Tankless Water Heater Pros & Cons

May 10, 2018

If your current water heater is showing signs of failure, it’s probably time to start thinking about a replacement. We’re often asked about tankless water heaters and their advantages over traditional water heaters. Although the two styles of heaters are quite different, it’s important to consider the pros and cons when determining if a tankless water heater (also called an on demand water heater) is right for your needs.

Tankless Water Heater Pros

  • Energy Savings – Average homeowners see a 30-50% drop in energy usage
  • No Cold Showers – Hot water is continuously supplied regardless of heavy use
  • More Available Space – Units are compact and most can be mounted on a wall
  • Longer Life – Most units last more than 20 years
  • Less Damage – If the unit breaks or malfunctions, your floor won’t be saturated with 40-50 gallons of hot water
  • Peace of Mind – Warranties are typically longer than traditional water heaters

Tankless Water Heater Cons

  • Higher Initial Cost – Generally more expensive to purchase and install, and can take some time to recoup the costs
  • Difficult to Install/Replace – Converting to a tankless water heater calls for adjustments that require professional installation
  • Venting Requirements – Burners used to heat the water need proper ventilation which can add to installation costs
  • Required Modifications – Homes that use natural gas require a wider diameter pipe feeding the unit, and homes that use all electricity may need electrical upgrades to power the unit – these modifications can add to the initial installation
  • Limitations – Small units can only serve one faucet at a time preventing simultaneous use (e.g. running the dishwasher and showering)

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

Although on demand water heaters can be a costly investment up front, their savings and benefits in the long run are well 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.