Remodeling Tips and Reviews

Why switch to a Tankless Hot Water Heater

Why switch to a Tankless Hot Water Heater

Jan 10, 2012

Tankless water heaters have several advantages over conventional hot water heaters. The biggest advantage is the cost of running these units. They tend to run at an 85% + efficiency rating. This means a decent drop in your monthly gas bill. The tankless units do not heat water until the faucet in the house is turned on. Thus, there is no hot water being kept hot until the you turn on the faucet and then instant hot water is created. The savings with these units is usually a couple of hundred dollars a year.

Big Performance in a Small Hot Water Heater Package

The second advantage with tankless hot water heater units is the space savings. These units tend to be about the size of a traveling suitcase and can be wall mounted just about anywhere. The gas versions of a tankless water unit have special requirements with stainless steel venting which can be quite expensive and this needs to be kept in mind when budgeting for these units.

Estimating Cost of a Tankless Hot Water Heater

The biggest issue with the units is the cost to swap out from a conventional hot water heater to a tankless unit. There are 3 big concerns that have to be addressed.

  1. The gas line usually has to be upgraded from 1/2″ to 3/4″. This usually can cost several hundred dollars.
  2. Many units require an electric line with a switch which adds a couple of hundred dollars to the cost.
  3. The third item is the venting. Standard hot water heaters use a 3″ double walled pipe. Most of the instant tankless hot water heater units use 4″ or 5″ stainless steel single walled pipes. Z-flex is one brand and can add a few hundred dollars to the price.

The gas units themselves to to run between $700 and $1200 such as this Takagi TK Jr at Amazon.