Buying Guide: Pros and Cons of Tankless Water Heaters

Buying Guide: Pros and Cons of Tankless Water Heaters

As homeowners and contractors seek more efficient and space-saving solutions for their hot water needs, tankless water heaters have become an increasingly popular option. These modern appliances promise endless hot water, energy savings, and a compact design, making them an attractive alternative to traditional tank water heaters. However, like any technology, tankless water heaters come with their own set of advantages and disadvantages. This article will explore what tankless water heaters are, the different types available, how they work, and when they might be the best choice for your home. We'll also delve into the benefits and drawbacks to help you make an informed decision.

What is a Tankless Water Heater?

A tankless water heater, also known as an on-demand water heater, is a modern appliance designed to heat water only when you need it, offering both efficiency and convenience. Unlike traditional water heaters that store hot water in a tank and continuously work to maintain its temperature, tankless models heat water directly as it flows through the unit. This eliminates the need for a storage tank and ensures you have a virtually endless supply of hot water available almost instantly whenever you turn on the tap. These systems are compact, taking up less space in your home, and are often more energy-efficient since they don’t waste energy keeping water heated when it’s not in use. Ideal for households of all sizes, tankless water heaters are becoming increasingly popular for their ability to save space, reduce utility bills, and provide reliable hot water on demand.

Types of Tankless Water Heaters

Whole House

Designed to supply hot water to an entire home, whole house units are incredibly powerful, ensuring consistent and reliable performance. They can handle multiple fixtures simultaneously, such as showers, sinks, and appliances, making them ideal for families or larger households with higher water demands.

Indirect

Indirect water heater systems work by utilizing the home's existing heating system, such as a boiler, to heat water. This process makes them an energy-efficient and cost-effective option, particularly in homes that already have a well-maintained boiler in place. They are designed to integrate seamlessly without requiring additional equipment, helping homeowners save on installation and energy costs.

Condensing

Condensing water heaters are designed to capture and reuse the heat from exhaust gases that would otherwise be wasted. By repurposing this heat, they increase energy efficiency, reduce overall energy consumption, and contribute to a more sustainable operation.

Non-Condensing

Non-condensing systems are simpler and less expensive compared to more advanced alternatives, making them a budget-friendly option. However, they are also less efficient because they vent exhaust gases directly into the environment without any additional processing or energy recovery.

Electric

Electric water heaters use electricity to heat water, making them a popular choice for households without access to gas. They are typically easier to install, as they don’t require a gas line, and are more compact, fitting into smaller spaces. However, they may have higher operating costs compared to gas-powered models, especially in areas with high electricity rates.

Gas

Gas water heaters use natural gas or propane as a fuel source, making them a reliable and efficient option for heating water quickly. They are generally more powerful than electric models, providing a higher flow rate and consistent hot water supply, which is ideal for larger households. However, they require proper ventilation to safely expel combustion gases, making installation more complex and often more expensive.

How a Tankless Water Heater Works

When a hot water tap is turned on, cold water flows through a pipe into the tankless water heater unit. Unlike traditional water heaters with storage tanks, this system doesn’t rely on preheated water stored in a reservoir. Instead, a gas burner or an electric element heats the water instantly, providing hot water on demand as it passes through the unit. This means tankless water heaters can deliver a continuous and virtually endless supply of hot water, regardless of how much is being used. You won’t have to wait for a storage tank to refill and reheat, making tankless systems a convenient and energy-efficient solution for households of all sizes.

Water Heater Comparison: Tankless vs. Conventional

Space Constraints

Tankless units are compact and can be mounted on walls, saving valuable floor space in your home. Unlike traditional water heaters that require bulky tanks, these systems provide hot water on demand without taking up unnecessary room, making them ideal for smaller spaces or modern, minimalist designs.

High Hot Water Demand

For households with high hot water usage, tankless water heaters can be an excellent solution. Unlike traditional storage tank systems, these units heat water on demand, providing a continuous supply without running out, even during back-to-back showers or when multiple appliances are in use. This makes them ideal for large families or homes with heavy hot water needs.

Energy Efficiency Goals

Homeowners looking to reduce energy consumption and lower utility bills may find tankless water heaters appealing due to their efficiency and long-term cost savings. Unlike traditional water heaters that continuously heat a tank of water, tankless models heat water on demand, using less energy and providing an endless supply of hot water. This makes them an excellent choice for environmentally conscious individuals or those seeking to upgrade their home's energy efficiency.

Long-Term Investment

If you plan to stay in your home for many years, the long lifespan of tankless water heaters can be a significant advantage. Unlike traditional water heaters that typically last 10-15 years, tankless models can last up to 20 years or more with proper maintenance. This durability not only reduces the need for frequent replacements but can also save you money in the long run, making them a smart investment for homeowners planning to settle in for the long haul.

