Is a Tankless Water Heater a Good Investment?

It doesn’t take much effort to convince homeowners of the benefits of tankless water heaters. Whether it’s unlimited hot water (meaning no more cold showers), high energy efficiency, or taking up less space in your basement, there’s a lot to like about going tankless.

Tankless Water Heater

However, many customers experience a bit of sticker-shock when they get an estimate to install a tankless water heater in their home. Tankless water heaters have a higher upfront cost than traditional tank water heaters. But the investment can pay off in the long run thanks to lower energy bills, longer service life, an extended warranty, and other benefits. 

Why tankless water heaters are more expensive

There are a few reasons why a tankless water heater has a higher upfront cost than a traditional tank water heater. First off, tankless features newer technology and high-powered heaters, which increases the price of the equipment. Second, installation is more complicated, especially if new venting or electrical work is needed to install the tankless system. 

Are tankless water heaters worth the investment?

Now that we know that tankless water heaters are pricier in the short-term, the question remains – are they a good long-term investment? There are three important financial factors to consider:

  • Energy bills. Tankless water heaters are more energy-efficient than their tank counterparts. This means that a tankless system can help lower your energy bills (either gas or electricity) each month. How much can you save? Well, that depends on your hot water usage and energy prices. But the U.S. Department of Energy estimates an average home can save $108 (for natural gas) or $44 (electricity) per year when switching to a tankless water heater. Multiply that by the number of years you expect to use the unit, and you have your anticipated total energy savings. 
  • Longer service life. Speaking of years of service, tankless water heaters tend to last longer than tank water heaters. The main reason is that minerals and sediment often build up inside tank water heaters, deteriorating internal parts. To put things into perspective, a tank water heater’s average service life is 8-12 years, while a tankless system can last up to 20 years. So you may end up buying two tank water heaters in the same period as one tankless system. 
  • Longer warranty. Along with longer service life, tankless water heaters offer more extended warranties – typically 15 years compared to the standard 6-year warranty of most tank water heaters. This extended warranty can give you peace of mind that you won’t be hit with a surprise bill if there’s an unexpected problem with your tankless water heater. 

Is a tankless water heater right for you?

When deciding if a tankless water heater is a good investment for your home, you must consider the short-term costs versus longer-term savings, as well as the comfort benefits for your household. If you want to start crunching the numbers, talk to the friendly team at Pratt Plumbing. We’re here to help Amarillo, TX, homeowners make smart decisions. Schedule an appointment today at (806) 373-7866.

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