When it comes to choosing a water heater for your home or business, two popular options stand out: tankless water heaters and standard water heaters (often called tank water heaters). Each type has its own set of advantages and disadvantages that cater to different household or business needs and preferences for you to consider.
There are key differences between these two types of water heaters. We will explore their pros and cons as well as discuss scenarios in which one might be preferred over the other. Additionally, we’ll touch on probably the most important question for homeowners and businesses which is the potential costs associated with each option.
Let Plumbing Doctor® help you dive into some facts and helpful tips in choosing what is the best water heater for your home or business.
Efficiency and Energy Consumption
Tankless Water Heaters:
Tankless water heaters, also known as on-demand water heaters, are designed to heat water only when it’s needed. This eliminates the need for a storage tank, which can result in significant energy savings. Since they don’t constantly heat and reheat a large volume of water, tankless heaters are often more energy-efficient, leading to lower utility bills over time.
In just a few seconds, water is heated at the source where it takes a few more seconds to reach the faucet to provide the hot water you need. This is where the tankless water heater can provide endless hot water as long as the demand doesn’t exceed the unit’s flow rate.
Pros:
- Energy efficiency leads to reduced energy bills.
- Endless hot water supply.
- Space-saving design.
Cons:
- Possible higher upfront cost for equipment and installation.
- Limited flow rate can cause issues with simultaneous hot water usage.
- Some units may struggle with providing consistent hot water in extremely cold climates.
Standard Water Heaters:
Standard water heaters use a storage tank to keep a reservoir of hot water ready for use. Standard water heaters are the most commonly used in homes and businesses today and there are a few things many people are considering when deciding if this is the right water heater for their needs.
One of these considerations is that these tanks require constant energy to maintain the water temperature, which can result in higher energy consumption compared to tankless options. Standard water heaters may run out of hot water if the demand exceeds the tank’s capacity, but they can be more affordable to install. Space for a larger tank to be installed is something to keep in mind as well.
Pros:
- Lower upfront cost.
- Simplicity of installation and maintenance.
- Suitable for households and businesses with lower hot water demands.
Cons:
- Higher energy consumption due to constant heating.
- Limited hot water capacity can be an issue during peak usage times.
- Larger footprint and potential space requirement.
Installation and Maintenance
Tankless Water Heaters:
Installing a tankless water heater typically requires a higher upfront investment. This is because it involves complex plumbing and potential electrical work. Additionally, the installation process might be more intricate, especially if retrofitting into an existing home or business.
What you may need to expect are the conditions of your home and installation expectations can be answered first by contacting your plumbing professional. Also, keep in mind that maintenance is generally straightforward, as there’s no need to flush a large storage tank or worry about corrosion. Regular maintenance involves checking for mineral buildup and ensuring proper ventilation.
Pros:
- Minimal maintenance compared to standard water heaters.
- Longer lifespan compared to standard water heaters (15-20 years on average).
Cons:
- Higher initial installation costs.
- Potential need for upgrades to existing gas lines or electrical systems.
Standard Water Heaters:
The installation of a standard water heater is typically less complicated and less expensive than that of a tankless unit. Many people opt to install a new standard water heater themselves if they have the knowledge and experience to do so. Once again, safety first and often time, are potential issues that can be avoided by contacting a plumbing professional at this stage before installation.
Replacing an existing standard water heater is relatively straightforward since the infrastructure is already in place. However, these heaters do require regular maintenance, including flushing the tank to remove sediment and prevent corrosion as we mentioned before. This maintenance can extend the lifespan of the unit.
Pros:
- Lower upfront installation costs.
- Simple installation process, especially for replacements.
- Easily adaptable to existing plumbing.
Cons:
- More frequent maintenance may be required.
- Shorter average lifespan compared to tankless heaters (10-15 years on average).
Hot Water Demand and Usage Patterns
Tankless Water Heaters:
Tankless water heaters are well-suited for households or businesses with high hot water demands, such as larger families or homes with multiple bathrooms. They can provide a continuous supply of hot water, making them ideal for scenarios where simultaneous hot water usage is common.
When the need within a household increases, financial efficiency naturally becomes a concern so these tanks may be the right choice. Also, if the upfront costs are not an issue when considering the long-term advantages of an on-demand water system with energy efficiency in mind, then that may further be a deciding factor for your choice of a tankless water heater system.
The cost of a tankless water heater can vary depending on factors such as brand, capacity, and installation requirements. If you need a general window of cost for your budget, on average, the initial cost can range from $1,000 to $3,000 or more. Please reach out to your plumbing professional to get a more accurate idea of the cost to you with a tankless water heater for your home or business.
Standard Water Heaters:
Standard water heaters are better suited for households or businesses with lower hot water demands or those looking for a budget-friendly option. They might be a good fit for smaller families or homes with fewer bathrooms. So if hot water demand is moderate, lower upfront cost is important, and you would prefer simplicity of installation, then this may very well be the right choice in water heater for you.
As we mentioned before, cost is often a deciding factor. The cost of a standard water heater is generally lower than that of a tankless unit. A general window of cost to expect here for the unit may range from $500 to $1500 or more.
Environmental Impact
Tankless Water Heaters:
Tankless water heaters are more environmentally friendly due to their energy-efficient design. By only heating water when needed, they reduce overall energy consumption, leading to lower greenhouse gas emissions. This can be particularly important for households striving to reduce their carbon footprint as well.
Here is where you can consider reduced energy consumption, size of the unit, and the aforementioned costs even with a lower environmental impact to decide if this is the water heater choice for your home.
Standard Water Heaters:
Standard water heaters are less environmentally friendly compared to tankless options due to their continuous energy use for water heating, size, and maintenance. However, advancements in technology have led to more energy-efficient standard water heater models, which can lessen their impact to some extent. These are just a few considerations to keep in mind when deciding if a standard water heater is right for you.
Long-Term Cost Considerations
Tankless Water Heaters:
As we mentioned before, while tankless water heaters have a higher upfront cost, their energy-efficient operation can lead to substantial long-term savings on utility bills. Over time, these savings may offset the initial investment, making tankless heaters a cost-effective choice for the long term.
Standard Water Heaters:
Standard water heaters do typically have a lower upfront cost, making them a more budget-friendly option initially. However, their higher energy consumption can result in higher monthly utility bills over time and deciding whether or not higher hot water consumption is necessary in your home or business with using this type of unit.
Choosing the Right Water Heater for You
When taking into account all the facts and pros and cons of the tankless vs. standard water heater debate, the choice ultimately depends on your household’s or business’s specific needs and priorities.
Tankless water heaters excel in energy efficiency, endless hot water supply, and reduced environmental impact, making them ideal for larger families or businesses with high hot water demands and a focus on sustainability. On the other hand, standard water heaters are more budget-friendly upfront and suitable for households with lower hot water requirements.
Consider your hot water usage patterns, available budget, energy efficiency goals, and space constraints when making your decision. Both options have their merits, and by evaluating your unique circumstances, you can make an informed choice that aligns with your comfort, convenience, and financial objectives.
Whatever your decision is or if you have further questions on what may be the best choice for your home or business, please contact Plumbing Doctor®, we are here to provide you with a feel-good plumbing experience.