Key Takeaways
- Tank water heaters are the conventional systems that store heated water. They provide more affordable upfront costs and simpler installations, but standby heat loss makes them less energy-efficient. Regular maintenance is critical to avoid sediment buildup and extend their lifespan.
- Tankless water heaters deliver hot water on demand with no storage tank for energy savings and a smaller physical footprint. They have a higher upfront cost and often need to be professionally installed and properly sized to deliver the best performance.
- This is perhaps the most important consideration when deciding between tank and tankless systems. In particular, larger households can benefit from tank water heaters. Smaller households and other targeted special uses are an ideal fit for tankless.
- Consider long-term costs, like energy usage, maintenance, and other long-term savings. Energy-efficient models may provide you with rebates or savings on your utility bills long-term.
- Installation space and requirements vary greatly. Tankless units save space but may need retrofitting or additional ventilation, while tank units require more physical space for installation.
- Take into account your local water hardness, your climate, your preferences, and choose the option that works best for you. Working with a knowledgeable professional will help you determine which system best fits your needs and plumbing codes in your area.
Whether to go with tank versus tankless water heaters usually comes down to what your home needs and what you want to accomplish energy-wise. Each type has distinct benefits and drawbacks that affect efficiency, cost, and convenience.
Tank water heaters store hot water in a large reservoir, typically holding 40 to 80 gallons, making them reliable for high-demand households. On the other hand, tankless units heat water on demand, which means you’ll have an unlimited supply of hot water, save space, and use less energy overall.
Installation and upfront costs differ and knowing how these differences work is crucial to making an informed decision. Understanding these systems’ advantages and disadvantages will guide you to the system that best meets your budget, lifestyle, and long-term energy savings objectives.
Let’s compare tank vs. Tankless water heaters to determine which one is the best fit for your home.
What Are Tank Water Heaters
Tank water heaters are conventional storage systems intended to store and heat a given volume of water. These systems keep the heated water in their insulated tanks, whose size varies from 20 to 80 gallons. This wide range makes them a perfect fit for any household size, from smaller apartment size to larger family size units.
Insulation is critical to maintaining the heat in the water. It prevents energy waste, saving you money on energy costs. These systems feature a thermostat, which continuously regulates the temperature of the water. This keeps the water uniform throughout, helping give it the optimum look and feel.
How Tank Water Heaters Work
This tube carries the cold water to the bottom of the tank, where a burner or electric heating element heats the water. As the water heats up, it becomes less dense and rises to the top. It’s then available for use whenever you turn on a faucet or appliance that needs hot water.
The water heater system can lose heat during standby. As the stored water cools down, it requires periodic reheating to maintain its temperature. Though this guarantees you’ll always have water on hand, it does make them a little less energy efficient.
Common Features of Tank Water Heaters
Most tank water heaters come with adjustable thermostats, pressure relief valves for safety, and anode rods to prevent corrosion and rusting. Their energy factor (EF) rating allows you to compare their efficiencies, with higher numbers meaning more efficiency.
They can be powered by multiple fuel sources including gas, electricity, or propane, providing flexibility depending on what is available and preferred. Safety features are also important. Due to the expansion and contraction of water, safety features like thermal expansion tanks are typically installed to manage pressure increases and avoid cracking.
Typical Uses for Tank Water Heaters
These heaters are used extensively in residential, commercial, and industrial applications. They are the best solution for homes with the most demanding hot water requirements, like big families or houses with lots of bathrooms.
They are efficient at providing hot water for appliances such as dishwashers and clothes washers. These systems are ideal for high-use areas that require a continuous supply of hot water, like kitchens or bathrooms.
What Are Tankless Water Heaters
Tankless water heaters, also known as instantaneous water heaters, heat water directly without the use of a storage tank. Unlike conventional water heaters, they only heat water when you need it, eliminating the need to keep hundreds of gallons hot around the clock. By removing standby heat losses, these systems not only enhance energy efficiency but also present a more practical, eco-friendly water heater option.
