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Tankless Water Heaters vs. Tank: Which is Better for Your Home?
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Sep 11, 2024 • 9 Min

Tankless Water Heaters vs. Tank: Which is Better for Your Home?

When it comes to choosing a water heater for your home, there’s no shortage of opinions. Some folks swear by the old-school storage tank systems, while others rave about the sleek, energy-efficient on-demand models. Over my years in the plumbing business, I’ve seen the pros and cons of tankless water heaters and traditional systems play out in real homes, with real people dealing with real plumbing challenges. Whether you’re building a new home in Seattle or replacing an aging system in Bellevue, understanding the differences between tankless and tank water heaters can help you make an informed decision. Let’s discuss the key features, benefits, and drawbacks of each to see which one fits your home’s unique needs.

What Is a Tankless Water Heater?

A tankless hot water heaters, also called an on-demand water heater, is a bit of a marvel in modern plumbing. Instead of storing it in a tank, it heats it as it flows through the system. This means no more waiting for a tank to refill after your teenager takes a long shower—tankless heaters instantly deliver hot water when needed.

Tankless water heater, photo by Ben's Plumbing

How Tankless Water Heaters Work

The magic behind tankless heaters lies in their high-powered burners. As liquid runs through a heat exchanger, the burner kicks on, heating it in real-time. These units can run on either electricity or gas, and they tend to be about 22% more energy-efficient than their storage tank counterparts.

I’ve installed these systems in homes all across Seattle, and I’ve seen firsthand how they save energy. One client in Bellevue switched to an on-demand and noticed a significant drop in their utility bills within a month.

Advantages of Tankless Water Heaters

There are several standout benefits of tankless water heaters that can make a real difference in your home. From energy efficiency to endless hot showers, these systems offer some key advantages that might sway your decision. Here’s a closer look at why so many homeowners are making the switch to tankless.

  • Energy Efficiency: Since they only heat when needed, they reduce energy waste.
  • Unlimited Hot Showers: You’ll never run out, making them perfect for large families.
  • Compact Size: Because they are smaller and can be mounted on walls, they can free up valuable floor space.
  • Long Lifespan: With proper maintenance, these units can last over 20 years.

Disadvantages of Tankless Water Heaters

While on-demand units offer impressive benefits, they’re not without drawbacks. When considering tankless water heater vs. traditional, it’s important to consider a few disadvantages of tankless heaters. From higher upfront costs to potential limitations in larger households, these heaters may not be the perfect fit for every situation. Let’s take a look at some of the key disadvantages to keep in mind.

  • Higher Initial Cost: They can be more expensive to buy and install.
  • Limited Flow Rate: In large households, multiple fixtures depleting the tank at once can strain the system.
  • Installation Complexity: They often require new electrical wiring or gas lines, which can drive up the cost.

What Is a Storage Tank Water Heater?

Now, let’s talk about the old reliable: the storage tank water heater. Most homes still use these for a reason—they’re simple, cost-effective, and dependable. These units store a specific amount of heated liquid, usually between 30 to 50 gallons, that stays hot and ready for use whenever you turn on the tap.

Plumber with gas water heater, photo by Ben's Plumbing

How Storage Tank Water Heaters Work

These heaters rely on gas or electricity to warm the liquid inside an insulated tank. The heater automatically kicks on to bring it back up when the temperature drops below a certain level. Most models last about 10 to 15 years.

I’ve seen these systems in every type of home, from historic houses in Capitol Hill to modern builds in Bellevue. They’re straightforward to maintain and often more budget-friendly.

Advantages of Traditional Water Heaters

Traditional heaters have been the go-to choice for many homeowners for decades, and with good reason. They offer several benefits, particularly for larger households or those on a budget. From lower upfront costs to the simplicity of their design, conventional systems provide reliable, consistent performance. Here are some key advantages:

  • Lower Initial Cost: Cheaper to purchase and install.
  • Simplicity: Fewer parts mean fewer things can go wrong.
  • Consistent Supply: Large tanks can store enough for big households.

Disadvantages of Traditional Water Heaters

While traditional systems are reliable, they do come with a few downsides that homeowners should consider. From higher energy usage to their bulky size, these units may not be the most efficient or space-saving. Additionally, their shorter lifespan means you’ll need to replace them more often than an on-demand system. Here are some of the disadvantages:

  • Energy Inefficiency: They consume more energy because they continuously heat the stored liquid.
  • Bulky: Take up more space, often in the garage or basement.
  • Shorter Lifespan: Typically last 10-15 years, compared to 20+ years for on-demand models.

