank water heaters
  • Substantial energy cost savings, up to $100 per year for gas-fired models and $44 per year for electric models
  • Compact and space-saving design, ideal for homes with limited storage space
  • Continuous hot water supply, eliminating the need to wait for the tank to refill

Drawbacks of Tankless Water Heaters

  1. Higher initial purchase and installation costs compared to storage tank water heaters
  2. Potential need for electrical panel or gas line upgrades, adding to installation expenses
  3. Limited hot water output, potentially unable to meet the demands of large households or simultaneous usage
  4. Susceptibility to mineral buildup, requiring regular maintenance and descaling to maintain efficiency

Choosing between a tankless and a storage tank water heater depends on your needs, budget, and home setup. Think about the pros and cons of each to make a choice that fits your long-term goals and likes.

Advantages of Storage Tank Water Heaters

Storage tank water heaters are a top choice for many homeowners. They have a lower initial cost than tankless models. Plus, they are simpler to maintain and repair, which saves money over time.

These heaters are easy to fix when they break, unlike tankless ones. This means repairs are cheaper and quicker. For homeowners, this is a big plus for a dependable and wallet-friendly water heating option.

Installing storage tank water heaters is also a breeze. They don't need big changes to your plumbing or electrical setup. This makes the setup quick and doesn't disturb your home much.

  • Storage tank water heaters have a lower initial cost compared to tankless models.
  • They operate in a more straightforward manner, resulting in less costly maintenance and repairs.
  • Repairs for storage tank water heaters are generally easier and more affordable compared to tankless units.
  • Storage tank water heaters are typically easier to install, requiring fewer modifications to the home's existing systems.

Storage tank water heaters are known for their simplicity and affordability. They're great for homeowners who value ease of use, maintenance, and affordability in their water heating solutions.

water heater Disadvantages

Storage tank water heaters are common and reliable, but they have some downsides. One big issue is they can increase your utility bills. They keep heating water even when you're not using it. This constant use can make your bills go up for the storage tank water heater utility bills.

Another problem is the storage tank water heater space requirements. These heaters are bigger, taking up more room in your home. This can be tough for those living in small spaces, like in apartments or tiny homes. It also makes them harder to install or replace in cramped areas.

  • Storage tank water heaters don't last as long, usually 10 to 15 years. This means you might have to replace them more often than tankless heaters, which can last over 20 years.
  • They use more energy because they constantly heat and reheat water. This can lead to higher storage tank water heater disadvantages in your utility bills.
  • Their size can be a problem, taking up more space in your home. This is a challenge for those with limited storage tank water heater space requirements.

Even though storage tank water heaters are still a popular choice, it's key for homeowners to think about the downsides and benefits. This helps in picking the best water heating option for their homes.

Space and Installation Factors

Choosing the right water heater depends a lot on your home's space. Tankless water heaters are great for small spaces because they're much smaller than traditional ones. They fit well on walls or in small areas, perfect for homes with little room.

Tankless Water Heaters and Space Constraints

Tankless water heaters are known for their small size. They're mounted on walls and use much less space than big tank heaters. This makes them perfect for homes with small closets or areas where a big tank heater won't fit. Plus, they can even go outside, giving you more installation options.

But, installing a tankless water heater can be tricky and might cost more. You might need to move plumbing and add vents for gas models. Homeowners should think about the tankless water heater installation and space requirements before buying.

Choosing the right spot for your tankless water heater is key for it to work well and be easy to maintain. You should think about how close it is to water, power, and vents to pick the best spot.

Hot Water Demand and Capacity

Both tankless and traditional water heaters have their own ways of handling hot water. Tankless heaters give you hot water as you need it, but they struggle with high demand like many showers at once. Storage tank heaters can handle lots of hot water use at once, but they can run out, leaving the last person with cold water.

Tankless Water Heater Output and Simultaneous Usage

Tankless heaters are rated by how much they can heat water at once. Gas-fired ones can heat up 70°F at 5 gallons a minute, while electric ones can do the same at 2 gallons a minute. But if many things need hot water at once, the heater might not keep up, making the water cooler.

To fix this, some people get bigger tankless heaters or more units. Planning your hot water needs helps make sure the heater is big enough for everyone's use without losing heat.

Storage Tank Water Heater Capacity

Storage tank heaters can handle lots of hot water use at once. Their "first hour rating" shows how many gallons they can give out in an hour. This is key to making sure they can meet your household's peak hot water needs.

