In today’s world of technological advancement, homeowners are constantly seeking ways to upgrade their homes for efficiency, functionality, and comfort. The tankless water heater is one such upgrade that has been rising in popularity. But what exactly is it, and what should you know before investing in one?

The Basics of Tankless Water Heaters

As the name suggests, a tankless water heater does not store water for heating. Instead, it heats water directly as it flows through the unit, providing instant hot water. This means no more waiting for a tank to heat up. The key benefits include the provision of endless hot water, energy savings due to its on-demand nature, and a longer lifespan compared to traditional water heaters, which often face rust and sediment buildup issues.

Factors to Consider Before Buying

Size and Capacity

When considering a tankless water heater, size matters. It’s not about physical dimensions but rather its capacity to deliver hot water. The right size depends on your household’s simultaneous water needs. For instance, do you see yourself running the dishwasher while someone is in the shower? The flow rate and temperature rise are crucial parameters to evaluate. A system that can’t handle your demand will lead to lukewarm or cold water surprises.

Energy Source

Tankless water heaters come in electric and gas variants. Electric models are generally smaller, easier to install, and more efficient. However, they might provide a lower flow rate than their gas counterparts. On the other hand, gas models can heat water more rapidly but may require additional infrastructure, like venting and a gas line.

Energy Efficiency

The energy factor (EF) indicates a unit’s efficiency. A higher EF means the heater uses energy more effectively. Though tankless systems are generally efficient due to their on-demand nature, not all teams are created equal. Picking a unit with a higher EF can lead to more savings and a reduced carbon footprint.

Installation and Space Considerations

While some enthusiastic homeowners might be tempted to embark on a DIY installation journey, professional installation is recommended for safety and efficiency. Whether you’re considering an indoor or outdoor facility, ensure adequate space. Gas models, especially, may need proper venting to ensure safe operation.


It’s no secret that tankless water heaters often come with a steeper upfront price than traditional units. However, consider the long-term operating costs, which could be lower due to energy savings. Plus, some regions offer rebates or tax incentives for energy-efficient appliances, which can offset the initial cost.

Brand and Warranty

You’ll want assurance of its longevity and performance with any significant investment. Opting for reputable brands can provide peace of mind. Additionally, scrutinize warranties. A robust security can indicate the manufacturer’s confidence in the product.

Climate and Weather Conditions

If you reside in a colder region, the incoming water will be much more complex, demanding more from your tankless heater. Some units might need to be up to the challenge, leading to disappointing performance. In such cases, you might need a unit specifically designed for cold climates or consider additional equipment.

Maintenance and Longevity

Like all appliances, tankless water heaters benefit from regular maintenance. This ensures efficient operation and can detect potential problems before they escalate. Simple tasks such as flushing the system to remove mineral buildup or checking for any signs of wear can add years to your unit. And while these units boast a longer lifespan than their tanked counterparts, be prepared to consider replacement after 15-20 years.

Potential Drawbacks

Despite the numerous advantages, there are potential drawbacks to consider. The initial investment is considerably higher, which might be off-putting for some. There can also be a slight delay in hot water delivery, though this is typically just a few seconds. Lastly, if many fixtures demand hot water simultaneously, some units might need help to keep up.


The decision to switch to a tankless water heater should not be taken lightly. While the benefits are tempting – endless hot water, energy savings, and a potentially longer lifespan – there are costs and considerations to weigh. Every household is unique, and what works for one might not work for another. It’s essential to conduct thorough research, perhaps even consulting professionals, to ensure the best fit for your home’s needs.

This post was written by Finan Home Service

October 4, 2023