Tank water heaters have been the traditional choice for American households and businesses for many decades. Tankless water heaters are a trendy alternative that can provide many benefits for your home. Let’s explore the pros and cons of each to determine which style is right for your residence.
Limited vs. Unlimited Hot Water
Traditional water heaters store and heat water in a tank. The tank has a limited capacity, often 40 to 50 gallons for the average household. If you exceed that capacity, you’re out of hot water until the system recovers. That can take an hour or longer.
Limitless hot water is one of the most compelling aspects of an on-demand system. As long as you don’t exceed the system’s flow rate, you’ll have unlimited hot water at optimal pressure. If you do exceed it, you won’t run out, but you’ll experience low water pressure. Even then, you can turn off a fixture or an appliance to recover immediately.
Conversion
Most homes in the U.S. already have a storage water heater. There’s no conversion needed to replace it. You simply remove the old unit and install the new one. This often is different with instantaneous water heaters, especially in older houses. You may need a circuit added to your electrical panel or the panel replaced altogether. Older plumbing systems may need upgrades as well. The conversion process can increase your installation costs considerably. Of course, this is a one-time expense that you’ll benefit from as long as you’re in the home.
Power and Fuel Options
Generally, you have all the same fuel and power options with both configurations. Those include electric, natural gas, liquid propane, and fuel oil. Fuel-burning systems are generally more cost-effective in the long run. Manufacturers now make high-efficiency condensing systems that are even cheaper to run. There are exceptions, though. Electric tankless water heaters can be more cost-effective than their fuel-burning counterparts for very small households. Electric heat pump water heaters, which are a type of tank water, are arguably the most cost-effective overall.
Energy Efficiency
Heat pump tank water heaters are the most energy-efficient option. The reason is that they don’t generate heat but transfer it through a refrigeration cycle. Otherwise, tankless systems are much more efficient than tank water heaters. The reason is that a traditional water heater has to maintain its water supply at a particular temperature. It’s constantly consuming electricity or fuel to do that. That isn’t the case with on-demand water heaters. They bring the water up to temperature almost immediately and only use energy when you’re running hot water.
Operating Costs
The average household will use at least 25% less energy to heat their water with a tankless system. What’s considered average? It’s about 40 gallons or less of hot water a day. At that level of usage, savings can be as high as 35%. If you opt for a fuel-burning system, you can expect to lower costs by more than $100 annually. If you opt for an electric system, you can expect to lower your costs by around $50 a year.
Sizing: Capacity vs. Flow Rate
With both tank and tankless systems, you’ll want a professional to size your system. Incorrect sizing will lead to inconveniences and unnecessary spending. Tank systems are generally easier to size. There are baseline estimates for the number of people in the home. You can then adjust it up or down based on the number of bathrooms and water-using appliances in your house. With tankless water heaters, you must account for the total flow rate. This is the total gallons per minute of all the fixtures and water-using appliances you want to run simultaneously. The installer must also account for temperature rise. This is the difference between your target hot water temperature and the temperature of your water supply.
Oversized Capacity
Consider a scenario in which you host large family gatherings during the holidays. At these times, your hot water demand may be dramatically greater. There isn’t much you can do about this with a traditional water heater. If you size for special occasions, you’ll be paying for it every day. That isn’t the case with a tankless water heater. You’ll pay for an oversized capacity at the time of purchase and when you use it but not daily.
Longevity
Traditional water heaters generally last between six and 12 years. Beyond 12 years, you’re often dealing with decreased efficiency and increased operating costs. Tankless systems, on the other hand, last 15 to 20 years. You can even get 25 years or more out of them with routine maintenance and a little luck. Better yet, these systems tend to maintain their efficiency even in old age.
Total Costs
Total costs are typically lower with tankless water heaters. That’s true even if you have to pay added costs for conversion. It’s due to lower operating costs but also the unit’s lifespan, which is often twice as long.
Installation Space
Many homes have a closet dedicated to the water heater. These units can take up a lot of space, especially if you need a large one. Garage installations are an option, but even with a tall model, it takes up a lot of valuable storage space. Tankless water heaters don’t take up a lot of space. You can install them on practically any wall because they’re about the size of a key box. You can even install them in the attic or basement.
Warranty Coverage
The warranties for tank and tankless water heaters reflect their expected lifespans. Tankless water heater warranties are longer and more robust. They also tend to provide more options when it comes to extending and expanding the coverage. A typical water heater warranty protects you for six years. A typical tankless water heater warranty protects you for 12. There are even standard tankless warranties on the market that last as long as 25 years.
Water Hardness
Hard water, which is water with high levels of calcium and magnesium, is problematic for all water heaters. It causes maintenance issues, increases operating costs, and reduces equipment lifespan. Tankless systems are even more susceptible to limescale, and it can really cut into any savings from the upgrade. Fortunately, there are a couple of solutions. A local solution is an anti-scale device that prevents scale buildup. A home-wide solution is a water softener that removes the calcium and magnesium from your water.
Energy Incentives
There are energy incentives available for both tank and tankless water heaters that can lower your initial costs. That said, there are some notable points to consider. Both tax credits and rebates generally require ENERGY STAR certification. The U.S. EPA only certifies fuel-burning water heaters. The other consideration is that it’s much easier to choose ENERGY STAR with a tankless system. Most tankless systems earn the label. With tank water heaters, it’s usually only the more expensive high-efficiency models that make the grade.
Install a New Water Heater in Eugene
Pacific Plumbing & Rooter Inc has been installing tank and tankless water heaters throughout Eugene, OR and the surrounding areas for over a decade. Our licensed plumbers are available for drain cleaning, trenchless sewer repair, pipe repair, well service, and water softeners. We also offer a maintenance agreement to help you save money on your home’s plumbing system. Plus, we have 24/7 emergency services to make sure you get the necessary plumbing repair, day or night! To schedule an appointment, call us today.
