Why You Shouldn’t Install a Tankless Water Heater

Tankless water heaters are often marketed as an energy-efficient alternative to tank systems. However, tankless water heaters also come with plenty of cons you may not know about.

Why should you avoid installing a tankless water heater? Here’s what you should know before making a costly switch!

Why Tankless Water Heaters Aren’t Always Worth It

At first glance, tankless water heaters seem like the best choice. They’re compact and promise an endless amount of hot water on demand.

Yet, in reality, tankless water heaters aren’t suitable for everybody. Having one can quickly turn expensive and inconvenient.

So before you buy one, it’s best to compare a tank vs. a tankless water heater.

The following points break down why tankless water heaters aren’t always worth it.

1. The Upfront Tankless Water Heater Cost Is Significantly Higher

Tankless water heaters are generally more expensive than traditional units. In many cases, the tankless water heater costs twice as much. This is because of their technology and design.

Tankless water heaters rely on high-powered heating elements that bring water temperature up instantly. In contrast, traditional units are simpler, heating water in bulk.

Tankless water heaters are also more expensive for homes with multiple showers. You’ll need more than one heater to keep up with the demand.

When you add it all up, the upfront tankless water heater cost is much higher than traditional units.

2. Tankless Water Heater Installation Is More Complex (and Expensive)

Tankless water heater installation is a big contributor to cost. Unlike traditional water heaters, tankless water heaters require more expertise.

First, tankless water heaters rarely align with an old house’s infrastructure. You may need to upgrade gas lines or change electrical systems. Not only that, but you may also have to install new ventilation.

Next, tankless water heaters have a higher installation cost due to certain laws. These water heaters have specific clearance and safety requirements.

In short, tankless water heater installation is more complex, which adds to labor costs.

3. Limited Flow Rate Can Be a Dealbreaker

Flow rate is one of the biggest challenges of tankless water heaters.

Typically, these heaters can make hot water at a rate of two to five gallons per minute. This sounds like a lot. However, if you’re running a bath, doing the dishes, and washing your clothes at the same time, you’ll encounter problems with a tankless water heater.

To overcome this problem, large households must install two or more tankless water heaters.

4. You May Experience Delays in Hot Water

Delayed hot water is a common issue for tankless heaters.

Some tankless heaters take 15 to 20 seconds to heat water. Moreover, the heating time is longer if the tap is further from the heater.

If you don’t like waiting for your shower water to reach a certain temperature, a tankless heater may not be ideal.

5. Regular Tankless Water Heater Maintenance Is Required

Tankless heaters require stricter maintenance than traditional heaters.

Tankless water heater maintenance involves annual mandatory descaling. Here, tankless units are flushed with a descaling solution to prevent mineral buildup.

Following this, you may need to clean the filters periodically. If your area has hard water, you should also use a water softener to prevent scaling.

In comparison, traditional water heaters only need annual flushing and an anode rod replacement once every two years.

6. No Hot Water During Power Outages

Tankless water heaters are heavily reliant on electricity. Even tankless water heaters that use gas have electrical components. Ignition systems, control panels, and sensors all require electricity.

Furthermore, there’s no stored hot water. If there’s a power outage, you may not be able to use your heater.

7. Not Ideal for Every Home

Despite the hype, tankless water heaters aren’t necessarily fit for everyone. A tankless water heater’s reliability depends on the home’s layout and household water usage habits.

Tankless water heaters are a good option for small homes with low hot water needs. That said, large households may find traditional units more practical.

If you have an older home, it’s best to have a professional check your electrical capacity and gas supply.

Moreover, if you live in colder climates, you should consider the extra energy for the tankless heater to heat low-temperature water.

When a Tankless Water Heater Does Make Sense

Although tankless water heaters have cons, they can be an efficient choice in some cases. Here’s when having a tankless water heater makes sense.

