Tankless water heaters have revolutionized the way we think about hot water. Gone are the days of worrying about running out of hot water mid-shower. These efficient systems heat water only as it’s needed, providing a continuous supply of hot water for your family. Plus, they’re designed to last, with an average lifespan of 20 years or more. With long-term energy savings and potential tax credits, it’s no wonder many homeowners are ditching their traditional tank water heaters.
Table Of Contents:
Tankless Water Heater Pros and Cons
Like any home appliance, tankless water heaters have both their perks and drawbacks. Weighing the pros and cons will help you determine if switching over makes sense for your situation. Let’s break down the benefits and limitations of a tankless system:
Advantages
The biggest perk of owning a tankless water heater is, without a doubt, the never-ending hot water. This is great if you have a busy family and a tight shower schedule because running out of hot water mid-shower is a real downer. And while a standard tank water heater takes up a ton of space, tankless water heaters are super compact, freeing up valuable storage room.
If you’re environmentally conscious or want to lower your utility bills, a tankless water heater might be just what you need. Since they don’t constantly heat and reheat water like traditional tank water heaters, you’ll see long-term energy and cost savings. Plus, you may be eligible for tax credits with some Energy Star tankless water heater models.
Another cool thing – tankless water heaters tend to last way longer than traditional units, think up to 20 years or more compared to 10-15. Although they cost more upfront, this longer lifespan, lower energy costs, and reduced repair needs could make tankless heaters a financially savvy choice for your home or business.

Disadvantages
Although they sound pretty awesome, tankless water heaters have their drawbacks, too. Their upfront cost is significantly higher compared to conventional tank water heaters, and installation is typically more complex (more on that later). Additionally, while a tankless water heater can handle back-to-back showers, it can be a challenge when multiple appliances are demanding hot water simultaneously.
So, if you run the dishwasher and washing machine at the same time someone’s showering, your hot water flow might lose its oomph. Also, something to consider: tankless gas water heaters require proper ventilation to exhaust combustion gases.
Depending on the type and installation requirements, venting could increase the overall complexity and expenses. You may also need to factor in the cost of a plumber to run a new gas line to your unit if your home doesn’t already have one.
Tankless Water Heater Costs
Tankless water heaters come with a higher upfront cost compared to traditional tank-style water heaters. According to HomeGuide, the average installation cost ranges depending on various factors, including:
- Unit type and quality
- Fuel type (gas or electric)
- Installation complexity
- Location
- Necessary permits
Cost Factors
The main factor in pricing will be whether you choose a gas or electric model. Generally, installing a tankless gas water heater tends to cost more upfront due to the necessary gas line connections.
Electric tankless water heater installation costs can vary too depending on the kilowatt (kW) needed to meet your home’s hot water needs. But don’t let those figures scare you. Remember, tankless water heaters use less energy which saves money in the long run.
Long-Term Savings Don’t let the high upfront cost deter you. Tankless water heaters use less energy, which translates to long-term savings.
“Switching to a tankless water heater can save up to energy savings per year.” – Department of Energy
With federal tax credits available, going tankless could be the perfect opportunity to upgrade your home and save money. You can earn back the cost of a new heater quickly, making it a worthwhile investment.
Tankless water heaters are pricier upfront. HomeGuide says installing a tankless water heater can range depending on various factors, including:
- The unit itself
- Fuel type
- Installation complexity
- Location
- Necessary permits
Types of Tankless Water Heaters
Tankless water heaters usually run on either gas or electricity, with pros and cons for both options. Check it out.
Type | Pros | Cons |
---|---|---|
Electric Tankless Water Heaters | Often more affordable upfront, and quicker to install. More energy-efficient than gas. No venting is needed. | Lower hot water output compared to gas models. Requires higher electrical amperage (may need electrical system upgrades for your new heater installation.) |
Gas Tankless Water Heaters | Higher flow rate. Heats water faster than electric models. Works during power outages (if equipped with electronic ignition). | More expensive to install than electric. Requires a gas line connection and proper venting. |

Installing a Tankless Water Heater
Before you even think about tackling this project yourself, it’s essential to check your local building codes and secure any necessary permits. If you’re comfortable with plumbing and electrical, you could install a tankless water heater yourself, but for most folks, it’s best to leave it to the pros. Installation can involve gas lines, water pipes, venting (for gas models), and messing with your home’s electrical system. You can avoid headaches, and most importantly, safety hazards with a licensed professional by your side.
Want to never be caught in a cold shower? Newwrx Plumbing specializes in tankless water heaters in the Greater Sacramento Area.
Maintenance
Tankless water heaters require some maintenance to keep running smoothly, much like a traditional tank heater. To ensure your unit is operating at peak performance, a yearly inspection by a qualified technician is recommended. Here’s a tip: flush them once a year to remove mineral build-up, which can shorten your heater’s lifespan and affect its efficiency. Your trusty plumber can show you how.
For your tankless system, consult your owner’s manual or a qualified plumber to make sure everything is in good working order. Make sure you’re changing your water heater’s filter regularly and consider investing in a water softener to help reduce sediment build-up, especially if you live in an area with hard water.
FAQs About Tankless Water Heaters
What Is the Downside of a Tankless Water Heater?
Although tankless water heaters are energy-efficient and provide endless hot water, they are pricey to install. And if your home needs a gas line or additional electrical upgrades, expect an even heftier price tag. Tankless water heaters can struggle with simultaneous hot water demands and might need more frequent maintenance. It’s crucial to factor in all of these aspects before making a final decision.
Is It Worth Switching to a Tankless Water Heater?
If your current water heater needs replacing, then definitely consider upgrading. Although you’ll spend more on installation, you will get energy savings, endless hot water, a longer-lasting appliance, and more space in your home. If you aren’t facing an expensive water heater replacement any time soon, but want endless hot showers, calculating your hot water usage to see how much you could be saving long-term is helpful.
Can I Replace My 40-Gallon Water Heater with a Tankless Water Heater?
Yes, tankless water heaters can generally replace standard tank models. Since a 40-gallon tank is pretty average, most tankless units should handle your needs, but to know for sure, consult a professional to assess your hot water requirements. From there, they can recommend the right size and type of tankless water heater that will seamlessly integrate with your current setup.
How Big of a Tankless Water Heater Does My House Need?
To figure out the size you need, think about how much hot water you use at once – the flow rate – as measured by GPM (gallons per minute). Add up the flow rate of each fixture like sinks, showers, and appliances to estimate your peak usage. A professional plumber can do this assessment too, which will take the guesswork out of finding the right tankless water heater for your specific household needs.
Conclusion
Choosing the right water heater for your needs is essential for your comfort and budget. If saving money and having a steady hot water supply sounds amazing to you, a tankless water heater might be the perfect solution for your next home upgrade. Consider the factors we’ve covered in this post to find the right fit for your needs.