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Building a New Home: Tankless Water Heaters

By
Real Estate Agent with Platinum Realty, LLC KS# BR00012805

Tankless Water Heaters, Are they worth it!

Okay, I had a friend ask me about tankless hot water heaters and I need some feedback from anyone who might have some personal experience either as a user, installer or builder

Here's what I have read or heard.  Tankless water heaters have an endless supply of hot water (but do they provide instant hot water) and they can save energy (but do they really, if you have an unlimited supply of hot water, won't people just use more hot water?).

Tankless Water HeatersSo what is a tankless hot water heater. Well, a tankless water heater is a major appliance that heats water as it is needed. For this reason, it is often referred to as an "on demand" water heater. The traditional storage tank water heaters keep large quantities of water heated whether or not the water is about to get used. Storage tank water heaters expend energy to heat new water as hot water is used AND storage tank water heaters also reheat water that has not been used but has cooled inside the tank. On the other hand, a tankless water heater only expends energy to heat water as it is used. The energy savings from using a tankless water heater instead of a storage tank water heater are projected to be between 15% and 40% (NOTE: this projection is 15% to 40% of the approximately 20% of your energy bill that goes to heating water, not 15% to 40% of your entire energy bill).

Okay, so now you know what it is, what about the common features of a tankless water heater?  There are as follows:

  • Quick Multi-unit Configuration: if you are planning on using more than one tankless water heater in a parallel configuration, look for models that are designed to be configured this way. It is possible to connect tankless hot water heaters that are not designed to be connected, but it is more challenging and more expensive.
  • Energy Star: If you purchase a tankless water heater that is Energy Star rated, you know you've purchased a heater that is one of the most efficient available. What's the advantage to you? More hot water is created for less energy expended. Lower heating bills. Environmentally friendly.  
  • Space saving design: Tankless water heaters tend to be fairly compact. If space is an issue for you, make sure the unit you get is indeed a "low profile" unit and fits into the space you have allocated for it.
  • Electronic ignition of gas: Electronic ignition sparks the combustion process, and makes it unnecessary to have a pilot light.
  • Wireless remote controls enable water users to remotely control the temperature of the water that is coming out of their faucet. 
  • Indoor/outdoor installation: Some tankless water heaters are capable of being installed either inside or outside your home. The units that are installed outside usually require no dedicated venting.

Well, the what is solved, so why purchase a tankless water heater?  There are basically three reasons to buy a water heater:

  1. You are tired of paying high energy bills, and have determined that a tankless water heater is a good long-term investment.
  2. Your current water heater is broken and it cannot be repaired.
  3. Your old water heater regularly fails to provide a sufficient supply of hot water.

Now let's answer the types and energy uses for tankless hot water heaters.  Two types of tankless water heaters are:

  • Whole-house tankless water heaters have a relatively high capacity (2 to 5 gallons per minute) and are designed to provide hot water to entire house from a central location.
  • Point-of-use tankless water heaters are relatively low capacity and are design to heat enough water for one or two fixtures. They are used when hot water is needed a distance from a residence's central water heater (a shower in a bath house, a sink in a guest house).

And for the three energy uses for tankless water heaters, they are:

  • Natural gas is the most common fuel used for tankless water heaters. It heats water quickly and efficiently. To be able to use a natural gas tankless water heater, natural gas has do be available to homes on your street. If you already have gas appliances in your home, running the gas to the new water heater should be straightforward. If gas is available on your street but you are not yet connected, you will need to have your plumber coordinate with the utility company to run a line into your house. This job usually requires a permit and the work needs to approved by an inspector. You will need to vent the by-products of combustion safely from your home.
  • Propane heats water quickly and efficiently like natural gas. However, unlike natural gas, propane is stored in a tank on your property. Rural homeowners frequently use propane because they do not often have natural gas service but they do have the space to store a propane tank.
  • Electric tankless water heaters do not heat water as quickly as gas water heaters, which makes them ill-suited to be a central water heater functioning as the primary source of hot water in a home. Electric tankless water heaters can function well in some other configurations. Bosch

So what about the available brands and who are the top 10 rated tankless hot water heaters?  Splise brand comparison shopping rated the following in this order. 

  1. Bosch
  2. Rinnai
  3. Noritz
  4. Paloma
  5. Rheem
  6. Titan
  7. Takagi
  8. Powerstar
  9. Eemax
  10. Seisco

So there you have it, now who has experience with any of these?  Thank you for providing your input!

David L. Britt
Olathe, Kansas
http://www.davidlbritt.com/

http://www.heritage.net
http://heritagerealestateteam.com
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Guiding You HOME!

Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel
Thanks for sharing the information. I have heard of it but do not know anyone who has it here.
Aug 10, 2007 11:47 PM
Dale Baker
Baker Energy Audits and Commercial Properties Inspections - Claremont, NH
New Hampshire Relocation Real Estate Information

Howdy David

Every time I read one of your posts I get to learn someting.

Keep up the good and helpful info.

Have a good one

Aug 19, 2007 06:21 AM
David L. Britt
Platinum Realty, LLC - Olathe, KS
MBA
Gita, you are welcome, hope it helps!
Aug 23, 2007 05:25 PM
David L. Britt
Platinum Realty, LLC - Olathe, KS
MBA
Dale, thank you, I appreciate your comments and I truly hope benefit is gained!
Aug 23, 2007 05:26 PM
Michael Thomas
Paragon Property Services - Chicago, IL
Home Inspector - Chicago, IL
I now have a total of 5 Takagi tankless water heaters installed both at my home and at rental properties here in Chicago. They are now working well, but it did require some effort to get everything working properly. I've put up a page about installation problems with tankless heaters - Paragon Home Inspections Evanston / Chicago IL here.
Dec 23, 2007 01:40 AM
Anonymous
Titan Electronic Tankless Water Heater
If you are looking for a tankless water heater I would recommend the Titan electronic tankless water heater. I purchased one years ago and I enjoyed it so much I actually started a company selling them. The titan don't have the temperature variation problems that other units have and they are protected from dry-starts. They are very compact, very powerful and made in the USA by Niagara Industries who have over  23 years of experience.   For more information please visit me site at www.etankless.com or you can call me at 888-688-8010
Jan 03, 2008 01:57 AM
#18
Charles Esposito
JenRan Homes, LLC - Woodstock, CT

"Electric tankless water heaters do not heat water as quickly as gas water heaters, which makes them ill-suited to be a central water heater functioning as the primary source of hot water in a home. Electric tankless water heaters can function well in some other configurations."

 

That is not true anymore.  Electric has come a long way and can provide whole house hot water and very fast.  In fact, I have an electric tankless that provides hot water for my radiant floor heat AND domestic hot water for the whole house.  We only use it in the winter as my Solar Hot Water heater provides our hot water in the summer. 

Jan 14, 2008 10:31 AM
BILL CHERRY
Bill Cherry, Realtor - Dallas, TX
Broker & Wealth Coach

I personally think the conventional water heaters out to be phased out and replaced with the tankless ones; that is, if we are really serious about conserving energy, etc.

The heaters have elements in them.  When demand is high, all are on.  When demand lessens, one or two of them are on.  You really will have an endless supply of hot water.  If the water in the pipe between the heater and the facet is cold at the time you turn the facet on, that water won't be hot until the new water from the heater gets to the end of the line where you are.

If instant hot water is important to you, you can install a recirculating pump on the hot water side of the line, and water will always be hot the moment you turn on one of the hot water facets.

Jan 14, 2008 02:44 PM
Anonymous
Tony

Tankless heaters take even longer than traditional tanks to provide hot water!  Precious water is also wasted down the drain while waiting for the heated water to travel to the tap!  I recommend The Hot Water Lobster instant hot water valve over a tankless.  Instead of waiting longer for hot water, you'll get it faster!  It gives convenient access to instant hot water throughout the entire home!  It's easy for anyone to install, works off of the homes existing plumbing, and costs only $179.95

The Hot Water Lobster uses no electricity and is pump free, so it creats no noise.  It is made in the U.S.A., has a 10 year warranty, and can be easily installed in under 10 minutes.

Check it out at:

http://www.hotwaterlobster.com/

Feb 28, 2008 05:03 AM
#21
Bill Blair
Coldwell Banker Realty - Covington, GA
Covington Georgia Realtor Covington Living Homes

David... Nice post with lots of good info.  We're just starting a new traditional neighborhood development and one of my builders told me last week that he is installing tankless heaters in all the homes he builds in the neighborhood.  They used to be a bit more expensive - even a year ago - but the city is now giving incentives to builders such that they are about the same price as tank heaters.  A couple of interesting additional things I've learned though: 1. Your plumber needs to be trained on the system and familiar with the installation.  2. To make the tankless work correctly and efficiently, it needs a 2-inch gas line rather than a standard 1-inch which normally feeds the house, and 3. There are now units available with remotes or wall-mounted switches that you operate when entering a room, e.g., bathroom, which direct instant hot water to that room.  That saves wasting water by having to wait while the cold water is run out of the pipes.  In fact, I understand that now this can even be accomplished with a room motion detector.

Is that pretty "George Jetson", or what!

Feb 28, 2008 08:17 AM
Kathleen Lordbock
Keller Williams Realty Professionals - Baxter, MN
Keller Williams Realty Professionals
We are considering the Bosch propane for our master bath addition. Thanks for the info.
Feb 28, 2008 03:33 PM
Anonymous
Jeannie

I had heard that these water heaters don't allow you to use hot water in more than one place at a time.  For instance, if someone in your home is taking a shower, you won't get hot water to your kitchen sink at the same time.  Anyone know if this is true?

Mar 27, 2008 12:36 PM
#24
Michael Thomas
Paragon Property Services - Chicago, IL
Home Inspector - Chicago, IL
Depends on the heater - generally, gas fired units can be built with higher capacities than their electric counterparts. For example the gas fired Takagi T-M1 at my  2 1/2  bath room house supples plenty of hot water even when the dishwasher or washer is running.
Mar 27, 2008 10:33 PM
Anonymous
Bobby C.
Tankless water heaters are expensive and overrated!  They take longer to provide hot water than even a standard hot water tank.  Water and time are wasted down the drain while waiting for this hot water to reach the tap!  A great alternative is a Hot Water Lobster Instant Hot Water Valve!  It's a recirculation system that conserves water while also providing instant hot water throughout your entire home!  It's easy for anyone to install, works off of the homes existing plumbing, and only costs $179.95! 

The Hot Water Lobster uses no electricity and is pump free, so it creates no noise.  It is made in the U.S.A., has a 10-year warranty, and can be easily installed in under 10 minutes.

Check it out at:

http://www.hotwaterlobster.com/
Apr 30, 2008 03:47 AM
#26
Anonymous
Martin Jennen

Can I install a tankless hot water heater inline with my exisiting hot water tank system?

We are in the process of remodeling our home and will end up with 5 bathrooms which contain 3 tubs and 4 showers.  Our current tank holds 50 gallons which is not enough by itself and it does not appear that a single tankless system will supply the potential volume needed either.

I thought if I could feed the tankless system out of the current hot water tank (or vice versa) that this might work since I would not have to heat cold water.

 

May 14, 2008 10:51 AM
#27
Sharon Hampton
Re/Max Around The Mountains - Blue Ridge, GA

DAVID: I haven't  had any experience with the tank less but I do know that when I have to replace my water heater  will go tank less!! 

May 14, 2008 12:37 PM
Tina Merritt
Nest Realty - Blacksburg, VA
Virginia Real Estate

Keep these in mind for your VA buyers!  Remember, you can ad up to $3000 for energy efficient improvements to a home being purchased with a VA loan!  I've done this with a few buyers and it's easy!

Tina in Virginia

May 14, 2008 02:14 PM
Anonymous
Kathy in Upland California

Excellent info!  Here is what we are wondering.  The units for a house of around 1800 sq. ft cost between $1500 - $2000.  Once installed your electric bill is much higher and takes around 3 years for it to pay for itself.  Now we haven't heard of the gas units, which sound much better because here in California Gas is much cheaper than electric.  We will look into those.  But from what I can gather from everyone here, gas gets hotter faster, but it also sounds like you need something else to get the hot water to its location faster.  We always have heard that the hot water is instant. And how do we know if the installer really knows what he/she is doing?  And then how do we know that it was installed correctly? 

Aug 30, 2008 03:51 PM
#30
Anonymous
Beverly Emahiser

I just left you a comment on your doorless shower. I am looking for just this  idea to complete it!Some other way to get HOT water is a necessity for us. We are wasting so much water now trying to get the hot water to our bathroom, only 20 feet away. I watched and took pictures of my home being built 13 years ago, and I know they didn't swing the pipes through Cleveland to get to my bathroom in suburban Atlanta, yet it takes over 1.5 minutes to feel any warm water in the shower and sinks of the Master Bath. I have just discovered your gold mine of ideas. As  a homeowner and former C-21 realtor,I applaud your ideas and information. Thanks!

Sep 17, 2008 01:06 PM
#31
Michelle Minch
Moving Mountains Design Home Staging, Pasadena, CA - Los Angeles, CA
Home Staging Los Angeles and Orange County, CA

I live in a house built in 1920. We have a small basement which housed our water heater until recently. After the third time that I found 6" of water in the basement due to one or another of the feeds to or from the water heater springing a leak, we decided to install a tankless Rinnai water heater. I love it! Our natural gas bill is consistently half of what it was and the hot water has no end. The one downside is that we installed the heater on an outside wall and not in the basement in the center of the house. It takes longer for the hot water to reach the master bath shower than it did before. And it was expensive to install. But other than that, I highly recommend tankless water heaters.

Thanks for the very informative post.

Sep 17, 2008 04:25 PM