Ins and Outs of Tankless Water Heaters

Is a tankless water heater, also called a demand water heater, suitable for your Indianapolis home? It saves space and provides endless, on-demand hot water, but how energy efficient is it? Would it save you money?

Here we give an overview of tankless water heaters and how they compare to traditional tanked water heaters.

How Does a Tankless Water Heater Work?

A tankless water heater delivers a constant supply of hot water without the need for a storage tank by heating water as it runs through the system. Once the hot water faucet opens, cold water runs through the heat exchanger, which heats the water either with a natural gas burner or an electric element.

Hot water continues to flow as long as the faucet is on, and you never have to wait for a tank of water to fill up.

Tankless vs. Tank Water Heaters

Choosing a new water heater takes a lot of contemplation. Here’s what to know about tankless water heaters and how they relate to traditional tanked heaters.

Energy efficiency. Tankless water heaters cut down on energy waste compared to the average tanked water heater because they don’t have to heat an entire storage tank or keep the water warm indefinitely. The US Dept. of Energy notes that switching to a tankless water heater can increase your home’s energy efficiency by 18-50%.
Savings. Decreased energy usage leads to savings of about $100 a year for gas-fired and $45 for electric tankless water heaters. If you choose an Energy Star electric tankless water heater, you may qualify for tax credits for 30% of the cost, up to $1200.
Capacity. While tanked water heaters are limited to the size of their tank, tankless heaters can supply a continuous flow of hot water. There is a limit, however, to how much hot water it can provide at once for multiple simultaneous demands (like taking a shower and using the dishwasher at the same time). This limit is called the flow rate.
Power outage disadvantage. One slight downside of tankless water heaters – even natural gas-powered heaters – is that they rely on electricity to work. In a power outage, you would not have a storage tank full of hot water available as you would with a tanked water heater. (Though, of course, in an outage, your hot water tank would eventually cool to room temperature if not used.)
Lifespan. How long does a tankless water heater last? On-demand water heaters often last for 20 years or more, in contrast to a tanked water heater’s 7- to 15-year lifespan. Even though a tankless water heater costs more for both unit price and installation, its lifespan makes it a long-term investment in the future of your home.
Cost. A gas- or propane-powered tankless water heater typically costs $1,000 to $1,500. An electric heater's price tag will be $500 to $1,500. The installation could be another $800 to $1,500 – possibly more, depending on the complexity of the installation. Federal rebates or tax credits are available on specific models that help cover the cost of purchase and installation.
Maintenance. In addition to flushing your system of mineral deposits annually, it’s a good idea to change the air and water filters every 4 to 6 months for most models. Also, regularly inspect your tankless water heater to identify leaks, rust, or other damage to the appliance.

What Size Tankless Water Heater Do I Need?

The average one-bathroom home typically needs a tankless water heater that can provide 6-7 gallons per minute (GPM) of hot water, and a 2 to 3-bathroom home typically requires a unit that can deliver 8-11GPM.

Tankless Water Heater Maintenance in Indianapolis

The experienced plumbers at Benjamin Franklin Plumbing of Indianapolis are experts at installing and maintaining tankless water heaters. Call us at (317) 316-3261 or book online today.