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Published:February 16th, 2013 19:57 EST

Tank Vs. Tankless Water Heaters: Which is Best?

By John Pustelnik

Here is a quick and simple comparison between tank and tankless water heaters.


The Good

  • Tankless water heaters are about 10 to 20% more energy efficient than traditional tank water heaters.
  • Tankless water heaters can take up less space than tank water heaters.
  • Tankless water heaters typically outlast tank water heaters.
  • Tankless water heaters don`t use energy until hot water is being used.

The Bad

  • Tankless water heaters cost roughly two to three times more than tank water heaters.
  • Due to the initial high cost of buying a tankless water heater, it could take about 20 years in order to start saving money when switching from a tank water heater. By then, the heater will need replacing.
  • Tankless water heaters work best when only one water tap is using hot water.
  • If water taps are far apart from each other, it is recommended to buy another tankless water heater.
  • Water does not instantly heat up when using a tankless water heater, but does with a tank heater.
  • With tankless water heaters, water may not heat up if water is only trickling out of the tap.
  • Tankless water heaters require yearly maintenance in order to remain efficient.


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