Is the lower price of a traditional water heater its only advantage over a tankless water heater? What are the drawbacks of tankless water heaters, and when might they not be the best solution? Which type lasts longer, and which has more affordable repair costs?
If you don’t have central heating and hot water in your home, an electric water heater is likely the most optimal option for heating domestic water. A common question is whether a traditional tank water heater or a tankless (on-demand) water heater is the better choice. There’s no universal answer, as much depends on your needs and habits, as well as the specifics of your home.
Advantages and Disadvantages of Traditional Tank Water Heaters
Most people are familiar with the pros and cons of traditional tank water heaters. These heaters store and heat a certain amount of water within a tank. The water is kept at a constant temperature, ready for use whenever needed. To maintain this ready state, these units are equipped with quality insulation, but even so, there are some heat losses due to the large volume of hot water that’s constantly kept warm.
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Traditional water heaters are also prone to limescale buildup, requiring occasional maintenance, such as cleaning or replacing the heating element. However, repairs on these units are generally simple and inexpensive. Fixes like replacing a heating element or thermostat are usually affordable, with the main issue being when the tank itself starts leaking. In such cases, repair is not recommended, and replacing the entire unit is often the most cost-effective solution.
To avoid such issues, it’s advisable to invest in a water heater with a stainless steel tank, which is significantly more durable than standard tanks, although more expensive. At the time of writing, a standard 50-gallon (about 189 liters) water heater with a regular tank costs around $500, while a stainless steel model can be three times as expensive, typically ranging from $1,200 to $1,500.
One of the benefits of traditional tank water heaters is that they don’t need to use electricity at the moment when hot water is being used. Since they store pre-heated water, you can save on energy costs by running the heater only during off-peak hours when electricity rates are lower. This makes it a good idea to opt for a larger tank, if you have the space, so it can meet your household’s daily hot water needs while operating only during nighttime hours.
Advantages and Disadvantages of Tankless Water Heaters
Tankless water heaters offer significant benefits but also come with some drawbacks. Unlike traditional models, tankless water heaters do not store water. Instead, they heat water as it flows through the unit. When you turn on the hot water tap, cold water enters the heater, and a flow sensor activates the heating element, warming the water as it passes through.
This design offers several advantages, the most obvious being the much smaller size of tankless units, which can be a significant benefit in homes with limited space, such as small kitchens or bathrooms. Another key advantage is that tankless water heaters don’t run out of hot water. With a traditional tank water heater, once the stored hot water is used up, you may have to wait around an hour for the next batch to heat up. This problem doesn’t exist with tankless units.
Additionally, because tankless water heaters don’t store large amounts of hot water, they are much less susceptible to limescale buildup, resulting in a longer lifespan. However, it’s important to note that when repairs are needed, they can be costly, and in many cases, replacing the entire unit may be necessary if the heating element fails.
Since tankless water heaters don’t store hot water, they experience less heat loss, making them more energy-efficient. However, they do consume electricity whenever hot water is used, so there’s no option to save by running the heater during off-peak hours as you can with a traditional model. Therefore, tankless water heaters are ideal for locations where hot water is not frequently used, such as auxiliary sinks, garages, or workshops. In such cases, a traditional water heater that continuously keeps water hot would lead to greater energy losses.
Certain conditions must be met for a tankless water heater to be installed. The water pressure needs to be high enough to activate the pressure sensor when hot water is turned on. Additionally, because tankless heaters warm water instantly, they draw significantly more electrical power while operating. Higher-powered units may even require a 240-volt connection. It’s advisable to consult an electrician before purchasing a tankless water heater to ensure your home’s electrical system can support the unit’s power requirements.
One disadvantage of tankless water heaters is their higher initial cost compared to traditional models. The most affordable tankless units on the market start at around $300, typically intended for kitchen use, while more powerful models designed for bathroom installation can range from $600 to $1,500 or more.