The biggest problems that people have with their hot not having enough and doesn’t last long enough for everyone to get a nice hot shower. These are problems that only exist with a tank water heater. A tankless heater can solve them. That’s because of how the two kinds of heaters work:

• Water Tanks: pre-heat a limited amount of water depending on size, but bigger means more money. If you use up all the hot water in the tank, you run out until reheated. 

• Tankless: heats up water as it’s needed—whenever you turn the faucet. They can bring water up to steaming, soothing temperatures in a matter of seconds. They can provide hot water indefinitely.

One of the biggest things homeowners want out of a new water heater is energy efficiency. This is where there’s the most dramatic difference between the two heaters:

• Water tank: operates continuously. That means it’s running even when you’re asleep, and much of that hot water will never even be used. That’s a lot of wasted energy—that you pay for.

• Tankless Heater: only heats water on demand. It’s a smaller, compact system that flash-heats water when you need it, and turns off as soon as you turn off the faucet. Tankless heaters are designed to save energy.

The cost advantages depend on whether you want a quick fix or a long-term investment:

• Tank heaters cost less up front but are expensive to run and wear out sooner.

• Tankless heaters cost slightly more up front, but can save you substantially on your monthly bills. Comparing a standard tank heater (50-gallon, electric) with an equivalent tankless (condensed gas-fired unit), the tankless unit can reduce energy costs by 60% or more.

Installation costs on tankless heaters have come down recently and that means the two different style heaters are now much more evenly matched. But after installation, the difference is clear:

• Water Tanks: are old technology, and they have flaws. Minerals build up inside the tank as it’s cooked over and over. Most tanks last only 10-12 years before they have to be replaced, and typically come with just a 6-year warranty.

• Tankless Heaters: are modern and more effective. They last up to 20 years with very little maintenance and most tankless heaters come with a 10-year warranty or longer.