Energy Efficient Tankless Water Heaters, Should I Get One?

Seems like there are many reasons for liking energy efficient tankless hot water heaters! I will review the pros and cons, but you'll have to make the final judgment as to whether or not they are for you.

Mostly they've a longer life expectancy, save money, save energy, take less space, and have an endless supply of hot water.


First there is the life expectancy. Make sure that you figure this when you are doing your calculations. The life expectancy for a standard hot water tank type heater will probably be about 10 to 12 years. Of course there are factors that will change that, such as the quality of your water. The life span of a energy efficient tankless water heater will possibly last 20 years. And I did find some with a limited lifetime warranty.

There seem to be a lot of numbers floating around as to the actual amount of savings. The energy efficient tankless water heater could be as much as 40% more energy efficient, depending on who you talk to and your personal use habits. The standard water heater keeps water at a constant temperature and is forever reheating the water. The tankless, also known as “on demand” type of water heater only heats water when it's needed. Consider the savings if you went on vacation or even if you did not normally use hot water for hours on end.

The space savings is a nice benefit. Since they're mounted on the wall, they take zero floor space, and they can be mounted closer to where the hot water is needed. This gives you a great deal more flexibility when choosing a location. You may also want to consider having more than just one. For example, if you had a far away area with minimal use, you could install a smaller unit. This would take some of the burden off of the main unit, plus put the water closer to the point of use.

The endless supply of hot water is a huge benefit for larger families. There's nothing worse than being the one in the shower when the hot water is gone! And naturally it seems to take forever before there is hot water again.

There could be a federal tax credit of $300. The water heater would have to have an efficiency rating of .80 minimum to qualify. They do not all meet this number.

You can also check to see if you qualify for any state or local incentives or rebates.

This sounds great. But are there any drawbacks?

First there's your ground water temperature. If your ground water is very cold, because you live in the north, it may require a much bigger unit to do the job. The cooler water restricts the flow rate.

Some units need a large venting system. This may make it hard to deal with if you're installing in a preexisting home or business. They are better suited to new construction.

There have been complaints of the time it takes to get hot water to where it is needed. Now I don’t know about you, but the only way that I get hot water immediately is if it has been used very recently. So you may have to wait anyway.

This may not be a do it yourself job. Some water heaters will require licensed installers to keep you from voiding the warranty.

So how do you decide if energy efficient tankless water heaters are for you? You should contact an installer. He should have numerous questions about your use, location, ground water temperature, and your present cost. He should be able to review his figures with you and show you how he reached his conclusions.

Just remember that they are trying to make sales. Make sure that you are satisfied with the company and the numbers. It may be better for you if they sold both types. That way you could see the difference between a newer conventional water heater and the newer energy efficient tankless water heaters!

By: Bob Willoughby

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Bob Willoughby is the publisher of EnergyEfficientHomeTips.net. There are many ways to make your home more energy efficient and save yourself some money at the same time. Visit the web site to learn more about Energy Efficient Tankless Water Heaters

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