Homeowners ask us this question all the time: are tankless water heaters worth it, or are they just another expensive upgrade that sounds better on paper than it feels in real life? At Heritage Services, we believe the honest answer is it depends on your home, your hot water habits, and what you expect from your water heater. Tankless systems
Homeowners ask us this question all the time: are tankless water heaters worth it, or are they just another expensive upgrade that sounds better on paper than it feels in real life? At Heritage Services, we believe the honest answer is it depends on your home, your hot water habits, and what you expect from your water heater.
Tankless systems are not a magic fix for everyone, but when they are the right fit, they can be a solid investment. Let’s walk through how tankless water heaters work, how they compare to tank style water heaters, and whether they truly make sense for homes in our area.
What Is a Tankless Water Heater?
A tankless water heater does exactly what the name suggests. It heats water without storing it in a tank. Unlike storage tank water heaters that keep dozens of gallons of water hot all day, a tankless unit heats water only when you need it. Tankless heaters are becoming increasingly popular as a modern alternative for homeowners seeking efficient water heating solutions.
When you turn on a hot water faucet, cold water flows through the system. Inside the unit, a heat exchanger quickly heats the water using either electricity or natural gas. Tankless heaters are available in both gas and electric models, giving homeowners flexibility based on their energy source and preferences. That heated water then flows straight to your shower, sink, or appliance.
Because there is no storage tank, there is no standby heat loss. Traditional tank water heaters waste energy reheating stored water even when no one is using it. Tankless systems avoid that problem entirely. Tankless heaters are considered more energy efficient than traditional storage tank water heaters, which can lead to lower energy bills over time.
How Tankless Water Heaters Work
Most tankless water heaters rely on a flow sensor. When water flow starts moving through the pipe, the flow sensor signals the system to turn on. A temperature sensor monitors the incoming water temperature and adjusts the heating source to produce hot water at your desired setting.
Gas tankless water heaters use a gas burner powered by natural gas. Some gas models have a standing pilot light, which can waste energy, but newer models use an intermittent ignition device (IID) that eliminates the need for a constantly burning pilot light, improving efficiency. Electric tankless heaters rely on high-powered heating elements, and larger units may require professional wiring and electrical panel upgrades to handle the increased load. Both types are designed to heat water fast and only when needed.
This is why tankless water heaters work so differently from a conventional storage water heater. No waiting for a tank to refill. No running out of hot water halfway through a shower.
Tankless vs Tank Style Water Heaters
To decide if tankless water heaters are worth it, it helps to compare them to tank style water heaters. In addition to tankless and traditional tank models, other options like electric water heaters and heat pump water heaters are also available, each with their own pros and cons.
Tank style water heaters store a large volume of hot water in a tank and keep it heated at all times. Gas water heaters, a common type of tank model, require venting to safely expel gases produced during the combustion process. Electric water heaters, on the other hand, are often easier to install and are considered more eco-friendly since they do not produce combustion gases. Heat pump water heaters are another alternative, using electricity to move heat from the air or ground to heat water, offering a different set of advantages and drawbacks compared to tankless and traditional tank units.
Tank Style Water Heaters
Tank style water heaters store hot water in a storage tank. Once that hot water is used, the tank refills with cold water and reheats it.
Pros:
- Lower upfront cost
- Simple installation
- Works well for smaller households
Cons:
- Limited hot water supply
- Standby energy losses
- Larger footprint in the utility room
- Shorter life expectancy
Tankless Water Heaters
Tankless systems heat water on demand.
Pros:
- Endless hot water
- Less energy use
- Space savings
- Longer life expectancy
Cons:
- Higher upfront costs
- Installation complexity
- Output limits based on flow rate
Endless Hot Water Sounds Great But Is It Really Endless?
Tankless water heaters provide an endless supply of hot water, but that does not mean unlimited flow. Every tankless water heater’s output is measured by its flow rate (gallons per minute) and capacity, which is often specified in British Thermal Units (BTUs). These factors determine how much water the unit can heat at one time.
If multiple appliances are running at once, such as showers, a dishwasher, and a washing machine, the unit must keep up with your household’s hot water demand. Flow rate matters.
This is where questions like how much hot water does my home use and how many gallons per minute do I need come into play. The flow rate of tankless water heaters typically ranges from 2 to 5 gallons per minute. Most tankless units can handle several hot water devices at once, but larger households may need a higher capacity model or more than one unit.
Household Hot Water Needs
When it comes to choosing a tankless water heater, understanding your household’s hot water needs is one of the most important steps. Unlike storage tank water heaters, which keep a set amount of hot water ready at all times, a tankless water heater heats water on demand. This means the system’s ability to deliver an endless supply of hot water depends on how much hot water your household uses at once.
To make sure your tankless water heater can keep up, consider these key factors:
- Number of people in your home: More people usually means more hot water usage, especially during busy mornings or evenings.
- Hot water devices and appliances: Count up all the showers, sinks, dishwashers, and washing machines that might be running at the same time. Each device adds to the total flow rate your tankless water heater needs to handle.
- Usage patterns: Think about when and how often your family uses hot water. Do you often have multiple appliances running at once, or is usage spread out throughout the day?
- Temperature rise: This is the difference between the incoming cold water temperature and your desired hot water temperature. In colder climates or during winter, your tankless water heater will need to work harder to heat water to the right temperature.
