Is a Tankless Water Heater for You?

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Tankless water heaters save space and energy, but they aren’t ideal for every home. Here’s how to decide if one fits your needs.

Category: Heating & Cooling Systems

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What Is a Tankless Water Heater?

Tankless water heaters take up much less space than traditional storage water heaters because they heat the water directly, without storing it in a large tank.

When you turn on the hot water, cold water travels through a pipe and into the tankless water heater unit. Inside, it’s heated instantly by either a gas burner or an electric heating element. This “on demand” design gives you a continuous supply of hot water instead of relying on a preheated tank that can run empty.

On average, tankless water heaters can provide 2 to 5 gallons of hot water per minute. Gas-fired tankless water heaters typically deliver higher flow rates than electric models.

In homes with large families or heavy hot water use, it’s common to install more than one tankless unit. This helps ensure there’s always enough hot water available for showers, laundry, and the dishwasher running at the same time.

Tankless Water Heater Advantages

Tankless water heaters (also called “on demand” units or instant hot water heaters) are popular for a reason: they’re efficient and compact.

  • Lower energy use: They use about 30 to 50 percent less energy than units with tanks, saving a typical family around $100 or more per year, depending on water usage.
  • Heats only when needed: These units heat water only when you turn on the faucet—no more paying to keep 40 or 50 gallons of water hot all day.
  • Continuous hot water: They offer a continuous supply of hot water, which is ideal for filling a big hot tub or whirlpool without running cold.
  • Fuel options: Most operate on natural gas or propane, although there are electric models as well.
  • Space-saving design: They’re more compact than standard water heaters and typically mount on a wall, freeing up floor space.

“Tankless water heaters have a lot going for them,” says Myles Robinson, home expert at UK Composite Doors. “They’re also a great choice for homes with limited space, plus, you never run out of hot water, which is great for larger households.”

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