In this article…
- Traditional Tank Water Heaters: Cost, Efficiency, Pros, and Cons
- Tankless Water Heaters: Cost, Efficiency, Pros, and Cons
- Traditional Tank vs. Tankless Water Heater: Which Is Better?
Have you had issues with having enough hot water? Is your water heater over 15 years old? Are you interested in upgrading to a more energy-efficient option?
So, you’re thinking of replacing your current water heater and aren’t sure if you should choose a traditional tank water heater or upgrade to tankless.
Both types of water heaters provide you with what you need, but, like with any home investment, you want to explore and compare your options to find the best one for you.
Traditional tank water heaters have been on the market since the early 1900s. Tankless water heaters weren’t common in the U.S. until the late ‘90s and early 2000s.
While traditional water heaters continue to improve and keep up with the market, tankless water heaters have become popular for their energy efficiency and for providing hot water on demand.
You want to know how traditional water heaters compare to tankless water heaters to choose the right model for your home, and we’re here to help.
With several master plumbers on staff, DEETS Mechanical has been the trusted plumbing expert for Northwestern Homeowners since 2001. We provide homeowners with high-quality plumbing solutions uniquely tailored for their homes.
We strive not only to offer the highest-rated products and expert installation but to also educate you on all you need to know for home upgrades.
Because a water heater plays a vital role in your day-to-day life, finding the best one for you is essential, which means you need a baseline education on the two types of water heater models.
This article will compare traditional tank water heaters to tankless water heaters in their cost, efficiency, benefits, and potential drawbacks so you can have a robust understanding of which will meet your needs best.
Traditional Tank Water Heaters: Cost, Efficiency, Pros, and Cons
Traditional tank water heaters are popular in most homes. They consist of a large insulated tank, ranging anywhere from 30 to 80 gallons, that heats and stores water when needed.
These types of water heaters can be powered by gas or electricity depending on the home, and, although they are common, have become the less energy-efficient model compared to tankless water heaters.
Let’s look at an overview of traditional water heaters in their cost, efficiency, pros, and cons.
How Much Does A Traditional Tank Water Heater Cost?
Traditional tank water heaters are the more affordable option of the two between tankless and traditional.
The average cost to replace a traditional tank ranges from around $1,000 on the lower end to over $5,000. This cost depends on the size of the tank, heat source, installation, labor, and warranty.
Gas-powered water heaters tend to be more expensive than electrical-powered ones, and the larger the tank size, the more it costs.
How Efficient Are Traditional Tank Water Heaters?
Although traditional tank water heaters are the more affordable option, that doesn’t make them reliable. Traditional tanks are compatible with most homes, allowing for straightforward installation with little to no complications.
Traditional water heaters maintain a constant water temperature, which means they continuously heat water even when it’s not in use. This makes them less energy-efficient than tankless models, as energy is wasted keeping the water hot even during off-peak hours.
Gas models tend to be more efficient than electric ones because of their faster heating and recovery times, but they still experience some energy loss through ventilation.
Traditional water heaters last 10 to 15 years, depending on maintenance, water quality, and use. Over time, sediment buildup from hard water (containing high levels of calcium and magnesium) can settle at the bottom of the tank, reducing efficiency and causing the unit to work harder to heat water.
Rust and corrosion are also common issues, especially if the anode rod, which protects the tank from rust, is not replaced every few years. Regular flushing, maintenance, and anode rod replacements can extend the life of a tank water heater, but once leaks develop in the tank itself, replacement is necessary.
While traditional water heaters have a lower upfront cost, their higher energy consumption and shorter lifespan make them less cost-effective in the long run compared to tankless options.
Benefits and Potential Drawbacks of A Traditional Tank Water Heater
Traditional water heaters remain a popular choice for homeowners due to their affordability and reliable performance. However, they also come with some drawbacks in efficiency and space requirements.
Here is a breakdown of the pros and cons of traditional tank water heaters.
Pros of a Traditional Tank Water Heater
- Lower upfront cost: Traditional water heaters are the more affordable option and still provide long-lasting hot water for homes.
- Hot water readily available: Because the tank stores hot water constantly, you can have a large amount of hot water readily available. This is a major benefit for larger homes or families who use a lot of hot water at once.
- Simple installation: Installing a traditional water heater is generally quicker, easier, and less expensive than a tankless system because it requires fewer modifications to your home’s plumbing and gas lines.
Cons of a Traditional Tank Water Heater
- Higher energy consumption: Traditional tanks use energy continuously, which is a big energy loss. This results in higher energy bills compared to tankless water heaters and also decreases efficiency over time.
- Shorter lifespan: Although traditional water heaters last 10-15 years on average with regular maintenance, tankless water heaters can last 20+ years.
- Requires more space: Storing a large water tank requires the space for it. This can be inconvenient for smaller homes.
- Potential for leaks and flooding: Tank corrosion, pressure buildup, or tank failure can result in leaks around the water tank, especially if you neglect to replace the anode rod or perform yearly tank flushes.
Is A Traditional Tank Water Heater Right For Me?
Traditional tank water heaters are extremely common across the U.S. and have been a reliable source of hot water for decades.
If you currently have a tank water heater and are satisfied with its efficiency and functionality, then replacing it with another tank-type water heater will most likely meet your needs.
