Tankless Water Heater vs. Tank: Pros and Cons Explained

When it comes to selecting the right water heater for your home, one of the most significant decisions you’ll face is whether to go with a traditional tank water heater, or a modern tankless water heater.

Both types have their own set of advantages and disadvantages, and understanding these can help you make an informed choice that best fits your needs. Let’s break down which is best for your home: a tankless water heater, or a tank water heater.

Tankless Water Heaters

Pros:

1. Energy Efficiency:
   • Tankless water heaters, heat water on demand, which means they only use energy when hot water is needed. This can lead to substantial energy savings and lower utility bills.
2. Endless Hot Water:
   • Since tankless water heaters heat water as it flows through the unit, you won’t run out of hot water. This is ideal for large families or homes with high hot water consumption.
3. Space-Saving Design:
   • These units are compact and can be installed in smaller spaces, such as closets or on walls, freeing up valuable floor space.

Cons:

1. Higher Initial Cost:
   • Tankless water heaters typically have a higher upfront cost compared to traditional tank models.
2. Flow Rate Limitations:
   • While tankless units provide endless hot water, their flow rate can be limited. If multiple fixtures are used simultaneously, the unit might struggle to supply sufficient hot water to all of them at once.

Tank Water Heaters

Pros:

1. Lower Initial Cost:
   • Tank water heaters have a lower initial purchase price compared to tankless models. This makes them an attractive option for homeowners on a budget.
2. Simplicity and Reliability:
   • These units have been around for decades and are well-understood by most plumbers and HVAC technicians. Their simpler design means fewer parts that can fail, leading to reliable performance.
3. Constant Supply of Hot Water:
   • Tank water heaters store a large volume of hot water that is readily available for use. This means you can have multiple fixtures running simultaneously without a significant drop in water temperature or pressure.

Cons:

1. Energy Inefficiency:
   • Because tank water heaters continuously heat the water stored in the tank, they can be less energy-efficient, and cause higher utility bills. can contribute to this inefficiency.
2. Limited Hot Water Supply:
   • Once the hot water in the tank is depleted, it can take some time to heat a new batch of water. This can be inconvenient for households with high hot water demands.
3. Larger Space Requirement:
   • Tank water heaters require a significant amount of space for installation, which can be a drawback for homes with limited space.

From the video:

“Whenever you install a tankless, you get 99 cents out of every dollar you put in because you will only pay for gas when that tankless calls for hot water. Anytime you turn on the faucet, take a shower, run the dishwasher, whatever the case might be, is the only time that heater is going to be fired up.

Versus a tank, you only get 30 cents back. When you’re not home, whenever you’re at work, that water heater is constantly running, trying to keep that 40 gallons of water hot up to temperature.”

Making the Decision

Average Costs for Water Heater Replacement:

• Natural Gas Water Heater: $1,900 – $4,500
  
• Propane Water Heater: $2,500 – $4,500
  
• Electric Water Heater: $2,000 – $4,500
  
• Heat Pump Water Heater: $3,500 – $9,000
  
• Tankless Water Heater: $3,500 – $6,000
  
• More information: How Much Does it Cost to Replace a Water Heater?

When deciding between a tank and tankless water heater, consider your household’s hot water usage patterns, budget, and available installation space. If you prioritize lower initial costs and simplicity, a tank water heater might be the better option.

However, if you’re looking for energy efficiency, endless hot water, and space savings, a tankless water heater would be worth the investment.

We hope this post clears up the debate between a tankless water heater vs. tank water heaters!

About Yarbrough & Sons Heating, Cooling & Plumbing:

Since 1988, Yarbrough & Sons has been serving Oklahoma City with top-notch home comfort solutions. With over 450 years of combined experience, our family-owned business is committed to quality, comfort, and community care. Trust us for all your HVAC needs.