TANKLESS
WATERHEATER
GUIDE
TABLE OF CONTENTS
WHAT IS A TANKLESS WATER HEATER?
TANK VS. TANKLESS WATER HEATERS
Chapter 1
Chapter 2
03 04
WILL A TANKLESS WATER HEATER SAVE YOU MONEY?
Chapter 3
08
ARE TANKLESS WATER HEATERS ENERGY EFFICIENT?
Chapter 4
09
HOW MUCH DOES A TANKLESS WATER HEATER COST?
Chapter 5
11
TANKLESS WATER HEATER INSTALLATION PROCESS
Chapter 6
13
What is a tankless water heater?
C H A P T E R 1
Tankless water heaters have grown in popularity over the years. A lot of new homes now have tankless installed when built. But what exactly is a tankless water heater, is it better than the standard traditional storage tank water heater?
We’ll explore those questions and more here in this guide.
A tankless water heater consists of a small wall-hung unit that is mounted to your wall. It heats water directly as it passes through a heat exchanger without a storage tank. While a traditional water heater stores hot water to use, a tankless doesn’t require hot water to be stored to be heated. The downside of tank water heaters are that it needs to continuously heat the water in the tank so it is hot and ready when you need it.
It continues to use energy even when you’re not using hot water. This energy is called standby heat loss.
Tankless water heaters only heat water on demand, there is no storage and no wasted energy.
Sometimes tankless water heaters are referred to as “endless” water heaters. These water heaters are available in gas and electric models. We commonly see mostly gas water heaters in the Albuquerque and Santa Fe area. But you should talk to a Professional Plumber about the best
How do they work:
When you turn on the hot water tap in your home cold water travels through a heat exchanger in the water heater. As the water travels through the water heater a gas burner or electric element heats the water. Once the water is heated the water heater will give a constant supply of hot water through the faucet. However, you will need to run the water when it is turned on until it is heated. Once heated it will stay hot.
However, tankless water heaters do have their limits. Typically they provide hot water at a rate of 2-5 gallons per minute on average. The demand for hot water in the house at one time can limit the amount of hot water the unit can produce. For example, using the shower and another appliance like the washing machine at the same time can stretch it to its limit. Gas water heaters can produce higher flow rates than electric ones and may be what you need to meet the demand of your home. There are also other options like installing a second tankless water heater, or a small water heater for your appliances.
WHAT IS A TANKLESS WATER HEATER?
TANK VS. TANKLESS WATER HEATERS
Chapter 1
Chapter 2
WILL A TANKLESS WATER HEATER SAVE YOU MONEY?
Chapter 3
ARE TANKLESS WATER HEATERS ENERGY EFFICIENT?
Chapter 4
HOW MUCH DOES A TANKLESS WATER HEATER COST?
Chapter 5
TANKLESS WATER HEATER INSTALLATION PROCESS
Chapter 6
TANK
TANKLESS vs.
C H A P T E R 2
TANK AND TANKLESS WATER HEATERS BOTH PROVIDE HOT WATER, BUT WHAT ARE THE PROS AND CONS OF EACH?
More and more homeowners are choosing tankless, but is it the right choice for you? Is it worth the additional installation expense? What really is the difference... they both heat water right? We’ll explore the pros and cons here in this chapter. Lets start with traditional tank water heaters.
PROS - TANK WATER HEATERS
While they are not as water or energy efficient as tankless water heaters, convention water heaters have numerous benefits, including:
Lower installation cost - Tank water heaters are less expensive than tankless to install.
Easy replacement - Typically you’re just replacing the tank for the same- sized unit. However, new Federal Energy Standards have increased the size of tank water heaters. A professional will have to ensure that the larger units will fit in the existing space when replacing.
Less internal parts - a tank water heater really has only a few functioning parts.
Meaning there is very little maintenance associated with these water heaters.
High-efficiency tank options - Many manufacturers offer higher efficiency units to save on water usage and energy costs. Ask our professionals about these options.
Higher energy costs - Since hot water is stored in the tank, the gas or electricity needs to run more than a tankless unit to keep the water hot. The temperature will be maintained regardless of whether you need hot water or not.
Can run out of hot water - Once the hot water is used in the tank you will not have anymore hot water until the tank is refilled and heated again. This can happen if you have multiple people or appliances using hot water at once.
Takes up more space - Tankless units take relatively little space, while a tank water heater needs space for the tank.
Another thing to consider is that energy standards have required manufacturers to make tank water heaters wider to insulate and hold heat better. Ask your professional about how this affects replacement.
Shorter life span - Tank water heaters usually last between 12-15 years, while tankless water heaters can last approximately 20 years.
CONS - TANK WATER HEATERS
Traditional tank water heaters have been a reliable source of water heating for many years. However, while tank water heaters are a an efficient way to heat your water there are some cons if you’re
considering replacing.
Tankless water heaters have grown in popularity in the last couple of years. Here we will weigh the pros and cons of converting to a tankless water heater.
PROS - TANKLESS WATER HEATERS
Tankless water heaters are energy efficient and have many pros to converting:
So now that we’ve talked about the great qualities of tankless, lets discuss the drawbacks so you can weigh your options effectively.
