Advantages versus Disadvantages of Tankless Water Heater

Real Estate Agent with Keller Williams Realty

We all need hot water in our homes and expect to have it available to use on demand.  Prior to making decision on whether the tank-type or tankless water heater is the best solution for your situation, you need to do some extensive research on both systems.  In addition, it is very important you calculate the pay back on both systems.  Below, I am providing you a list of some the advantages and disadvantages of both types of hot water systems:

Tank-type Water Heater


·        Low initial installation cost.

·      Possible smaller gas or electric power requirements to install and  operate the system.

·      Easily adapts to re-circulation and solar pre-heat applications.


·      Energy is used periodically on a 24 hour basis to maintain a constant temperature.

·      May require multiple water heaters to meet the demand.

·      Each tank can provide a limited supply of hot water.

Tankless Water Heater


·     Energy is only used when there is demand for hot water and therefore more efficient

·      Requires less floor space.

·      Constant flow of hot water provided the tankless water system has the capability to heat and receive sufficient gas and electric.  Critical the system is size properly.

·      The tankless water heaters are safer because there is no risk of broken tank, flood damage to structure, and less risk of a breeding ground for bacteria.


·      High initial cost to implement hot water system.  Water heater requires a relatively high energy source to heat the water, especially in colder climates where the structure does not have proper installation.

·      May require higher gas or electric requirements to meet demand.  This drives up initial installation cost and service requirements to structure.

·       Re-circulation applications not easily installed, and usually requires a tank-type heater to maintain temperature.  

·      May require more routine service because of calcium buildup.

In conclusion, buyers should familiarize themselves with the facts about various water heaters prior to making a purchase decision.  It appears on the surface that tankless water heater is not a 1:1 replacement solution for the traditional tank-type water heater.       


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Peggy Chirico
Prudential CT Realty - Manchester, CT
REALTOR® 860-748-8900, Hartford & Tolland County Real Estate

Hi John - The question of tankless vs. tank comes up often in home inspections. This is a great summary that I will be sure to pass along to my buyers.

Mar 28, 2012 10:55 PM #1
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