With more homeowners looking for energy-efficient ways to reduce their impact on the environment and spend less on energy bills, products like the tankless water heaters have become more popular.

Tankless water heaters heat your water only as-needed, so, unlike traditional hot water tanks, they do not use energy to continually heat a large amount of water that is not needed.

Here are some pros and cons for choosing either energy-efficient tankless water heaters or traditional hot water tanks.


Tankless Water Heater: When the hot water tap is turned on, water travels through the pipe directly into the unit where it is heated by either a gas burner or electric element, depending on the model. With no storage tank there is a limit to the flow rate. However, hot water is there as long as you need it.

Hot Water Tank: Water flows into the tank, where it is heated by either gas or electricity, and stored until needed. When emptied, you run out of hot water until the tank is able to heat more water.

Amount of Hot Water

Tankless Water Heater: A tankless heater can provide about 7 to 15 litres of hot water per minute. When sized correctly to meet your needs and space, a tankless water heater can supply enough hot water for simultaneous uses. If not sized correctly, you might not get enough hot water for your shower if the washing machine or dishwasher is running. Larger homes may require two or more units. We can recommend the appropriate size or number of tankless water heaters for your home.

Hot Water Tank: A hot water tank for an average-sized home can heat and store between 30 to 75 gallons of water at one time. Larger tanks are recommended for larger homes. Although hot water tanks store more water, it is also more expensive to have such a large volume of water continuously heated while stored.

Energy Savings

Tankless Water Heater: According to Energy Saver, homes that use less than 41 gallons of hot water daily could be 24% to 34% more energy efficient using a tankless water heater over a storage-style hot water tank. Even if you use a lot of hot water, a tankless heater remains 8% to 14% more efficient. With a tankless water heater installed at every hot water outlet, homeowners can expect to increase efficiency up to 50%. EnergyStar® estimates that a typical family can save $100 or more per year with an EnergyStar-qualified tankless water heater.

Hot Water Tank: Though newer hot water tanks are more efficient than older models, they can not compare to tankless heaters. There will always be a standby heat loss associated with storing hot water. In most gas-fueled hot water tanks, the pilot light heats the water in the tank so in that case, energy is not wasted.

Initial Cost

Tankless Water Heater: The initial cost of a tankless water heater is more than a traditional hot water tank. However, savings are achieved with lower energy consumption and, when sized correctly, provide continuous hot water.

Hot Water Tank: Hot water tanks cost less than tankless water heaters, but they are not energy efficient and have a limit to the hot water they can deliver.

Call us now to discuss your hot water heating needs!

Call (780) 449-5322