If you’re looking to replace your old water heater, you may be wondering whether to go with a traditional tank water heater or make the switch to a tankless model. With rising energy costs, a tankless water heater can seem very appealing with its promise of providing hot water on demand while using less energy.
But making the change requires careful consideration of your needs and budget.
If you’re short on time, here’s the quick answer: Tankless water heaters provide hot water on demand and are more energy-efficient, but tank models are typically less expensive upfront and easier to maintain.
Consider your household size, water usage, and budget to decide which is best for your home.
How Tank and Tankless Water Heaters Work
Tank Water Heaters
Tank water heaters, also known as storage water heaters, are the traditional and most common type of water heaters found in homes. These heaters consist of a large tank that stores and heats a specific amount of water. The tank is insulated to keep the water hot until it is ready to be used.
When you turn on a hot water tap in your home, the water is drawn from the tank and replaced with cold water, which is then heated to the desired temperature.
One of the main advantages of tank water heaters is their ability to provide a large volume of hot water at once. This is especially useful for households with multiple bathrooms or for activities that require a significant amount of hot water, such as running the dishwasher or doing laundry.
However, one drawback of tank water heaters is that they can run out of hot water if the tank is not large enough to meet the household’s demand. This can be inconvenient, especially if you have guests or if multiple people need to use hot water at the same time.
Additionally, tank water heaters constantly heat the water in the tank, even when no hot water is being used, which can result in energy wastage.
Tankless Water Heaters
Tankless water heaters, also known as on-demand water heaters, are a more recent innovation in water heating technology. Instead of storing hot water in a tank, these heaters heat the water as it passes through the unit.
When you turn on a hot water tap, cold water flows into the tankless heater, which quickly heats it to the desired temperature using powerful electric coils or gas burners.
One of the primary advantages of tankless water heaters is their energy efficiency. Unlike tank water heaters, which constantly heat and store water, tankless heaters only heat water when it is needed.
This means that they consume less energy overall, resulting in potential energy savings and lower utility bills.
Another benefit of tankless water heaters is their unlimited supply of hot water. Since they heat water on demand, you will never run out of hot water, no matter how long you need it. This can be particularly advantageous for households with high hot water demands or for those who value convenience.
However, it’s important to note that tankless water heaters have a higher upfront cost compared to tank water heaters. Additionally, they may have limitations in terms of the number of hot water outlets they can serve simultaneously.
If you have a large household with multiple hot water needs, you may need to install multiple tankless units or opt for a larger capacity unit to ensure sufficient hot water supply.
Comparing Upfront Costs
Tank Water Heater Cost
When it comes to upfront costs, traditional tank water heaters are generally more affordable compared to tankless water heaters. The average cost of a tank water heater ranges from $500 to $1,000, depending on the size and brand.
This price includes the cost of the unit itself, installation, and any necessary additional parts.
However, it’s important to note that the cost can vary depending on factors such as the type of fuel used (electric, gas, or propane) and the location of installation. For example, electric tank water heaters tend to be cheaper upfront compared to gas or propane models.
Tankless Water Heater Cost
Tankless water heaters, on the other hand, have a higher upfront cost compared to tank water heaters. The average cost of a tankless water heater can range from $1,000 to $3,000 or more, depending on the brand, size, and features.
This price includes the cost of the unit itself, professional installation, and any additional parts or accessories.
While the initial cost may be higher, it’s important to consider the long-term savings that can be achieved with a tankless water heater. These units are more energy-efficient, resulting in lower monthly utility bills.
Over time, the savings on energy costs can help offset the higher upfront investment.
According to Energy.gov, switching from a tank water heater to a tankless water heater can save homeowners up to 30% on their water heating bills each year.
Additionally, it’s worth mentioning that tankless water heaters have a longer lifespan compared to tank water heaters. On average, tankless units can last up to 20 years, while tank water heaters typically last around 10-15 years. This longer lifespan can also contribute to long-term cost savings.
Operating Costs and Energy Efficiency
Tank Water Heater Operating Costs
When it comes to the operating costs of a tank water heater, there are a few factors to consider. First and foremost is the energy source used to heat the water. If you have a gas tank water heater, the cost of natural gas can vary depending on your location and current market prices.
On the other hand, if you have an electric tank water heater, the cost of electricity will be the main factor.
In addition to the energy source, the size and insulation of the tank can also impact operating costs. A larger tank will require more energy to heat the water, while a well-insulated tank will help retain heat and reduce energy consumption.
It is important to consider the size of your household and your hot water needs when choosing a tank water heater, as a larger tank may be necessary for a larger family.
It is estimated that the average annual operating cost of a tank water heater ranges from $300 to $600, depending on factors such as energy source, tank size, and usage patterns. This cost includes both the energy used to heat the water and the standby energy loss, which occurs when the water in the tank cools down and needs to be reheated.
Tankless Water Heater Operating Costs
Tankless water heaters operate differently than tank water heaters, which can result in different operating costs. One of the main advantages of tankless water heaters is their energy efficiency. Unlike tank water heaters that continuously heat and store water, tankless water heaters only heat water on demand, which can lead to significant energy savings.
