How Tankless Water Heaters Work: Benefits, Costs, and Considerations

Posted December 16, 2024

Tankless water heaters, also known as on-demand water heaters, are becoming a popular alternative to traditional tank-style heaters. 

These systems heat water only when it’s needed, making them an efficient and space-saving option for modern homes. Let’s explore how they work, their benefits and drawbacks, and whether they’re the right choice for your home.

How Do Tankless Water Heaters Work?

Unlike conventional water heaters that store and maintain a tank full of hot water, tankless water heaters heat water on demand. Here’s how the process works:

  • Activation: When a hot water tap is turned on, cold water flows into the tankless water heater.
  • Heating: A sensor detects the water flow and activates a gas burner or electric element. The heat exchanger warms the water as it passes through the system.
  • Delivery: The heated water exits the heater at the desired temperature, ready for immediate use.

This process eliminates the need for a tank to store heated water, resulting in greater energy efficiency and unlimited hot water supply.

What Are the Benefits of Tankless Water Heaters?

Tankless water heaters offer several advantages over traditional models:

  • Energy Efficiency: By heating water only when needed, these systems avoid standby energy losses associated with tank-style heaters.
  • Unlimited Hot Water: You’ll never run out of hot water, making them ideal for larger households or homes with high water demand.
  • Space Saving: Tankless units are compact and can be installed on walls, freeing up valuable floor space.
  • Longevity: With proper maintenance, tankless water heaters can last 20 years or more, outlasting traditional heaters by 5-10 years.
  • Environmental Benefits: Greater efficiency means reduced energy consumption, which is better for the environment.

What Are the Drawbacks of Tankless Water Heaters?

While tankless water heaters have many benefits, there are also some potential downsides to consider:

  • Higher Initial Cost: Tankless systems can cost up to three times as much as traditional heaters, including installation.
  • Complicated Installation: Upgrading to a tankless system often requires retrofitting your plumbing and may need higher-capacity gas or electric lines.
  • Limited Flow Rate: If multiple hot water taps are used simultaneously, a single tankless unit may struggle to meet demand.

Are Tankless Water Heaters Right for Your Home?

Whether a tankless water heater is right for you depends on your household's water usage, budget, and long-term goals. For large households with high hot water demand, multiple units or a hybrid solution may be necessary. If upfront cost is a concern, consider the long-term energy savings to offset the initial expense.

Maintenance Tips for Tankless Water Heaters

To ensure your tankless water heater operates efficiently and lasts as long as possible, follow these maintenance tips:

  • Descale the Unit: Hard water can cause mineral buildup. Flush the system with vinegar annually to prevent scaling on the heat exchanger.
  • Clean the Filter: Check and clean the inlet filter regularly to maintain water flow and performance.
  • Inspect the Venting System: Ensure proper venting to prevent blockages and maintain safety.
  • Schedule Professional Maintenance: Have a licensed technician inspect and service your system annually.

Common Questions About Tankless Water Heaters

  • Can a tankless water heater supply enough hot water for my entire home?
    Yes, but the capacity depends on the unit size and your household’s demand. Larger homes or simultaneous use of multiple fixtures may require more than one unit.
  • Are tankless water heaters suitable for cold climates?
    Yes, but ensure the unit is sized correctly to handle incoming water temperature and meet demand during winter months.
  • Do tankless water heaters qualify for energy rebates?
    Many models qualify for federal, state, or local energy efficiency incentives. Check with your local utility provider for details.

Need Expert Plumbing Services?

Whether you’re considering upgrading to a tankless water heater or need maintenance for your existing system, ABC Plumbing, Sewer, Heating, Cooling, and Electric is here to help. Our experienced plumbers can guide you through the decision-making process and ensure your water heater is installed and maintained to meet your needs.

Scroll further down this page, locate the location closest to you, and click the phone number to call us. Let us help you enjoy the efficiency and convenience of a tankless 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


Also check the following blog post: What's the Purpose of a Water Heater Expansion Tank?

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