The basic argument for installing a tankless hot water heater is that a tankless hot water heater is the most energy efficient because it doesn’t consume any energy except when the hot water is being used.
A standard hot water heater maintains water at a specific temperature even when its not being used. Logically, a water tank needs electricity to maintain the water a particular temperature and therefore, this costs money.
Will a tankless hot water heater really save me money?
The Department of Energy has estimated that tankless systems can save 24% to 35% on energy costs. Therefore, installing a tankless hot water heater can qualify you for a $300 Federal Home Energy Tax Credit. Installing a tankless hot water heater could cost $800 to $1,200 and up for the unit plus the labor involved. Considering, that the average tankless water heater lasts over twenty years, it’s likely that money will be saved.
Another advantage to installing a tankless water heater is that while the unit is a little more expensive, the lifespan will be over 20 years. The lifespan of a traditional electric or gas-powered heater is usually 10 to 15 years.
How big is a tankless hot water heater?
Another, often overlooked, advantage to installing a tankless water heater is the square footage saved. Some tankless water heaters are just the size of a small suitcase and can often be mounted on a wall.
Where should I install the tankless water heater?
A tankless water heater should be located in as central as possible between all users of the water, as this will reduce the required time to get hot water to a tap, faucet, or shower head.