Tankless Water Heaters: Saving you hundreds?

Lately, there seems to be a lot of hype, propoganda, confusion, and misinformation surrounding the ever popular tankless water heater.  Let me begin by saying that I am not going to purposely bash the units, (I actually think they are pretty cool), I am simply going to try and separate the facts from fiction.  This discussion will only pertain to gas fired models, as electric units will struggle to meet the demands of the average size family (mom, dad, 2.4 children).  Not to mention, most homes would require a service upgrade to accomodate a large enough heater. 

Let’s get straight to the top of most peoples minds:  Do you save a lot of money with a tankless water heater.  The answer may surprise you, and it is not really staright forward either.  Well, what is “a lot” of money.  An average family may save about $70-$100 per year versus a standard tank type. Not a lot, but the savings are there.  Now, let’s start factoring everything else into the equation.  The cost of the unit itself (for a good brand and model) will run between $500-$1000 more than a tank type.  Now, factor in all the additional labor that will be involved.  The gas feed line will need to be increased substantially, and the vent will need to be redone.  Labor will be at least $750 more than just having your tank type swapped out.  Also, a tankless will require yearly maintenance to remove the scale and calcium buildup on the inside of the burners to ensure it will be working to capacity.  This will be at least $75.  If you add all of this up, it doesn’t take too much thought to realize it is going to take you A LONG time to recoup that $70-$100 per year that you were saving.  The life expectancy of most units is about 20 years.  You may NEVER recoup the costs. 

Since I am writing from Michigan, I will also point out another achilles heal for these units.  You must first understand how they operate.  To get the water hotter, an internal diaphragm must close slightly to slow the water down so that it stays in the burner longer.  This is what determines the gallons per minute output.  Tankless water heaters are all about the “rise” of the water temp.  The colder the incoming water, the more the diaphragm must constrict to allow it to heat, thereby leading to less gallons per minute output you will recieve.  Back to Michigan, our incoming water is VERY cold (in case you just moved here…… from the MOON).  Tankless heaters do not deliver the same gallons per minute output in the north as they do in the south.  The better brands will still be able to satisfy most families most of the time, but there may be times they cannot.  Two tankless heaters running in tandem is also an option, but remember our little math equation.  If you happen to live in the south, you could always mount in on the outside of the house. 

OK OK OK, so you are still convinced they are the way to go.  They do have some nice benefits.  The main advantage to a tankless is that you will never run out of hot water.  Yes, I am aware this can easily trump all of the disadvantages.  Some models even have an internal recirculating pump built right inside so that you don’t have to wait for hot water either.  Remember, tankless hot water does not mean instant hot water.  You will still have cold water sitting in your lines that will need to be emptied.  A giant soaking bathtub, a carwash shower with multiple body sprays and shower heads, or twice the normal size family with 4.8 children (yes, i’m aware that the family isn’t twice the size, only the amount of children is). would all benefit from endless hot water. 

If you are looking to ride the green wave, and simply want to save natural resources, then a tankless is the way to go.  Keep in mind though, a tank type does not really use that much more gas to keep it at temperature.  Insulation built into the tanks is vastly superior to what it used to be.  They also make models with extra thick insulation.

Tankless models are very nice, don’t get me wrong.  I just felt that too many people have been misinformed by the actual savings they will  produce.  They are efficient, but not necessarily economical.  

Best Wishes! 

Picture

Inside of a tankless water heater

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