Electric Tankless Water Heaters vs Traditional

We get many questions about electric tankless water heaters, and we think they are good questions. For some people and situations, they are a perfect fit, while a traditional water heater may be better for others. Let’s take a look at the most important components of each.

Why You Should Consider an Electric Tankless Water Heater

Energy Savings

The US Department of Energy has reported that gas tankless water heaters save an average household about $100 per year over a traditional gas water heater. An electric tankless water heater can save homeowners about $44 per year over a traditional electric one.

This isn’t a huge savings, but it could add up over time. In fact, tankless water heaters are built to last 20 years, which would generate over $2000 in savings over that time, not to mention the replacement cost of traditional water heaters, which are built to last half the time or about 10 years, and can run several thousand dollars.

Electric tankless water heaters tend to have longer warranties as well, which can aid in cost savings. Where a typical water heater offers a standard 6-year warranty, tankless tend to be 15 years.

Less Burdensome

Tankless units are much smaller than their counterparts, even the smaller more efficient traditional water heaters. This is ideal for spaces that are looking for a more compact use of space or have limited space, such as condos.

As soon as they want to replace them, unlike a lumbering tank, tankless water heaters don’t end up in a landfill. And, if a traditional water heater fails, you are looking at water all over the floor, potentially causing water damage issues. With a tankless model mounted on the wall, you no longer have to tolerate this.

Hot Water Supply

When you need hot water, tankless water heaters provide it instantly, unlike traditional systems that heat and store water in a tank. This eliminates the cost of the energy required to hold 40+ gallons of water in a heated tank. Because they offer a continuous supply of hot water, you aren’t likely to run out, even after long showers or multiple appliances and showers running, making it ideal for large families, big tubs and people who need large amounts of hot water at any given time.

Why You Should Consider a Traditional Water Heater

Potentially Easier Installation

Installation of a traditional water heater can usually be fairly straightforward. An easy swap of like-for-like keeps costs down. However, with plumbing codes changing, including recent new energy efficiency standards, the “like-for-like” concept doesn’t always apply.

More efficient water heater models are often a different size or shape, making the space require adjustments. Plumbing code may require updates to electrical, piping, expansion tanks and more. It is these types of changes that are prompting homeowners to consider electric tankless water heater units, despite changes required as well for them.

Increasing Efficiency

Traditional water heaters hold 40 or more gallons of water in a tank and are kept constantly heated by a gas or electric source. You use the preheated water as necessary, and if it’s all used up, the tank fills and reheats the water. Because they heat and reheat sitting water, regardless of whether or not it is being used, it can increase your energy bills. This is especially true in the winter when the water gets cooler faster and the heating element has to keep up with maintaining the water temperature.

New laws are requiring increased energy efficiency of water heaters, but sadly, this has many times decreased the amount of water they can hold at a given time. After using all the cold water, the tank refills and heats it, which is what causes cold showers or “running out of hot water”.

Purchasing a larger tank or staggering showers and appliance usage has solved this for some families, but others look at tankless as an option when this doesn’t work.

Lower Upfront Cost

Sometimes people will find traditional water heaters on sale, providing a fast and budget-friendly replacement. However with changes in energy efficiency, we are seeing less and less of this, and in fact, we are seeing manufacturers completely ending production of parts to even fix older models. This will likely push people towards higher efficiency models and tankless units.

Finally, additional costs for tankless units can make them impractical for smaller families, as costs associated with upgrading venting or electrical supply make the costs skyrocket.

We believe electric tankless water heaters will likely become the way most families will choose to go eventually. As they continue to improve and become more common, their pricing will go down, installation will become easier and the desire for on-demand heat and energy savings will become more attractive in the face of traditional water heaters that just can’t compete.

If you have questions about whether a tankless water heater is right for you, give Denver Plumber and HVAC a call today! Locate us on Google Maps