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A Guide to Tankless Water Heaters : Everything You Need to Know

Many homeowners are choosing tankless water heaters as a modern solution for home water heating. Also known as an on-demand water heater, they offer efficiency, space-saving benefits, and long-term cost savings. Whether considering an electric tankless water heater or a gas-powered unit, this guide will explain everything you need to know about these systems.

Illustration of a tankless water heater creatively designed like an hourglass.

What is a Tankless Water Heater?

A tankless water heater heats water only when needed. Unlike traditional tank water heaters, which continuously heat and store water in a large tank, tankless water heaters use high-powered burners to heat water as it passes through the unit instantly. This process provides hot water on demand without needing a bulky storage tank.

Tankless Water Heater vs. Traditional Tank

Efficiency and Energy Consumption:

One of the key advantages of tankless water heaters is their energy efficiency, a significant improvement over traditional tank water heaters. Unlike traditional models that continuously heat water, leading to energy waste, tankless water heaters only use energy when hot water is needed, thereby reducing energy consumption and utility bills.

Lifespan and Durability:

Tankless water heaters generally have longer lifespans than traditional tank water heaters. While a conventional water heater might last 10-15 years, a well-maintained tankless unit can last up to 20 years.

Space and Installation Requirements:

Tankless water heaters are much smaller and can be mounted on a wall, saving floor space in your home.

Tankless Water Heater Costs

Initial Purchase and Installation Costs:

The upfront cost of a tankless water heater is typically higher than that of a traditional tank model. Prices can vary depending on the brand and type, with electric tankless water heaters generally less expensive than gas models. For instance, a Navien or Rinnai tankless water heater might cost more due to its advanced features and higher efficiency.

Long-term Savings:

While the initial cost of a tankless water heater may be higher than a traditional tank model, the long-term savings potential is significant. The efficiency of these units leads to lower energy consumption and, consequently, lower utility bills, making them a cost-effective choice in the long run.

Choosing a Tank vs. Tankless Water Heater

Factors to Consider:

When choosing a tankless water heater, it’s important to consider factors that will ensure it can meet your household’s hot water demands. These factors include the number of people in your home, the average water usage, and the flow rate required for simultaneous hot water tasks. If you’re experiencing issues with a traditional water heater, such as low water pressure or a lack of hot water, a tankless water heater could be the solution. However, it’s important to consider getting a larger tank and performing maintenance on your unit to ensure proper function.

Choosing the Right Size Tankless Water Heater

Tankless Water Heater Size Calculator: 

Many manufacturers, such as Navien and Rheem, offer online calculators to help you determine the appropriate tankless water heater size. Enter your household details to get a recommendation on the best size.

Top Brands of Tankless Water Heaters

Navien Tankless Water Heater:

Navien is a leading brand known for its high-efficiency models, such as the Navien NPE-240A2. This model offers excellent performance and advanced features, such as dual stainless steel heat exchangers.

Rinnai Tankless Water Heater:

Rinnai is another brand recognized for its reliable and durable gas tankless water heaters. Their models are praised for consistent hot water delivery and long-term dependability.

Tankless Water Heater Installation and Maintenance

Tankless Water Heater Installation:

Installing a tankless water heater requires a professional, especially if switching from a traditional tank system. The installation process includes connecting the unit to your home’s plumbing and, in the case of gas tankless water heaters, ensuring proper venting.

Maintenance Tips:

Regular maintenance is essential to keep your tankless water heater running efficiently. This includes descaling the unit to prevent mineral buildup, which can reduce efficiency.

Common Issues and Troubleshooting: 

If your tankless water heater is not heating correctly, several factors could be causing it, such as a clogged filter, improper installation, or a faulty heating element.

Specialized Applications

RV Tankless Water Heaters:

For those who enjoy traveling, RV tankless water heaters offer the convenience of on-demand hot water on the road. These compact units are ideal for RVs and are designed to fit in small spaces, catering to your travel needs.

Using a Tankless Water Heater in Cold Climates:

Tankless water heaters can be used in cold climates, but choosing a model that can handle lower temperatures is essential. Proper installation and insulation are also crucial to ensuring reliable performance, giving you a sense of security in your investment.

FAQs About Tankless Water Heaters

How much is a tankless water heater?

The cost of a tankless water heater varies depending on the brand and type. On average, electric models range from $500 to $1,500, while gas models can cost between $1,000 and $3,000.

How to install a tankless water heater?

Installing a tankless water heater involves connecting it to your plumbing and electrical (or gas) systems. Due to its complexity, it’s recommended that you hire a professional installer, especially for gas models that require venting.