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Tankless vs. Tank Water Heaters

By
Home Inspector with Diadem Property Inspections - Serving Southeast Michigan

Tankless vs. Tank Water Heaters

One of the common questions I get during an inspection is: "what exactly is a tankless water heater?"

After I give my answer, another question inevitably follows: "should I get one?"

It isn't my position to tell people whether or not to make such a purchase, but I am always happy to explain the differencess:

tank-style water heaterWe are all pretty familiar with the traditional tank or storage water heater. The water heating system is installed in a special insulated tank. Cold water is supplied to the tank through an inlet pipe and is heated according to the set temperature. The heated water is stored in the same tank until it is withdrawn. In case of a tankless water heater, there is no storage of hot water. The cold water is heated directly after passing heating coils installed in the unit.

As hot water is heated and stored constantly in the tank water heater, energy consumption is high. In tank water heater, cold water is supplied in the tank as soon as hot water is drawn off. Thus, the reservoir is always full with hot water, even if it is not required. This wasted energy is called standby heat loss.

As the amount of hot water availability in a tank water heater depends on the size of the reservoir, there are chances of insufficient or excess hot water.

Tank water heaters are available with fuel types - electric, natural gas and liquid propane.

 

 

Tankless Heaters

A tankless water heater doesn't store water, but produces hot water on-demand. They come in  electricity and gas (including propane and kerosene) models.

tankless water heater

The conventional tank water heater heats the water, stores it... and after a while, repeats the cycle as the water cools down.

This means you are using (and paying for) a lot of wasted energy.

So the main advantage of a tankless water heater is that it has no storage tank. It isn't on until water flows through it. But the moment water flows through it, the water triggers off a mechanism that turns on either the electricity or flow of gas which is ignited automatically. Water runs through a series of specially designed tubes (mostly high grade copper) that heat the water to very high temperatures instantly.

Water goes into the unit cold and in a matter of seconds begins flowing out hot.

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Jason Channell     Twitter - Home Inspection LinkedIn Twitter - Home Inspection

Diadem Property Inspections
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Comments (4)

Larry Bergstrom
Crescent Realty, Inc. Spanaway, WA. - Spanaway, WA
CNE, CRS, GRI

Jason. Cost differences?  And can a tank less water system keep up with a high demand of a busy home?

Nov 07, 2010 03:21 PM
Ingrid Laine
Sun West Mortgage Company, Inc. - Virginia Beach, VA
Loan Officer

Very Nice Jason,

I am considering getting a tankless system. Thanks

—Ingrid... Who's kid just won't go Night Night! 

Nov 07, 2010 06:52 PM
Dan Tobias
Rodeo Realty - Northridge, CA
Northridge Real Estate Expert

Jason good information. once the time comes to replace mine you can bet that i`m going tankless

Nov 09, 2010 07:23 AM
Dana Bostick
True Professionals, Inc. - North Hollywood, CA

Hi Jason,

I too get this question.  it's not an easy one to answer.  Many people are misled by thoughts of energy savings and fail to "crunch the numbers" and do due diligence about the true cost of installing and operating one.  

Tankless water heaters have been around for a long time and there is plenty of information a s statictics to be found. They have been installed in Europe and the far east for many years prior to making their introduction here in the US.

The biggest drawback in my opinion is the initial cost.  Not only the cost of the unit but the installation requirements need to be factored in.  They can be substantial. 

Since these are "high demand" systems as far as gas or electrical supply are concerned, those supplies invariably need to be upgraded, often at a significant cost.  Typically a NEW one inch gas line needs to be run to the location or a new, dedicated 220 volt circuit needs to be installed.  For a gas fired unit, mounted indoors, a new double or triple wall stainless steel venting system needs to be provided as well.  These are not inexpensive items.

In my experience, a typical 199,000 BTU unit that will supply a typical 3/2 family home will run anywhere from $2000 to more than $3500 installed. Weigh that against the $500-750 for a typical 50 gallon storage type water heater change out and you may have a different viewpoint.  Factor that into your ROI calculations and it might not make financial sense. 

Dana Bostick, www.activerain.com/inspectorD "RainMaker"

http://www.masterofbuzz.wordpress.com

 

Nov 13, 2010 01:59 AM