A water heater is an essential part of an American household and is therefore something that you should never compromise on.
It is seen as a long-term investment as once you purchase one you’ll probably stick with it for at least a decade. This is why you must research thoroughly before buying one.
Currently, in the market, there are two main types of water heaters available; tank and tankless.
Personally, before moving into my first house I faced a lot of difficulty in choosing between these two types. So, to make sure you don’t face the same problem, I’m writing this blog to share my personal experience with you and the knowledge I’ve gained from being an active researcher on water heaters.
I’m here to share my journey and the insights I’ve gathered as a dedicated researcher in the realm of water heaters. No more dilly-dallying; let’s get this show on the road. So without further ado let’s get started.
What is A Tankless Water Heater?
Tankless water heaters, also called on-demand water heaters are a type of water heaters that don’t use tank storage to store hot water. Rather, they heat water instantly as it is required and provide it to your shower or faucets.
They either use electricity or gas to heat the water. They can provide hot water at a rate of 2-5 gallons per minute.
When the faucet for hot water is activated, cold water flows through a component in the unit called a heat exchanger and is then heated by either a gas burner or an electric component.
Most people find these easier to use and more efficient in the long run. I’ve consulted some industrialist experts and they’re of the opinion that tankless water heaters are the future. Another thing that I learned during my plumbing diploma is that the maintenance for these types of water heaters is easier compared to the storage tank version.
These types of water heaters have many pros and cons as well.
- Saves you money over time
- Requires lesser space to setup
- They are energy efficient
- Use less water than storage tank water heaters
- long life-span
- Bacteria cannot build up as there is no water storage
- initial cost is high
- capacity to provide water to many taps simultaneously is low
So to sum it up, tankless water heaters are much more efficient, have a longer lifespan, and elevate your showering experience. However, they are pretty costly, if their initial cost can be reduced, I’m sure they would sell a lot more.
From what I’ve seen, homeowners who have tankless water heaters installed always talk about how easy it is to get into a hot shower and that they don’t have to worry about hot water running out.
What is A Storage Tank Water Heater?
Storage tank heaters are the traditional type of water heaters that you may be familiar with. They come with tanks or reservoirs that can hold 20-80 gallons of hot water. They use natural gas, propane, fuel oil, or electricity [1] to heat the water and then send it flowing to your taps or shower when the hot water tap is turned on.
It works by releasing hot water from the top of the tank when you turn on the hot water tap. Cold water enters the bottom of the tank through the dip tube where it is heated so that the tank is constantly refilled with hot water. This way you never run out of hot water to use.
So, I personally haven’t used this type of water heater, but from what I’ve heard they’re not that great. My friend Ben, who owns a storage tank water heater, complains about how” he always runs out of hot water and filling the tank is a hassle”.
Also, it’s a common myth that storage tank water heaters are safer to use because they don’t rely on gas burners like tankless water heaters. However, storage tank water heaters can still pose safety risks, such as leaks or tank ruptures.
Here are the pros and cons of storage tank water heaters.
- lower initial cost
- lower maintenance cost
- replacement parts are easy to find
- Best for large families
- Less Energy Efficient
- risk of leakages
- shorter lifespan than tankless water heaters
So in short, storage tank water heaters are a lot cheaper upfront and are less costly to repair. But from what I’ve heard from plumbers and mechanics, it is this type of water heater that suffers the most from leakages
Differences Between Tankless And Tank Water Heaters
Tank and tankless water heaters are two different types of machines but both have the same function; to heat water. However, there are many differences between the two which we will be discussing in detail.
1: Storage
The primary difference between the two is that tank water heaters come with a storage or reservoir to store hot water when it’s not being used which makes them difficult to maintain as you have to look after the storage and make sure that it’s clean and in good condition. This makes tankless water heaters more convenient to use and easy to maintain.
One of my friends, James, who changes houses a lot, shared his experience with tankless water heaters with me. He said that tankless water heaters are pretty portable and easy to carry around.
2: Energy Consumption
Secondly, the energy consumed by both types also varies. As tank water heaters need to constantly heat the water to keep it at the set-point temperature energy is wasted even when the water is not being used due to stand-by loss. Which is the result of heat loss to the environment.
Tankless water heaters on the other hand don’t suffer from this issue as they heat water as it is needed. Consequently, people who use tankless water heaters enjoy between 24 and 34 percent more energy efficiency than tank water heater users.
When my friend and I compared our utility bills for the sake of this blog post, we found out that my tankless water heater consumes 25 percent less energy than his storage tank heater! That’s A LOT
3: Capacity to Provide Water
Another difference between the two is their capacity to provide water to different taps simultaneously.
Tankless water heaters are behind in this regard and may not be able to provide water when many taps are running simultaneously.
This happens because they are restricted by their ability to heat a certain amount of water per minute. And when the demand exceeds this amount a shortage of water takes place.
Storage tank water heaters on the other hand don’t suffer from this problem because they already store heated water so they can provide hot water to multiple taps at the same time.
Personally, I came across this issue when my family was home for Christmas. There were many taps running at the same due to which the flow of water declined significantly. Thankfully, I live alone so it’s not THAT big of a problem for me.
4: Water Usage
Another area where the two differ from each other is water usage. Storage tank water heaters use comparatively more water than tankless water heaters because In a traditional storage-tank water heater, the tank must be kept full of hot water at all times, and as a result, a certain amount of water is continuously heated and then goes to waste as it cools down.