Because tankless water heaters do not have a storage tank, there is no standby energy loss. This means that you do not have to continuously heat water that is not being used, resulting in lower energy consumption.
Additionally, tankless water heaters are known for their longevity, with an average lifespan of 20 years compared to the 10-15 year lifespan of tank water heaters.
While tankless water heaters can be more expensive upfront, they can save you money in the long run. It is estimated that the average annual operating cost of a tankless water heater ranges from $150 to $300, depending on factors such as energy source and usage patterns.
This represents a potential savings of 20-40% compared to a tank water heater.
It is worth noting that the operating costs mentioned above are estimates and can vary based on individual circumstances. To get a more accurate estimate of the operating costs for your specific situation, it is recommended to consult with a professional or use online calculators that take into account factors such as local energy rates and water usage.
Maintenance Requirements
Tank Water Heater Maintenance
Maintaining a tank water heater is relatively straightforward and requires regular attention to ensure optimal performance and longevity. Here are some key maintenance tasks for tank water heaters:
- Drain and flush the tank annually to remove sediment buildup, which can affect efficiency and reduce the lifespan of the heater.
- Inspect the anode rod every few years and replace it if it is significantly corroded. The anode rod helps prevent corrosion inside the tank.
- Check the temperature and pressure relief valve periodically to ensure it is functioning correctly. This valve is crucial for safety and should be replaced if it shows signs of leakage or failure.
- Inspect the gas burner or heating elements and clean them as necessary to maintain efficient heat transfer.
- Regularly check for leaks in the tank, fittings, and connections. Address any leaks promptly to prevent water damage and ensure proper functioning of the heater.
By following these maintenance steps, you can extend the lifespan of your tank water heater and ensure it operates efficiently.
Tankless Water Heater Maintenance
Tankless water heaters have lower maintenance requirements compared to traditional tank water heaters. Here are some essential maintenance tasks for tankless water heaters:
- Flush the system annually to remove mineral deposits and prevent clogs. This helps maintain optimal performance and prevents any reduction in water flow.
- Check and clean the inlet water filter regularly to ensure it is not clogged. A clogged filter can reduce water flow and affect the heater’s efficiency.
- Inspect the heat exchanger for any signs of scale buildup. Scale can reduce the efficiency of the heater and should be removed if necessary.
- Inspect the venting system for any obstructions or blockages that could affect the proper functioning of the heater.
- Regularly check for leaks in the plumbing connections and address them promptly.
While tankless water heaters require less maintenance overall, it is still essential to perform these tasks regularly to ensure optimal performance and longevity.
Ideal Installation Locations
Best Places for a Tank Water Heater
If you are considering installing a tank water heater in your home, it is important to choose the best location for optimal performance and convenience. Here are some ideal places to consider:
- In the basement: The basement is often a popular choice for tank water heater installation due to the ample space available. It is also a great option if you have a laundry room or utility area in the basement, as it can supply hot water to multiple appliances.
- In a utility closet: If you don’t have a basement, a utility closet can be a suitable location for a tank water heater. This provides easy access for maintenance and repairs and keeps the unit out of sight.
- In the garage: For homeowners with a garage, installing a tank water heater in this area can be a convenient option. It can free up space inside the house and provide easy access for maintenance.
- In a dedicated mechanical room: If you have the luxury of a dedicated mechanical room, this can be an ideal location for a tank water heater. It allows for easy access, proper ventilation, and can help minimize noise in living areas.
Remember to consider the proximity to water and gas lines when choosing the installation location for your tank water heater. It should be placed near the main water line to ensure efficient water flow and near a gas line or electrical outlet for proper power supply.
Best Places for a Tankless Water Heater
Tankless water heaters offer flexibility in terms of installation locations. Here are some of the best places to consider:
- Under the sink: If you want hot water on demand in a specific area, such as a kitchen or bathroom sink, installing a tankless water heater under the sink can be a convenient option. It eliminates the need for long hot water pipes and provides instant hot water.
- In a utility room: Similar to tank water heaters, a utility room can be a suitable location for a tankless water heater. It allows for easy access and can provide hot water to multiple areas of the house.
- In a small closet or cabinet: Tankless water heaters are compact and can be installed in small closets or cabinets. This is especially beneficial for homeowners with limited space or those who prefer a hidden installation.
- On an exterior wall: Installing a tankless water heater on an exterior wall can simplify venting and reduce the distance hot water needs to travel to reach the faucets. This can help minimize heat loss and improve energy efficiency.
When installing a tankless water heater, it is important to ensure proper ventilation and access to a gas line or electrical outlet. Additionally, consult a professional plumber for proper sizing and installation to meet your household’s hot water demands.
Conclusion
In the end, choosing between a tank and tankless water heater comes down to assessing your budget, hot water needs, and maintenance preferences. Tankless heaters can provide hot water on demand efficiently but cost more upfront. Tank heaters are more affordable initially and simpler to maintain.
Carefully weigh the pros and cons of each to decide which type of water heater is right for your home.
