How a Tankless Water Heater Saves you Money
February 11, 2009 – 2:01 am
We’ll talk about solar water heaters and some really creative ways to save money and get “off the grid” with our electricity needs later, but let’s start with something that’s not too far out there: the tankless hot water heater.
First a word about your regular water heater. These guys use up a lot of energy. They’re on 24/7 and a gas flame or electric element is heating the water day and night. Every time the water starts to cool down that heating element kicks in to warm it up again. This not only wastes energy but it costs you money. (And God forbid you wake up at 3 am, go to wash your hands, and not have hot water!)
The downside of this kind of system is that it’s obviously wasteful. Even with good insulation, a water heater with a tank consumes energy all the time (even more than the refrigerator if you’re keeping track of your energy-sucking appliances).
The answer?
A tankless water heater. You can still have your hot water at 3 am (whew!), but now it’s going to be delivered more efficiently (and in a way that saves you money!)
A tankless water heater saves you money because there’s no big water tank to be heated day and night. Let’s take a closer look…
How a tankless water heater works
Instead of storing umpteen gallons of water in a tank, a tankless water heater heats up incoming water as you need it. It’s hot water “on demand” instead of hot water stored and heated and reheated continuously in a traditional water heater.
A tankless water heater uses a powerful heat exchanger to raise the temperature of water coming into the house. It’s only activated by the flow of water, so when you turn on the hot water in the shower, incoming water circulates through the exchanger, heats up to your preset temperature, and blasts it out for your bathing enjoyment.
There is a bit of lag time (it takes a few seconds for the water to heat up), but the water waste isn’t that noticeable (compared to the energy savings a tankless water heater gives you), and you’re probably already experiencing lag when you turn on the hot water at your house anyway, as it takes some time for hot water to travel from the heater to your kitchen sink or whatever. (A tankless water heater can be installed close to the kitchen or bathroom since it doesn’t take up a lot of space; you may actually experience less lag time.)
If you want the nitty gritty, this article on How Tankless Water Heaters Work provides more information.
Other benefits of installing a tankless water heater
Okay, you’re down with saving money. What are the other perks?
- Tankless water heaters are small! If you live in a small house like me, you’ll appreciate having that clunky water heater out of the closet. Install a compact tankless water heater on the wall and use the rest of that space for your classic Garbage Pail Kids Collection or whatever.
- A tankless water heater typically lasts longer than a regular water heater too. Expect to get an extra 5-10 years out of your new unit.
- Another benefit is that in the United States (and possibly other countries), you can get a tax rebate of (as I write this) $300 for buying and installing a tankless water heater.
Tankless water heater downsides?
So, what’s the downside of installing one of these guys? The big one is the initial upfront cost. A tankless water heater can cost up to 3 times as much as a traditional water heater. Eep. While you’ll save the money over time (in lower energy bills each month), it can be hard to pony up that extra money up front.
This is why for most of us it makes sense to wait until our current water heater bites the big one before making the upgrade. If you’re in a situation where you need to replace your water heater anyway, then definitely consider making the upfront investment and going tankless!
