5 Things You Don't Know About Tankless Water Heaters

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You may have heard of tankless water heaters.  Since they do not need to hold heated water in reserve, no tank is required. Another term for this type of water heater is “demand-type” or “instantaneous water heaters.” As you might imagine from this terminology, tankless water heaters work only as needed, and consequently are more energy-efficient than traditional tank water heaters. 

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Here is how a tankless water heater works: When hot water is called for at a faucet or showerhead, cold water enters through a pipe into the tankless water heater unit. The water is then heated by a gas burner or an electric element.

The advantage is you no longer need to wait for a storage tank to fill up with enough hot water to deliver it to, say, your shower (which is why you sometimes suffer a cold shower even with the hot tap turned all the way on, particularly if you have family members using hot water all at the same time). 

However, a tankless water heater’s output limits the flow rate to as little as two gallons per minute and not much more than five gallons a minute. Which basically means it is not an ideal application for large households, unless you are willing to consider installing multiple tankless water heaters.

The best application for tankless water heaters include:

• Small homes, apartments and condominium units intended for one or two occupants.
• Dedicated use for remote appliances, such as an outside bathroom or outdoor deck hot tub.
• A supplement to appliances such as dishwasher and clothes washing machines or a solar water heating system.

Which type is best for your home? Glad you asked, we covered that in a previous blog entitled, yes you guessed it, Which Type of Water Heater is Best for Your Home?

For this blog post we will cover five things you may not know about tankless water heaters:

• Is the hot water supply endless and instantly available?
• How energy-efficient are they?
• How long do they last?
• What are the required British Thermal Units (BTUs)? 
• Do they require electricity? What about the gas-fired tankless water units?

1. Is Hot Water Instantly Available or Endless? And What’s the Difference?

One common misconception about tankless water heaters is that they provide hot water instantly. Some do, but some don’t. The ones that do employ a recirculation pump to provide hot water instantly.  

However, all tankless water heaters supply hot water endlessly. As long as you have the hot water tap open, you’ll get hot water until you turn the tap off. 

2. Are Tankless Water Heaters More Energy Efficient?

According to the Department of Energy, the average household spends between $400 to $600 on water heating each year. Water heating is the second largest household expense, accounting for 14 to 18 percent of your total utility bill.

Obviously, the more energy-efficient an appliance, the more potential savings on your utility bill. While actual cost savings depend on how the tankless water heater is used, on average, tankless water heaters are 96 to 98 percent efficient. That contrasts with a standard tank water heater unit that is typically at around 60 percent efficient.

Keep in mind that some tank water heaters are more energy-efficient than others due to better insulation and more efficient components. A high-efficiency tank water heater uses up to 8 percent less energy to do its job versus lower efficiency options. 

Overall, though, tankless water heaters are still more energy efficient than standard tank water heaters. 

The trade-off is that tankless water heaters cost more upfront than standard tank water heaters. However, over time you recoup that expense from lower energy costs. On average, a tankless water heater (if installed correctly) can save up to 30 percent off of heating costs because they only heat water when you’re using it. 

3. What Is the Equipment Life of Tankless Water Heaters?

A tankless water heater has an operating lifespan of 20 to 30 years, depending on your water quality and if you perform required maintenance regularly. Compare that to the average 10 to 15 year lifespan of a standard tank water heater. This is largely because over time the tank eventually springs a leak and needs to be replaced. Obviously, this is not an issue for tankless water heaters.

Tankless water heaters do have to be cleaned periodically to ensure longevity. How often depends on how hard your water is (meaning how high the mineral content is in the water). If you have hard water, you should probably service the unit once a year. If you don’t have hard water or you use a water softener, you might go four to five years without any maintenance. Also bear in mind there are several electronic and moving parts that need to be serviced or replaced as needed in a tankless water heater. 

Today’s water heaters in general are more efficient, safer and create fewer pollutants. This is important for your safety and the environment. There is a trade off, however. Newer water heaters require more regular maintenance because the devices built into them to make them safer and environmentally friendlier require regular cleaning and testing. Failure to do regular maintenance drastically reduces equipment lifespan. 

Consult your plumbing professional for tankless water heater maintenance.

4. How Many BTUs Do Tankless Water Heaters Require?

Your first question is probably, what is a BTU? A British Thermal Unit is the amount of heat required to raise the temperature of one pound of water by one degree Fahrenheit. 

