Tankless vs Conventional Water Heaters: How to Choose the Best Water Heater for Your Home

Posted December 27, 2024

Choosing the right water heater for your home is an important decision that impacts your comfort, energy bills, and environmental footprint. Whether you’re upgrading an old unit or outfitting a new home, it’s essential to understand the differences between tankless and conventional water heaters to make an informed choice.

Key Considerations When Choosing a Water Heater

When selecting a new water heater, consider the following factors:

  • Hot Water Demand: Ensure the unit can meet your household's peak hot water needs.
  • Energy Efficiency: Look for ENERGY STAR® ratings to minimize energy costs and environmental impact.
  • Installation Costs: Consider upfront costs and long-term savings based on the water heater type.
  • Lifespan: Tankless water heaters typically last longer than conventional tank models.
  • Space Requirements: Tankless systems are compact, while tank models require sufficient space for the unit and clearances.

Ensure You Install a Sufficiently Sized Unit

Selecting the right size water heater is crucial for meeting your household's needs. If your current water heater frequently runs out of hot water, consider these options:

  • Upgrade to a Larger Tank-Style Water Heater: Ideal for homes with high water usage.
  • Convert to a Tankless Water Heater: Provides an endless supply of hot water, even during peak demand.

For tank water heaters, consider the unit’s gallon capacity. For tankless water heaters, ensure the unit's flow rate (measured in gallons per minute, GPM) can handle multiple fixtures simultaneously.

Tankless vs Conventional Water Heaters: A Detailed Comparison

Conventional Tank Water Heaters

Conventional water heaters store 20-80 gallons of hot water in a tank and maintain it at a set temperature. They are the most common type of water heater and offer the following advantages:

  • Lower Upfront Costs: Less expensive to purchase and install compared to tankless models.
  • Simple Maintenance: Routine flushing and anode rod replacement can extend the unit’s life.

However, they also have some drawbacks:

  • Higher Operating Costs: Continuous heating leads to energy waste (standby heat loss).
  • Shorter Lifespan: Typically lasts 8-12 years.
  • Space Requirements: Requires sufficient room for installation.

Tankless Water Heaters

Tankless water heaters, also known as on-demand water heaters, heat water only as it’s needed. They use gas burners or electric elements to heat water as it flows through the system. Benefits include:

  • Energy Efficiency: No standby heat loss; can reduce energy use by up to 34% in some households.
  • Compact Size: Wall-mounted units save valuable space.
  • Longer Lifespan: Typically lasts 20+ years with proper maintenance.
  • Endless Hot Water: Provides a continuous supply for high-demand households.

However, there are some considerations:

  • Higher Upfront Costs: More expensive to purchase and install.
  • Initial Delay: Takes slightly longer to deliver hot water when a tap is turned on.
  • Installation Complexity: May require upgrades to gas lines or electrical systems.

Additional Options to Consider

Heat Pump Water Heaters

Heat pump water heaters are highly energy-efficient, using electricity to transfer heat from the air to heat water. They are ideal for homes in warm climates and can save up to 60% on energy costs compared to conventional electric models.

Solar Water Heaters

Solar water heaters use the sun's energy to heat water, making them one of the most environmentally friendly options. While they have higher upfront costs, they can drastically reduce energy bills over time.

Smart Water Heaters

Smart water heaters offer advanced features like Wi-Fi connectivity, remote control, and energy usage tracking. These features allow homeowners to optimize energy use and monitor system performance.

FAQs About Choosing a Water Heater

  • How do I calculate my household's hot water needs?
    Consider peak usage, such as simultaneous showers or running multiple appliances. For tankless systems, add the flow rates (GPM) of all fixtures in use at the same time.
  • Which water heater is most cost-effective?
    Tankless models offer long-term savings, while conventional tanks have lower upfront costs.
  • Can I switch from a conventional to a tankless water heater?
    Yes, but the installation may require additional upgrades, such as larger gas lines or electrical service.

Need Help Choosing the Right Water Heater?

At ABC Plumbing, Sewer, Heating, Cooling, and Electric, our experts are here to help you find the perfect water heater for your home. Whether you need a tankless system, a conventional tank, or an energy-efficient heat pump model, we’ll guide you every step of the way.

Scroll further down this page, locate the location closest to you, and click the phone number to call us. Let us help you upgrade to a modern, efficient water heater today!

ABC Plumbing Locations

Arlington Heights, IL

220 W Campus Dr
Arlington Heights, IL 60004
Phone: (888) 991-3942

Evanston, IL

828 Davis St UNIT 205
Evanston, IL 60201
Phone: (888) 868-9369

Downers Grove, IL

1001 Ogden Ave LL4
Downers Grove, IL 60515
Phone: (888) 412-3566

Tampa, FL

4326 W El Prado Blvd Suite 7
Tampa, FL 33629
Phone: (888) 594-9030

Largo, FL

11701 S Belcher Rd Suite 127
Largo, FL 33773
Phone: (888) 465-9799


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