Tankless Hot Water Heater

The water you use still has to be heated.  The amount of energy required to heat a gallon of water to certain a temperature does not change just because its being heated at a faster rate.

The tankless water heater only eliminates standby losses of water sitting in the storage tank awaiting use.  Since the element only comes on approximately 5 minutes out of every hour to maintain that water temperature, the tankless water heater is only about 10 to 20 percent less expensive to operate than a conventional electric water heater.

And tankless water heaters come with drawbacks, (According to the U.S. Department of Energy) "Sometimes....even the largest, gas fired model cannot supply enough hot water for simultaneous....multiple uses....taking a shower and running the dishwater at the same time can stretch a (tankless) water heater to its limit".  Filling up a soaking tub is another example.

Solar water heaters can provide all the benefits of tankless water heaters, but eliminate up to 90% of your water heating costs compared to a maximum of 20% with tankless.
 

Benefits of a tankless water heater:

• Estimated to use 10 to 20 percent less energy than conventional tank-type water heaters.
   

• They take up less space and can even be installed on walls or in outdoor locations.
   

• The equipment is durable and since it does not store water, is subject to less corrosion than a conventional water heater, thereby lasting longer.
   

• They are more efficient than conventional water heaters with no stand by heat loss.
   

• Electric models do not produce green house gases.
   

Drawbacks of a tankless water heater:

• They cost up to 3 times as much as a tank-type water heater and the installation in an existing home may involve additional costs.
   

• The need for additional circuit breakers, or the need to purchase a second tankless water heater to accommodate more uses at multiple sites are expenses that might not be evident until after installation begins.
   

• Some consumers have experienced difficulty in locating a plumber or technician who is knowledgeable about the maintenance and repair of tankless water units.
   

• Your hot water output is split among all you household fixtures.
   

• Some research has shown that a conventional water heater (heavily insulated) may be as energy efficient as some tankless water units.