Tank type vs. Tankless Water Heaters
Know the Facts
- Regardless of the type of water heater, it takes 1 BTU of heat to raise 1 pound of water 1 degree F.
- Efficiency of each water heater unit determines savings.
- Present day Electric Tank type water heaters are 90% – 94% efficient.
- Present day Electric Tankless water heaters are 94% – 96% efficient.
- Present day Gas Tank type water heaters are 60% – 65% efficient.
- Present day Gas Tankless water heaters are 85% – 92% efficient.
- The best savings one can expect when comparing both electric types is 6% on an average annual heating bill of $400.00 or $24.00 per year.
- The best savings one can expect when comparing both gas types is 32% on an average annual heating bill of $400.00 or $128.00 per year.
- An electric tankless water heater will always be more expensive to install. The units cost more, the installation is more involved, and two trades are required — a plumbing contractor and an electrician. Most gas-fired tankless water heaters have a special vent system. The units cannot connect to a type B vent.
- There are benefits to both types of water heaters. Don’t select the water heater purely on the economics or energy savings of the water heater. Analyze the system installation, the application, space required, the fuel costs and the demand on the water heater. Using all of these parameters, decide what is best for the installation.