Tankless Water Heater Pros & Cons

In recent years, many homeowners have switched to tankless water heaters. While these systems have many benefits, it’s still important to weigh their pros and cons before deciding whether to replace your existing system. 

To help you choose a new water heater, we’ll look at how tankless systems compare in terms of:

• Energy efficiency and cost savings
• Space-saving design
• Continuous hot water supply
• Installation and maintenance
• Potential drawbacks and limitations

Keep reading to learn more about what these systems offer.

Energy Efficiency and Cost Savings

Looking to save money on energy bills? Tankless water heaters cost a little more initially, but provide on-demand hot water, meaning they only use electricity or gas when you turn a tap on. When you compare this to traditional systems, which heat and maintain a large water reservoir, it’s easy to see how the savings add up.

According to the U.S. Department of Energy, tankless water heaters use about 24% – 34% less energy if your household consumes 41 gallons or less of hot water daily. In Colorado, this could save you nearly $19 maximum off a traditional electric water heater’s $55.52 monthly running costs.

Efficiency drops for homes that use up to 86 gallons per day. However, tankless water heaters still use about 8% – 14% less energy than traditional systems in this situation.

Space-Saving Design

Small families typically need an 80-gallon water heater for a reliable hot water supply, but your household might need an even larger system if it has more than four people. Traditional systems take up lots of space, though, leading to a tight squeeze in smaller homes.

An equivalent tankless water heater, in comparison, is usually only about 24 inches tall and 20 inches wide. They’re also typically wall-mounted, which makes them seem even more compact by leaving functional floor space in your laundry room, basement, or garage.

Continuous Hot Water Supply

Tankless water heaters activate when you turn a hot water tap on. While there’s often a slight delay before hot water flows, it usually takes only a few seconds. Once it’s hot, it remains that way until you turn the tap back off.

A traditional water heater, on the other hand, eventually runs out of water. After this happens, it can take several hours for your water supply to return to the optimal temperature.

With all this in mind, tankless water heaters are the clear winner for households with multiple people or heavy water consumption. However, energy savings still make them an excellent choice for families with lower water consumption.

Installation and Maintenance Considerations

The cost of tankless water heaters averages about double that of tank-based systems in Colorado. While this can be a significant con for many homeowners, it’s important to remember that tankless water heaters offer substantial energy savings over their lifetime.

With that said, all water heaters require regular maintenance so this is another ongoing cost to consider. Although minerals and sediment build up inside the tanks of traditional systems, tankless water heaters still need annual descaling and component inspections, too. DIY descaling is easier with a tank-based system, but it’s better to have professionals handle the maintenance needs of both kinds of water heaters in the long run, rather than risking burns or system damage.

Potential Drawbacks and Limitations

So far, our tankless water heater pro and con list has taken a balanced approach while focusing on the unique benefits of tankless systems. However, we also need to cover a few more of the limitations of these systems to ensure you fully understand your choices. These include: