The Benefits of a Tankless Water Heater

One of the growing trends in home improvement is the tankless water heater. Unlike traditional water heaters which store about 50 gallons of hot water at any given time, the tankless versions only heat water as it is needed. Basically, the water stays cold until you decide to turn on the shower or start the washing machine. Larger houses often utilize multiple heating stations to provide instant “on-demand” hot water throughout the house. There are several environmental and economic advantages to using a tankless water heater and it is a big step towards an energy efficient home.

Go here to get a full breakdown of how tankless water heaters work.

Economic Benefits

Save Money on Heating
Hot water costs the average homeowner over $1,000. Most homeowners who switch save enough money on heating bills to completely pay for the tankless unit in 2 to 5 years. This is a huge benefit for both landlords and residents of a home. Working out a simple cost benefit analysis will allow you to see when the monthly savings will equal the cost of the system.

Switch from Gas to Electric
For many people, it can be more economical to heat water with electricity as opposed to gas. This is especially true for those living in colder climates. A traditional water heater will need to use a ridiculous amount of energy to keep the water tank hot. Using an on demand system completely eliminates the need to maintain water heat. Also, if you go on vacation you will not be throwing away money to keep the tank hot while you are gone.

Tax Credits
Federal, state, and local governments are constantly offering tax credits to homeowners who make energy efficient upgrades to their homes. Talk to your tax preparer to see how these tax advantages can be used on your next return. For example, the in 2010 and 2011 the federal tax code allowed for 30% of the cost of a tankless water heater to applied as a tax credit.

Environmental Benefits

Reduction of Wasted Energy Resources
The largest environmental benefit of a tankless water heater is that it does not waste energy when operated properly. In contrast, a traditional water heater requires constant heating even when hot water is not needed in the home. With the price of fossil fuel rising, it is important to

Fossil Fuel Emissions are Also Reduced
In reality, most of our hot water is created by burning fossil fuels such as oil, coal, and natural gas. My reducing the need to burn these fuels, you will make a small reduction in the CO2 that is released in the atmosphere. If every home in the United States made the switch today it would have a massive positive impact on air pollution.

 

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