What Is the Difference Between Tankless and Tank Water Heaters? An Expert’s Guide

When you need reliable hot water for your home, you have two options: tank and tankless water heaters. There is no “better” choice as there are pros and cons of tankless water heaters vs. tank options. The best water heater is the one that will meet the demands of your home.

Choosing between a tankless vs. tank water heater can be challenging. However, when you understand how they operate and other crucial details, you’ll see the difference between tankless and tank water heaters and be able to make an informed decision.

The primary difference between a tankless water heater vs. traditional water heater is the storage tank. Conventional water heaters are relatively standard and include several components. These systems have an insulated tank holding 30-50 gallons of water.

Energy is used around the clock to keep the water warm inside the tank until needed. A pipe from the top of the tank delivers hot water throughout the home. Once the hot water tank is emptied, you must wait until the water heater replenishes the supply before more hot water becomes available.

Tankless water heaters do not heat the water in advance. Instead, the water is heated when you turn on the faucet or appliance, only using energy when necessary. Because they do not continually use energy, they are considered more efficient than tank water heaters.

Is a tankless water heater good or bad? They can be an excellent option for homeowners upgrading their systems but may only be ideal for some. When asking yourself, “Should I get a tankless water heater,” it’s essential to compare the pros and cons.

Tankless water heaters have many advantages, but these are the top ones.

Are tankless water heaters more energy efficient than storage-tank water heaters? Tankless water heaters are known to be more energy efficient than their tank counterparts.

The Department of Energy states tankless water heaters are between 24 and 34 percent more efficient in homes that require approximately 86 gallons of hot water daily. However, some homeowners may experience more energy savings.

This efficiency occurs because a tankless water heater doesn’t require a storage tank that uses standby energy.

When comparing tankless water heater vs. tank water heater hot water supply, the tankless options have a practically unlimited supply. You don’t have to wait for a tank to fill up with more hot water before you can complete daily tasks, like showering. Hot water is immediately available when you turn on the faucet.

One advantage many homeowners love about tankless systems is the space it saves. Traditional water heaters require a lot of room because of the storage tank. A tankless water heater is small enough to be mounted on a wall, leaving you with more free space.

Tankless water heaters deliver approximately 10 gallons to all your appliances every minute. Once the cold water is flushed, hot water is instantly available.

Tankless water heaters often last longer than storage tank water heaters. Although traditional ones last 10 years or more with proper maintenance, a tankless water heater can last for double that time.

Tankless water heaters don’t often rust, but if they do, it takes longer to create visible damage. You don’t have to worry about having a flooded basement or thousands of dollars in damage.

Tankless water heaters are more energy efficient and will save you money in the long run. How much does a tankless water heater save? A few factors influence the savings you get with a tankless water heater, including:

How long it takes to pay these costs will affect when and how much you begin saving. However, the Department of Energy estimates that homeowners save an average of $100 yearly by switching to a tankless water heater.

Tankless water heaters limit the use of non-renewable fuel sources, and they also are easily repaired with replacement parts. Traditional water heaters often can’t be repaired and require a new system which can heavily impact the environment.

Like many modern appliances, some tankless water heaters connect to an app. This connection allows you to adjust temperatures as needed and help you conserve energy. You can decrease the temperature while you’re away and turn it back up before you come home so it’s ready for your shower.

Tankless water heaters don’t increase the monetary value of your home. However, it does make it more marketable. More homeowners are becoming aware of its benefits and want them in their homes.

Understanding what is good about this system is essential, but it’s also helpful to understand the downside to switching to a tankless water heater.

One of the most significant disadvantages of a tankless water heater is the initial installation cost. Tankless water heaters typically cost more than a tank model, sometimes up to three times as much.

If your home has multiple points of hot water you plan to use simultaneously, you could max out your hot water. A single whole-house tankless water heater may not support the demands of a steamy hot shower while running the dishwasher. You may need to install several point-of-use systems or use a traditional tank system.

Your new tankless water heater may require additional money to upgrade your existing plumbing or electrical wiring. Gas-powered systems may require installing new pipes or altering existing ones. Sometimes gas lines may even need to be rerouted. Electric models draw significant power, so you may need to upgrade your control panel to 200 amps or greater.

This step requires the help of a trained plumber or electrician to ensure your tankless water heater is appropriately set up.

Tankless water heaters don’t always provide the most consistent temperatures. Your tank may struggle to provide constant warm water if a large family wants to shower simultaneously. You may need a higher-capacity system that will meet your water demands.

All tankless water heaters require electricity to operate and regulate hot water temperatures. If your area has a power outage, you won’t have hot water until the power is restored.

Traditional water heaters also have much to offer homeowners and are the most popular choice. They’ve been on the market for a long time, so more options are available for varying prices. But they aren’t without their drawbacks.

Tank water heaters perform better in some areas than tankless systems, making them the better option for some homeowners.

Traditional water heater tanks have lower installation costs compared to tankless systems. Most homes have the required plumbing to get these systems up and running, so no additional fees are required to add new valves or pipes.

Installing tank water systems is more cost-effective, but they are also simpler to install. Over time, an old, worn-out tank must be replaced with a more modern unit. You can easily upgrade the capacity of the new heater if your old system doesn’t meet your home’s demands.