With tankless water heaters, water is only heated when it’s needed which ensures that water isn’t heated or used unnecessarily. Moreover, tankless water heaters have a feature called flow rate restriction which allows us to reduce water consumption by adjusting the flow of hot water. Hence a significant amount of water can be saved.
According to a testimonial I read from an industry expert named Sarah, the difference in water consumption between tankless and storage tank water heaters is quite remarkable. Sarah had been using a traditional storage tank water heater for years before deciding to switch to a tankless system.
She mentioned that with the storage tank water heater, she noticed a constant increase in her water bill and often felt guilty about the water wasted while waiting for it to reach the desired temperature. However, after upgrading to a tankless water heater, Sarah observed a significant reduction in water usage.
Comparison Table
| Storage Tank | Tankless |
| Come with storage or reservoir | Don’t come with any sort of storage |
| Heat water instantly when it’s needed | Use less water than storage tank water heaters |
| Pre-heat the water so that it’s available for use | Lesser energy consumption because they heat water as it is needed |
| Standby heat loss so inefficient energy usage | Greater energy efficiency |
| Can provide water to multiple taps simultaneously without any problem | may not be able to provide water when many taps are running simultaneously. |
| use comparatively more water than tankless water heaters | Use lesser water than storage tank water heaters |
Cost Difference
The initial cost of a tankless water heater is greater than that of storage water tankers for a few reasons.
- Firstly, tankless water heaters require more complex and advanced technology such as heat exchangers and control systems which increase the production and selling costs.
- Secondly, the installation cost is also greater for tankless water heaters because the process of installation is more complex.
- Finally, tankless water heaters also have a higher maintenance cost because their components are sensitive and more vulnerable to damage.
Storage tank water heaters, on the other hand, are much cheaper because they have simple manufacturing and don’t require complex components.
On average, a standard electric tankless water heater can cost around $1000 to $1500, while a natural gas version can cost around $1000 to $2000. However, a high-end or whole-house tankless water heater can cost $3000 to $5000 or more.
On average, a standard 40-50 gallon electric storage tank water heater can cost around $300 to $600, while a natural gas version can cost around $450 to $1000.
However, a larger or more advanced model with additional features can cost more, with prices ranging from $1000 to $2000 or more
I personally tested the running cost of tankless and storage tank water heaters for a month, and the results were eye-opening. During this testing period, I carefully monitored my energy consumption, utility bills, and water usage with both types of water heaters installed in separate locations.
The tankless water heater showcased impressive energy efficiency, providing hot water only when needed and reducing overall consumption significantly. On the other hand, the storage tank water heater led to higher electricity bills.
The annual operating cost for a gas model is $245 (based on an average price of $10.86 per 1,000 cubic feet of natural gas) and the yearly cost of running an electric model is $580 (based on an average electricity rate of $0.132 per KWh).
On the other hand, the annual running cost for a gas tankless heater is just 195$.
As per the insights shared by Anderson, an experienced plumbing professional, the process of replacing an old tankless water heater with a new one incurs lower labor costs compared to replacing an old storage tank with a new unit.
All of this evidence points to one thing, tankless water heaters are clearly much less expensive to operate than storage tank heaters.
Which is Better?
Now that we have discussed the differences between the two types of water heaters as well as their pros and cons we can come to a decision regarding which water heater type is actually better.
While storage tank water heaters may have a cheaper up-front cost they have a lot of cons which doesn’t make them suitable for long-term usage.
Tankless water heaters, on the other hand, provide a lot of long-term benefits which makes them the perfect choice for a long-term investment.
Tankless water heaters are therefore better than storage tank water heaters because of the overwhelming advantages they have over storage tank water heaters such as lesser energy and water consumption and the fact that they require a lot less storage space than tank water heaters.
How Long Does A Tankless Water Heater Last?
How long a tankless water heater lasts depends on many factors such as its maintenance, the quality of the product, and the conditions in which it is kept.
But on average tankless water heaters have a high life expectancy of 20-25 years which is far more than that of storage tank water heaters which are 10-15 years.
This is because tankless water heaters have fewer moving parts and don’t have a storage or reservoir that can wear and tear over time.
Moreover, they are made from stainless steel which is more resistant to corrosion and rusting.
Additionally, because a tankless water heater only heats water as it is needed, rather than keeping a large tank of water constantly hot, it experiences less wear and tear overall.
Bottom Line
The bottom line is that tankless water heaters are better than their counterpart storage tank water heaters for many reasons. They can reduce your electricity bills and water usage over time, require less storage space, and also last longer.
However, before you choose which one to buy you should consider your needs and requirements and also your budget because tankless water heaters are not cheap.
After assessing all of these things and with the help of the information in this article you will be able to make a well-thought-out decision with sound judgment.
FAQs
What are the most common problems with tankless water heaters?
Here are the most common maintenance problems with tankless water heaters:
- Mineral buildup
- Flame failure
- Ignition failure
- Cold water sandwich
Are tankless water heaters safer than tanks?
Yes, tankless water heaters are safer than storage tank water heaters because they don’t have a large reservoir that can overheat or explode.
Can bacteria grow in a tankless water heater?
No, bacteria cannot grow in tankless water heaters because the water doesn’t sit in storage and therefore doesn’t get the chance to catch any bacteria.
