Tankless Water Heaters: Advantages and Buying Guide

Tankless water heaters are transforming how homeowners access hot water. Unlike traditional models with storage tanks, tankless heaters deliver hot water on demand, saving space, energy, and money. In this guide, we’ll discuss the advantages, what to look for before buying, comparisons with traditional systems, and essential maintenance tips.

Introduction to Tankless Water Heaters

An on-demand water heater, sometimes referred to as a tankless water heater, provides a contemporary way to heat water. Here’s why they are becoming increasingly popular:

Instant Hot Water: This system heats water on demand as it flows through the system, meaning you don’t have to wait for a tank to fill up.
Energy Efficiency: Tankless heaters save energy and utility costs by only heating water when it’s needed, as opposed to traditional heaters that heat and store water continually.
Space Saving: Compact, wall-mounted design frees up valuable floor space that a bulky tank would otherwise occupy.
Endless Hot Water: This unit can provide an unlimited supply of hot water, perfect for larger households or high-demand homes (e.g., multiple showers or appliances running simultaneously).
Longer Lifespan: Typically lasts 15-20 years, much longer than the average 10-15 years of a traditional tank heater.
Reduced Operating Expenses: The higher initial purchase and installation expenses may eventually be balanced by the energy savings.

However, it’s important to keep in mind:

Higher Initial Cost: Tankless systems usually come with a higher upfront cost for both the unit and installation.
Installation Considerations: Professional installation may be required, which can involve additional costs for venting, gas lines, or electrical work.

Key Takeaway: Tankless water heaters are a highly efficient, space-saving option that provides continuous hot water. Even though they cost more upfront, many homeowners find that they are a wise investment because of their lifespan and long-term energy savings.

Advantages of Tankless Water Heaters

Tankless water heaters offer several compelling benefits that make them an attractive choice for homeowners. Here are the key advantages:

Energy Efficiency: This technology can save energy consumption and utility bills by up to 30% by simply boiling water when needed.
Endless Hot Water: This system provides a continuous supply of hot water, ideal for large families or high-demand households.
Space-Saving Design: Compact and wall-mounted, freeing up valuable floor space in homes with limited room.
Longer Lifespan: It lasts 15-20 years, compared to 10-15 years for traditional tank models, and it requires fewer maintenance needs.
Eco-friendly: Lowers carbon emissions through reduced energy use and waste production.
Lower Operating Costs: Cuts down on water waste and offers potential rebates or incentives for energy-efficient upgrades.
Improved Safety: Fewer risks of leaks and better temperature control, making them a safer choice.

Key Takeaway: Tankless water heaters provide energy savings, space efficiency, and endless hot water, making them a smart, long-term investment for many households.

Things to Take Into Account Before Purchasing a Tankless Water Heater

Choosing the right tankless water heater involves more than just selecting a model. Here are some crucial elements to take into account in order to guarantee peak performance and efficiency:

Flow Rate (Gallons Per Minute – GPM)

Determine Household Needs: The unit’s flow rate shows how much hot water it can produce in a minute. The right GPM depends on your household size and hot water usage. For example, a 7–10 GPM model is usually sufficient for a family of four, but larger homes with more water demand may need a higher flow rate.
Multiple Appliances: If you frequently use hot water in multiple places at once (e.g., running a shower while the dishwasher operates), ensure the tankless unit can handle simultaneous usage.

Fuel Type: Gas vs. Electric

Gas-Powered Units: These tend to heat water faster and are more suitable for homes with high hot water demands. However, they typically require venting and a gas line, making installation more complex.
Electric Units are easier to install and generally have lower upfront costs, but they may not be as efficient for larger homes with high hot water usage. Electric units also require sufficient electrical capacity to function properly.

Size and Space Requirements

Small Design: Although tankless water heaters are renowned for being small, it’s still crucial to measure the amount of space in your house that may be used for installation. While some units can be wall-mounted, others may require specialized ventilation systems or a designated area to ensure adequate airflow.
Indoor vs. Outdoor Installation: Depending on the unit, you may need to decide between indoor and outdoor installation. Outdoor models can be placed outside to save interior space, but they are exposed to weather and temperature changes, which may impact efficiency in extreme climates.

Climate Considerations

Cold Water Temperature: In colder climates, the incoming water temperature is lower, which may require a more powerful unit to heat the water to your desired temperature. Choose a tankless system with the right capacity to handle your local water temperature without overloading the unit.
Weather Resistance: If you live in a region with freezing winters, ensure that the model you choose is rated for low temperatures, or plan to install it indoors to avoid freezing risks.