Gas-powered tankless water heaters require a dedicated appropriately sized gas pipe from the gas meter or liquid propane tank to the tankless water heater location. This requires a large amount of BTUs to operate. Generally speaking, the BTUs can range from 150,000-199,000 or more depending on the unit. In comparison, a standard 40 gallon tank water heater requires 38,000 BTUs. 

Electric tankless water heaters are typically rated according to watts, which range from about 3.0kW to 36kW. 

5. Do Tankless Water Heaters Require Electricity if They Are Gas-Powered?

In a word, yes. Electricity is still required even for a tankless water heater that operates on natural gas or liquid petroleum (LP). A 110-volt electrical outlet is required to power the gas tankless water heater unit’s control board, electronic ignitor and other parts. 

Consequently, the downside to a tankless water heater is in the event of an electrical power outage, not only are your lights off, so is your tankless hot water heater unless you have a battery back-up or generator. In comparison, a standard tank water heater only requires gas to operate. 

Ongaro & Sons Plumbing and Water Heater Services 

Ongaro and Sons provides a full range of plumbing services, including water heater and tankless water heater repair and replacement. Our technicians are experienced certified plumbers who can quickly identify problems and fix exactly what is wrong. Ongaro and Sons’ technicians are knowledgeable in just about every kind of plumbing problem and how to resolve them. We specialize in water heater repair and replacement.

With the help of our plumbing professionals, you can be sure to select the right tankless water heater application that best suits your needs. We know a lot more about tankless water heaters than just these five things we’ve discussed. Because it is our job to know more, to provide our customers with the best service possible.

Our quality technicians are factory trained, so if your water heater breaks down, we have the expertise to repair any make and model. However, we recommend you avoid repairs and untimely breakdowns by taking advantage of our preventative maintenance programs.

For more instant hot water heaters for showersinformation, please contact us. We will provide professional answers.

What is a tankless water heater?

A tankless water heater, also known as an on-demand or instant water heater, heats water only when needed. Unlike traditional storage tank heaters, which continuously heat and store water in a tank. In other words, tankless models provide as much hot water as your household requires without having to pay to keep a large tank of water hot all the time.

Tankless water heater vs tank heater

Whether a high-efficiency tankless water heater is the right choice depends on several factors. We’ll get into a complete list of pros and cons in just a moment. However, how much instant hot water your family needs will typically be a deciding factor. According to energy.gov, tankless water heater energy savings are between 24%–34% for small households using 41 gallons or less per day and 8%–14% for larger families that get through around 86 gallons per day.

Types of tankless water heaters

Here’s a quick rundown of the different types of tankless hot water heaters available to you:

• Electric tankless water heater – An electric tankless setup (not to be confused with an electric heat pump water heater, which still relies on a tank) uses electrical heating elements to warm water as it flows through the system.  
• Gas tankless water heater – Gas tankless heaters burn either propane or natural gas to heat water. Gas tankless water heaters come in two varieties:
  • Non-condensing models use a single heat exchanger.
  • Condensing models have a secondary heat exchanger for increased efficiency.
• Point-of-use tankless water heater – Point–of–use systems are smaller and specific to particular fixtures or appliances, such as a single–tap faucet or shower. 

How does a tankless water heater work?

Tankless water heaters work by heating water on demand without storing it in a tank. When the hot water tap is turned on, cold water flows through the unit, where it is heated instantly by either a gas burner or an electric element. The heater’s sensors detect the water flow and activate the heating process, adjusting the power output to maintain the desired temperature. This allows for a continuous supply of hot water, as long as the demand does not exceed the unit’s capacity, making it more energy-efficient since it only heats water when needed, without the standby heat loss associated with traditional tank water heaters.

Pros of tankless water heaters 

The primary benefits of a tankless water heater lie in energy, water, and space savings. Here’s a rundown of the primary factors to consider: 

Energy efficiency

As you can see from the Energy Gov stats we mentioned earlier, you use much less fuel and electricity by only heating water as needed. Even if the saving is just 10%, that equates to a considerable amount over time. 

Water conservation

Demand-type water heaters are a proven way to minimize hot water wastage. For environmentally conscious homeowners, this is a great way to step up your water conservation efforts.

Continuous hot water supply

Because they always provide hot water, you never need to worry about being stuck with only cold water and icy showers if you’re the last one up in the morning! 