CONS - TANKLESS WATER HEATERS
Tankless water heaters do have some drawback that are described below:
On demand hot water - Tankless gives you unlimited hot water over an extended period of time. Back to back showers, no wait times for water to reheat. You can also shower and run the dishwasher or washing machine without worrying about running out of hot water. Extremely effective for larger families.
Lower energy costs - Tankless water heaters only heat water when it is needed.
You will reduce your energy costs because you will only need to heat water as you need it. Consider the amount of energy it takes to keep 40, 50, or 75 gallons of water hot constantly, that can add up.
Higher installation costs - Tankless water heaters installation costs are more than a tank water heater. Also, there may be retrofitting and additional plumbing, piping needed when replacing a tank water heater. You should discuss your options with a professional.
More internal parts - Tankless water heaters are compact but have more internal parts than traditional water heaters. They also require maintenance at least once a year to inspect and ensure proper operation. If you have hard water you may need additional maintenance to remove scale buildup, or a water softener?
Takes up less space - While this seems trivial, we mentioned in the cons for tank water heaters that energy standards have made water heaters wider. Meaning, when it’s time to replace your water heater a new water heater that is the same size as your existing water heater, it may not fit in the same space the existing unit is located at. This alone may have you consider tankless.
Longer life span - Tankless water heaters can last 20+ years if well maintained. In some cases that may be double a tank water heater’s lifespan.
OTHER THINGS TO CONSIDER
We talked about energy standards and how those have impacted the sizes and installation of traditional tank water heaters. What exactly does that mean? Here are the new standards explained. In 2015 the Department of Energy mandated higher Energy Factor (EF) ratings on virtually all residential gas, electric, oil and tankless water heaters. These changes have impacted how water heaters are manufactured and installed. Probably one of the biggest changes that impact tank water heaters are outlined below:
Tank water heaters will be manufactured with more insulation, making them wider in diameter.
Standard water heaters will also be slightly taller.
The additional insulation will make the water heaters heavier as well.
These modifications can impact you directly if your existing water heater is in a tight location in your home. It may be difficult to get the same sized unit in the existing location due to the new diameter and height requirements.
All new water heaters are manufactured to these new specifications.
For example, the diameter of a new unit that has the same gallon capacity as an existing unit may be 2 or more inches wider.
In addition, the height of a new unit with the same gallon capacity as an existing unit may be two or more inches taller.
2
2
”
”
+
+
wider in
Additional
Taller diameter
There is not a simple answer to this question. The simple answer is yes, in theory a tankless water heater will save you money if your water usage stays the same as a tank water heater.
However, most people do not see dramatic savings, simply do to the fact that now they have all the hot water they want. Longer showers than they did with the old tank type water heater. Why? They no longer have to consider that there may be another family member or members waiting to take a shower! Now multiply that times two, three, or four people taking extra long showers and you can quickly see why most times there are no savings.
Yes, tankless water heaters will save the consumer hot water heating fuel cost if they treat the tankless water heater like they did a tank type water! Most people don’t. People that have a tankless water heater, opt to have them for the fact that they have all the hot water they want.
Overall if you can keep your hot water usage similar to what it was prior to having an on demand water heater you will likely see your energy costs go down once the tankless has been installed.
Will a tankless water heater save money?
C H A P T E R 3
Increase hot water usage.
Longer showers.
Use multiple water-using appliances at once.
Less energy used to heat same amount of water.
Most people find that they don’t really see a reduction in energy costs because they tend to use more hot water since they have it available. Because of this energy costs are usually similar to what they were before.
Tankless water heaters are more energy efficient, but to understand how it impacts you, lets first explore how energy efficiency is determined for water heaters. Energy efficiency in water heaters is measured as energy factor (EF). The EF indicates the water heater’s overall energy efficiency. This is determined by the amount of hot water produced by the water heater per unit of fuel consumed in a day. This measurement is based on the following factors:
Recovery - how efficiently the heat from the energy source (gas or electricity) is transferred to the water.
Standby loss - This only pertains to tank water heaters because water is stored in the tank. This is the percentage of heat loss from the stored tank compared to the heat content of the water.
Cycling loss - This is the loss of heat as water circulates through the tank and the pipes.
Really only one of these apply to tankless efficiency since there is no recovery or standby loss. Cycling loss applies only to units that don’t keep the heat cycling throughout the unit. We explain these options further on down in this article.
Energy efficiency explained:
Standard water heaters have an energy factor of approximately .60. Meaning that approximately 60% of the energy generated is used to heat the
water, and 40% of that heat is lost in this process.
That heat goes out the vent. Tankless water heaters have a .80 - .99 energy factor. You will greatly reduce your heat loss when you convert to tankless, and use less fuel to heat the same volume of water.
Energy Factor.60 .80 - .99 Energy Factor
.40 Wasted Heat
The red in these graphics show the average energy efficiency of water heaters. It represents
how much units of fuel typically used to heat water in a day.
.20 Wasted Heat This is the typical amount of heat
that is lost through the vent.
Increase hot water usage.
Longer showers.
