Pros and Cons of Tankless Water Heaters

But is a tankless water heater right for you?


There are a lot of reasons why a tankless water heater can be a good option.

  • ⬥ Federal tax rebates – reducing your installation costs
  • ⬥ Continuous hot water – there’s no tank to empty
  • ⬥ They are longer lasting – by as much as five to 10 years longer than tank water heaters
  • ⬥ Energy-efficient because they only heat the water that’s used and don’t have to keep gallons of water hot at all times
  • ⬥ Space-saving – can be installed in small areas such as in a closet or under cabinets close to the tap(s) that will be using the hot water
  • ⬥ Installation options – can be hung on both interior and exterior walls (with the installation of an anti-freeze kit)
  • ⬥ Can save as much as 20% off your heating bill
  • ⬥ No greenhouse gases (for electric models)
  • ⬥ Both programmable and remote control operational
  • ⬥ No flooding as there is no tank to burst open

With all of these benefits, you might be ready to run out and get a tankless hot water heater for your home.

However, like most things in life, there are some drawbacks to a tankless water heater. Here are some of them.


  • ⬥ Can cost nearly triple that of conventional tank water heaters
  • ⬥ May need installation of a bigger natural gas line than what you currently have
  • ⬥ Expensive stainless steel tubing is needed to vent propane and natural gas units
  • ⬥ May need another circuit added to your current electrical system to ensure adequate power to your tankless water heater
  • ⬥ Gas and propane tankless water heaters add to greenhouse gases
  • ⬥ Annual servicing is needed for gas and propane units to ensure they are operating properly
  • ⬥ Electric tankless water heaters need a lot of energy to heat the water quickly
  • ⬥ The minimum flow rate needed to engage the heat exchanger is .5 GPM
  • ⬥ More water may be wasted because it needs to be run long enough for the heat exchanger to do its job, which in turn drives up your water bill

Electric tankless water heaters that are capable of heating an entire home can cost anywhere from $500 to $700 dollars

Comparable gas models are pricier – as much as $1,000 to $2,000 dollars

Installation costs tend to be higher for gas instant water heaters compared to electric

The choice is yours

Bottom line, there’s no one right answer for any homeowner.

Some of the things you’ll need to consider when deciding what time of hot water heater to install include the following:

  • ⬥ It will take time to save money as the cost savings depends on your usage, the cost of the system and installation, and your location. 
  • ⬥ If your older system was very inefficient you’ll notice an improvement to your energy usage faster than if it was average.

If you are considering between these two types of water heaters, take a look at these posts also:

Home Maintenance Tip: Flush Hot Water Heaters

Tankless Water Heaters: Should You Get One for Your Home?

10 Ways to Reduce your Water Bill