Everything You Need to Know About Going Tankless
If you’re thinking about upgrading your home’s hot water system, you’ve probably heard about tankless water heaters. These systems — also known as on-demand water heaters — are becoming a popular choice for homeowners seeking to conserve energy, maximize space, and never run out of hot water. But are they right for your home?
In this guide, we’ll cover the pros, cons, and key things to know about tankless water heaters — from how they work to how much they cost.
What Is a Tankless Water Heater?
A tankless water heater heats water only when needed. Unlike traditional water heaters, which store 30–80 gallons of hot water in a tank, a tankless system heats cold water the moment you turn on the tap. That means no standby energy loss and no running out of hot water.
Here’s how it works:
- When you turn on a hot water tap, cold water travels through the unit.
- A gas burner or electric heating element instantly heats the water.
- Hot water flows out to your faucet, shower, or appliance — continuously.
Because there’s no storage tank, the system doesn’t have to keep reheating unused water throughout the day.
Key Benefits of Tankless Water Heaters
1. Endless Hot Water
Tankless systems provide a continuous supply of hot water, ensuring you never have to worry about running out, even during long showers or when running multiple appliances simultaneously (with the proper setup).
2. Energy Savings
With a tankless heater, you only heat the water you use, leading to significant energy savings. According to the U.S. Department of Energy, homes that use 41 gallons or less of hot water daily can be 24%–34% more energy efficient with a tankless heater.
3. Smaller Size
Tankless units are compact and wall-mounted, freeing up floor space. They’re ideal for small utility rooms, closets, or even mounted outdoors in some cases.
4. Longer Lifespan
Most tankless water heaters last 15–20 years, compared to 8–12 years for traditional tank-style units, providing you with a reliable and long-lasting hot water solution.
5. Cleaner Water
Without a storage tank, there’s less risk of rust or sediment buildup that can affect water quality over time.
Things to Consider Before Switching
While tankless systems offer numerous benefits, they may not be the perfect fit for every household. Here are a few essential things to consider:
1. Higher Upfront Cost
Tankless units typically cost more than traditional ones — both for the unit itself and for installation, especially if you’re switching from a tank system.
2. Installation Requirements
You may need upgrades to your gas line, electric panel, or venting system. A licensed plumber or HVAC contractor can assess what’s needed.
3. Flow Rate Limits
Tankless units provide a continuous flow of hot water. If you run a shower, dishwasher, and washing machine simultaneously, a single unit may not keep up unless it’s appropriately sized — or you install multiple units.
4. Regular Maintenance
To prevent scale buildup, especially in areas with hard water, it’s a good idea to flush your tankless system once a year.
Gas vs. Electric Tankless Water Heaters
There are two main types of tankless units: gas and electric. Each has its pros and cons.
Gas Tankless Water Heaters:
- Higher output — better for larger homes
- Faster heating — ideal for heavy water usage
- Needs proper venting — and possibly a gas line upgrade
Electric Tankless Water Heaters:
- Lower upfront cost
- Easier to install
- Best for smaller homes or point-of-use setups
Your home’s layout, fuel availability, and water usage will help determine the best option for you.
How Much Does a Tankless Water Heater Cost?
Here’s a rough breakdown:
ItemCost Range
Unit $500 – $2,500+
Installation $1,000 – $3,000
Maintenance (annually) $100 – $200
While tankless systems cost more upfront, their energy efficiency and longer lifespan can help offset the initial expense.
Some utility companies also offer rebates or tax incentives for upgrading to energy-efficient systems.
Is a Tankless Water Heater Worth It?
If you value:
- Never running out of hot water
- Lower energy bills over time
- A longer-lasting system
- More space in your home
…then a tankless water heater is a wise investment.
It’s especially worth considering if:
- Your current water heater is more than 10 years old
- You’re building a new home or doing a major remodel
- You frequently run out of hot water
- You want to reduce your home’s energy usage
Common Questions
How long does installation take?
Typically, 1–2 days, depending on your home’s layout and the scope of work required. The process involves removing your old water heater, installing the new tankless unit, and making any necessary upgrades to your plumbing or electrical systems. A professional installer will ensure everything is set up correctly and safely.
Can I use it with healthy water?
Yes, but regular maintenance is even more important to prevent buildup.
Do tankless water heaters work in cold climates?
Absolutely. Many units have built-in freeze protection, and a professional installer will ensure it’s set up for your specific region.
What brands are best?
Top-rated brands include Rinnai, Navien, Noritz, Rheem, and Bosch — but your plumber can help match the right model to your home’s needs.
Final Thoughts
Tankless water heaters aren’t just a trend — they’re a more innovative way to heat water, especially for modern homes that want efficiency without sacrificing comfort. While they’re not the cheapest option upfront, the long-term benefits often make up for the cost.
Thinking of making the switch? Schedule a consultation with a licensed plumber to see if a tankless system is right for you.
Interested in learning more or getting a free estimate?
📞 Call Gem City Plumbing Heating & Cooling at (937) 500-9282
