Do Tankless Water Heaters Save Money?
One glance at a large water heater tank will reveal the flaws of a traditional system. Storage tanks keep gallons of water heated just in case any hot water is needed. The costs associated with this type of heater have caused many homeowners to turn to efficient tankless heaters to save money. In the tankless system, hot water is supplied on demand, which allows you to save energy throughout the day.
Does a tankless water heater save money for everyone? Probably; while there are higher upfront costs when you are going tankless, calculations suggest that every household will receive some financial benefits from making the switch.
Space, Energy and Emissions Savings
Because of their form and function, tankless water heaters save more than storage heaters. Here are the three areas in which you’ll find increased efficiency:
- Space: Instead of a storage tank that measures 5 or 6 feet in height, tankless water heaters operate from wall-mounted units that take up far less room. If you plan on refinishing your basement or using it for storage, this space will come in handy. Small units may even fit under a sink.
- Energy: As opposed to a storage tank system, tankless heaters only kick into gear when the hot water knob is turned. Standby costs of heating water in a large tank are eliminated.
- Emissions: By selecting an electric tankless heater, you’ll cut back on the greenhouse emissions your household produces. That makes tankless water heaters a greener alternative.
Clear Cost Savings
It’s clear that a tankless heater outshines storage tank models in numerous ways. But, how does a tankless water save money? The U.S. Department of Energy calculates you can gain between 8 and 34 percent more efficiency with a tankless heater. This adds up to savings of $100 per year with an ENERGY STAR model.
Though there are big energy savings in store, tankless heaters typically cost more than traditional storage tank heaters. However, tankless heaters may last 10 years longer than their counterparts, which puts the potential savings at $2,000 over the life of a heater.
Upfront Costs Have Diminished
In the past, the drawback to tankless water heaters has been that the cost was so high that homeowners could not recoup the investment. However, prices have dropped in recent years. A survey of home improvement sites puts storage tank heaters designed for families of four and carrying a 9-year warranty priced over $400. The same sites list tankless water heaters designed for two-bathroom homes at prices from $500 to $800, depending on the desired volume output.
The overwhelmingly positive reviews for tankless systems report nearly unlimited supplies of hot water for multiple showers. Using the U.S. Energy Department estimate of cost savings, homeowners could recoup the additional cost of the investment in a tankless water heater in fewer than five years.
Will a tankless water heater save money in your household? Unless you have unique circumstances, there is no doubt it will. Ask Reliable about finding the model that’s best for your home to start saving today.