Tankless Water Heater Savings Calculator
Find out how much you can save annually by switching to a tankless water heater! Our calculator compares energy usage between tankless and traditional water heaters based on your household's needs.
List of the Top 10 Best Tankless Water Heater:
Understanding Tankless Water Heater Savings
Switching from a traditional water heater to a tankless system can save you money in the long term. While tankless systems have a higher upfront cost, they provide a number of benefits that can result in significant savings.
How Does a Tankless Water Heater Work?
A tankless water heater heats water on demand, rather than storing it in a large tank. This eliminates standby heat loss that occurs with traditional heaters, where energy is continuously used to keep water hot, even when it's not needed. As a result, tankless heaters are far more energy-efficient and cost-effective over time.
Why Are Tankless Water Heaters More Efficient?
- On-Demand Heating: Only heats water when you need it, reducing energy consumption.
- No Standby Loss: Unlike traditional water heaters, there’s no need to constantly heat and reheat water.
- Longer Lifespan: Tankless systems can last up to 20 years or more with proper maintenance, much longer than the 10-15 year lifespan of traditional units.
- Compact Design: Tankless heaters take up less space, making them ideal for smaller homes and apartments.
Estimating Annual Savings
While tankless water heaters are more efficient, the amount you save depends on several factors, including your energy costs, the number of days you use hot water, and the energy efficiency of your current water heating system. On average, households can save anywhere from 15% to 50% on their energy bills by switching to a tankless heater.
Typical Energy Usage
| Water Heater Type | Energy Efficiency | Annual Energy Use | Annual Energy Cost |
|---|---|---|---|
| Traditional Tank Heater | 65% - 85% | 3000 - 6000 kWh | $360 - $720 |
| Tankless Water Heater | 85% - 98% | 2000 - 4500 kWh | $240 - $540 |
Additional Factors to Consider
- Upfront Cost: Tankless water heaters can cost more to install, with prices typically ranging from $500 to $2000.
- Installation Complexity: Installation may require upgrades to your home’s electrical or gas system, adding to the initial costs.
- Size of Your Home: Larger homes may need more powerful or multiple tankless units to meet demand.
Do Tankless Water Heaters Save Money Immediately?
While you might see significant savings in the long run, the payback period for a tankless system can vary. Many homeowners start seeing the savings after 2 to 4 years, depending on their energy costs and the usage patterns of their household. Over the lifespan of the unit, however, the savings will outweigh the initial installation costs.
Is a Tankless Heater Right for Your Home?
Tankless water heaters are ideal for:
- Homes with high water usage and multiple bathrooms
- Smaller homes where space is limited
- Households looking to reduce their carbon footprint and energy consumption
However, tankless systems may not be suitable for homes with very low water usage or those that do not have the appropriate electrical capacity for installation.
Frequently Asked Questions
How much can I save with a tankless water heater?
Your savings will depend on several factors including your current energy consumption, energy costs, and usage patterns. On average, homeowners save between 15% to 50% on their energy bills annually.
Are there any drawbacks to tankless water heaters?
The main drawbacks are higher initial installation costs and the need for potential upgrades to your home’s electrical or gas system. However, these costs can be recouped through energy savings over time.
How long do tankless water heaters last?
Tankless water heaters typically last 20 years or more with proper maintenance, which is much longer than the average lifespan of a traditional tank-style water heater.