Space-saving design

Tankless water heater installation takes up minimal space in your home compared to a traditional tank water heater. Tankless units can even be installed in tight spaces like closets or utility rooms.

Lower utility bills

Using less energy is one of the most effective ways to lower your energy bill. Even with rising or fluctuating energy costs, a minimum saving of just 8% could equate to around $200 a year based on the average electric bill in Texas.

Longer lifespan

Tank water heaters typically last only 10–15 years, whereas tankless versions usually last over 20. Plus, they have easily replaceable parts that may extend their lifespan even further. So, even if the initial investment is higher, the cost will likely be offset over time.

Eco-friendly

Tankless units avoid the standby heat losses associated with conventional storage tank models, which consistently use more energy — regardless of whether they’re in active use or not. 

Better temperature control

Many tankless water heaters have advanced thermostatic controls, allowing you to set and maintain precise temperatures. This is particularly helpful for households with young children or elderly members at risk of scalding.

Potential tax incentives and rebates

Some tankless systems qualify for tax credits and rebates. For example, tankless gas water heaters with an ENERGY STAR certification and a UEF (Uniform Energy Factor) greater than 0.95 are eligible for tax credits of up to $600 or 30% of the project cost. 

Cons of tankless water heaters

With such an extensive list of tankless water heater advantages, you may already be thinking it’s a no-brainer. However, there are some cons of tankless water systems to consider, too. Here’s a list of  considerations: 

Higher initial cost

The upfront cost of tankless water heaters tends to be higher than a standard storage water heater. Even though the long-term savings can be significant, this may be a drawback for many homeowners. 

Complex installation

Installation requires a professional plumber and may involve modifications and upgrades to your existing gas and water lines or electrical system to handle the increased demand. 

Requires professional maintenance

Routine maintenance is required to maintain efficiency and longevity. Proper maintenance on a tankless setup typically involves descaling, air filter replacement, and regular checks of the heating elements, condensing unit, etc.

Electricity or gas dependency

While they provide an endless supply of hot water in theory, models that rely on electricity or natural gas won’t function during power outages. For gas models, in particular, any disruption in the gas supply can lead to a lack of hot water.

Multiple units for larger households

For homes with multiple showers, appliances, and fixtures that require hot water simultaneously, a single no-tank water heater may not be sufficient to provide enough heated water at all times. You can install multiple units, but this also increases installation costs and overall complexity.

Requires venting

While electric tankless water heaters are more straightforward to install, gas models require proper venting to remove exhaust gas and may involve installing additional stainless steel or PVC pipes.

Possible upgrade of gas lines or electrical systems

Tankless units often require a higher gas flow rate or a larger electrical capacity than storage water heaters. Upgrading your existing system from a limited flow rate could significantly increase your tankless water heater installation cost.

How much is a tankless water heater?

The total tankless water heater cost varies depending on several factors, including the type of unit, fuel source, installation complexity, and ongoing maintenance costs:

• Unit price – Electric models cost between $500 – $1,500 from big box stores, and gas models are usually $1,000 to $2,000.
• Installation costs – Installation can add another $1,000 to $3,000, depending on complexity and any necessary upgrades to existing gas and electrical systems.
• Maintenance – Even with the best tankless water heater, you should expect to pay a few hundred dollars annually to maintain optimum performance.

Is a tankless water heater right for your home?

Before making the switch to a tankless system, it’s essential to consider your investment from multiple angles. Here are the steps to ensure you make the right decision:

1. Assess your household’s hot water needs – If your household frequently uses multiple hot water fixtures simultaneously, you may need to install multiple units to ensure enough hot water.
2. Consider the space available for installation -You may be able to free up valuable living space in your home by ditching your storage tank water heater. 

3. Evaluate your budget – If your primary goal is to save money over the long term, the higher upfront cost may well be justified.  

4. Decide on a fuel source – Electric models are typically easier and cheaper to install, but depending on your local electricity rates, they may have higher operating costs than gas models. 

5. Consider your local climate – In colder climates, the incoming water temperature is lower, affecting your heater’s ability to provide instant hot water at a consistent temperature.

Save on electricity plans with BKVE

We hope you’ve found our analysis of tankless water heater pros and cons helpful in making your decision. Whatever system you decide on, choosing the right electricity plan can enhance your energy and energy bill savings even further. 

Are you interested in learning more about Zinc Melting Furnace? Contact us today to secure an expert consultation!