Are tankless water heaters energy-efficient?

Whether you are building a new house or replacing a broken or outdated water heater in your current home, you may be considering installing a tankless water heater. This type of water heater doesn’t constantly maintain a large reservoir of water at a high temperature. Instead, a tankless water heater only switches on as necessary: whenever you turn on a hot water tap in your home. While these benefits are well-understood, many homeowners here in Hayward still have a big question: are tankless water heaters energy-efficient?

The short answer is yes. Demand-type systems use less energy (whether natural gas or electricity) than standard water heaters. However, as we’ll explore in this blog post, the exact extent of these savings is determined by your water usage, water heater placement, and several other individualized factors.

Are tankless water heaters an energy-efficient option for your home?

On-demand operation can lower energy usage

Even the most energy-efficient traditional water heater constantly uses energy to keep the water in the tank at the right temperature. Because a tankless water heater only operates when you need hot water, its overall energy consumption is generally less than that of a traditional water heater. Tankless water heaters may also last longer than their traditional counterparts because they don’t spend at much time operating every day for years on end. Whereas an older traditional water heater may use more energy to keep water hot as parts wear out, a tankless water heater may display energy-efficient performance for its entire lifespan.

Yes, tankless water heaters are energy-efficient and can save you money on your utility bills every month.

Yes, tankless water heaters are energy-efficient and can save you money on your utility bills every month.

High demand may require multiple water heaters

One of the advantages of a tankless water heater is that it doesn’t run out of hot water. Theoretically, it can keep heating water for your home as long as there is an open hot water tap somewhere initiating demand.

However, some tankless water heater varieties may struggle to heat water fast enough during times of high usage: for example, when the shower and dishwasher are running at the same time.

You may solve this issue by installing multiple tankless water heaters for your home and placing them close to showers or appliances. When calculating the potential energy savings for your home, it’s important to account for multiple tankless water heaters if you need them to meet your usage requirements.

Energy savings depend on numerous factors

While tankless water heaters are generally more energy-efficient than traditional models, it’s important to factor initial costs into your calculations. Many regular water heaters cost less to purchase and install than tankless water heaters.

Additionally, the energy savings of a tankless water heater may be greater in households that use less hot water. Households that use approximately 80 gallons of hot water daily may see lower energy savings that households that use around 40 gallons every day. The location of the equipment can make a difference too.

Placing a tankless water heater at every hot water outlet can significantly improve energy savings because the water doesn’t lose heat during a long journey between the heater and the faucet.

We can help you choose the right water heater

If you need more details on tankless water heater energy-efficiency and want to learn what options may be best for your home, contact ABC Cooling, Heating & Plumbing. Our expert water heater technicians understand all the available options and can help you figure out which type of water heater will meet your needs and increase your home’s energy-efficiency.

Contact us to get an estimate on installing a new tankless water heater in your home.