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Are Tankless Water Heaters Better Than Traditional Water Heater?

Thank you for asking this question about Tankless Water Heaters vs Traditional, Felix. In today’s cost-conscious society, any way to save energy and money should be explored. The cost-saving benefit of replacing a conventional electric water heater with a tankless electric heater is often overestimated. The energy savings from eliminating the heat losses through a typical insulated storage tank is around $20 to $30 annually. Tankless water heaters (sometimes called instantaneous water heaters) don’t have a water storage tank and therefore water has to be heated much more quickly as it passes through a compact heating unit and typically requires an upgraded electrical circuit to handle the extra power.

Now, there is an attractive alternative to tankless water heaters called a heat pump water heater (HPWH) which requires no electrical upgrades and can save up to approximately $175 annually on water heating costs. Modern heat pump water heaters which take up no more floor space than conventional heaters are reliable and available from several familiar manufacturers with warranties of around 10 years.

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