Estimates indicate that an average American household spends well over $2000 a year on energy bills. And since such costs keeps rising as people build larger modern homes that need more heating and cooling, many homeowners need all the cost savings they can get. One way to save money is to use a tankless water heater in place of the traditional tank-type water heater.
Save Money with a Tankless Water Heater
Tankless water heaters, also known as instantaneous or demand-type water heaters, can help you save lots of money. But don’t these systems incur a larger initial cost than their storage tank alternatives?
Yes, they cost more. But it’s also true that they can also represent significant cost savings to the homeowner. Below are some of the ways these water heating systems can help save you money. Frankly speaking, the monetary benefits that come with these water heaters is one of the main reasons people choose them over their tank-type alternatives.
No Energy is Wasted in Storage Tanks
Typical water heaters have tanks that hold hot water. This water loses heat over time; which also means the energy used to heat up the water is wasted over time. This energy costs money. Tankless water heaters prevent this energy loss, and therefore, they save you money.
As a matter of fact, those who buy the best tankless water heater on the market end up using up to 50% less energy. From this reduction in energy consumption, an average family can save at least $100 per year.
So, if you currently use electricity or even oil or propane to meet your hot water needs, then you can expect to save quite a bit of money by making the switch to an electric tankless water heater.
When you stop using a traditional electric water heater and use the tankless version, the energy savings due to the elimination of standby hot water alone will result in a reduction of at least 15% in your electricity bill.
Oil and propane also cost more than electricity in general. So, simply making the switch to an electric water heater, let alone a tankless variant, will automatically result in notable cost savings for you. Check top 5 best electric tankless water heaters on the market.
Tankless Water Heaters Last Longer than Tank-Type Water Heaters
Tankless water heaters generally outlast tank-type water heaters. Traditional storage water heaters last for about 10 to 15 years, while tankless water heaters can last for more than 20 years. For this reason, they can help save money since it will take longer to replace the water heating system when using a tankless water heater.
Easier Maintenance
When it comes to maintenance, tankless water heaters are also easier on the pocket. They have less parts, and that means less problems to fix as time goes by. Additionally, tankless water heaters have easy-to-replace parts. So, tankless water heaters retain their efficiency for much longer; and indirectly, this results in substantial cost savings.
Space Economy
The substantial space economy of a tankless water heater can also translate into cost savings for some people. Typical water heaters require a lot of space due to the large hot water storage tanks. However, tankless water heaters do not take up much space. When the space tankless water heaters help save can offer quantifiable financial benefits, you can end up saving money by using them instead.
Increased Cost Benefits with Increased Hot Water Needs
Studies have also shown that your usage of the tankless water heater will have an impact on how much you will save. A household that uses more water will report higher cost savings after switching to a tankless water heater. Essentially, this means that if you use plenty of hot water, then a tankless water heater is the way to go as you will end up saving more money.
Higher Installation Costs of Tankless Water Heaters Relative
Also, it is worth noting that as far as the initial installation cost goes, the difference between tankless and traditional water heaters is less apparent when the installation is done during a new home construction.
The reason tankless water heaters tend to cost more is that additional wiring might be needed to make an existing home accommodate them. But during a new home construction, such costs are part of the other wiring costs, thus less apparent financially.
In Conclusion If you want to reduce your heating costs, a tankless water heater could be your best option. Unlike tank-type water heaters; these water heaters spend less energy. Furthermore, they require less maintenance and tend to last up to twice as long as traditional heaters. All these factors, among other benefits, mean that you can save money when you choose a tank-type water heater over a tankless water heater.