Pros of Having a Tankless Water Heater

Energy Efficiency

Tankless water heaters are more energy-efficient than traditional models because they only heat water when it’s needed, rather than maintaining a constant supply of hot water in a storage tank. This on-demand heating system reduces standby energy losses that occur when water is continually heated and reheated in a traditional tank, making tankless systems both cost-effective and environmentally friendly over time.

Endless Hot Water

With a tankless system, you won't run out of hot water, as it heats water on demand rather than storing it in a limited tank. This makes it an excellent choice for large families or homes with high hot water demand, ensuring there's always enough hot water for showers, washing dishes, and doing laundry, even during peak usage times.

Space-Saving Design

Their compact size makes them ideal for installation in smaller spaces, making it possible to utilize areas that might otherwise go unused. This frees up valuable room for other purposes, whether it’s additional storage, equipment, or simply creating a more open and functional environment.

Longer Lifespan

Tankless water heaters are known for their durability and efficiency, typically lasting longer than traditional tank models. With proper maintenance, these systems can remain operational for up to 20 years or more. Unlike tank models that store hot water and are prone to corrosion over time, tankless water heaters heat water on demand, reducing wear and tear on the system and extending their lifespan. This makes them a reliable and cost-effective option for many homeowners.

Lower Utility Bills

The increased efficiency of this system not only reduces energy consumption but also leads to significant savings on energy bills over time. By using advanced technology to optimize performance, it minimizes wasted energy and ensures you get the most value out of every dollar spent on utilities.

Cons of Having a Tankless Water Heater

Higher Initial Cost

The upfront cost of purchasing and installing a tankless water heater is generally higher than that of a traditional tank model, largely due to the advanced technology and the additional labor required for installation. While traditional water heaters are simpler to set up, tankless systems often need upgrades to your home's plumbing or electrical system, which can increase the initial investment.

Complex Installation

Tankless water heater installation can be more complicated and may require significant upgrades to your home's electrical or gas systems to ensure compatibility and safety. These upgrades might include rewiring, installing a new breaker, or updating gas lines, which can add both time and expense to the overall cost of the project.

Limited Flow Rate

In some cases, a single tankless water heater may struggle to supply enough hot water to multiple fixtures running at the same time, such as a shower, dishwasher, and washing machine. This limitation can occur because tankless units heat water on demand and may not have the capacity to meet high simultaneous usage. To address this issue, homeowners might need to install multiple units or consider a larger system to ensure a consistent supply of hot water throughout the household.

Maintenance Tips

Regular maintenance is essential to keep a tankless water heater running efficiently. This includes tasks like descaling to prevent mineral buildup, cleaning filters to ensure proper water flow, and inspecting the system for any wear and tear. While these upkeep measures help extend the lifespan and performance of the unit, they can also add to the long-term cost of ownership.

Temperature Fluctuations

Some users report experiencing noticeable temperature fluctuations in their water supply, particularly when multiple hot water taps are being used simultaneously. This can result in inconsistent water temperatures, which may be inconvenient during activities like showering or washing dishes.

Recommended Tankless Water Heaters

Noritz EZ Series Pro EZ111DV 11.1 GPM 199000 BTU Whole House Tankless Water Heater - GQ-C3261WX-FF US

Noritz is a well-established brand in the tankless water heater industry, known for its innovation and reliability. Founded in 1951, Noritz introduced the first electronic tankless water heater in 1981 and has since been a leader in the market. With over 60 years of experience, Noritz has built a reputation for producing high-quality, durable, and efficient water heaters that cater to both residential and commercial needs.

The Noritz EZ Series Pro EZ111DV 11.1 GPM 199000 BTU GQ-C3261WX-FF US is an excellent choice for homeowners and contractors looking for a reliable and efficient whole house tankless water heater.

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With an impressive flow rate of 11.1 gallons per minute (GPM), this unit provides a steady and reliable supply of hot water to multiple fixtures at the same time. Whether it's running showers, faucets, or appliances simultaneously, it ensures everyone in the household has access to consistent hot water. This makes it an excellent choice for large households or those with high water demands, delivering both efficiency and comfort.

The EZ111DV boasts an impressive Uniform Energy Factor (UEF) of 0.98, making it one of the most energy-efficient water heaters available. This high UEF ensures maximum energy savings, helping you reduce your carbon footprint while enjoying significantly lower utility bills. Designed with efficiency and sustainability in mind, it’s an ideal choice for those looking to save money and support a greener future.

The dual stainless steel heat exchangers are designed to be highly resistant to both corrosion and scale buildup, making them ideal for long-term performance even in demanding conditions. This advanced construction not only enhances the unit's durability but also significantly extends its lifespan, reducing maintenance needs and ensuring reliable operation over time.