Key Differences Between Tankless and Tank Water Heaters

When deciding between an on-demand water heater vs. tank, understanding the key differences is essential for choosing the right fit. Each system works differently, affecting everything from energy efficiency to space requirements. Whether you’re looking to maximize efficiency or simply need a reliable source of hot water, here are the main differences between tankless and tank systems:

  • Heating Method: On-demand systems heat on demand, while tanks store it for later use.
  • Energy Efficiency: Tankless units are generally more energy-efficient, especially for homes using less than 41 gallons per day.
  • Space Requirements: Without a tank, on-demand systems are compact, while storage tanks take up more space.
  • Lifespan: On-demand heaters last around 20 years, whereas storage tanks last 10-15 years.

Comparing Initial and Operating Costs

Let’s talk money. While tankless systems are more energy-efficient, they also come with a higher price tag upfront. The installation can be tricky and may involve upgrading your home’s electrical or gas lines, adding to the cost to install tankless water heater.

On the flip side, the cost of storage tank heaters are often cheaper to install but are less efficient over time. If you’re planning on staying in your home long-term, the energy savings from a tankless system could eventually offset the initial expense.

Equipment Life and Maintenance

On-demand units may last longer, but they require regular maintenance to stay efficient. You’ll need to clean filters, descale the unit, and inspect the system annually. Storage tanks, by comparison, require less frequent maintenance, but you’ll want to flush the tank every year to remove sediment buildup.

Space and Installation Considerations

If you live in a small home or a condo, the compact size of a tankless system might be a huge benefit. They can be wall-mounted and tucked away in a corner. Traditional tanks, on the other hand, require more space and are often located in the garage or basement. Installation for a tank system is usually simpler, which can make it a more cost-effective choice.

Choosing the Right Water Heater for Your Home

The decision between hot water on demand system and storage tank heaters ultimately comes down to your needs and budget. If you have a larger household with higher demands, a storage tank may make more sense. But if you’re looking for long-term energy savings and don’t mind the upfront investment, on-demand is a great option.

Conclusion

When it comes to deciding between a traditional system and an on-demand heater, the right choice depends on your household’s needs, budget, and long-term energy goals. Both options have their strengths, but if you’re unsure which is the best fit for your home, it’s always a good idea to consult with a professional. At Ben’s Plumbing, we have over 25 years of experience helping homeowners in the Greater Seattle area choose and install the ideal system for their needs. Whether you’re looking to upgrade to a more efficient option or need to replace an aging unit, our Ben’s Plumbing team is here to provide expert guidance and reliable installation. Let us help you make the right decision for your home.

FAQ

How much are water heaters?

The cost of a heater depends on the type, size, and installation needs. The tankless hot water heater cost is generally higher upfront compared to traditional storage tanks, and the cost to install a tankless water heater can also vary depending on whether new electrical or gas lines are required. Traditional storage heaters tend to be more affordable, but getting a detailed quote from a plumber is the best way to understand total costs.

What is a tankless water heater?

A tankless heater, also known as an on-demand system, heats only when needed. This eliminates the need for storage, providing a continuous supply without the energy loss associated with traditional tanks.

How long do tankless water heaters last?

With proper maintenance, including descaling and cleaning, the tankless water heater maintenance cost is generally low, and these systems can last up to 20 years or more—almost double the lifespan of a traditional tank system.

How long do hot water tanks last?

Traditional storage units typically last 10-15 years. While they are generally cheaper to install, their shorter lifespan means you’ll likely need to replace them sooner than an on-demand unit.

Are tankless water heaters more efficient?

Yes, on-demand heaters are more efficient because they only heat when needed, reducing standby heat loss. When comparing tank vs. tankless water heater efficiency, the on-demand option is superior, particularly in homes using less than 41 gallons per day.

Do tankless water heaters save money?

Although the cost of a tankless water heater and its installation is higher upfront, on-demand systems can save money longer term because of reduced energy bills. Their energy efficiency means less power is used, especially in smaller households.

What is an on-demand water heater?

An on-demand water heater is another term for a tankless system. It heats as you need it, providing a steady supply without storing it in a tank.

Is a tankless water heater better than a tank?

When you compare tankless and tank water heaters, it ultimately depends on your household needs. On-demand models offer better energy efficiency and long-term savings, but they have a higher initial cost. Storage tanks are more affordable to install upfront, making them a better choice for households with higher demands or limited budgets.

Ben Foster
Ben Foster
Owner
"The goal at Ben’s Plumbing is, and will always remain, to provide courteous, professional, personalized service to every home and business owner who puts their trust and confidence in Ben’s Plumbing."
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"The goal at Ben’s Plumbing is, and will always remain, to provide courteous, professional, personalized service to every home and business owner who puts their trust and confidence in Ben’s Plumbing."
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