We often advise people who are shopping for a new water heater for their home—either as the first installation for a new house or a replacement for an older system—to give serious consideration to a gas-powered tankless water heater. The technology of tankless water heaters continues to make them more and more attractive choices, and their advantages are undeniable: unlimited hot water, long lifespan, small size, and immense energy savings.
That last point is the key one for many consumers. If they’re tired of paying large amount running a storage water heater, going with a system that uses much less energy is appealing. But how much can a household expect to save by switching from a tank to a tankless system?
Some Facts on Money Saving with a Tankless Water Heater
We can’t give you any sort of exact number on how much you’ll save by installing a tankless water heater for your home—for the simple reason that we don’t know your household water usages rates. The savings will be different from home to home. However, we can give you some data to help you see the savings potential.
About 30% of a home’s energy budget goes to heating water, so increasing the energy efficiency of a water heater can mean a significant drop in utility bills. Tests of gas-powered tankless water heaters have shown that they use 22% to 30% less energy than a storage water heater of comparable volume. At that rate, according to the U.S. Department of Energy, the average family would save $108 a years by going tankless.
Here’s something else to keep in mind: tankless water heaters last longer than conventional models. So you aren’t just saving money with each year: you’re saving money over more years. Tankless water heaters usually have a warranty for 15 years, where a storage water heater only has a 6-year warranty. So even at the minimum number of years, a tankless water heater can save $1,620. You will also encounter fewer repair problems, which will help control costs.
And, of course, there’s no price you can put on the convenience of a water heater that won’t run out of hot water!
Modern Plumbing Industries, Inc. installs tankless water heaters in Orlando, FL.