Should You Choose A Tank Or Tankless Water Heater For Your Home?

When homeowners need reliable hot water, they have two general equipment types to choose from: tank models or tankless water heaters. There is no one right choice – the best selection for your home depends on several variables specific to your household and hot water needs.

In this comparison of tank vs. tankless water heaters, the plumbing experts of Modern Heating & Plumbing discuss the basics of each type of water heater, so you have a better feel for each equipment type. We also compare tank and tankless water heaters against each other in several areas, which allows you to easily see the differences between each.

Tank And Tankless Water Heaters

There are two main types of water heaters available for use– tank and tankless water heaters. Each functions in their own way to deliver the hot water your family needs for various activities throughout your home. Let’s take a look at the basics of each model to introduce you to your hot water options.

Tank Water Heaters

Tank water heaters are the style homeowners are typically most familiar with – they’ve been around for many years, and most people are used to using this option in their homes. You may also hear this type of water heater called a conventional or traditional water heater, as this older technology has been the standard used in homes for decades.

A tank model water heater heats water, then stores it in a tank for use when needed. These water heaters come in different sizes, with the tank typically ranging from 30 to 50 gallons. The size you need depends on your household size and hot water demands. Tank water heaters operate with gas fuel or electricity.

With a tank water heater in your home, energy is used around the clock. Water within the tank is always kept at a desired temperature, ready for use when your taps turn on. Once you go through the hot water in the tank, you must wait for the water heater to replenish its hot water supply before additional hot water is available. You’re likely familiar with this if you’ve ever been the last one in your family to hop in the shower – there isn’t always enough hot water left!

Tank water heaters require some space for installation – a 50-gallon hot water tank isn’t a small appliance. These water heaters are commonly installed in utility closets, garages, basements, or maybe even directly in your bathroom.

Tankless Water Heaters

Tankless water heaters are a newer water heating technology that has been introduced as an energy efficient alternative. As you have likely guessed from their name, they do not use a tank to hold heated water.

So, where does the hot water come from? Tankless water heaters do not heat water ahead of time and hold it in reserve. Instead, they heat water right when your taps and appliances call for it. As soon as a tap turns on calling for hot water, the tankless water heater heats water to the desired temperature and sends it to the desired outlet. It only uses energy when hot water is warranted.

Tankless water heaters are also sometimes called on-demand water heaters, because they heat water on demand rather than pre-heating water for storage. Like tank models, tankless water heaters run by gas or electricity.

Because there is no hot water storage tank, tankless water heaters have a much smaller footprint, which means they require less space for installation. They are typically installed on a wall in a utility room or other area where household appliances are placed, like a garage or basement.

Comparison of Tank vs. Tankless Water Heaters

Now that you have a better understanding of how each style operates, let’s compare tank and tankless water heaters. See how each model performs in the different areas that are important to homeowners when they select a new water heater.

Initial Cost

A tankless water heater usually costs more to install than a tank model water heater. A conventional tank water heater runs homeowners around $1,000 for equipment and installation while a tankless water heater costs a few thousand dollars for equipment alone. On both sides, gas water heaters typically cost more than electric models. Of course, these prices vary greatly depending on the specifications of the model you choose.

When you install a tankless hot water heater when you used to have a tank model, it’s a more involved process. This is called a retrofit, and your plumber has additional work to do to accommodate a tankless water heater. Piping must be relocated, gas lines may need to be installed if you switch between fuel types, and more.

In the end, a tankless water heater will cost more upfront than a tank model.

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