Tankless water heaters have emerged as an energy-efficient alternative to traditional water heaters. Also known as instant or on-demand water heaters, tankless water heaters have gained immense popularity among homeowners. 

What is a Tankless Water Heater?

A tankless water heater heats and supplies hot water only when required or on-demand to eliminate standby heat loss. It does not have a storage tank to store heated water. Natural gas, propane, and electricity are the three popular fuel sources used to power tankless water heaters. They can be installed as a point-of-use or whole-house unit.

If you want to purchase a new water heater for your home, carefully evaluate the pros and cons to understand if tankless water heaters are the ideal choice for your home.

Tankless Water Heater Pros

Lower energy usage

The primary advantage of installing a tankless water heater is the energy savings that come with it. As these water heaters do not store water and only heat water when demanded, they are significantly more efficient than their storage tank counterparts and lower the energy bills. 

Supplies Instant hot water

Another biggest pro of a tankless water heater is that it provides hot water instantly for any use. When sized appropriately, a family can receive an unending hot water supply for all household needs with a tankless water heater. 

Space-saving

Unlike bulky traditional storage water heaters, tankless water heaters are compact. It is particularly beneficial for smaller homes with limited room. You can easily install them near an access point for faster and more efficient heating. Plumbers can mount it out of the way on the wall to free up valuable space. 

Tax benefits

As tankless water heaters offer energy savings, they make you eligible for federal tax credits on their purchase and installation, which reduces the initial cost. These tax credits are offered as an initiative to reduce the carbon footprint and lower energy usage. 

Lasts longer

Tankless water heaters are durable and have a longer lifespan. Their expected lifespan is usually two times that of a standard water heater. They are repairable, and replacement parts are easily available, extending the heater life by a few more years. It saves the homeowners from the hassle of water heater replacement every ten years. 

Excellent warranties

Manufacturers offer attractive warranties for tankless water heaters. It saves the homeowners from paying for repairs if the unit malfunctions. Some warranties can even extend up to 20 years.

Tankless Water Heater Cons

Higher upfront cost

The biggest disadvantage of a tankless water heater is its initial cost which is significantly higher than storage water heaters. It also requires the assistance of a professional plumber for the installation, which increases the overall cost. 

Challenging and costly installation

Installing a new tankless water heater is not as simple and may need some retrofitting to the plumbing system for its safe and proper operation. It may include adding new venting or pipes and fitting and rerouting gas lines, which further adds to the cost. 

Inconsistent water temperature

The tankless water heater has a limited output and may not meet the hot water demands when several appliances are used simultaneously. In such instances, sizing the water heater correctly or installing multiple units is advisable.

Reliability issues during power outages

Tankless water heaters need electricity, so when the power goes out, it may leave you with no hot water. 

Maintenance hassles 

Tankless water heaters require annual professional maintenance to keep the warranty valid. The unit needs regular flushing to eliminate mineral build-up and prevent damage or loss of efficiency. Homeowners living in areas with hard water should consider installing a water softener or flushing the system more frequently. Routine maintenance becomes essential to keep the unit in the best shape. 

Tankless water heaters are an excellent long-term investment. Contact a local plumbing company if you are ready to switch to tankless water heaters. They will suggest the best tankless water heater for your family's requirements and ensure its correct installation.