Why Tankless is the Way to Go
By: Jason Schlunt

Most clients come upon our site because they recently noticed their current water heater leaking and are due for a replacement or they are tired of growing utility bills and have heard tankless can save them money. Tankless water heaters, also called on demand water heaters, are rapidly growing in popularity because they offer performance and cost benefits over their conventional tank type water heater.

Save Money Instantly on Utility Bills
Tankless water heaters are more energy efficient than conventional heaters because they heat water when there is demand. The more typical tank style water heater runs day and night whether you use it or not. This results in a tremendous amount of wasted energy.  The amount you can save on your energy bill will depends on how much hot water you use. "For homes that use 41 gallons or less of hot water daily, demand water heaters can be 24%-34% more energy efficient than conventional storage tank water heaters. They can be 8%-14% more energy efficient for homes that use a lot of hot water-around 86 gallons per day. Most of our clients report savings on their gas bill of around 30%, however some have reported as high as 60%!

Gain a New Closet or More Garage Space
Tankless water heaters are about the size of a 22” television; considerably smaller than storage-type water heaters. Also they can be installed outdoors or indoors. So say for example you have a water heater in your laundry room or a hall closet. A tankless water can be installed on the outside of the house allowing for new space in that closet or laundry room once the old tank water heater is removed.

Never Run Out of Hot Water Again
We all experienced the shocking mid-shower sensation when the water goes cold. This occurs because your conventional water heater can’t keep up with the demand for hot water; a frequent occurrence for clients with customer showers or Jacuzzi tubs. With a tankless water heater you’ll never run out of hot water, water can literally be heated forever. It is important to note however that a tankless water heater can only supply so much volume of hot water at a time, so selecting the correct unit for your application is very important. Please see "How do I choose the right one?" in the related articles.

Maximum Cost Efficiency
It’s important to look at the longer term savings with tankless over tank water heaters. Here is an example to take into consideration.

The average 40 gallon storage tank will last 10 years, has an initial cost of about $400 before installation, and uses $179 in fuel per year. An average whole house tankless water heater will last 20 years, have an initial cost of about $1000 before installation and will use $90 per year to operate. This breaks down to a per year operating cost of $219.00 for the convention heater; and $140 for the on-demand tankless water heater. When you take those savings over the life the heater; the cost savings are even more attractive.

Environment Friendly
Energy efficiency and longevity are both items to consider with the rising cost of gas and metal.

Federal Tax Credit
The Energy Policy Act of 2005 provides valuable federal tax credits for consumers and contractors who make energy-efficiency upgrades to their homes. Homeowners or renters who have energy-efficient products in their facility enjoy multiple benefits.

Though we’d never claim to be tax professionals, visit (www.energy.gov/taxbreaks.htm) and see about getting a one-time tax credit of up to $500 in total for installing efficient new windows, insulation, doors, roofs, and heating and cooling equipment in your home.