Reasons to Install a Tankless Water Heater

November 1, 2024

Tankless water heaters have existed for decades but only became a viable home water heating solution in the 1970s. Over the years, tankless water heaters have become very popular, offering an energy-efficient solution due to their on-demand performance.

Without the storage tank, tankless water heaters heat water as it flows through the unit with faucet activation. According to the U.S. Department of Energy, tankless water heaters are up to 34% more energy efficient. Climate Control is here to share some of the top reasons why you should install a tankless water heater.

Understanding How Tankless Water Heaters Work

When you turn a hot water faucet on, cold water begins to flow through the water heater. A flow sensor detects the water flow and sends a signal to the control board. The control board receives the signal and turns on the heating elements.

Gas tankless water heaters have combustion burners, and electric models use an electric heating element to heat the water. The temperature sensor monitors the water temperature, adjusts the flow rate, and adds cold water to ensure the set temperature. The water heater sends the heated water to the faucet, which continues until you shut off the water.

Benefits of Tankless Water Heaters

Tankless water heaters offer a variety of advantages that make them a worthwhile investment for homeowners. In fact, there are several benefits to consider when upgrading to a tankless system.

Energy Efficiency

Tankless units only heat water on demand, eliminating energy loss from constantly heating water in a stored tank. We measure the efficiency of tankless water heaters using energy factor (EF). EF considers the amount of hot water produced per unit of consumed fuel. Most tankless water heaters offer an EF of 0.82 to 0.96, while traditional tank versions range from 0.60 to 0.70.

Environmentally Friendly

Because of their higher energy efficiency, tankless water heaters produce fewer greenhouse gases, especially if your fuel source is fossil-fuel-based. Upgrading homes from traditional tank versions to tankless can reduce carbon footprints by decreasing energy consumption by up to 30%.

Long-Term Financial Savings

Although tankless water heaters require a higher initial cost, they can offer significant long-term savings in terms of the unit price and more complex installations.

According to the EPA, gas tankless water heaters can save families up to $100 annually. Since tankless water heaters last five to 10 years longer than tank versions, at up to 20 years, this equates to savings of $1,500 to $2,000 over the heater’s life.

Unlimited Hot Water Supply

Tank water heaters hold 20 to 80 gallons of water, depending on the size. During peak usage, your hot water supply can run out, and you would need to wait for the tank to fill and reheat the water.

Though there are limitations, tankless water heaters offer an unlimited hot water supply. These heaters have output rates of 2-5 gallons per minute. During peak usage, demand increases can slow the flow rate and lead to temperature fluctuations. Homes with two or more bathrooms and high hot water demands may need to install two tankless water heater units.

When Should You Install a Tankless Water Heater?

Despite their advantages, tankless water heaters are not for everyone. There are situations where they make more sense than a tank water heater installation, including those below.

Higher Energy Bills Due to Water Heating

The U.S. Department of Energy states that water heating accounts for around 18% of your home’s energy expenditure. Energy costs may skyrocket because of increased water heating demands in the winter.

Installing a tankless version can reduce unexpected energy bill increases, particularly if you lower the set water temperature and install low-flow showerheads. Climate Control in Portland, OR recommends a professional installation and setup to maximize your savings.

Current Failing Water Heater

If your current tank water heater is nearing the end of its lifespan, it’s wise to consider upgrading to a tankless version. Tank water heaters usually last 6 to 12 years with proper maintenance. Signs of failure include leaks, inconsistent hot water supply, strange noises, and tank damage. After installing a high-efficiency tankless water heater, you may be eligible for government incentives.

Limited Space in Your Home

Tank water heaters require a lot of installation space. Most models are 50 to 70 inches tall and 20 to 30 inches in diameter, depending on the tank. Most sit in basements, but homes without basements could require a closet installation.

Tankless water heaters only require about 2 square feet for installation. They mount on the wall, and we can install some models outdoors. Small home and apartment owners will appreciate the diminished space requirement for tankless versions.

New Construction or Remodel

A tankless upgrade may be a good investment for building a new home or remodeling. Installing a tankless water heater during the building or remodeling stage is more cost-effective.

You will not have to worry about retrofitting, which can increase the installation costs. Plumbers can also optimize tankless water heaters according to your home’s specific needs, maximizing efficiency.

Increase Home Value

If you plan to sell your home, tankless water heater additions attract buyers. Prospective buyers are more likely to buy because modern appliances are in high demand, and they expect greater efficiency. Switching to a tankless water heater can potentially increase your home’s resale value.

You Have Hard Water

Hard water is a problem with tank water heaters, mainly because the minerals in the hard water can build up inside the tank, causing corrosion and reduced heating. If you have hard water, we must flush your tank twice a year.

Because tankless water heaters do not store water, they experience less mineral buildup. Some models come with features that help reduce scaling, including pre-sediment filtration. Tankless water heaters require fewer maintenance tasks than their tank counterparts.

Considerations Before Installing a Tankless Water Heater

Climate Control wants to help you make the right decision for your water heating needs. Although tankless water heaters offer many benefits, there are positive and negative considerations.

• Complex and costly installations
• Potential problems with simultaneous use
• Colder climate strains on tankless versions
• Extended warranties
• Federal rebates and tax credits

Tankless water heaters require professional installation, particularly when upgrading from a tanked version. You will need to choose between gas and electric models. Gas model units are more efficient, but you may incur more significant upfront costs for upgrading the fuel lines and venting. After the installation, plumbers ensure the proper settings and test the new tankless water heater for safe and normal function.

Portland’s Trusted Home Service Experts

Climate Control has proudly served the Portland area since 1989. In addition to water heater services, we also provide a full range of heating, cooling, and ventilation services. You can turn to us for installation, maintenance, and repairs of all HVAC components, including heat pumps. Our team provides services for indoor air quality, generators, and duct cleaning. We also offer 24/7 emergency repair services and have a Preventative Maintenance Agreement to save you money and keep your water heater and HVAC system running their best all year.

Call our expert technicians at Climate Control to learn about your tankless water heater options. We can help you choose the perfect model and offer services to keep it running safely and efficiently.