The Scoop on Tankless Water Heaters

We’ve all seen one before: a standard water heater. A big, cylindrical drum sitting lonely and forgotten in the corner of a basement or garage. While they look unassuming, standard water heaters use energy around the clock to keep water hot, even when your family is at work or school or on vacation.

You probably already knew that heating and cooling costs account for the majority of the average home’s energy bill. But did you know that hot water accounts for up to 30 percent of those heating related expenses? That begs the question: is a standard water heater the best for your family? Should you consider a tankless model? Or are there alternative hot water sources?

The Good:

• Tankless water heaters have been getting a lot of attention recently. These small wall mounted units don’t store any water at all. When hot water is “ordered” inside the home, high-powered gas or electric burners quickly heat water as it runs through a heat exchanger.
• There’s a small delay before hot water arrives, but some homeowners prefer the inconvenience to having to keep 75 or more gallons of water hot all day, every day.
• According to Consumer Reports, the tankless water heaters were on average 22 percent more energy efficient than standard gas-fired storage-tank models.

The Bad:

• While the tankless version would provide an average annual savings of $60 – $90 annually, at that rate, it would take over 20 years to recoup the investment costs of these very expensive units.
• In addition to the unit price, there can be additional significant up front costs should you need to upgrade your electrical or gas systems during the installation process.
• Consumer Reports also noted increased service and maintenance costs, with one manufacturer recommending units be flushed annually by a technician.

Alternatives:

• If your standard water heater is located in a cold area, like a garage, you can visit your local home improvement store and purchase a specialty insulation blanket to wrap around the outside of the tank. In most cases this will keep water hot while using less energy.
• Turn down the temperature on your current unit. If water is hot enough to be uncomfortable at the maximum settings, you’re wasting energy by over-heating. Why keep water practically boiling just to mix it with cold water?
• Additional alternatives are in development, including solar and heat pump styles. These concepts will ‘harvest’ heat from the sun or from the inside of the home during warm months to supplement traditional heating methods and help offset costs.

Do you or a relative have a tankless water heater? We’d love to hear your opinion of how it’s working in the comments.