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  • Writer's pictureRaja From Blue Home Solutions

Tankless Water Heater Pros And Cons

Updated: Dec 20, 2022

Homeowners rely on their water heaters for routine activities like showering, washing dishes, and doing laundry. A continuous supply of hot water is essential for a comfortable living. However, like other appliances, water heaters also have a limited lifespan. When planning to upgrade the water heater, various options are available in the market.

Primarily, homeowners have to choose between sticking with the traditional tank water heater or switching to more efficient and energy-conserving tankless water heaters. This post walks you through the advantages and disadvantages of tankless water heaters to aid in decision-making.

What is a tankless water heater?

Tankless, or on-demand water heaters, heat water instantly and provide hot water only when needed instead of storing it in a tank. Electricity, natural gas, and propane are the three popular fuel sources used for tankless water heaters.

Tankless water heater pros

Longer lifespan

Tankless water heaters have a longer service life than traditional tank water heaters. While storage water heaters have a life expectancy of 10-15 years, tankless water heaters can easily last for over 20 years. Another factor contributing to their longevity is that their parts are easily replaceable. It eliminates the need for costly replacements every ten years. Tankless water heaters also have longer warranties.

Money and energy savings

Though tankless heaters have a high upfront cost, they are more energy-efficient and prove cost-effective in the long run. As heating water takes up a significant portion of a household’s energy bills, it is better to opt for a heater that saves energy and reduces utility bills. A tankless water heater heats the water quickly and only when required, making them use less energy. They can reduce the annual energy costs by up to 35%.

Instant and unlimited hot water supply

One of the benefits of a tankless water heater is that you do not have to wait for hot water after turning on the faucet. Also, the water supply is not affected by the tank size. There are no waiting times in-between showers with tankless water heaters. They are more reliable, and a properly-sized unit will continuously deliver hot water as long it has fuel or the house has a water supply.

Compact size

Tankless water heaters are perfect for smaller homes with tighter spaces, where it is difficult to fit a bulky tank water heater. Tankless water heaters are smaller in size and take up very little space. These can be wall-mounted to free up the floor space. Tankless water heaters are versatile and can be installed anywhere.


Unlike tank heaters, tankless heaters have no storage unit to hold water, which reduces the chances of leaks and potential flooding. Another factor that makes them safe is they do not operate the whole day. They work only when hot water is required.

Tankless water heater cons

High upfront cost

A big downside to tankless water heaters is they are more expensive than conventional storage tank heaters. A tankless heater also has a high installation cost, especially when upgrading from storage water heaters. The installation may require adding a new venting, piping, or rerouting a gas line, increasing the overall cost. However, a tankless water heater pays for itself in the long run through a longer lifespan and lower energy bills.

Need additional equipment

Some areas have a hard water supply. The homeowner may need to install a water softener to ensure proper water heater operation. A softener increases the cost and also takes up more space.

Inconsistent temperature and water output

A tankless water heater may deliver reduced hot water output and inconsistent water temperature if multiple faucets are on simultaneously. Sizing the water heater properly ensures that it meets the household's hot water demands.

Cannot function during power outages

Conventional water heaters have tanks that store hot water for a particular period and ensure its supply even during a power outage. A tankless water heater fails to produce hot water without electric supply.

The advantages of a tankless water heart outweigh the disadvantages. Get in touch with a local plumber to know more about tankless water heaters and if they are the right choice for your home.

tankless water heater dial attached to wall

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