If you want more hot water or run out of hot water quickly, consider switching to a larger tank.
Overall, traditional tank water heaters are a long-lasting and cost-effective option for most homeowners, but if you’re interested in a more efficient, upgraded water heater, tankless may be the way to go.
Tankless Water Heaters: Cost, Efficiency, Pros, and Cons
A tankless water heater, also known as an on-demand water heater, heats water only when needed, rather than storing a large supply in a tank.
When a hot water tap is turned on, cold water flows through the unit, where either a gas burner or an electric heating element rapidly heats it before sending it to the faucet, shower, or appliance.
Let’s explore the cost, efficiency, pros, and cons of a tankless water heater.
How Much Does A Tankless Water Heater Cost?
Tankless water heaters are slightly more expensive than traditional tank water heaters because of their efficiency and complex installation.
The average cost of a tankless water heater ranges from $2,000 on the lowest end to $7,000 on the premium end.
This cost includes installation and labor, but additions and upgrades, like adding a water softener, gas lines, or electrical wiring, will increase the cost.
How Efficient Are Tankless Water Heaters?
Because tankless water heaters only operate when hot water is in use, they eliminate standby heat loss, making them more energy-efficient than traditional storage tanks.
Tankless water heaters provide an endless supply of hot water, making them ideal for households with high water demand. However, they may have flow rate limitations, meaning multiple fixtures running at once could require larger or multiple units for optimal performance.
Tankless water heaters can typically provide 2-5 gallons of hot water per minute, and, according to the U.S. Department of Energy, can be 24-24% more efficient than traditional tank water heaters.
The overall efficiency of a tankless water heater is measured by its energy factor (EF) or uniform energy factor (UEF). Most modern tankless models have a UEF rating of 0.82 to 0.99, meaning they convert 82 – 99% of their energy input into heat for water.
Gas-powered tankless units tend to be more efficient than electric models in homes with high water demand, as they can heat water faster. However, electric models offer nearly 100% efficiency since they don’t experience energy loss through venting.
Benefits and Potential Drawbacks of A Tankless Water Heater
Tankless water heaters are gaining popularity due to their efficiency, longevity, and ability to provide on-demand hot water. However, they also come with some challenges that are important to consider before making the switch.
Here are some of the top pros and cons of a tankless water heater.
Pros of a Tankless Water Heater
- Higher energy efficiency: Unlike traditional models that continuously heat and store water in a tank, a tankless unit heats water only when needed, eliminating standby heat loss.
- Longer lifespan: Tankless water heaters can last over 20 years, while traditional tank water heaters on average last 10-15 years.
- Takes up less space: Unlike traditional tank water heaters, tankless water heaters require much less space and are typically wall-mounted.
- Endless water supply: Since tankless water heaters heat water on demand, they can provide a continuous supply of hot water as long as the water is flowing, providing you and your family with comfort when using multiple water supply lines.
Cons of a Tankless Water Heater
- Higher upfront cost: Tankless water heaters are more of an investment upfront than traditional tank water heaters. However, their energy efficiency and water savings provide you with a return on your investment over the years.
- Longer warm-up time: Tankless water heaters can take longer for the water to actually heat up, but once the water is warm, you will not run out.
- Potential limited flow rates: If you have multiple faucets or water sources running at once at a high pressure, you may experience limited water flow.
- Complex installation required: Tankless water heaters may require a gas line or electrical installation when switching from a tank type to a tankless water heater. This is why it is essential to hire a licensed, experienced plumber for the job.
Is A Tankless Water Heater Right For Me?
Tankless water heaters offer significant benefits in terms of energy efficiency, lifespan, space-saving design, and the ability to provide an endless supply of hot water.
However, they come with higher upfront costs, potential flow rate limitations, and more complex installation requirements.
A tankless water heater may be right for you if you want to reduce energy costs, free up space, and enjoy an endless supply of hot water.
It’s especially beneficial for smaller homes, households with moderate hot water demand, or those planning to stay in their home long enough to recoup the investment through energy savings.
Traditional Tank vs. Tankless Water Heater: Which Is Better?
Now that you have a comprehensive understanding of how traditional tank water heaters compare to tankless ones, you have a better idea of which water heater option is best for your replacement and which will meet your needs in cost, efficiency, and more.
Choosing between a traditional tank water heater and a tankless system comes down to efficiency, cost, and household needs.
Traditional water heaters have a lower upfront cost, are easier to install, and provide a steady supply of hot water for simultaneous use, making them a practical option for many homeowners.
However, they also consume more energy due to standby heat loss, have a shorter lifespan, and require more space.
On the other hand, tankless water heaters offer greater energy efficiency, a longer lifespan, and a space-saving design, while also providing endless hot water on demand.
For homeowners looking for long-term energy savings and a compact, modern solution, a tankless water heater can be a worthwhile investment. Meanwhile, if you prioritize affordability and ease of installation, a traditional tank water heater is the better choice.
Ultimately, the choice is up to you, and finding a trustworthy company to work with is crucial to ensuring the success of your new water heater.
At DEETS Mechanical, we’re here to inform you about all you need to know regarding your home’s plumbing, whether it’s upgrading your water heater or repiping your entire home’s plumbing.
Are you ready to upgrade your water heater? Schedule your appointment with DEETS today to receive expert care and education regarding your new water heater!