  • Households With Low Water Usage: Small households with low to moderate water usage are ideal. Having a low hot water demand allows the heater to keep up.
  • Homes With Limited Space: Tankless water heaters are compact and can even be wall-mounted. They don’t take up much space, making them a good choice for houses with limited space.
  • New Homes: Newer homes have proper gas lines, higher electrical capacities, and ventilation. This means it’ll cost less to have a tankless water heater installed.
  • Households Prioritizing Efficiency: Tankless water heaters make hot water on demand. Because of this, you don’t need constant energy to keep the water hot, unlike traditional heaters.

Tank vs Tankless Water Heater – Which Is Right for You?

Before choosing a tank or tankless water heater, it’s important to consider all the factors to determine which option is best.

Contrary to popular belief, choosing a heater is more than upgrading to newer technology. Instead, you should choose the system that’ll work in your circumstances.

Below, we compare the pros and cons of tank vs tankless water heaters.

Tankless Water Heater Pros & Cons

Tankless water heaters have advantages and disadvantages based on your circumstances.

Pros

  • Space Saving: Tankless water heaters are incredibly space-saving. They’re the best option for those living in condos and small homes.
  • Long Lifespan: Most tankless water heaters last for more than 20 years with proper maintenance.
  • Continuous Supply: If you have low hot water requirements, a tankless heater can provide an endless supply.
  • Energy Efficiency: There’s no standby heating when you have a tankless heater. This means you can potentially save on energy costs.

Cons

  • High Cost: The tankless water heater’s cost of installation is higher than that of traditional systems. You may need to make major upgrades if you have an older home.
  • Poor Cold Weather Performance: Cold weather can affect a tankless heater’s efficiency. It may take longer for your water to heat up in low temperatures.
  • Limited Flow Rate: A tankless heater will have trouble keeping up if you use too much hot water simultaneously.
  • Electricity Dependence: You need electricity to operate a tankless water heater. This can affect your heating during power outages.

Tank Water Heater Pros & Cons

Traditional tank water heaters have been a reliable choice for many households throughout the decades. Here’s why you may or may not want to use it.

Pros

  • Simple Installation: Installing a tank heater is straightforward. There are no extra costs for installing gas, electricity, and ventilation.
  • Low Cost: Tank heaters are more affordable and accessible. They’re a budget-friendly option for homeowners.
  • Consistent: Tank heaters provide consistent water pressure. If you have a gas-powered tank, you can still have a supply of hot water even in power outages.
  • Low Maintenance: Tank heaters require less servicing than tankless water heaters. You can save on labor and maintenance costs.

Cons

  • Limited Supply: Once you empty the tank, it can take a while to refill and reheat.
  • Shorter Lifespan: Tank water heaters have a lifespan of 10 to 15 years. You should replace them within this timeframe to avoid water damage.
  • Risk of Leaks: Tanks can corrode due to water pressure and poor maintenance. This can lead to leaks and water damage.
  • Requires Floor Space: Tank water heaters take up valuable floor space. It may not be possible to have it in small homes.

Talk to a Local Plumber Before Installing a Tankless System

Tankless water heaters require more complex setups than you realize. You may need new ventilation, gas, and electricity lines.

For this reason, we recommend talking to a local plumber before installing a tankless system.

A local plumber can help you work out how much work needs to be done. Getting expert advice early lets you avoid unexpected costs down the line!

FAQs

Are tankless water heaters worth the money?

Tankless water heaters are worth the money in some cases. If you have a modern home with a low to moderate water consumption, a tankless heater is worth it.

Can a tankless water heater run out of hot water?

Tankless water heaters provide an endless supply of hot water. However, if you’re running multiple sources of hot water, it might not keep up due to the flow rate.

To solve this, you can install two or more tankless water heaters.

How much does it cost to install a tankless water heater?

Tankless water heaters can cost between $1,403 and $3,898 on average. Plus, you may need an extra $200 to $500 for permits and other upgrades.

The cost depends on your setup and requirements. 

What size tankless water heater do I need?

To know the best size of a tankless water heater, compute the maximum required flow rate. In general, a 7 to 9 GPM heater can provide enough water for three to four fixtures simultaneously.