- Required flow rate: Measured in gallons per minute (GPM), this is the total amount of hot water your household needs at peak times. Add up the GPM for each appliance or fixture you expect to use simultaneously.
By carefully evaluating these factors, you can select a tankless water heater—whether it’s a gas or electric tankless model—that’s properly sized for your home. A correctly sized tankless water heater ensures you get the energy efficiency, cost savings, and reliable performance you expect, without running out of hot water or wasting energy. This thoughtful approach helps you enjoy all the benefits of tankless water, from endless hot water to lower utility bills, while avoiding the pitfalls of an undersized or oversized system.
Gas vs Electric Tankless Water Heaters
Gas Tankless Water Heaters
Gas tankless water heaters are powerful and well suited for homes with high hot water consumption. They rely on a gas line, gas service, and a gas valve to operate.
Pros:
- High heating capacity
- Better for hot water simultaneously in multiple locations
- Lower operating cost in some areas
Cons:
- Requires proper gas line sizing
- May need venting through an outside wall
- Higher installation cost
Electric Tankless Water Heaters
Electric tankless water heaters are smaller and easier to install in many homes. Electric tankless models work well for smaller households or point of use applications.
Pros:
- Compact size
- No gas line required
- Simple design
Cons:
- High electrical demand
- May increase electric bill
- Limited output for whole house use
Energy Efficiency and Energy Costs
One of the biggest reasons homeowners switch to tankless systems is that they are highly energy efficient compared to traditional models. Tankless water heaters only heat water when it is needed. There is no storage tank and no standby energy losses.
Tankless water heaters can provide energy efficiency improvements of 24% to 34% for households using about 41 gallons of hot water per day, and 8% to 14% for homes using up to 85 gallons daily. The energy efficiency ratings for tankless water heaters are determined by their uniform energy factor (UEF), with a higher UEF indicating greater efficiency. Energy Star rated tankless water heaters are within the top 25% for efficiency, ensuring high energy savings. Depending on usage, tankless water heaters can save homeowners between $100 to $200 annually on energy costs.
Traditional tank water heaters waste energy reheating stored water throughout the day. That wasted energy shows up on utility bills.
Tankless systems typically use less energy overall, which can result in energy savings over time. Less energy use means lower energy costs, though actual savings depend on your hot water habits.
Do Tankless Water Heaters Save Money?
This is where expectations matter. Tankless water heaters can save money on energy, but they usually cost more upfront.
Factors that affect cost savings include:
- Installation cost
- Energy usage
- Household size
- Incoming water temperature
- Type of heating source
In many homes, energy savings add up over the years. Combined with a longer life expectancy, tankless systems can be cost effective in the long run.
Installation Considerations
Tankless systems are not a simple swap in many cases. Proper installation is critical.
Gas models may require:
- Larger gas line
- Venting through an outside wall
- Proper gas service upgrades
Electric models may require:
- Electrical panel upgrades
- Multiple breakers
- Higher amperage capacity
This installation complexity is why professional installation is strongly recommended.
Maintenance and Life Expectancy
Most tankless water heaters last longer than tank water heaters. While a tank water heater may last 10 to 12 years, tankless systems often last 20 years or more.
Tankless water heaters can require regular maintenance to prevent mineral buildup and ensure efficiency. Maintenance should be performed at least once a year, and in areas with hard water, tankless water heaters should be flushed at least twice a year to remove mineral buildup. Regular maintenance involves flushing and cleaning to remove hard-water deposits. Water hardness in Oklahoma can affect the lifespan and efficiency of tankless water heaters, so water softeners or scale inhibitors may be necessary. Professional descaling services typically cost between $150 and $300 annually. Tankless water heaters can be installed indoors or outdoors, but outdoor units require draining in freezing temperatures. They can also be less effective in colder climates due to the lower temperature of incoming water. A mixing valve is often used in these systems to blend hot and cold water, maintaining a consistent hot water temperature and preventing scalding, especially when multiple appliances are in use.
Annual maintenance is important. Flushing the system removes mineral buildup and keeps the heat exchanger working efficiently. Skipping maintenance can reduce efficiency and shorten lifespan.
When Tankless Makes the Most Sense
Tankless water heaters are often worth it if:
- Your household uses hot water throughout the day
- You want endless hot water
- Space savings matter
- You plan to stay in your home long term
- Energy efficiency is a priority
Midway through ownership, many homeowners in our area start looking into tankless water heaters Oklahoma city as a replacement option when their existing water heater reaches the end of its life.
When Tankless Might Not Be the Best Fit
Tankless may not be ideal if:
- You have low hot water consumption
- Electrical or gas upgrades are cost prohibitive
- Budget is a major concern
- Your existing water heater is still performing well
In those cases, a high efficiency tank style water heater can still be a solid choice.
Are Tankless Water Heaters Worth It
So, are tankless water heaters worth it? For many homeowners, yes. They provide endless hot water, lower energy use, space savings, and long life expectancy. The higher upfront costs can be offset by energy savings and durability over time.
That said, tankless systems are not one size fits all. Proper sizing, installation, and realistic expectations make all the difference.
At Heritage Services, we help homeowners compare tankless and traditional systems honestly. Whether you are replacing an existing water heater or planning a full upgrade, our team will walk you through the options, explain costs, and recommend what makes sense for your home.
If you are considering a tankless system and want expert advice from a local team, Heritage Services is here to help you make the right call. Contact us today!
