Tankless water heaters heat water on demand instead of keeping hot water in a large tank to be used when needed. For this reason, tankless water heaters use less energy because they don’t have to continuously keep water hot. While the exact amount of energy savings can vary by brand, the average tankless water heater will use approximately 30% less energy than a standard water heater. If you have a large family or are heating a commercial facility, this 30% savings can greatly reduce your energy costs over the course of one year.
If you live in a smaller home and you don’t have room for a large traditional water heater, a tankless water heater can be a good option because they are considerably smaller. Whole-house water heaters are less than half of the size of traditional water heaters, and these, like their name suggests, work to heat water throughout your whole house. Smaller units, referred to as point of use units, can be installed in various places throughout your house, heating water for only one area. For example, you could use two point of use tankless water heaters to heat water in your kitchen and another in your bathroom instead of using one whole-house tankless heater, which would need to be kept in a more central location.
Most standard water heaters have an expected life of about 10 years. However, tankless water heaters are usually expected to last for at least 20 years, so you don’t have to replace tankless water heaters nearly as often, which can offset some of the initial costs of converting to a tankless water heater.
Tankless water heaters use less energy, which can help the environment while saving you money on your energy bill. Large-scale use of tankless water heaters can also help many cities that have hot weather in the summer by reducing the amount of power used, helping to prevent brownouts and blackouts, which are common in cities like New York, Los Angeles, Chicago and other areas with large populations or power grids in need of restoration. Using a tankless water heater also helps to reduce pollution, as standard water heaters will end up in landfills faster than tankless water heaters because they have a shorter life span. Standard water heaters aren’t biodegradable either, while many tankless water heaters are manufactured to be recycled when they are no longer serviceable.