Tankless water heaters use high-powered burners to heat water in a very short period of time.
Tankless water heaters are powered by either gas or electricity and only go on when there is demand for hot water, such as when someone turns on a faucet. Smaller tankless water heaters can be installed for a particular plumbing device, or larger units can be used to provide hot water to the entire house.
How They Work
Tankless water heaters have high-powered heating elements that are turned on and quickly heat water to deliver it through the plumbing system. This can lead to reduced energy consumption compared to a traditional water heater with a holding tank that is continually heating water, even when there is no demand for hot water. The U.S. Department of Energy reports that for homes that use up to 41 gallons of hot water per day, tankless hot water heaters use 24 to 34 percent less energy.
Hot Water Capacity
While many makers of tankless hot water heaters tout the units' ability to provide an endless amount of hot water on demand, the U.S. Department of Energy reports that isn't always the case. Most tankless hot water heaters produce two to five gallons of hot water per minute, and in cases where hot water demand is high due to simultaneous showering or dishwashing, tankless hot water heaters will not be able to meet the demand.
Cost Considerations
Consumer Reports states that while there are some savings with a tankless water heater through reduced energy usage, homeowners run the risk of actually spending more money with the units. Tankless water heaters tested by Consumer Reports in 2008 had a price tag between $800 and $1,150, compared to traditional tank water heaters that cost $300 to $480. Consumer Reports states that installation of tankless water heaters costs on average $900 more than their tanked counterparts. The same report states that a tankless water heater would save the average homeowner $70 to $80 annually in energy costs. The additional costs of the unit and installation mean it would take a homeowner 22 years to break even, while tankless water heaters have a projected life span of only 20 years.
Additional Maintenance
All water heaters need to be maintained to ensure they work properly. While a tanked unit can be drained each year by a homeowner with little or no plumbing knowledge, a tankless unit requires annual servicing by a trained technician. Hard water can reduce the efficiency of a tankless unit and shorten its life span, so if you live in an area where you have hard water, installation of a water softener may also be required.
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