Thinking of upgrading to a tankless water heater? Before doing so, learn the pros and cons of installing one - cost, requirements, and maintenance.
If it’s time to replace your water heater, you may be thinking of installing a tankless model in your home. To help you make the right decision about which kind to install, we’ll explain how tankless water heaters work and point out some of their advantages and disadvantages.
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Tankless water heaters — also known as demand-type, on-demand or instantaneous water heaters — heat water directly, without the need to store water. A tankless heater has a flow sensing device that is activated whenever a hot water tap is opened. The unit then heats the water using either a gas burner or an electric element and directs the water wherever it’s needed in your home. Since there’s no tank that must be replenished, you don’t have to worry about running out of hot water. Once you close the hot water tap, the unit senses that the flow of water has stopped and shuts off the heating element.
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Electric tankless water heaters are cheaper than the gas versions. Installation is easier and less expensive, and they’re generally not as difficult to maintain as gas models. Very few, though, have the capacity to serve multiple outlets at once.
Gas units are available in a large variety of models and sizes for both home and commercial use and range in output from 130,000 to 380,000 BTUs. More BTUs means more heating power. Keep in mind, however, that most conventional gas tank water heaters were not installed with a tankless retrofit in mind. Consequently, your home’s gas piping, meter and main line to the meter may not be sized properly, requiring an expensive reconfiguration and installation. Gas units also require a safe ventilation system, while electric units do not.
For both gas and electric models, a tankless water heater’s overall energy efficiency is measured using an energy factor (EF) rating. This EF rating is based on test procedures developed by the U.S. Department of Energy. Today, tankless water heater energy factors range between .64 and .91 for gas-fired models and up to .99 for electric models. The higher the energy factor, the more efficient the water heater.
For a household of one or two people, a tankless electric unit will probably be adequate. For larger households, a gas-fired tankless water heater is probably the way to go.
However you choose to meet your home's hot water needs, you'll also want to protect the investment you've made in your water heater. That means performing the manufacturer's recommended preventive water heater maintenance, periodically draining the tank (or lines) to remove damaging sediment and scale. To further minimize the costs associated with the repair and replacement of your water heater, consider purchasing an American Home Shield® Water Heater Home Warranty. Our flexible plans can help you protect your home, as well as your household budget.
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