Switching To A Tankless Water Heater: Is It Right For You?
- Honest 2nd Opinion
- Apr 30
- 5 min read
Are you tired of running out of hot water during your morning shower? Or perhaps you're looking for ways to boost your home's energy efficiency? Switching to a tankless water heater, also known as an on-demand water heater, might be the solution you've been searching for. But is it the right choice for your household? This comprehensive guide will explore the benefits of tankless water heaters, delve into the potential drawbacks, and provide a detailed cost breakdown to help you make an informed decision.
Tankless Water Heater, everything you need to know
Endless Hot Water: The Allure of Tankless
The most significant advantage of a tankless water heater is the promise of virtually endless hot water. Unlike traditional tank-style heaters that store a limited supply, an on-demand water heater heats water only when you need it. This means no more waiting for the tank to refill after a long shower or a load of laundry. This feature is particularly appealing to larger families or households with high hot water usage.
Energy Efficiency and Cost Savings
Tankless water heaters can be more energy-efficient than traditional tank heaters. Because they don't continuously heat and reheat a large volume of water, they can save energy and potentially lower your utility bills. The U.S. Department of Energy estimates that households using less than 41 gallons of hot water daily can see energy savings of 24%–34%, while those using around 86 gallons can save 8%–14%. Over the lifespan of the unit, these savings can add up.
Space-Saving Design
Compared to bulky storage tank water heaters, tankless water heaters boast a compact design. They can be wall-mounted, freeing up valuable floor space in your basement, utility room, or garage. This is a significant advantage for smaller homes or those looking to maximize their storage space.
Longer Lifespan
Generally, tankless water heaters have a longer lifespan than traditional tank heaters, often lasting 20 years or more with proper maintenance, compared to the 10-15 year lifespan1 of a tank unit. This can translate to fewer replacements and long-term cost savings.
Potential Drawbacks of Tankless Water Heaters
While the advantages are compelling, it's crucial to consider the potential downsides of switching to a tankless water heater.
Higher Upfront Costs
The initial purchase and installation cost of a tankless water heater is typically higher than that of a traditional tank heater. This is a significant factor to consider when budgeting for a new water heating system.
Flow Rate Limitations
Tankless water heaters have a flow rate limitation. This means they can only heat a certain amount of water per minute. If multiple hot water appliances are used simultaneously (e.g., shower and dishwasher), the hot water flow might decrease or the temperature might drop. Choosing the right size tankless water heater for your household's needs is crucial to mitigate this issue.
Potential Need for Electrical Upgrades
Some high-capacity electric tankless water heaters may require upgrades to your home's electrical system, which can add to the overall installation cost. Gas-powered units might require new or modified gas lines and venting.
Cold Water Sandwich Effect
Some older tankless water heater models might experience a "cold water sandwich" effect, where a brief burst of cold water occurs between periods of hot water use. However, newer models have largely addressed this issue.
Cost Breakdown: What to Expect
The cost of switching to a tankless water heater can vary significantly based on several factors, including the type of fuel (electric or gas), the unit's flow rate capacity, the complexity of the installation, and your geographic location. Here's a general price breakdown:
Parts:
Electric Tankless Water Heater: $300 - $1500+ (depending on flow rate and features)
Gas Tankless Water Heater: $500 - $2500+ (depending on flow rate, features, and venting requirements)
Labor:
Installation costs can range from $500 to $3000+ or even more, depending on the complexity. Factors influencing labor costs include:
Existing plumbing modifications: Rerouting pipes can significantly increase labor costs.
Electrical upgrades: If a new circuit or higher amperage is required for an electric unit, this will add to the cost. Electricians typically charge $75 - $150+ per hour.
Gas line and venting: Installing or modifying gas lines and venting for a gas unit requires a qualified plumber or HVAC technician and can be costly. Plumbers and HVAC technicians often charge $75 - $200+ per hour.
Removal of the old water heater: Disposal fees may also apply.
Tools and Additional Materials:
Plumbing fittings and pipes: $100 - $700+
Electrical wiring and breakers (if needed): $50 - $500+
Gas piping and venting materials (if needed): $100 - $800+
Permits: Depending on your local regulations, you may need permits for plumbing and electrical work, which can range from $50 to $500+.
Therefore, the total cost to switch to a tankless water heater can range from approximately $1,050 to $12,000+ or more, depending on your specific circumstances. It's highly recommended to get quotes from multiple qualified plumbers and electricians in your area to get an accurate estimate for your situation.
Is a Tankless Water Heater Right for You?
Deciding whether to switch to a tankless water heater involves weighing the pros and cons against your individual needs and budget. Consider the following questions:
How much hot water do you typically use? If you frequently run out of hot water, a tankless system could be a game-changer.
How important is energy efficiency to you? If you're looking to lower your energy consumption and utility bills, a tankless heater can contribute to those goals.
How much space do you have available? The compact design of a tankless unit can be a significant advantage for smaller spaces.
What is your budget? Factor in the higher upfront costs and potential installation complexities.
Do you often use multiple hot water appliances simultaneously? Ensure you choose a unit with an adequate flow rate to meet your peak demand.
Conclusion: Making the Informed Choice
Switching to a tankless water heater offers numerous benefits, including endless hot water, potential energy savings, and a space-saving design. However, the higher upfront cost and potential installation complexities are important considerations. By carefully evaluating your hot water needs, budget, and the specific requirements of your home, you can determine if a tankless water heater is the right choice for you and enjoy the long-term advantages of this modern water heating technology. Reach out to us and have one of our qualified professional give you an idea of how much it would cost for your unique situation at no cost to you.