One of their most touted features is the ability to provide endless hot water. As the water passes through the unit, the heating element warms it immediately and on-demand. This means you never run out, even during long showers or back-to-back hot water usage. Most tankless water heaters deliver two to three gallons of hot water per minute, with output varying according to the model and water pressure.
The compact design of tankless units is another significant advantage. They take up considerably less space than traditional tank water heaters, making them ideal for smaller homes, apartments, and even utility closets. Available in both electric and gas configurations, each has its distinct benefits.
Electric tankless water heaters are easy to install and maintain, while gas models generally offer much higher flow rates, which can better accommodate multiple simultaneous uses.
Whether for a busy family or a small business, using tankless water heaters provides a consistent, energy-efficient, and compact solution that meets specific hot water demands.
Pros and Cons of Tank Water Heaters
1. Advantages of Tank Water Heaters
Tank water heaters have served as the standard for decades, mostly due to their upfront cost, but more so, their availability. Their up front costs are much cheaper than tankless. Usually priced between $300 and $1,500, they’re a cost-effective option for a lot of homes.
Their commonality of use means that parts and replacements are available, which minimizes downtime in the event of a problem. The installation process is seamless and usually less intensive in terms of labor. Most homes are already set up with plumbing configurations that accommodate tank models, saving on extra costs.
That ease of operation translates into faster installation timelines, sometimes just a few hours. Tank water heaters provide great performance. They can provide hot water to several different points of use at the same time.
To give an example, one person could be showering and another could be using the dishwasher and you wouldn’t feel a sudden loss of temperature. They reliably deliver an abundant flow of hot water. This is what makes them an ideal option for households with consistent yet moderate hot water requirements.
2. Disadvantages of Tank Water Heaters
Even with their advantages, tank water heaters do have some significant disadvantages. Their biggest drawback is the hot water capacity, which is limited based on the size of the tank. If a household uses a lot of water at once, it might quickly run out.
This leads to a lag time as you must wait for the tank to refill and reheat. Energy efficiency is a big issue. As a point of comparison, traditional tank models operate at efficiencies of 40 to 60 percent.
They waste a huge amount of energy through standby heat loss. The tank continues to heat the water in storage – even when you aren’t using hot water. This never-ending practice consistently increases your utility costs.
Regular maintenance helps your tank do its job without a hitch. It avoids issues such as sediment accumulation, which can decrease efficiency and increase corrosion risk. Flushing the tank annually is recommended to reduce this danger, but it increases maintenance demands.
Additionally, these models have a much larger physical footprint, so they need enough space to be installed—which may be difficult to provide in a smaller home.
Pros and Cons of Tankless Water Heaters
1. Advantages of Tankless Water Heaters
One of the biggest tankless water heater pros is their energy efficiency, which stems from their ability to heat water on demand. Unlike conventional tanks, these systems are notable for not storing hot water around the clock. Consequently, they enable homes that use less than 41 gallons per day to reduce energy use by 24% to 34%.
This increased efficiency often results in lower monthly utility bills, which is beneficial for energy-conscious homes. Their space-saving design is another major benefit, needing only a quarter of the room as large tank units. They are typically 10–15 inches wide and 24–30 inches tall.
Because they’re easy to install in closets, underneath sinks, or even wall-mounted, tankless water heaters are ideal for apartments or smaller homes. Tankless systems are built for tremendous longevity, frequently outlasting 20 years with the right maintenance plan.
Because there’s no storage tank, rust and leaks are not an issue, minimizing water damage risk. Additionally, removing the tank means there’s no risk of catastrophic flooding from tank rupture, increasing safety in the home. In fact, the unlimited hot water supply is one of their most touted benefits.
This feature is great for big families. It promises unlimited hot water, even during consecutive showers or simultaneous appliance use.
2. Disadvantages of Tankless Water Heaters
The initial cost for a tankless water heater is much higher, usually ranging from $1,000 to $3,000. When you factor in a professional installation, particularly in older homes that require retrofitting, expenses can rise even more. For instance, converting from conventional water heaters to gas models may necessitate new venting or electric service upgrades, adding to the complexity and overall cost.
