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Are tankless water heaters a worthwhile investment?

Posted On Monday, 20 December 2021 21:01
Are tankless water heaters a worthwhile investment?

The switch to tankless water heaters in new homes is gaining speed. Unlike standard storage heaters, which keep a reserve of hot water in an insulated tank, tankless units heat their water as it’s needed.

But how can tankless water heaters produce so much hot water without having anywhere to store it? What about gas versus electric tankless heaters? And are tankless heaters really worth the higher price tag?  

Here’s how tankless heaters work, and whether you might benefit from making the switch to a tankless system.

How do electric tankless water heaters work?

Electric tankless heaters are the most popular type of tankless unit, thanks to their efficiency and lower price tag. When cold water enters an electric tankless heater, the system uses a series of sensors connected to a microprocessor to deliver the required amount of hot water instantaneously.

After hot water faucets or appliances are turned on, cold water begins passing through the tankless heater. When this happens, sensors at the heater input detect an increase in water flow and activate the heating element, sending a signal to the control panel and starting the heating process.

An electric tankless heating element is made out of copper coils that effectively conduct heat throughout the water. Electric heaters usually contain two or three heating elements—larger or premium units may contain more.

By using this on-demand process, electric water heaters may reach up to 99 percent energy efficiency, which means they utilize almost all of the power they draw to heat water, ensuring that you’re not wasting any of your utility bills on excess energy.

How do gas tankless water heaters work?

In a gas tankless system, a flow sensor starts the heating process in the same way as an electric heater. This time, however, the processor will activate a fan, which sucks in fresh air from outside, opens the gas valve to allow gas to enter, and lights the burner.

A heat exchanger transmits heat from the ensuing flames to the water flowing through the heater, while a mixing valve ensures a consistent temperature throughout the water supply.

Most gas and electric heaters also contain sensors that check whether water meets the set temperature after the heating process. This feeds back to the gas valve, mixing valve, and flow regulator to make sure that water is hot enough before it leaves.

Unlike electric heating, gas combustion produces byproducts that need to be removed for safety. A sealed vent from a gas heater should be installed through an exterior wall or roof, to exhaust gasses from your home, while also supplying air to the burner. With any gas-powered home appliance, it’s critical to make sure that all vents are sealed and effectively functioning.

The majority of gas water heaters are more powerful than electric water heaters and are capable of producing a large flow of hot water, particularly when the temperature of the incoming water is cold. They do, however, tend to be less efficient than electric options.

Some gas tankless heaters are equipped with a secondary heat exchanger that takes excess heat from the combustion process and resupplies it to the water supply. This helps gas tankless heaters approach efficiency levels seen in electric models.

Is a tankless water heater right for you?

Cost

As they’re newer technology, tankless heaters tend to have a higher price tag than traditional storage tank systems. While this may dissuade some consumers, the increased efficiency of tankless units means that the vast majority of homes make savings across heater lifespan.

Tank heaters draw a minimal amount of power repeatedly throughout the day, in order to keep their large stores of water at the required temperature. In contrast, tankless heaters draw far amounts of power, but only for a fraction of the time.

This results in major energy savings over months and years—and in turn, reduced energy bills. Some experts estimate that tankless heaters can save 30-50% on fuel costs over their lifespan.

Gas or electric?

Gas tankless heaters tend to be a more effective choice in a few specific situations. If your home already runs on gas then fitting a gas unit may be simpler (although you’ll still likely need to use wider 3/4 inch gas pipes). Additionally, if you live in a rural location, a gas unit may be more practical and less vulnerable to power outages. Finally, a gas tankless heater will provide more reliable heating in cold conditions, where extra power is needed to bring very cold water up to temperature.

Electric tankless heaters tend to be the more appropriate choice for the majority of homes. They’re smaller, quieter, and more efficient, and don’t require venting. This means that they can be installed in a greater variety of spaces, and won’t look out of place if you need to place your heater in an apartment bathroom or hall.

Installation & maintenance

Because tankless heaters have no tank, the chances of a serious leak occurring are drastically reduced. You don’t need to worry about flooded basements or water-damaged walls.

Tankless heaters have become more advanced since their invention, with features like wireless connectivity that means your heater will let you know precisely when it needs to be serviced.

Because they are a fraction of the size of storage tank heaters, tankless devices are also far easier to install and maintain by yourself. (However, bear in mind that many regions legally require a certified professional to service and fit gas home appliances.)

Lifespan

Whether you choose a gas or electric tankless heater, you should be able to enjoy dramatically increased unit lifespan over a tank system. Most experts estimate that tank heaters last between 7 and 13 years, due to the chances of corrosion, cracks, or bacterial contamination.

In contrast, tankless units last an average of 20 years, with some premium electric models functioning for longer. Thanks to their simple designs and lack of sitting water, this extra longevity helps offset the purchase price of tankless heaters even further.

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