Tankless Water Heaters: Worth The Money Or Marketing Hype?

Water heaters are becoming essential home installations in US houses. During the cold winter months, water heaters are needed to do our regular activities, such as taking a bath, washing dishes and doing the laundry. Traditional or tanked water heaters may not always have accessible hot water when you need it, but tankless water heaters can provide you with the comfort of not having to reheat your water tank every now and then. But what is the catch? The tankless water heaters seem to be every household owner’s dream come true. However, because it is a relatively new type of installation and a revolutionary one, the question about its expenses being worthy or all the benefits being a marketing hype should be examined first.

How Much Does It Cost?

The average cost of a tankless water heater ranges from $525 to $1,150. Then, there is the installation cost, which costs another $800 to $1,500. Given the unit cost and installation cost, the total cost will need around $1,325 to $2,650. The cost could go higher depending on pre-installment factors. If your original water heater is a storage tank type, you may spend extra for readjusting the venting and gas supply requirements like the pipe diameters. For electric type tankless heaters, you will need an upgrade of your home electrical service to 200 amps, as this type can draw power of 120 to 160 amps on average. The cost may be quite significant compared to conventional heaters, but the long term savings in terms of energy savings and replacement costs can make it a good investment.


Aside from cost, another factor that consumers look for in a water heater is its performance. The toptenwater.com/tankless-water-heater-review site states that the basis of water heater performance is how often can the heater unit deliver a steady supply of hot water. Performance wise, the tankless type delivers the same optimum heating requirements as conventional heaters. The great advantage of going tankless is the steady stream of available hot water. This means that at any time, you can get hot water supply without having to reheat the water supply, as in the case of tank types. A minor drawback is that the temperatures may be inconsistent if several faucets are used at the same time, but this can be worked out with usage adjustment.

Energy Efficiency

Energy efficiency is measured based on several factors. One is the recovery efficiency or the efficient transfer of heat from the source to the water. Standby loss is also considered as a factor, and this is the percentage of heat loss per hour from the stored water. Cycling loss is the third factor to be considered, and this refers to heat loss from the water circulating through outlet pipes.

The tankless type has met the 3 factors for energy efficiency with flying colors, as compared to the tank type which has a problem with standby loss. When it comes to operating costs, the tankless type is comparable to the standard heater. This means you get the same type of heat, but gets energy savings and less utility bill annually.

Durability and Payback

When it comes to maintenance, tankless heaters need at least once a year maintenance to keep it in good working order, especially if the water type is hard water (has high mineral content). A properly maintained tankless heater can last at least 20 years, as compared to a tank type which lasts only a decade.
The payback calculation refers to the cost of operating the tankless model and the energy it saves. The accumulated savings that match the original total cost is then considered the payback period. The gas variant ranges from 22 to 27 years, while the electric type ranges from 12 to 20 years.

Given this overview of a tankless heater, it is still ultimately up to the end-user or consumer if it is a good choice. Products have benefits and drawbacks, and you need to weigh them if it works out well for you. It may be costly to purchase and install, but the space savings, energy efficiency and nearly endless supply of hot water may be reason enough to get this type of heater. So choose a heater that works for you through daily use until the foreseeable future.


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