Flow rate restrictions can create challenges for households with high simultaneous hot water demand. Most electric tankless water heaters deliver between 1 to 5 gallons per minute, which may struggle to accommodate multiple fixtures running concurrently, such as showers and dishwashers. Therefore, professional installation is crucial to ensure these systems are set up correctly.
In contrast to traditional tank storage water heaters, tankless systems must be precisely sized and installed in optimal locations to function efficiently. Improper installation can result in issues like cold water sandwiches, where users experience brief bursts of cold water between hot water cycles during simultaneous use.
Lastly, regular maintenance is vital to prevent mineral deposits from accumulating. Routine descaling, especially in areas with hard water, is essential for protecting internal components and ensuring your tankless water heater operates at peak performance. Neglecting this maintenance can lead to decreased efficiency and shorten the system’s lifespan.
Key Factors to Consider Before Choosing
Here are a few key factors to consider when choosing between tank and tankless water heaters. These are energy efficiency, the amount of space available for installation, hot water requirements, and the need for regular maintenance.
Thoughtful attention to these factors can help direct homeowners to the best choice among the growing number of options that suit their home and way of life.
Energy Efficiency and Costs
Tankless water heaters provide extraordinary energy savings, especially for homes that use an average of 41 gallons of hot water per day or less. They can deliver efficiency gains of 24% to 34%.
If usage is more than 86 gallons per day, look for another 8% to 14% efficiency increase. Although tank systems keep a stored supply of hot water, which can result in standby heat loss and therefore more energy use, in the long run, tankless models can save about $100 per year—especially for gas-fired units.
Installation costs can be steep, particularly if changing fuel sources. Many localities provide rebates or other incentives for installing energy-efficient products, further reducing upfront costs.
Installation Space and Requirements
| Type | Space Needed | Ventilation |
|---|---|---|
| Tank Water Heater | Larger space, up to 5 ft² | Not always required |
| Tankless Heater | Compact, less than 2 ft² | Required for gas models |
Because tankless systems take up less space they are a great choice for apartments or smaller homes.
Gas powered units should be well ventilated and tanks might need additional space and access for maintenance.
Hot Water Demand and Usage Patterns
Household size and usage patterns make a HUGE difference. Tankless units provide 2-3 gallons of hot water per minute, suitable for homes with multiple showers.
At peak times, concurrent use can overload these systems. Storage tanks are more effective for homes with consistent demand for hot water.
Lifestyle changes, such as the addition of new family members, can change hot water needs in the long term.
Maintenance and Longevity
Tankless heaters have a lifespan of 20 to 30 years, double that of tank models. Routine upkeep, like descaling, will keep these machines running efficiently, particularly in places with hard water.
Failing to perform proper maintenance can result in mineral deposits that clog the system and dramatically lower performance. Tanks sometimes need to be flushed to avoid sediment build-up, but tankless units are safer and easier to maintain, thanks to simpler designs.
Which Option Is Right for You
Assess Household Needs
When choosing a new water heater, determining your household’s needs is the first place to start. Start by asking yourself these questions:
- How many people live in your household, what are their daily hot water needs.
- What are your installation and lifetime budget parameters.
- Do you have room for a large traditional tank, or would a smaller, tankless unit work better in your home?
- How important is energy efficiency to you?
Answering these questions provides a good sense of what will work best with your situation. A family of four typically has four showers running simultaneously in the morning. In this scenario, they would be better off with a tank water heater.
A smaller household with overall lower water use and consumption can recoup the higher cost of a tankless system more easily. This simple, efficient option offers energy savings of 24% to 34% for homes that consume less than 41 gallons of water per day.
Future needs are an important consideration as well. If you plan to have a big family one day, be ready to alter your water usage needs. A tank model will provide the buffer necessary for the higher demand.
Personal values like placing a higher value on energy efficiency or safety could be factors too. Safer and more compact tankless systems last for about 20 years, which means they’re not only safer, but they better fit with sustainable choices.