Are tankless water heaters energy
efficient?
C H A P T E R 4
FUEL TYPES
Gas Tankless Water Heaters
In most cases, especially in our area, we see mostly gas water heaters so you’ll likely be moving from a gas water heater to a gas tankless water heater. Gas tends to be about 23% more efficient than traditional water heaters.
Electric Tankless Water Heaters
Electrical units require a ton of amps to heat the water. In our area electrical tankless water heaters are not a cost effective option to be the main heating source for your water, especially when gas is available and much cheaper.
Overall, tankless water heaters are more energy efficient as indicated in the chart on the previous page. Once you eliminate the need to heat and store water your energy efficiency is going to go up and ideally your energy costs may go down, because you’re using less fuel to heat your domestic water.
Reducing your carbon footprint
One of the many reasons people choose to replace their standard water heater with a tankless is because tankless is an environmentally friendly way to heat your water. You will maximize the heat generated to provide hot water with little heat loss. Also, if you can use the same amount of hot water you were using when you had a standard water heater you will reduce your energy usage as well.
Tankless water heaters are typically more expensive to install than standard water heaters. The cost difference is due to the process to convert from tank to tankless. Replacing it is not difficult but does require a bit more work to retrofit.
Time to install - a tankless water heater will take anywhere from 6-10 hours to install depending on the specific requirements and configuration of your home.
Relocating water heater - Since tankless water heaters are smaller sometimes homeowners consider relocating it in their home. However, this will add additional costs to install and may require plumbing, and gas line modifications.
Talk to your professional about options when getting an estimate if you’re considering this option.
Gas Upgrade - Sometimes it is necessary to upgrade the gas service to the unit. This will need to be evaluated before installation.
Tankless units require higher gas pressure and sometimes your home’s gas line needs to be upgraded or a new line needs to be added to support the unit.
Condensation Drain Requirements - Condensation Drain lines are typically required in 99.9% of tankless water heater installations. Standard water heaters don’t need a condensation drain line. These are necessary because the condensation that is created within the gas is very corrosive. A drain line or pump needs to be run from the unit to a drain line in your home. Cost may fluctuate slightly based on the location of your water heater.
Venting - The venting for tankless is slightly different than a tank water heater, typically pvc or stainless steel and new venting usually needs to be run to the new unit to adequately vent the gas from the water heater.
Code Upgrades - Every installation is different and depending on your home there may be upgrades needed to bring your water heating system up to current code standards. These items may include pressure or relief valves, expansion devices... These can vary from home to home so the costs are difficult to outline. You should talk to your professional about all your options and gain a good understanding of the installation requirements for your specific home.
$
How much does a tankless water heater cost?
C H A P T E R 5
Sizing and costs comparisons for a tankless water heater:
When determining how much a tankless water heater will be to install in your home you need to think about the water usage in your home to ensure that the unit can support your hot water needs. Tankless water heater prices vary based on the flow rate needed to produce enough hot water to fulfill your de- mand, the higher the flow rate the more BTUs you’ll need.
It is difficult for us to give you a ballpark cost estimate in this guide due to the variables we’ve outlined in this chapter. The graph above should give you an idea of how your hot water needs determine the size of unit you need to meet your demand. Please note that in some cases if you have a large family or a large hot water demand it may be necessary to install two units to provide you with enough hot water to meet your demand.
This guide is intended to provide you with information so you can understand how tankless water heat- ers work and information that can help you make an informed decision if tankless is a good choice for you and your family.
Number of Bathrooms
Tankless Water Heater Cost Shower
Demand People in
Household Tankless Water Heater Cost
You’ll need a unit to handle the adequate
flow for the number of bathrooms in your
home
If you need to run mul- tiple showers at once or back to back you’ll need a unit to support
the demand.
If you have a larger household you’ll need to make sure your water
heater can keep up.
These factors in this chart dictate the size of unit you will need to produce
enough hot water and that dictates the cost.
+ + +
-
- - $
$$ $$$
$$$$
Tankless Water Heater Installation Process
C H A P T E R 6
We hope we’ve given you enough information in this guide to make an informed decision as to whether a tankless water heater is a good option for you and your family. Really the only thing left to cover in this guide is what to expect if you choose to replace your unit with a tankless water heater.
A typical tankless water heater installation can take a crew of 2 technicians an average of 6-10 hours, depending on installation requirements.
The process is more intensive than your standard water heater replacement. It involves removing the tank unit and replacing the venting and pipes with proper fittings and venting that is up to code for a tankless water heater.
Ensure that you hire a licensed professional to install the unit. Remember that in most cases gas modifications will have to be made for the large number of BTUs that tankless units use.
You want to make sure you hire a professional that will stand behind their work and warranty the installation. You can see the difference in installation quality in the example here.
It is never a good idea to cut corners on such an important appliance in your home. If you still have lingering questions please contact our experts or request a free in home estimate.
Quality Counts:
This picture is a tankless water heater installed by our TLC professionals.
Competitor Installation:
Improper installations or cutting corners can actually reduce the life of your water heater and sometimes void the warranty. It can also lead to big problems with the heat exchanger or leaks within the system.
