There’s a new hot water heater on the market, one that promises to be more efficient and compact than the standard gas-fired hot water heater – the tankless water heater. It promises efficiency and lower operating costs, which is sure to make consumers happy. eieihome did the research on what you should consider before you make the switch.
Energy Saving = Saving Money
Gas-operated hot water heaters keep the water consistently warm, which could add up to a high energy bill at the end of the month. Tankless water heaters can cost up to $1,000 per unit. It’s a big initial investment; especially since gas-powered tanks can cost anywhere from $300 to $400, but tankless heaters offer more savings in the long run. Instead of constantly working to keep water heated even when it’s not in use, the tankless water heater starts working when it’s needed. This saves the tank from working overtime when it’s not necessary.
Here’s a breakdown of the cost savings:
- Tankless water heaters use up to 30 per cent less energy than conventional tanks.
- The average tank costs $1,000 plus $1,500 for installation.
- The average household spends about 30 per cent of its gas bill on water heating.
- With an energy bill totaling $1,000, $300 of it for water, your savings per month are $90.
A tankless water heater system is expected to last 20 years. Water heaters that run on gas tend to last between 10 to 13 years. To help evaluate whether it would be cost beneficial to go tankless, consider your long-term plans. Do you plan on living in your home for a very long time? Depending on the cost of your monthly energy bill, the tankless water heater will save you roughly 30 per cent. It could take the entire lifespan of the unit to pay off the cost of the tank and installation with the money saved per month. Therefore, it may not be a worthwhile investment to make if you’re planning on moving out in a few years, but you will see a significant savings in your monthly bill.
A traditional water heater holds anywhere from 40 to 60 gallons of water and can take up a lot of space in any home. Tankless water heaters are a lot smaller and more compact, therefore don’t require as much space.
It’s common for debris and scale to build up inside the tank overtime. That’s why regular maintenance is important to keep the water heater in proper working condition so it will last many years and keep saving you money every month. The system should be cleaned on a yearly basis, as debris and scale will build up on the inside of the tank over time.
Need a second opinion? Contact one of our HVAC experts. They can advise you on what’s the best decision for you and your family and offer some help with cleaning your current water heater to ensure it’s working properly.
More in Home Maintenance: