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How much can you save with a Tankless Water Heater? Is it worth the investment?

Recently there has been a lot of fuss about the benefits and demerits of a tankless water heater. Some say these are much better, and the investment is worth it because of the reduction in energy bills. At the same time, some people consider the water heater with tanks to be more reliable.

So, if you are looking for a new water heater for your place, knowing if investing in the tankless option is worth it is essential.

Different ways you can save with a Tankless Water Heater.

Tankless water heaters do come with a lot of benefits. Here are some benefits you can enjoy by installing these at your place.

1.      50% less energy usage means that you will be saving on your bills.

The first benefit of tankless water heaters is that it uses up to 50% less energy. Whether it be gas fuel or electricity, the consumption will be lowered by up to half. It is because these heaters only use fuel when you use water.

While you are not using water, these shut off fuel usage, and that’s why these are also called instant water heaters. On the other hand, traditional heaters use much more fuel and only reduce consuming gas or electricity when the water temperature has reached your desired limit.

2.      These do not store any water so you will save more water.

Water bills are another reason why you find this investment attractive. The thing about traditional water heaters is that they store around 30 gallons of water on average, which may result in increasing your water bill.

On the other hand, there is no water storage place with these tankless heaters, so only the water that flows through gets used. In this way, you can save much more water.

3.      Tankless water heaters are installed next to the faucet, so you don’t have to wait for hot water.

Tankless water heaters are usually installed very close to the faucet or the room where you use them. For instance, if a bathroom and kitchen share a wall, the heater will be installed on the shared wall’s plumbing.

Due to less distance, you will get hot water instantly within 2-10 seconds. It saves you time because traditional heaters make you wait for a few minutes, depending on how far they are installed from the faucet.

4.      These last longer than traditional water heaters with tanks

Another way tankless water heaters can save money is by lasting up to 20 or 30 years with good usage. Traditional heaters only last up to 10 or 13 years with good usage. The reason for this long life is that these don’t store any water, so there are no chances of leakages, rusting, or sediment contamination.

With almost triple the lifespan, you will save 3 times more money with tankless water heaters.

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5.      You will not need much space to install these, so you will indirectly save on your rent.

Traditional heaters are huge, and they take up a lot of space. Moreover, you cannot easily install them out of the house if you live on the upper floors. Due to these reasons, people often spend more on rent to find a suitable location.

Tankless water heaters save in that case because these take little to no space and can be installed anywhere. Thus, you don’t need to spend extra money on rent or pay for a place that is left unusable due to installing a water heater.

Are there any drawbacks to tankless water heaters?

Yes, there are some drawbacks to using these heaters that may make you step back from the decision to get one installed. Here are the top 3 cons of installing these instead of a tank water heater.

1.      Higher initial costs, including installation.

If you plan to install a new water heater at your place and have a budget for a traditional water heater, then switching to a tankless option will need to increase your budget. Additionally, installing these can cost more than the plumber’s fee. If the existing plumbing points at your place are incompatible with tankless heaters, the installation cost will increase further.

2.      For bigger homes, you need multiple of these installed

These heaters are not made for sharing because no hot water storage is attached to them. So, if you do the dishes and someone is taking a shower by sharing one heater, both sides may not get enough hot water. This problem increases with bigger homes where you need to install multiple tankless heaters, increasing the overall cost again.

3.      Repairs can be more expensive.

Lastly, the repairs done on tankless heaters are not common and can cost more in terms of parts and services. Although these do not go bad very often, keeping this in mind is essential if you are on a tighter budget.

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So, do tankless water heaters help you save?

Say that you have a small home, and the heater does not have to supply hot water to many taps. A tankless water heater is a good option in such places because it helps save money and time. On the other hand, if you have a big home, you may need to install multiple of these heaters, making the initial cost unbelievably high.

In such cases, the heaters with tanks have some benefits, like one heater simultaneously supplying water to the whole building. However, it also has its drawbacks, like when the hot water finishes, you have to wait for a certain time before it gets hot again. In short, these heaters have pros and cons; whether the investment is worth-it or not depends on your specific use case.


Water heaters are essential for homes where the cold weather gets unbearable. Dealing with daily tasks like washing and taking a shower is impossible with cold water. So, make sure to see whether the tankless water heater is the right option for you yet or not. Everyone may not find the value in investing in a tankless water heater, especially those with bigger homes.

Fun Fact:

On About Us | Plumbing Tulsa | Acts of Service Plumbing, you’ll find how our owner Rick Hudson overcame his early plumbing challenges. Learn more about our leaders and team.

One of many great companies we’ve had the pleasure of serving is making a difference in the Tulsa and surrounding areas. Visit their website: Paul Davis Corporate – Restoration and Emergency Service Provider.

When you need a trusted company for Plumbing Tulsa give our dynamic team a call!