When it comes to choosing a water heater for your home, you have two main options: traditional storage tank water heaters or tankless water heaters. While both models have their own advantages and disadvantages, this article will explore whether a tankless water heater is more cost-effective in the long run than a traditional water heater.
The Basics
First, it’s essential to understand how both types of water heaters work. Traditional water heaters have a large storage tank that heats and stores a set amount of hot water. The tank needs to be constantly heated and refilled to maintain a certain temperature, even when not in use. Tankless water heaters, on the other hand, heat water only on demand and do not store hot water, resulting in a more energy-efficient process.
Upfront Costs
When it comes to upfront costs, traditional water heaters are generally less expensive than tankless water heaters. The price range for a traditional water heater can range from $300-1,500, while tankless water heaters can cost anywhere from $1,000-3,000.
While the initial cost of a tankless water heater may seem high, many homeowners may be eligible for a tax credit, as tankless models are recognized for their energy efficiency. When purchasing a water heater, consider the long-term costs, not just the upfront expenses.
Energy Efficiency
When it comes to energy efficiency, tankless water heaters are far superior to traditional models. By heating water only on demand, they don’t waste energy keeping a tank of water hot when it’s not necessary. This efficiency can result in lower energy bills over time.
According to the U.S. Department of Energy, a tankless water heater can save a household up to 34 percent on energy costs, resulting in an average yearly savings of approximately $100. Over the lifetime of a tankless water heater, those energy savings can add up to thousands of dollars.
Lifespan
Another factor to consider is the lifespan of each type of water heater. Traditional water heaters can last for 10-15 years, while tankless water heaters can last up to 20 years with proper maintenance.
While a tankless water heater may have a higher upfront cost, homeowners can save money on replacement and installation down the road. Investing in a long-lasting tankless water heater can provide peace of mind and long-term savings.
Maintenance Costs
Like any appliance, water heaters may require maintenance and occasional repairs over time. Traditional water heaters are generally easier and less expensive to maintain and repair, mainly because they have been around for a lot longer. Tankless water heaters have more components and, therefore, may require more time and effort when repairing or maintaining them.
However, tankless water heaters may need less maintenance than traditional models due to their lack of a storage tank. This can save homeowners money on routine check-ups and repairs, although it’s important to properly maintain any type of water heater to ensure a long lifespan.
Conclusion
While a tankless water heater may have a higher upfront cost, it can be more cost-effective in the long run due to its energy efficiency, longer lifespan, and potential tax credits. The savings on energy bills alone can add up to thousands of dollars over the lifetime of the appliance.
When making a decision, homeowners should take into account their household’s hot water usage, budget, and long-term needs. A traditional water heater may be more economical for those with lower hot water demand, while a tankless water heater may be worth the investment for larger households and those looking to save on energy costs over time.