Pros and Cons of Tankless Water Heaters

Many homeowners are interested in boosting the energy efficiency of their homes and one factor that is important is it’s hot water usage. Currently, the most popular energy-efficient option for water heating is a tankless water heater, also known as an on-demand system. Unlike a traditional tank that heats a reservoir of water 24 hours a day, a tankless unit only activates when needed. When there is a demand for hot water, cold water travels through the tankless unit, where a gas burner quickly heats it to a preset temperature.

While that sounds great, there are a few reasons it may not work for you. First the pros of a tankless water heater:

*It saves energy. It can reduce your energy cost by about 25 percent annually. A big plus.

*Its highly efficient. Its energy factor can be as high as .95

*It has a compact size. Its only about the size of a small suitcase.

*It has a life -expectancy of 20 years or more.

*The unit is easy to zone and can go almost anywhere in the house. It also can be installed outside on a wall.

But there are some tankless cons:

*Tankless units cost about twice as much as a traditional tank. A typical unit costs about $700 and may top $1500.

*Installation is expensive.

*Retrofit is pricey and complicated. The cost can be as high as $3,000.

What are the pros for conventional tanks?

*It’s a proven technology that home owners know and trust.

*Replacement is relatively inexpensive with replacement cost from $500 to $800.

* Energy star tanks are now available. These units must have an energy factor of .62.

And the cons?

*The tank is always on.

*Its big and bulky.

*Its less durable lasting only 12 to 15 years.