Condensing Technology enables this unit to capture and reuse heat from exhaust gases that would otherwise be wasted. By recycling this heat, the Noritz EZ111DV significantly boosts its efficiency, ensuring optimal performance while reducing overall energy consumption. This advanced feature not only helps lower utility bills but also makes the unit more environmentally friendly, contributing to a more sustainable way of heating water.

The tankless design not only saves valuable space but also provides greater flexibility when it comes to installation. Whether you choose to place it indoors or outdoors, this design ensures you can seamlessly integrate it into your home without the bulk of a traditional water heater. Its compact size makes it ideal for tight spaces and modern living environments.

The EZ111DV features advanced Bluetooth connectivity, allowing users to streamline their experience with convenient startup procedures, remote control, and access to detailed diagnostics through a user-friendly smartphone app. This ensures greater flexibility, efficiency, and real-time monitoring to keep your system running smoothly.

The innovative top-mounted water connections design makes installation easier and more convenient by allowing you to connect directly to existing water lines. This feature eliminates the hassle of rerouting pipes or making extensive plumbing modifications, saving both time and money. It’s a practical solution that ensures a smoother setup process for homeowners and professionals alike.

The unit comes with a natural gas to propane conversion kit, offering versatility and convenience to suit your specific needs. This means you can easily switch between fuel sources, whether natural gas or propane, depending on what is readily available in your area or best fits your setup.

Eemax PA028240T2T ProAdvantage Point of Use Tankless Water Heater with Digital Display and Controls

Eemax is a renowned brand in the tankless water heater industry, known for its innovation and reliability. Established in 1988, Eemax has consistently focused on manufacturing high-quality electric tankless water heaters for both commercial and residential applications. Over the years, Eemax has built a strong reputation for producing energy-efficient and durable products that meet the needs of modern homeowners and contractors.

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The Eemax PA028240T2T ProAdvantage Point of Use Tankless Water Heater comes with a digital display and user-friendly controls, making it simple to adjust settings with precision and monitor performance at a glance. The clear interface ensures you can easily fine-tune the temperature to suit your needs, while the intuitive design makes operating the system hassle-free for users of all experience levels.

This unit is designed to be highly energy-efficient, ensuring optimal performance while saving energy. It heats water only when needed, eliminating unnecessary energy usage and significantly reducing standby energy losses. This makes it an excellent choice for those looking to lower energy bills and minimize their environmental impact without compromising on convenience.

Its compact size makes it perfect for installation close to the point of use, such as under sinks, in small utility spaces, or even in tight corners where larger systems wouldn’t fit. This space-saving design ensures you can maximize your available area while still enjoying efficient and convenient functionality.

With a power rating of 28.5 kW and a flow rate activation at 0.7 GPM, this efficient unit ensures a steady and reliable supply of hot water, making it ideal for a variety of applications, from residential use to small commercial settings. Whether you're running a shower, washing dishes, or handling other daily tasks, this system is designed to deliver consistent performance and meet your needs with ease.

The unit features a durable powder-coated aluminum cover that protects against wear and tear, along with replaceable cartridge elements made of high-quality Nichrome. This combination ensures long-lasting performance, excellent heat resistance, and reliable protection against corrosion, making it ideal for consistent use in various environments.

Equipped with advanced safety features, the PA028240T2T is designed to provide both safety and efficiency. It includes a flow switch that activates the heater only on demand, preventing unnecessary energy usage and ensuring reliable operation. This thoughtful design not only enhances safety but also extends the product's lifespan, making it a dependable choice for long-term use.

The bottom feed water connection and NPT plumbing configuration simplify the installation process, ensuring a hassle-free setup that saves time and effort. This design not only streamlines the installation but also makes it a highly convenient and practical choice for both homeowners tackling DIY projects and contractors handling professional installations.

Noritz EZTR75NG Natural Gas Residential 75 Gallon Tankless Water Heater

The Noritz EZTR75NG Gas 75 Gallon Tankless Water Heater boasts an impressive efficiency rating, making it an excellent choice for those looking to reduce energy consumption. With its advanced technology, this model ensures maximum energy savings, helping you lower your utility bills while also minimizing your environmental footprint.

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Designed to replace a traditional 75-gallon tank water heater, this unit is built to handle even the highest hot water demands with ease. Its advanced technology ensures a consistent supply of hot water, making it an ideal solution for large households with multiple bathrooms or families that frequently use hot water for showers, laundry, and dishwashing.

The Noritz EZTR75NG features condensing technology, a cutting-edge innovation designed to maximize energy efficiency. This advanced technology works by capturing and reusing heat from exhaust gases, which would otherwise be wasted, to preheat incoming water. By utilizing this process, the system achieves higher efficiency, significantly reducing energy consumption and lowering utility costs over time. It's an ideal choice for those looking to combine performance with eco-friendly operation.

