Is a Tankless Water Heater a Smart Investment?

Pros and Cons of Upgrading to Tankless

Ask a homeowner what they think their biggest energy expense is and they’ll likely tell you it’s home heating. But the fact is, it’s water heating that can represent as much as 30% of energy bills, or even more.

When you consider that between bathing and showering, washing dishes, laundry, cleaning and other tasks, the typical American household is paying to heat between 60- to 65-gallons of hot water a day, compared to home heating, which, in our area, is only three or four months at most. It makes sense to look for peak efficiency when it comes to heating water!

While any new water heater will be more efficient than older technology, for super-high efficiency and savings, you should also weigh your options and consider going tankless.

What’s a Tankless Water Heater?

Tankless propane water heaters—also known as on-demand water heaters—instantly heat water when you need it, rather than keeping a large tank hot all the time.

Since tankless or on-demand water heaters are more expensive, we often get asked if they’re worth the investment. There are pros and cons to any type of water heater, and there’s no one-size-fits all solution. Here’s helpful information to help you decide if a tankless water heater is right for you:

The Pros of Going Tankless

Unlimited Hot Water: Traditional tank heaters can run out of hot water if you use a lot at once. Tankless water heaters use an electric pilot and a hot propane flame to heat water instantly on demand. There’s no tank, so it can’t hit empty.
Savings: Tankless water heaters save energy by instantly heating water when you need it, rather than keeping a large tank hot all the time. All that efficiency means you’ll also save money by lowering your energy costs by as much as 40%. And we can help you take advantage of generous rebaits from top name brand manufactures like Rinnai.
Flexibility: With no storage tank, a tankless water heater is small. Even whole-house sizes take considerably less room than a 55-gallon tank. Most are about the size of a small suitcase. It can also be wall-mounted, which means a tankless water heater can be placed just about anywhere in the house, including closets and crawl spaces.
Longer Equipment Life: The primary culprit in the limited lifespan of a conventional water heater is the corrosive water stored in its tank. Because it doesn’t store water, a tankless water heater will last 18 to 20 years on average.

The Downsides of Going Tankless

Bigger Upfront Expense: Tankless water heaters are more expensive to buy and install.
Some Maintenance Required: Tankless units require a bit more maintenance compared to tank-style water heaters, particularly if you have hard water. Deposits and minerals can reduce performance and efficiency if you don’t flush the tank at least once a year and clean the filters.

Sticking with a Tank-Style Water Heater

A traditional tank-style water heater is less expensive to replace but costs a lot more to run. And it can’t really deliver enough hot water for more than two or three showers in a row, assuming no one is washing dishes or using hot water for anything else.

If your home has a basement, space may not be an issue. But if you don’t have a basement, that big tank uses a lot of valuable real estate in your home. Imagine what you could do with that closet space!

Water Heating by the Numbers

Generally, tankless water heater uses less energy than a conventional water heater, which translates into annual savings of $25 to $100, depending on usage. If your hot water use is higher than average, a tankless water heater is only 8% to 14% more efficient than a storage-type water heater. But installing small in-demand unit at each hot-water faucet will yield energy savings of up to 50%.

Further, the Tennessee Propane Gas Association offers a $250 rebate when you add or replace a propane tankless water heater. And Admiral Propane can help you take advantage of rebates of up to $100 from Rinnai on qualifying tankless water heaters, as well as other rebates and tax credits!

Interested in Upgrading? Call Admiral Propane Today!

Ready to learn more about the benefits of a tankless water heater for your Tri-Cities home? The pros at Admiral Propane can help you choose the best option for your needs and install it correctly, while providing routine maintenance and repairs.

Enjoy energy efficiency and all the hot water you need with a new water heater! Contact us today to get started.