Tankless Water Heater Pros & Cons

January 23, 2024

Are tankless water heaters worth the extra money? There are some notable advantages over traditional water heaters. Consider these pros and cons while deciding which type of water heater is best for your home.

Tankless Water Heater – Pros

  • Energy Savings – Average homeowners see a 30-50% drop in energy usage.
  • Unlimited Hot Water – No waiting on a tank to fill. Hot water is continuously supplied.
  • More Available Space – Units are compact and can be mounted on a wall.
  • Longer Life – Most units last 20+ years vs 10-15 for a tank model.
  • Less Maintenance – Units have fewer problems and reduced maintenance.
  • Peace of Mind – Because no water is stored

Tankless Water Heater – Cons

  • Higher Initial Cost – More expensive to purchase and install.
  • Difficult to Install – Converting to tankless probably requires professional installation.
  • Venting Requirements – For gas models, ventilation may need to be added.
  • Water Limitations – Small units may not be able serve many rooms simultaneously (e.g. running the dishwasher and showering at the same time). Make sure you have a model adequate for your needs.
Tankless Water Heaters

How Tankless Water Heaters Work

A water heater with a tank preheats water and stored in a large tank. The hot water is delivered when needed. Tankless heaters do not store any water, they quickly heat it as it is being used.

Sometimes tankless water heaters are call “on-demand” water heaters for this reason. A traditional tank model is less expensive to install, but uses more energy and raises utility costs. You’re constantly using energy to keep water in a tank warm, whether you use it or not. This energy usage can add up over time.

Tankless models provide on-demand hot water. A traditional tank model however, can run out of hot water and it takes time to re-fill and re-heat.

Tankless water heaters can run on electricity, natural gas, or propane. There are benefits to each type, and this should be considered for each home. Gas may increase capacity, but electric models are typically more efficient and have lower costs.

Learn more in our tank vs. tankless water heater comparison and FAQ.

Although tankless water heaters can cost more up front, most homeowners agree, their savings and benefits in the long run are usually worth the price. Consider these advantages and disadvantages when it’s time to replace your current system.

Have questions? Give us a call to schedule a consultation. Our experienced technicians will evaluate your setup, assess your heating needs, and provide you with professional feedback on your next water heater installation.

We do our best to provide current and accurate information, but this content could contain errors or information that is not correct for your situation or equipment. Resources found on our website are provided as general information. Reddi Industries does not assume any liability resulting from the provided information. If you attempt to repair or modify plumbing, electrical, or other equipment in your home or business, always consult your equipment’s operating manual first, and only do so if you are qualified.