The onboard dual stainless steel heat exchangers are designed to deliver exceptional performance and reliability. They are highly resistant to corrosion and scale buildup, ensuring optimal efficiency even in demanding conditions. This advanced construction not only enhances the unit's durability and lifespan but also reduces the need for frequent maintenance, making it a cost-effective and long-lasting solution for your needs.

The EZTR75NG offers versatile venting solutions, providing flexibility for various installation needs. It supports dual 2- or 3-inch single-pipe configurations using PVC or CPVC, as well as 2-inch Flex venting options. These options not only simplify the installation process but also ensure compatibility with a wide range of setups, making it an ideal choice for both residential and commercial applications.

The tankless design not only saves valuable space but also offers greater flexibility for installation, making it an ideal choice for both compact indoor areas and outdoor setups. This innovative design ensures efficient use of space without compromising performance or convenience.

The unit comes with a single vent conversion kit, a flex vent conversion kit, an isolation valve kit, and a startup guide, providing everything you need for a smooth installation. With these components included, the installation process is straightforward, ensuring you have the tools and guidance necessary to get the unit up and running with ease. Whether you're a seasoned professional or tackling installation for the first time, this kit simplifies the process from start to finish.

By heating water only when needed, this Energy Star-qualifying tankless water heater not only reduces energy consumption but also lowers utility bills and minimizes greenhouse gas emissions. Its on-demand design ensures you have hot water whenever you need it, while contributing to a more sustainable and eco-friendly lifestyle.

Rinnai REHP Series 80 Gallon Residential Electric Water Heater - REHP80

Rinnai is a highly respected brand in the water heating industry, known for its innovation, reliability, and commitment to quality. Established in Japan in 1920, Rinnai has over a century of experience and has become a leading manufacturer of tankless water heaters worldwide. The company prides itself on exceeding customer expectations and providing safe, efficient, and durable products.

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The Rinnai REHP Series 80 Gallon Residential Electric Water Heater is an excellent choice for homeowners looking to combine performance with energy savings. With a Uniform Energy Factor (UEF) of 4.0, it is highly energy-efficient, meaning it uses significantly less energy compared to traditional water heaters. This efficiency can lead to noticeable reductions in utility bills over time, making it a cost-effective investment. Designed for durability and reliability, it provides ample hot water for larger households while helping you save money and contribute to a greener environment.

This unit utilizes advanced heat pump technology, which works by extracting heat energy from the surrounding air and converting it into hot water through an efficient transfer process. This innovative approach ensures a reliable and consistent supply of hot water for your household needs, all while operating with remarkable energy efficiency. Additionally, it produces zero direct emissions, making it an environmentally friendly solution that helps reduce your carbon footprint without compromising on performance.

With an 80-gallon capacity, this water heater is designed to meet the hot water demands of larger households, making it ideal for families or homes with multiple occupants. It provides ample hot water for multiple fixtures to be used simultaneously, such as showers, sinks, and appliances, ensuring everyone in the household enjoys a consistent and reliable supply of hot water without interruptions.

The REHP80 operates quietly, making it perfect for maintaining a peaceful and comfortable home environment. Its advanced noise-reduction technology ensures minimal disruption, allowing you to go about your day without distractions.

The unit features a powder-coated aluminum cover, designed to withstand harsh weather conditions and resist corrosion, and a micro-channel heat exchanger condenser, which improves heat transfer and reduces energy consumption, enhancing its durability and efficiency.

The top-mounted water connections and zero-clearance installation design make the installation process incredibly straightforward and hassle-free. This thoughtful design allows the unit to fit seamlessly into tight spaces, eliminating the need for extra room around the sides. It's a convenient and efficient choice that benefits both homeowners tackling DIY projects and contractors seeking to save time on installations.

This water heater meets the stringent energy efficiency standards set by Title 24, ensuring compliance with local regulations and promoting environmentally responsible energy use. Designed to reduce energy consumption without sacrificing performance, it’s an ideal choice for those looking to lower utility bills and minimize their carbon footprint.

The REHP80 is designed with durability and customer satisfaction in mind, offering a comprehensive 10-year warranty on both the tank and parts. This ensures peace of mind, long-term reliability, and protection against any potential issues, so you can trust in its performance for years to come without worry.

 

Conclusion

Tankless water heaters offer numerous benefits, including energy efficiency, endless hot water, and a space-saving design. However, they also come with higher initial costs, potential installation challenges, and maintenance requirements. For homeowners and contractors, understanding these pros and cons is crucial in making an informed decision about whether a tankless water heater is the right choice for your needs. By weighing the benefits against the drawbacks, you can determine if this modern solution aligns with your home's hot water demands and long-term goals.