On-demand water heaters are among the hottest trends in home improvement, but is a tankless system appropriate for your home? There are many factors, including weighing the additional initial costs against the potential long-term savings. Let’s explore these dynamics to determine which type of water heater is ideal for you.
A Virtually Unlimited Hot Water Supply
A well-sized tank water heater will serve your household well without issues. That said, a big part of the appeal of an on-demand system is endless hot water. There’s little risk of running out of hot water. Even if you exceed your flow rate, water pressure will drop, but you won’t run out. You can just shut off fixtures or appliances to return to normal.
Sizing for Increased Demand
Anyone who’s hosted stayover guests for the holidays knows the demand that can put on a water heater. Wouldn’t it be nice if you could size for those special occasions? You can with an on-demand water. You’ll pay for it initially and whenever you use the added flow rate. You won’t pay for it day in and day out. That isn’t the case with a tank water heater. If you opt for a 75-gallon tank rather than the 50-gallon you need, it will cost you every day.
Energy Efficiency
Another big draw to tankless water heaters is that they’re more efficient than their tanked counterparts. Water heaters with tanks are inherently inefficient because they maintain water temperature even when you’re not using hot water.
Carbon Footprint
According to the Department of Energy, water heating represents 18% of the average household’s annual energy consumption. That puts it behind only air conditioning and heating for a household’s carbon footprint. By reducing the energy, you use to heat your water, you can significantly lower your environmental impact.
Water Heating Costs
Lower energy consumption will affect your wallet as well. The DOE estimates that the typical household will reduce their water heating costs by 24% to 34%. If you spend $35 a month now, which is about average, you can save $100 annually or more.
Hot Water Usage
Per the DOE, the typical household uses approximately 41 gallons or less of hot water daily. If your household uses more than that, efficiency will decrease with the additional volume. At 86 gallons of hot water daily, cost savings can be as low as 8%. That would mean it would take much longer to recoup the added investment.
Energy Incentives
There are incentives for homeowners to adopt more efficient home improvements. Such incentives can make purchases and installations more affordable and help you recoup your added investment sooner.
ENERGY STAR
ENERGY STAR is a program jointly operated by the Environmental Protection Agency and DOE. The EPA sets high energy-efficiency standards for water heaters and other appliances. They aren’t legal requirements, but products that meet them earn certification. That certification provides consumers with confidence in their purchases. It’s also a requirement for most incentives, including tax credits and rebates.
Tax Credits
The most notable tax credit for water heaters is the Energy Efficient Home Improvement Credit. It’s a nonrefundable federal tax credit that you can claim on your return. It’s worth 30% of the water heater equipment and installation costs up to $2,000.
Rebates
Rebates may be available through manufacturers, local utilities, and nonprofit organizations. You can claim some rebates before the purchase while others are only claimable after the fact. Search for rebates by zip code through the ENERGY STAR website. Experts also recommend checking for rebates on local utility company sites.
Conversion
Tankless systems cost more to purchase and install than tank systems, but that isn’t the only cost to consider. Any necessary conversions can increase your initial investment as well.
Plumbing Upgrades
Tankless water heaters generally require a larger gas line than tank water heaters. You may need a larger water line as well. This is most common in older homes that don’t meet modern standards. An outdoor installation may circumvent the need for plumbing upgrades. Yet, outdoor installations are only advisable in warmer climates with mild winters.
Electrical Upgrades
You may need whole-home surge protection, which the National Electrical Code requires as of 2023. In some cases, it may be necessary to add a dedicated circuit for a tankless water heater. If the panel is outdated or lacks room, you may need to replace it with a modern panel.
Power and Fuel Options
Electric water heaters are cheaper to purchase and install. Fuel-burning water heaters are more cost-effective over the long term. That’s due to the cost of natural gas relative to electricity. The exception is on-demand water heaters for small homes with low hot water demands. In that scenario, an electric on-demand water heater will often be more cost-effective.
High-Efficiency Systems
High-efficiency water heaters are condensing fuel-burning water heaters. Conventional fuel-burning water heaters lose heat through the process of venting toxic gases. Condensing models have a second heat exchange to reclaim heat from those gases before venting them. Due to the additional equipment, these systems cost more to purchase and install. Still, the energy savings over time can make that added investment worth it. If you want a high-efficiency system, you have the option whether you opt for a tank or tankless model.
Water Hardness
Water hardness refers to mineral content that can form into limescale over time. Scale is an issue for all water heaters. It reduces efficiency, increases operating costs, and can shorten a water heater’s lifespan. That said, tank water heaters have a higher tolerance due to their tanks and sacrificial anode rods. You may need additional equipment regardless of water heater type if you have hard or very hard water. Those with moderately hard water may need it if upgrading to an on-demand system. There are local solutions, such as anti-scale devices. You can also opt for a home-wide solution, such as a point-of-entry water softener.
Installation Space
Tank water heaters often have dedicated closets. Tankless systems take up much less space and you can mount them on a wall. You can install an on-demand water heater in a garage without taking up valuable space or in an attic or basement. If you currently have a water heater closet, you can repurpose it, such as adding a pantry or server room.
Tank and Tankless Water Heater Installation in Mentor and Warrensville Heights
Anderson Heating, Cooling, Plumbing & Electric has locations in Mentor and Warrensville Heights, OH and serves the surrounding areas as well. Our plumbers install tank water heaters as well as tankless types, and we provide repair and maintenance service as well. We pipe and repipe gas, water, and sewer lines and detect and fix water and gas leaks. Our team also specializes in bathroom and kitchen fixtures, garbage disposals, sump pumps, and water softeners. We can clean and repair drains and sewer lines too, including hydro-jetting and other trenchless solutions. Our electricians perform inspections, repairs, and installations. That includes electrical panels, surge protection, generators, outlets, indoor and outdoor lighting, and smoke and CO detectors. Our HVAC technicians install and service all heating, cooling, and indoor air quality technologies.
To learn more about our products and services or to schedule an appointment, call Anderson Heating, Cooling, Plumbing & Electric today or contact us online.
