Do Tankless Water Heaters Save Money?
When considering whether to install a tankless water heater, the financial benefits are not as straightforward as one might hope. There are a multitude of factors that come into play, from location and power supply reliability to personal usage habits. This article delves into the details to provide a comprehensive understanding of the cost and savings associated with tankless water heaters.
Factors Influencing Cost and Savings
Power Reliability: One of the most significant downsides of tankless water heaters is their reliance on a consistent power supply. If you live in an area prone to power outages, such as those affected by hurricanes, earthquakes, or frequent storms, the sudden absence of hot water can be a major inconvenience. Tankless water heaters require electricity to operate and, when the power goes out, there is no stored hot water available.
In contrast, traditional water heaters store a supply of hot water that can continue to provide hot water for several days in the event of a power outage. For households with critical needs for hot water, such as medical purposes, this advantage can be crucial. If your area experiences frequent power outages, it might be more prudent to opt for a traditional model with an insulated tank.
Thermal Efficiency and Energy Loss
Tankless water heaters are designed to heat water on demand, theoretically saving energy by reducing standby heat losses. However, the efficiency of tankless heaters does not solely depend on demand-based heating; it also depends on the total surface area for thermal transfer in a conventional tank water heater. A standard 80-gallon tank heater has a large surface area for heat exchange, which means it loses heat continuously even when not in use.
The extent of this heat loss is influenced by various factors, including the temperature difference between the water and the surrounding air, the quality of insulation, and the location of the water heater. Even with an insulated blanket, heat loss is still ongoing, albeit at a slower rate. Therefore, the potential energy savings from a tankless heater need to be balanced against the continuous heat loss in a traditional model.
Personal Experience and Research
My personal experience with a tankless water heater is a testament to the mixed results that can be expected. Nine years ago, after thorough research, I installed a tankless water heater. The decision was made based on consideration of both the long-term energy savings and the immediate benefits of consistent hot water.
"Additionally, since the tankless heater only consumes gas when a hot water faucet is opened, there is no energy wasted on standby heat. This feature has led to a noticeable reduction in my gas bill over the years, although I have not observed a significant change in the overall energy cost.
"In terms of electric bills, the tankless heater replaced an electric tank heater, which significantly reduced my electric bill. The reduction in energy consumption was substantial, making a strong case for the long-term savings associated with tankless technology.
"From a maintenance perspective, I haven't had to perform any maintenance on the tankless heater to date. Traditional heaters often require periodic maintenance to ensure optimal performance, but the tankless model operates without the need for ongoing maintenance, further contributing to its cost-effectiveness.
Conclusion
Whether a tankless water heater is a wise investment depends on your specific circumstances. If you live in an area with reliable power, the consistent hot water and energy savings can be substantial. However, if you are susceptible to frequent power outages, the lack of stored hot water can be a drawback. Conducting thorough research, calculating the kilowatt cost versus BTUs for your specific location, and considering personal usage patterns will help you make an informed decision.
Overall, tankless water heaters can be a valuable upgrade, but they are not a one-size-fits-all solution. Careful consideration and cost-benefit analysis will ensure you maximize the benefits of this technology in your home.