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How Tankless Water Heater Installation can Improve Efficiency

In this blog, we’ll dive into how tankless water heaters work, the key benefits they provide, and why installing one could be the upgrade your home needs!


When it comes to home improvement, upgrading to a tankless water heater might not be the first thing that comes to mind—but it should be!

Whether you're a homeowner looking to cut energy costs, upgrade your appliances, or just reduce your carbon footprint, installing a tankless water heater is a smart investment that can significantly improve the efficiency of your home.

In this post, we’ll dive into how tankless water heaters work, the key benefits they provide, and why installing one could be the upgrade your home needs.

How Tankless Water Heaters Work

waterheater

(Photo from This Old House)

A traditional water heater keeps a large tank of water hot and ready to go 24/7. This means the appliance constantly consumes energy to maintain the water’s temperature, even when no one is home or using hot water. A tankless water heater, on the other hand, heats water only when it’s needed.

Also known as on-demand water heaters, tankless models are activated whenever you turn on a hot water tap. Cold water flows through a heat exchanger, typically powered by electricity or gas, which instantly heats the water to your desired temperature. This process eliminates the need for a standby tank and, more importantly, eliminates wasted energy.

The Efficiency Factor: Why Tankless is Better

1. Energy Savings

One of the biggest perks of installing a tankless water heater is the significant energy savings. According to the U.S. Department of Energy, tankless water heaters can be 24%-34% more energy-efficient than conventional tank heaters in homes that use 41 gallons or less of hot water daily. If your household uses more than that, you can still expect efficiency gains of 8%-14%.

Why the big difference? It's because there’s no need to keep a large tank of water hot all the time. Traditional water heaters suffer from “standby heat loss”—they constantly reheat water, even when you’re not using it. Tankless water heaters, by contrast, only use energy when you need hot water. Over time, this reduced energy consumption will be reflected in your utility bills, making a tankless system a wise choice for both your wallet and the environment.

2. Unlimited Hot Water

Ever had a shower cut short because someone else used all the hot water? Tankless water heaters eliminate that problem. Because they heat water as it flows through the system, you won’t run out of hot water—perfect for larger families or households where multiple people are showering, washing dishes, and doing laundry all at once. With a tankless unit, you have an endless supply of hot water on demand, ensuring a better home experience overall.

3. Space-Saving Design

Traditional water heaters are bulky, taking up a significant amount of space in basements, closets, or utility rooms. In contrast, tankless models are compact and can be mounted on walls, freeing up valuable square footage. This is particularly appealing if you live in a smaller home or want to maximize storage space. A tankless system can be tucked away in a less obtrusive location, making it easier to manage your home's layout.

4. Longer Lifespan

Another efficiency benefit of tankless water heaters is their longevity. While traditional tank water heaters typically last about 10-15 years, tankless water heaters can last up to 20 years or more with proper maintenance. This extended lifespan means fewer replacements, less waste, and more long-term savings.

5. Reduced Risk of Leaks and Water Damage

Traditional water heaters come with a significant risk: a leaky tank. If the tank corrodes or cracks, it can flood the area around it, leading to expensive water damage and repairs. Tankless systems, on the other hand, don’t have a storage tank, meaning there's no risk of leaks from tank failure. By switching to a tankless water heater, you not only improve efficiency but also protect your home from potential water damage.

Eco-Friendly Advantages

If you’re looking for ways to make your home more environmentally friendly, installing a tankless water heater is a great step in the right direction. By reducing energy consumption, you lower your household's carbon footprint. Many tankless models also have advanced features that allow for even more energy savings, like modulating burners and smart technology that adjusts the heating process based on water usage patterns.

Additionally, because tankless systems last longer than traditional water heaters, you’ll be contributing less to landfills over time. Fewer replacements mean less waste—and that’s something any eco-conscious homeowner can appreciate.

Factors to Consider Before Installation

install-1

(Photo from Viking Plumbing Inc.)

Now that we’ve outlined the benefits, it’s important to consider a few things before committing to a tankless water heater.

1. Initial Cost

Tankless water heaters tend to have a higher upfront cost compared to traditional tank models. However, the long-term savings on energy bills and the longer lifespan often outweigh the initial investment. Think of it as a smart, long-term solution that pays for itself over time.

2. Installation Requirements

Installing a tankless water heater is more complex than simply swapping out your old tank. It requires a professional installation to ensure proper placement, venting (for gas models), and the right gas line or electrical setup. In some cases, additional upgrades may be needed to accommodate the new system, especially in older homes. It’s essential to consult with a licensed plumber or HVAC technician to get a clear idea of the costs and logistics involved.

3. Hot Water Demand

While a single tankless unit can provide an endless supply of hot water, there are limitations to the flow rate. Homes with high simultaneous hot water demands (e.g., using multiple showers, appliances, and sinks at once) might need more than one tankless unit or a larger model to meet their needs.

Is a Tankless Water Heater Right for Your Home?

tankless

(Photo from Water Heaters Now)

If you’re looking for a way to increase your home’s efficiency, lower energy bills, and reduce your carbon footprint, a tankless water heater is worth considering. With their space-saving design, longer lifespan, and endless supply of hot water, they offer a modern solution for today’s homeowners.

To make the most of your investment, be sure to hire a reputable, experienced professional to handle the installation and help you choose the right model for your home. With the right setup, you’ll enjoy the benefits of an energy-efficient, eco-friendly hot water system for years to come!

Thank you guys so much for taking the time to read this blog post - we here at Connect truly appreciate it! For all the latest home related blog content, keep your tabs posted on our socials: we get new posts up every Tuesday, Thursday, and Sunday!

Check out these websites as well - they provided us with the inspiration to create this blog post!

Energy: https://www.energy.gov/energysaver/tankless-or-demand-type-water-heaters#:~:text=Tankless%20water%20heaters%2C%20also%20known,heaters%2C%20which%20can%20save%20money.

Green Plumbing: https://www.greeneplumbing.com/how-a-tankless-water-heater-can-improve-your-life/

Plumbing Connection: https://plumbing-connection.com/blog/how-professional-installation-can-maximize-tankless-water-heater-efficiency/

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