Are Tankless Water Heaters Really Worth It – Things You Should Know Before You Buy One

by Curtis Grossi | Last Updated: March 19, 2024
Tankless Water Heaters Pros & Cons

Very few American homes lack a hot water heating system. According to studies, US homeowners invest about $400 to $600 a year on hot water yearly.

It’s said that every American uses at least 60 gallons of hot water a day, which translates to about 23000 gallons a year. That simply means that the 4-member family will use about 92,000 gallons of water a year.

Getting hot water on demand has always been every homeowner’s desire. The only problem is that this technology also has issues, such as delays and other associated problems.

Tankless heaters heat and deliver hot water instantly, meaning you won’t have to wait for hours for the water to be heated. I have frequently heard people question the value and worthiness of water heaters and here I am going to make everything clear to you.

What Is A Tankless Water Heater?

Also known as instantaneous water heaters, these units work to deliver water on demand. The traditional models have a small tank available in different shapes and sizes where the pre-heated water is stored.

The modern models can be set to a certain temperature to allow instant delivery of hot water. Most tankless heaters use natural gas, propane, and electricity to heat water to the desired temperature before it’s dispensed for use by the target users.

Can You Save Money With Tankless Hot Water Heaters?

The initial cost of buying and installing a tankless water heater is usually higher, but the operation cost is usually lower. These units are designed to consume less energy when compared to tanked water heaters.

As such, while the upfront cost is usually higher, their energy savings square everything. Whether it’s running on natural gas or electricity, tankless heaters are much more efficient.

Pros Of Tankless Water Heaters

Tankless systems use advanced technology to improve the way water is heated at home. There are many benefits to getting a tankless water heater installed in your home.

1. Guarantee Of Convenience And Comfort

Tankless heaters at home guarantee a high level of convenience and comfort. You’ll be getting a continual supply of hot water in your home. These water heaters use wireless or wired temperature controls to guarantee optimal comfort.

Most tankless units have the power to deliver about 2 to 10 gallons of hot water a minute. These heaters also are compact in design, and so they consume less spacing. They are convenient and easy to install, which adds to the total level of convenience if you don’t have a lot of space to spare at your home.

2. Save You Money

An energy star rated tankless water heater price ranges from $$125 to $1000. On the other hand, a gas-powered one can go as high as $2000. Generally speaking, tankless heaters are relatively pricier. However, according to the US Department of Energy, using gas-powered tankless heaters can save a homeowner about $108 a year in energy bills.

An energy star rated electric one, on the other hand, have estimated energy savings of about $44 a year. These are great financial energy savings that come in handy in offsetting the seemingly higher cost of installing a tankless on demand hot water system.

3. These Units Are Eco-Friendly

They use a technology, which allows them to only ignite the burner when the switch is pressed on. That simply means it won’t keep on heating and consuming electricity or gas even when there’s no one at home. Most tankless water heaters have an energy factor of 95, which means only less than 5% of the fuel is wasted.

A patented third-generation water heater uses burned gases to regenerate heat through the condensing process This not only saves the environment but also energy.

4. No Issues With Standby Loss

They are uniquely designed to heat and dispense water, so issues with standby loss are rare. Standby heat losses that occur owing to the temperature decrease by tank’s and pipe’s environment aren’t common with this technology.

5. Offers Lifelong Service

Most of these products are designed to last for over 20 years. That makes them more durable than the standard units by up to two times. These units won’t worry you about the buildup of rust, which could damage and leave them useless. These water heaters are a lifelong investment that requires minimal to no maintenance.

6. Have Replacement Parts

The majority of parts in a tankless heater can be replaced. You wouldn’t need to replace the entire system when a single part develops issues. That helps keep the cost of maintenance and care lower.

7. Clean And Secure

the advanced tankless water heaters have improved safety features such as automatic fuel cut off and flame sensors. They are designed such that they will cut down the flow of gas to minimize instances of risky accumulations.

The units have a compact structure and design that allows for easy cleaning and installation. You won’t have to experience issues with raptured tanks, meaning issues with flooding are minimal.

Cons Of Tankless Water Heaters

Just because tankless water heaters are uniquely designed and highly efficient doesn’t mean they are 100% percent. So, before deciding on one for your home, let’s go through the cons of tankless water systems.

1. They Cost More Upfront

One common issue with these tankless systems is their high upfront cost. The units will cost you a fortune to buy and install. However, you can recover your money in no time from the great savings you get from low operation and maintenance costs.

2. More Installation Cost

The high upfront cost is not the only issue with a tankless water heater. They also cost more to install since most of them require more personalized installation procedures. If you’re eyeing a gas water heater , you may have to get a specialized gas line installed, which could cost you more. As for the electric tankless heaters, you may have to invest in better power sockets and wiring systems.

3. Temperature Inconsistency

Some tankless units don’t have the electric control unit. This means you aren’t assured of the consistent temperature of the water hot water dispensed from your water heater. The flow and heat consistency will as well be affected if the total water output is higher than what the unit can efficiently handle.

4. Limitations In Total Output

Tankless units offer continuous hot H20 supply. The units have the power to heat and dispense a limited amount of water within a certain timeframe. That simply means the total water output is limited to a certain amount a day, which means bigger homes have to install several units to have their homes supplied with enough water.

Choosing The Best Tankless Water Heater For Money

When choosing a non-tank heater, various things should be evaluated. You want a system that can deliver optimal value for money without raising your energy bills. Here is what to pay attention to when selecting a tankless water heater to discover the right choice for you.

Unit’s Flow Rate

The water heater’s flow rate should be the first most important consideration. Flow rate is measured in gallons per minute and so for you to get value for money, you should identify a unit that can deliver to your household’s water demands.

Check the flow rate of the tankless water heater you decide to invest to determine if it has the capacity to handle your household’s water demands in an efficient way.

Electric Or Gas Powered

Buyers have the option of choosing gas or electrically powered systems. Tankless gas heaters are a bit more costly upfront but will save you more in the long run.

Electric tankless water heaters are a bit cheaper but they do not offer as many savings as the gas-powered counterparts. Those who want point-of-use tankless water heaters that won’t take up much spacing should consider the electrically powered units as they are designed to be compact.

Pricing And Warranty

You want a tankless water heater that will offer you optimal value for your money. You likely have a set budget you wouldn’t want to break. You can discover the right product for money by searching for a high-quality and advanced unit that matches your budget and personal preferences.

Ensure you as well check the warranty offered with the tankless water heater you want to buy. Most tankless water heaters come with a lifelong warranty that covers the entire unit or range of the unit components. You have to ensure you are getting a high-end and powerful water heater within your budget that comes with favorable warranty terms.


If you’ve been wondering whether it’s worth it to invest in tankless water heaters, you’ve now got an idea of why these units are an important addition to your household.

They will help guarantee quality and clean hot water when you need it without raising your energy bills. The units are compact and can be installed in modern homes with ease. Above, we have given you a clue about the main benefits and disadvantages of investing in a high-quality tankless water heater.

We have also given you facts on the amount you can save when you invest in electric or gas tankless water heaters. Make sure you conduct thorough research to discover the best tankless water heater that meets your quality, personal preference,s and budget.

Curtis is the founder and owner of He is the lead guy concerning all the water-softening accessories in this site's guides and reviews. If he is not writing a reviews, guides or any other useful tips, you will find him testing them to find out their suitability. He is passionate about softening water. You will find him extremely helpful and always willing to educate the general populace all there is concerning water and its effects on their health and appliances.