Tankless Water Heater Pros and Cons: Is It Worth the Investment

Tankless Water Heater Pros and Cons: Is It Worth the Investment

There’s nothing quite like stepping into a hot shower after a long day, or tackling a sink full of dishes with ease. But what happens when the hot water runs out? That sudden jolt of cold water can be more than just annoying; it signals a disruption in your home’s comfort and efficiency. Many homeowners in Raleigh, NC, grapple with inconsistent hot water supply, high utility bills from constantly heating a tank, or the sheer bulk of a traditional water heater.

You might be considering an alternative: the tankless water heater. It promises endless hot water and potential energy savings, but is it truly the right fit for your home? Understanding how these systems work, their benefits, and their drawbacks is key to making a smart investment.

At Parkside Plumbing & HVAC, we believe in keeping your home comfortable with reliable systems. Our team offers skilled handling and consistent care across all your home’s essential services, from heating and cooling to detailed plumbing work. Learn more about the solutions we offer to keep your home running smoothly by visiting our home page.

What Exactly is a Tankless Water Heater?

A tankless water heater, often called an “on-demand” water heater, heats water only when you need it. Unlike conventional water heaters that store and constantly heat a large tank of water, a tankless unit heats water directly as it flows through. When you turn on a hot water tap, cold water travels through a pipe into the unit. A gas burner or electric element then heats the water quickly, delivering hot water directly to your faucet. This means no standby energy losses from keeping a large volume of water hot 24/7.

“Tankless water heaters provide hot water only as it is needed. They don’t produce the standby energy losses associated with storage water heaters, which can save you money on your energy bill.”

U.S. Department of Energy

The concept is straightforward: why heat water you’re not using? These compact units can often be mounted on a wall, freeing up valuable floor space that a traditional tank might occupy. This design offers a significant advantage, especially in homes where space is at a premium.

white and gray water heater
Photo by RephiLe water on Unsplash (https://unsplash.com/@revolution_in_filtration)

What is the Downside of a Tankless Water Heater?

While tankless water heaters offer many benefits, they do come with a few notable downsides that homeowners should consider. The primary one is often the higher upfront cost for purchase and installation compared to a traditional tank. Capacity can also be a concern; while they provide endless hot water, they can only heat a certain volume at a time, potentially struggling with multiple high-demand uses simultaneously. This is especially true if a system isn’t correctly sized for your household’s needs.

Installation complexity is another factor. Upgrading to a tankless unit, particularly a gas model, may require changes to your home’s gas lines, electrical wiring, or venting system. This isn’t a DIY job; it calls for experienced, reliable professionals to ensure safety and proper function. In our 20+ years of industry experience, we’ve seen how crucial correct installation is for long-term reliability. Neil Henderson from Parkside Plumbing & HVAC notes, “The initial investment can be higher, but for many, the long-term energy savings and endless hot water make it a smart investment. The key is proper sizing and professional installation.”

What to Consider Before Going Tankless

  • Higher Upfront Cost: Expect to pay more for the unit itself and its installation.
  • Sizing for Demand: If not sized correctly, the unit might struggle to meet peak hot water demands.
  • Installation Complexity: May require upgrades to existing plumbing, electrical, or gas lines.
  • Maintenance Requirements: Regular flushing (descaling) is needed to prevent mineral buildup, especially in areas with hard water.
  • Small Delay: There’s a slight delay before hot water reaches the tap, as it has to travel from the unit.

Can You Run Two Showers with a Tankless Water Heater?

Yes, many tankless water heaters are capable of supplying hot water to two showers simultaneously, provided the unit is appropriately sized for your home’s hot water demands. The crucial factor is the unit’s flow rate, measured in gallons per minute (GPM), and its temperature rise capacity. A typical shower uses about 2.5 GPM, so a unit with a 5 GPM rating at your desired temperature rise should handle two showers fine. However, adding other hot water uses like a washing machine or dishwasher at the same time might push its limits.

When considering a tankless water heater, it’s essential to perform a peak demand calculation. This involves identifying all the hot water appliances you might use concurrently and summing their GPM requirements. For example, if you typically run two showers (5 GPM total) and a dishwasher (1.5 GPM) at the same time, you’d need a unit capable of at least 6.5 GPM at the coldest incoming water temperature during winter. Our plumbing experts can help you determine the right size for your Raleigh home, ensuring you have ample hot water when you need it.

How Much Will My Electric Bill Go Up with a Tankless Water Heater?

If you’re considering an electric tankless water heater, your electric bill might actually go down, not up, because these units are generally more energy-efficient than traditional electric tank heaters. However, the exact change depends on your current water heater’s efficiency, your household’s hot water usage, and the cost of electricity in Raleigh. Electric tankless heaters require significant electrical infrastructure, often demanding dedicated high-amperage circuits, which can be a substantial part of the installation cost. For many homes, a gas tankless unit often provides better energy savings and performance than an electric one, as natural gas is typically a more cost-effective fuel source for heating water rapidly.

According to the U.S. Department of Energy, tankless water heaters can be 24%-34% more energy efficient for homes that use 41 gallons or less of hot water daily than conventional storage-tank water heaters. If you use a lot of hot water, they can be 8%-14% more efficient. The savings come from not having to constantly heat and reheat water in a large tank. While the electricity used during operation is higher for a brief period, the overall consumption for continuous heating is eliminated. A smart investment means looking at the total cost of ownership, including both energy savings and maintenance over the system’s lifespan.

“Tankless water heaters typically have a higher purchase price and installation cost than storage water heaters, but they usually last longer and have lower operating and energy costs.”

Forbes Home

Practical Tips for Tankless Water Heater Owners

To ensure your tankless water heater provides long-term reliability and efficient performance, a little consistent care goes a long way. Here are some practical steps you can take:

  1. Regular Flushing: This is critical, especially in Raleigh where water hardness can lead to mineral buildup. Flush your unit annually (or biannually if you have very hard water) to remove scale and sediment. This prevents clogs and maintains efficiency.
  2. Check Vents and Air Intakes: For gas models, ensure the exhaust vent isn’t blocked and the air intake is clear. Blockages can impede performance and create safety hazards.
  3. Monitor Water Pressure: Low water pressure can affect how well your tankless unit performs. Check for clogs in aerators or showerheads, and consider a whole house water filter if sediment is a recurring issue.
  4. Insulate Pipes: Insulating the hot water pipes closest to the unit can reduce heat loss and help hot water arrive at your tap faster, maximizing efficiency.
  5. Know Your Unit: Familiarize yourself with your owner’s manual. It contains specific maintenance guidelines and troubleshooting tips for your model.
  6. Professional Maintenance: Schedule annual inspections with a trusted plumber. Our team at Parkside Plumbing & HVAC can perform detailed diagnostics, descaling, and ensure all components are functioning correctly, extending your unit’s life. This act early prevents costly damage later.

Deciding whether a tankless water heater is worth the investment for your home involves weighing the upfront costs against the long-term benefits of energy savings, endless hot water, and space efficiency. While they offer compelling advantages for many homeowners, considering your household’s specific needs and getting professional advice is crucial. Our experts at Parkside Plumbing & HVAC are here to help you navigate these choices, providing tailored solutions and the skilled handling needed for optimal home comfort and efficiency. Don’t hesitate to reach out for an assessment and discover if a tankless system is the right fit for your Raleigh home.