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How to Save Money by Installing a Tankless Water Heater

What is a tankless water heater, and what are its advantages over a storage tank water heater? How will it save money?
How to Save Money by Installing a Tankless Water Heater

Energy efficiency is very important, and tankless water heaters are said to be up to 30% more efficient compared to heating water using a storage tank. Is installing a tankless water heater right for your home, and how will it save you money?

What is the difference?

Tank water heaters work by heating gallons of water and storing it in a large tank until it is needed. These are common. They are wasteful because they keep about 40 gallons of water hot, so that it is always hot when it’s needed. The cost of the heating bills is high because the heat needs to be replaced.

Tankless water heaters are energy efficient because they use gas burners or electricity to heat water as needed. They don’t store the water, but heat it as necessary, so the supply is endless.

Advantages and Disadvantages

Which one is right for you? In general, storage tank water heaters need to be replaced more often. If it seems to be time to consider something new, now is a good time to think about a tankless water heater but be prepared for this to cost more at first. Installing a tankless water heater may have a higher cost initially, and the natural gas lines may need to be rerouted. Later, however, it will cost less since the water is not constantly heated.

Tankless water heaters also give an endless supply of hot water, but if there is a great demand for hot water to go to a lot of household appliances there might be an inconsistency in amount and temperature to the different areas of the home.

Tankless water heaters are energy efficient and so are eligible for rebates. Rebates also may be available for tank water heaters, too, if your model is new and very energy efficient.

How to Save Money by Installing a Tankless Water Heater

Tankless water heaters don’t store water and do not require energy to keep the water hot even when not in use. It only heats water when hot water is required. You can save money in the long term by installing a tankless water heater if your home uses less than 41 gallons of hot water per day.

Because they provide unlimited hot water and use less space with less risk of flooding damage, they are popular choices with a great return on investment in new homes and for home sales. However, they may not be right for everyone. Bigger homes with larger families have a greater need to supply water to multiple appliances at the same time so a more energy efficient storage tank heater may be the right choice. Consult an energy professional to help you calculate the flow rate of water in your home to be sure of your options.

This story is brought to you by Great West Media Content Studio. It is not written by and does not necessarily reflect the views of the editorial staff.

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