Tankless water heaters (also called “on demand” units or an instant hot water heater) use 30 to 50 percent less energy than units with tanks, saving a typical family about $100 or more per year, depending on water usage.
- These units heat water only when you turn on the faucet.
- They usually operate on natural gas or propane.
- The main advantage is that they eliminate the extra cost of keeping 40 to 50 gallons of water hot in a storage tank, so you waste less energy.
- They also offer a continuous supply of hot water, which is ideal for filling a big hot tub or a whirlpool.
- They’re more compact than a standard water heater and mount on a wall.
Electric vs Gas Tankless Water Heaters
The biggest difference between electric tankless water heaters and gas tankless water heaters is their efficiency. Electric tankless water heaters are typically around 98 percent or more efficient while gas tankless water heaters are around 80-85 percent efficient. A gas tankless water heater can be cheaper to run and will typically last longer.
Electric Tankless Water Heaters
Tankless water heaters will free up space that a bulky water heater typically occupies. An electric tankless water heater will be more efficient than a tankless gas water heater but know that an electric model requires a lot of electricity. A whole house electric tankless water heater can use more than 25,000 watts of electricity, compared to 5,000 watts of electricity with a conventional water heater.
Gas Tankless Water Heaters
Gas tankless water heaters will last longer than traditional water heaters and they’re safer than conventional water heaters. One disadvantage is that if there is scale build up, a tankless water heater can automatically shut off.