Conventional water heaters use storage tanks to store hot water until it is needed. Tankless units use gas to heat cold water as you use it rather than warming it up and then storing it. There is no pilot light constantly burning. Therefore, tankless heaters reduce energy consumption. According to the US Department of Energy, the average home that uses approximately 40 gallons of water a day can become 24-34% more energy efficient with a tankless water heater saving, on average, $200 a year.
Tankless units are smaller and easier to handle and hang on the wall to free up floor space. Most are the size of a medicine cabinet and can be installed on the exterior of your property. Some places that friends have saved spaces include basements, pantries and laundry rooms. I love mine and now have space for a recycling container in my laundry room.
The typical cost to purchase and install a tankless systems ranges between $1,200-$1,600, which can nearly be twice as much as a traditional tank. Note that prices have been coming down. The typical payback is 6-8 years if you assume a $200 energy savings per year.
A few other points to consider:
• Ask your plumber to verify that your current gas line, size, and length can provide sufficient gas flow to the unit.
• Think about the size of your household and your usage needs to determine whether tankless will best meet your needs.
• Some systems do require a recirculation pump depending on how far the water must travel from the unit.
Additional Resources:
• Energy Solutions Center www.energysolutionscenter.org/
• U.S. Department of Energy www.eere.energy.gov/
• Green Home Guide www.greenhomeguide.com/
• Rebates from So. California Gas www.socalgas.com/residential/savemoney/
I'd love to hear from you if you have any experiences that would help others!