When you choose the correct sized tank for your home, you shouldn’t run out of hot water. Smaller tanks are ideal for homes with lower hot water needs and will be more cost-effective.

Every home has different needs for hot water. Tank water heaters are available in varying sizes, so you can choose a capacity that will meet your home’s demands.

Traditional water heaters have been used in homes across the US for decades. They are reliable for delivering hot water when washing dishes or enjoying a warm shower. These systems require more maintenance than tankless water heaters, but scheduling an appointment with a qualified plumber will keep your tank water heater in top condition.

Standard water heaters come with a few limitations.

The average tank water heater supports just a few consecutive showers. Your hot water supply is limited to the size of your tank, so when it runs out, you must wait for it to heat more water. You can resolve this problem by investing in a more extensive system, which comes with installation and higher operational costs.

Tank water heaters are continually heating water to maintain the pre-set thermostat settings. That requires more energy use and resources. Continual operation increases your energy costs, especially in the colder months. However, these increased costs are minimal and take several months to add up.

Traditional water heaters require more space because of the attached tank. These systems cannot be used in smaller areas where adequate space is unavailable. They cannot be installed outdoors, or they will lose heat and become inefficient.

Tank water heaters continually heat the water stored inside the tank. This factor contributes to standby heat loss, which is how much heat is lost when the water heater is unused. Older tank systems lose even more standby heat, increasing your energy costs.

The average lifespan of a traditional water heater is 10 to 15 years as long as it’s properly maintained. Unfortunately, you will need to invest in a new tank regularly to ensure you always have an adequate hot water supply.

Tank water systems require more maintenance than modern tankless systems. These systems fill with sediment and become rusted and damaged. A plumber can routinely clean out the residue to prevent your system from becoming less effective and shorten its lifespan.

What is the difference between tankless and tank water heaters? You now have a better understanding, but you may still need help deciding which system is best for you. Many choose a tankless water heater because this system will likely save money. However, that doesn’t mean it’s the perfect choice for everyone.

The size of the water heater you invest in depends on the number of people living in your home and how much water is used. For example, a family of four might wash laundry daily, run the dishwasher, and take multiple showers, requiring 100 gallons of hot water. For that scenario, a tank water heater may be better equipped to supply warm water.

Tank water heaters don’t hold much water, but they measure their output by gallons per minute (GPM). This number identifies how much hot water can be delivered over a specific period of time. The higher the GPM, the more hot water the system can provide.

You’ll want to invest in a water heater that fits into your available space. Many modern tank water heaters are larger than older models because of additional insulation and other energy efficiency improvements. You’ll need a professional to assess your existing space to determine whether upscaling to a larger tank is possible.

A professional will also determine any additional components required to make the installation successful. These components could include plumbing, gas lines, and electrical wiring. If you have a tankless water heater installed, you’ll want to ensure adequate ventilation and access to available gas or electric lines.

You’ll want to consider your budget before you search for a new water heater. How do the purchase and installation costs fit into the range you can spend? The price of a water heater varies depending on the size and type you choose. You must also consider the additional installation costs that vary based on the unit’s location, the tank’s size, and the extra features your new system has.

Energy efficiency ratings significantly impact the overall price of a water heater. Look at the Efficiency factor (EF) to determine the total energy efficiency of a water heater. The greater the number, the more efficient the system is. Gas-powered water heaters often have an EF of 0.50 and 0.60. However, some offer more efficiency and have a rating of 0.80.

The energy source you use to heat your water will affect your operational costs and the environment. Traditional water heaters require more energy and contribute to higher greenhouse gas emissions. Choosing a tankless water heater will limit your environmental impact.

If you upgrade your existing water heater, verify its fuel source. That will allow you to replace it with a system with the same fuel source. Switching to another source is not impossible, but it can become a significant expense.

The most common fuel sources are natural gas and electricity. But some areas use solar power, geothermal energy, oil, or propane.

The available fuel sources will influence the type of water heater you can purchase and impact your heating costs.

If your home water supply has hard water, you’ll want to consider the materials the tank and heating element are made of. Water hardness is measured by mineral content, but primarily magnesium and calcium. Calcium isn’t harmful to humans, but as it heats, it sticks to the surface and forms deposits on the tank.

Eventually, limescale buildup clogs your water pipes and will build up throughout your water heater and connected appliances. This hard water could cause your system to become less efficient, and corrode, which shortens the system’s lifespan.

Having a warranty on your home appliances is one of the most critical parts of investing in a new water heater. Some manufacturers offer extended warranties, while others provide limited options. Remember to read the fine print of these offers before committing to a new water heater.

Both tankless and traditional water heaters are reliable sources of hot water. If you need something more energy efficient and long-lasting, a tankless water heater may suit your needs. However, sticking to a tank water heater may be ideal if your area has frequent power outages.

A homeowner wanting little to no maintenance may opt for a traditional water heater. Although tankless water heaters require more maintenance and have higher initial costs, you’ll save money on energy bills in the long run.

There are many factors to consider when purchasing a water heater. Whether you’re beginning your search for a new system or have questions about your existing one, SWAN Electric, Plumbing, Heating & Air can help. We carry various tank and tankless water heaters that will help ensure your home has hot water year-round.

Contact SWAN Electric, Plumbing, Heating & Air to schedule your water heater installation today.