A 30-gallon heater can give about 21 gallons of hot water in an hour. A 50-gallon can give around 35 gallons, and an 80-gallon can give about 56 gallons. Picking the right size for your home means everyone gets hot water when they need it.

Choosing between tankless and storage tank heaters depends on your home's hot water needs. Working with a skilled plumber can help you pick the best one for your family.

Maintenance and Repair Considerations

Keeping your water heater in good shape is key for its efficiency and long life. Both tankless and storage tank heaters need regular care. But, the upkeep can differ between them.

Tankless water heaters are more complex and might cost more to maintain and fix than traditional storage tank ones. Their inner parts, like the heat exchanger and water flow sensors, are harder to work on. Yet, storage tank heaters are simpler and cheaper to fix when problems come up.

It's important to maintain both types of water heaters to keep them running well and lasting longer. Flushing the system, checking the anode rod, and looking at thermostats and electrical connections are key tasks. These actions help keep both tankless and storage tank heaters in good shape.

Here are some important things to consider for both types of water heaters:

  • Tankless heaters need more frequent flushing and cleaning to stop mineral buildup. This buildup can lower their efficiency and shorten their life.
  • Storage tank heaters should get a yearly tank flush to clear out sediment. This sediment can hurt heating and cause the heater to fail early.
  • Fixing a water heater can cost differently based on the problem. Tankless heaters usually cost more to repair.
  • Regular maintenance can make a water heater last 10-12 years for storage tanks and up to 20 years for tankless ones.

It's crucial to keep up with water heater maintenance. This ensures your water heater works well and reliably for many years, whether it's tankless or storage tank.

Choosing the Right Water Heater for Your Home

Finding the right water heater for your home can seem tough, but it's key for your energy bills and daily hot water use. You should think about the initial cost, energy efficiency, how much hot water you need, the space you have, and the costs for upkeep and replacing it later.

Weighing the Pros and Cons for Your Specific Needs

Tankless water heaters are great for those who want to save energy and have moderate hot water needs. They heat water only when you need it, which can save a lot of energy. But, they cost more upfront and might need extra work for electrical or gas lines.

Storage tank water heaters are more affordable at first. They're good for homes that use a lot of hot water because they can hold more preheated water. But, they use more energy and don't last as long as tankless heaters.

Choosing the right water heater depends on your needs and how you live. Talking to a professional plumber can help you see the good and bad of tankless and storage tank heaters. This way, you can pick a water heater that works well for you, giving you reliable hot water for a long time.

Top Water Heater Brands and Models

Choosing the right water heater for your home means looking at many top brands and models. Brands like Bosch, Navien, Noritz, Rheem, Rinnai, Tempra, and Trutankless stand out. They offer both tankless and storage tank heaters to meet different needs and likes.

Navien, started in 1978, is a big name in tankless water heaters. It's known worldwide, including in North America, South America, Europe, Oceania, and Russia. Navien is praised for its energy-saving and high-tech heaters.

Bradford White, founded in 1881, makes both tankless and tank water heaters. They focus on American-made products that save energy and cut down on gas bills. Homeowners like Bradford White's heaters for their efficiency.

Kenmore is famous for its kitchen appliances but has also entered the water heater market. They offer tankless and hybrid heaters. These heaters use a heat pump and storage tank for better efficiency and more hot water.

Rheem, started in 1925, has a wide range of water heaters, including tank, tankless, and hybrid models. These heaters usually last 8 to 15 years with proper care.

Rinnai, from Japan since 1920 and in the US since the 1970s, focuses on efficiency and affordability. They have tankless and hybrid heaters for those watching their budgets.

When picking a water heater, it's key to look at features, efficiency, and customer reviews. This helps you choose the best one for your home.

Conclusion

Choosing the right water heater for your home is a big decision. You need to look at the pros and cons of tankless and storage tank models. Tankless heaters are great because they save energy and last longer. But, they might not work well if many people need hot water at once and are more expensive upfront.

On the other hand, storage tank heaters are cheaper and good for big families. They don't last as long and cost more to run. But, they can handle lots of hot water use.

Think about what you need for your home, like energy efficiency, cost, how much hot water you use, and space for the heater. This will help you pick the best water heater for your situation. Talking to a professional can also guide you to the right choice for your home.

Whether you choose a tankless or storage tank heater, think about what's best for your home. Look for a balance of performance, efficiency, and cost. Making a smart choice means you'll have reliable hot water and save on energy costs over time.