Compare Long-Term Costs
Here’s a breakdown:
| Cost Factor | Tank Water Heater | Tankless Water Heater |
|---|---|---|
| Initial Cost | $300–$2,000 | $2,000–$4,500 |
| Installation | Lower (basic setup) | Higher (may need upgrades) |
| Maintenance | Periodic tank flushing | Occasional descaling |
| Energy Efficiency | Lower | Higher (24%-34% savings) |
| Lifespan | 10–15 years | 20 years |
| Annual Energy Savings | Minimal | Over $100 |
While tank water heaters do cost less upfront, tankless water heaters provide considerable energy savings in the long run. Financing options and rebates for energy-efficient systems help make the upfront costs even more manageable.
Since they only heat water when you need it, tankless models use less energy, which can offset their higher installation cost. This makes them a wise long-term investment for environmentally-conscious homeowners.
Evaluate Installation Feasibility
Installation feasibility is the next most important consideration. Your home’s current plumbing and electrical systems make a huge difference in this equation. Upgrades are often required for tankless heaters, such as higher-capacity gas lines or electrical panels.
Tank models often integrate right into off-the-shelf deployments. Your local building codes may have an impact on your decision as well. For example, some regions require energy-efficient replacements, which can make a tankless model more cost-effective.
Getting the advice of a professional plumber will help you get an informed judgment before choosing an option. They will evaluate your home’s infrastructure to identify any potential challenges.
After that, they’ll suggest the most suitable option customized to your home’s design and area codes. Their knowledge can make the process easier and keep you from incurring unexpected expenses.
Conclusion
Deciding between tank and tankless water heaters really depends on which one is the better fit for your home and lifestyle. Tank water heaters offer ease of use and offer a constant flow of hot water. They’re a good bet for larger households or anyone who wants to save cash. Tankless water heaters are even more compact, energy-efficient, and useful. They provide hot water as needed, which makes them a fantastic option for homeowners looking to save money in the long run.
Consider how much water you use, your initial budget, and your energy objectives. Both of them have obvious merits. The better option for you ultimately comes down to what you care about most.
Interested in switching to a tankless water heater? Learn about your options, see how much each option would cost, and contact a trusted local pro to get their expert advice. A bit of foresight today can deliver you solace and savings for decades to come.
Frequently Asked Questions
What is the main difference between tank and tankless water heaters?
Tank storage water heaters store and heat water in a tank, while tankless water heaters heat water on demand without a storage tank. Conventional water heaters are more effective for regular use, whereas electric tankless water heaters are more energy efficient and take up less space.
Are tankless water heaters more expensive to install?
Yes, electric tankless water heaters generally have more expensive installation costs due to the need for upgrades to your home’s electrical or gas distribution systems. However, their energy efficiency leads to lower utility bills over time.
Which type of water heater is more energy-efficient?
Tankless water heaters, known for their energy efficiency, heat water on demand instead of relying on storage tank water heaters that waste energy by constantly reheating stored water. This innovative tankless technology significantly reduces energy consumption and heating costs.
Do tankless water heaters provide hot water instantly?
It’s not the case. Tankless water heaters, on the other hand, heat water instantly as you need it, improving heating efficiency. It may take several seconds for that hot water to arrive at your kitchen sink, but a recirculation pump is one solution to this annoying delay.
How long do tank and tankless water heaters last?
Tank storage water heaters typically have a lifespan of 8 to 12 years, while electric tankless water heaters can last upwards of 20 years or more with proper maintenance. The longevity of tankless units makes them a superior investment for long-term hot water usage.
Which water heater is better for large households?
Tank storage water heaters usually work best for larger households since they can deliver a constant amount of hot water. Unless they are properly sized, electric tankless water heaters can have a hard time keeping up with more than one hot water usage at once.
Can I replace a tank water heater with a tankless one?
Yes, but it will likely need some retrofitting of your plumbing, electrical, and gas infrastructure to accommodate a tankless water heater. Talk to a licensed tankless installer to see if your home is a good fit for this efficient water heating option and ensure you have a seamless installation.