Tankless Water Heaters – How Much Could You Save?

It pays to make energy-efficient upgrades in your home. While space heating and cooling equipment gets a lot of attention, water heating is one of the costliest utilities for most homeowners. This means upgrading your water heater can generate excellent long-term savings.

Have you considered switching to a tankless water heater? This technology can noticeably lower your water heating bills, especially if your existing model is old or undersized.

What is a Tankless Water Heater?

While traditional storage tanks keep water hot 24 hours a day, tankless models heat water instantaneously as water flows through it. That’s why they are also called instantaneous or on-demand water heaters.

Just like storage tanks, tankless models come in various sizes. You can install a single unit to serve as a whole-house water heater or put in multiple point-of-use systems to shorten the time it takes for water to get hot at the tap.

How Do Tankless Water Heaters Save Money?

  • No standby heat loss: Tankless technology eliminates hot water storage, a huge factor in tank-style water heater efficiency. With a system that only powers on when you open a hot water faucet, you can rest assured that you’ll never pay for hot water you don’t need.
  • Energy-efficient performance: High-end tankless water heaters don’t just negate standby heat loss—they also function with impressive efficiency when they turn on. This means you don’t have to feel guilty while basking in a nice, hot shower.
  • Long lifespan: A typical storage water heater lasts eight to 12 years. Since tankless units experience less wear and tear, they can easily last twice as long. This means you have a good 20 to 25 years to reap the rewards of your upfront investment.

How Much Can I Save?

The average household spends $2,060 annually on utility bills, 13 percent of which goes toward water heating. That’s $268 per year to take showers, wash dishes, launder clothes, cook food, and clean the house.

By switching to a tankless water heater, you could save 24 to 34 percent on your water heating costs if your household uses 41 gallons or less of hot water per day. The savings diminish the more water you use, with about 8 to 14 percent savings expected if you use 86 gallons of hot water per day.

This means you can save up to about $100 annually. And since tankless water heaters last at least 20 years with proper maintenance, you could save $2,000 or more over the appliance’s lifespan.

Learn More About Tankless Water Heaters

Mike Counsil Plumbing and Rooter installs and services water heaters of all varieties. Whether you think a tank or tankless model is right for you, we can meet your needs. We can also help you weigh the pros and cons if you’re not sure what will suit your family best. Call us at 408-618-8002 or contact us online to request a tankless water heater installation estimate or other water heater services in San Jose, CA.

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