HVAC Technician installing a electric heat pump
About Crossville Heating and Cooling, Inc.
Crossville Heating and Cooling, Inc. is a locally owned heating and air conditioning company that provides sales, service, and installation of any type of heating or cooling in your home or light commercial building.

Although the name Crossville Heating and Cooling, Inc. is new, Mr. Richard Gilmer has been in the business of keeping his neighbors comfortable since 1998. As our presence in the HVAC contractors industry has evolved, we decided to change the name of our business to better reflect our commitment to the Middle TN area.

Our core values include implementing economically friendly products and practices to better contribute to the health and home of our customers. We are EPA certified and ensure that all refrigerant is recycled and all equipment is disposed of as per environmentally-safe standards. Our service techs and installers are trained to conduct business with minimal disruption to your daily lifestyle so that the only impact we make is a positive one

FAQ

What is the difference between a tankless water heater and a traditional storage tank water heater?

Tankless water heaters, also known as on-demand water heaters, heat water as it flows through a heat exchanger. They deliver hot water directly to your faucets or shower without storing it in a tank. Storage tank water heaters, on the other hand, have an insulated tank that holds 30-50 gallons of water. They heat and store the water until it's needed.

Which type of water heater is more energy-efficient?

On-demand (tankless) water heaters use less than 41 gallons of hot water daily. They offer 24 to 34 percent more energy efficiency than storage tank water heaters. If you use a lot of hot water, you might save an extra 8 to 14 percent. Installing a tankless water heater at each outlet can save you 27 to 50 percent in energy costs.

What are the cost and longevity differences between tankless and storage tank water heaters?

Tankless water heaters cost more upfront and installation can be complex and expensive. But, they last 20 to 30 years, twice as long as storage tank heaters. They can save homeowners over $100 a year on energy costs compared to gas-fired storage tank models. Electric tankless models save around $44 annually.

What are the advantages of storage tank water heaters?

Storage tank water heaters are cheaper to buy and operate more simply. This means less costly maintenance and repairs. They are easy and affordable to fix if they're not working right, unlike tankless models which are more complex and expensive to repair.

What are the disadvantages of storage tank water heaters?

Storage tank water heaters have higher utility bills because they constantly heat and reheat water. They take up more space and need to be replaced more often, after 10 to 15 years. This can be a challenge in small homes.

How do tankless water heaters address space constraints?

Tankless water heaters are smaller and can fit in tight spaces or even on outside walls. They're ideal for homes with limited space. But, installing them can be complex and costly, especially when replacing an existing tank.

How do tankless and storage tank water heaters handle high hot water demand?

Tankless water heaters provide continuous hot water but struggle with high demand, like multiple showers at once. Storage tank water heaters can handle high demand better but may leave the last person with a cold shower.

Which type of water heater is more expensive to maintain and repair?

Tankless water heaters are more complex and costly to maintain and repair than storage tank models. Storage tank heaters are simpler and cheaper to fix when problems arise. Both types need regular maintenance to work well and last long.

What factors should homeowners consider when choosing between a tankless or storage tank water heater?

Homeowners should think about the initial cost, energy efficiency, hot water needs, space, and maintenance and replacement costs. Tankless heaters are great for saving energy and space but may cost more upfront. Storage tank heaters are cheaper but use more energy and need replacing more often. A professional plumber can help you decide what's best for your home.

What are some of the top water heater brands in the market?

Top water heater brands include Bosch, Navien, Noritz, Rheem, Rinnai, Tempra, and Trutankless. These brands offer both tankless and storage tank models for different needs and preferences. It's smart to compare their features, efficiency, and customer reviews to find the right one for your home.

HVAC Technician installing a electric heat pump
About Crossville Heating and Cooling, Inc.
Crossville Heating and Cooling, Inc. is a locally owned heating and air conditioning company that provides sales, service, and installation of any type of heating or cooling in your home or light commercial building.

Although the name Crossville Heating and Cooling, Inc. is new, Mr. Richard Gilmer has been in the business of keeping his neighbors comfortable since 1998. As our presence in the HVAC contractors industry has evolved, we decided to change the name of our business to better reflect our commitment to the Middle TN area.

Our core values include implementing economically friendly products and practices to better contribute to the health and home of our customers. We are EPA certified and ensure that all refrigerant is recycled and all equipment is disposed of as per environmentally-safe standards. Our service techs and installers are trained to conduct business with minimal disruption to your daily lifestyle so that the only impact we make is a positive one

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