Cost and Installation Expenses

Initial expenditures: Compared to conventional tank versions, tankless water heaters usually have greater upfront expenditures. You must factor in both the purchase price and installation fees.
Installation Complexity: Installation may involve changes to plumbing, electrical systems, or gas lines. Gas-powered units often require venting systems, and electric models might require upgrades to your home’s electrical panel.
Potential Rebates and Incentives: Certain utility providers and municipal governments provide tax breaks or refunds for the installation of energy-efficient systems. Check for available discounts, which can help offset the initial cost.

Maintenance Requirements

Annual Maintenance: Tankless water heaters typically require less maintenance than traditional tanks, but periodic flushing is necessary to prevent mineral buildup, especially in areas with hard water. Planning for regular maintenance is essential to keeping the unit running efficiently.
Filter and Vent Cleaning: Gas-powered units require periodic inspection and cleaning of air filters and vents to ensure proper airflow and efficient operation.
Warranty and Customer Support: Check the manufacturer’s warranty to see what is covered and for how long. A longer warranty can offer peace of mind, especially if the unit experiences issues down the line.

Warranty and Reliability

Manufacturer Reputation: Choose a brand with a solid reputation for reliability and customer service. Reviews, expert recommendations, and product ratings can help guide your decision.
Warranty Terms: A tankless water heater is a long-term investment, so look for a unit that offers an extensive warranty. Many reputable models come with warranties ranging from 5 to 15 years, which can help protect your investment.

Additional Features

Smart Technology: Certain tankless systems have intelligent features that let you operate the heater from a distance using smartphone apps. These features can offer convenience, energy monitoring, and automatic temperature adjustments based on your usage patterns.
Noise Levels: Although tankless water heaters are generally quieter than traditional models, noise levels should be considered if the unit will be installed near living spaces or bedrooms.

Key Takeaway: When choosing a tankless water heater, consider factors like flow rate, fuel type, size, installation costs, and climate conditions. By assessing your unique demands, you can choose the unit that offers the highest performance, efficiency, and value for your house.

Comparing Tankless vs. Traditional Water Heaters

Feature	Tankless Heater	Traditional Heater
Heating Style	On-demand	Preheats stored water
Energy Use	More efficient	Less efficient
Space Requirement	Wall-mounted, compact	Large tank, floor space
Hot Water Supply	Endless	Limited by tank size
Installation Cost	Higher (initially)	Lower
Lifespan	15–20 years	10–15 years

Installation and Maintenance Tips for Tankless Water Heaters

Proper installation and regular maintenance are essential for getting the most out of your tankless water heater. Here’s a quick guide:

Installation Tips

Hire a Professional: Ensure a certified expert does the installation to avoid issues with plumbing, electrical, or gas systems.
Location: Choose a location with enough space for proper ventilation, especially for gas models, and make sure it’s easily accessible for future maintenance.
Size the Unit Correctly: Choose a unit that matches your household’s water usage to avoid inefficiency or lack of hot water.
Gas and Electrical Upgrades: Gas-powered models may require a larger gas line, while electric units might need an upgraded electrical panel.

Maintenance Tips

Descaling: In areas with hard water, descale the unit annually to prevent mineral buildup, which can reduce efficiency.
Flushing: Flush the system once a year to remove debris and ensure optimal water flow.
Air Filter Cleaning: To preserve airflow and avoid overheating (for gas versions), clean the air filter every six to twelve months.
Inspect for Leaks and Cracks: Check the unit for leaks or visible damage, which could lead to inefficiency or system failure.
Check Venting (Gas Models): Ensure vents are clear of blockages to prevent dangerous exhaust buildup.

Key Takeaway: Maintaining your tankless water heater properly and increasing its lifespan requires routine maintenance and proper installation. Annual checks and cleaning will ensure continuous hot water and energy savings.

Frequently Asked Questions

Do tankless water heaters work with well water?

Yes, but you’ll need a pre-filter if your well water has heavy sediment or minerals.

Can a tankless water heater support an entire household?

Absolutely—choose a unit with a suitable GPM rating for your home’s usage.

Are tankless water heaters noisy?

Most are very quiet. Some gas models make a faint clicking or ignition sound during startup.

How much does it cost to install a tankless water heater?

Installation ranges from $500 to $2,000, depending on your home’s layout and unit type.

What size tankless water heater do I need?

A typical family of four might need a unit with a 7–10 GPM flow rate.

Additional Resource

Navien Official Site: High-efficiency residential tankless water heaters and support resources.

Conclusion

Tankless water heaters are a smart, efficient solution for modern homes. With the right size and setup, they deliver convenience, savings, and comfort. Whether you’re upgrading or building new, understanding your options helps you make a confident, cost-effective choice.