Water heaters aren’t one-size-fits-all. These days, homeowners have more options than ever, from size to efficiency to both tank and tankless models. Since tankless water heaters hit the market, they’ve been a source of both fascination and confusion. In this guide to tankless vs. tank water heaters, we’ll clear the confusion and explain which type is right for your Salt Lake City home.
Tankless vs Tank Water Heater: What’s the Difference?
From cost to efficiency to hot water supply to lifespan, there are numerous differences between tank water heaters and tankless systems. The good news is that both options can work depending on household needs. Here’s a rundown of how each style works.
How Tank Water Heaters Work
Traditional tank water heaters have a storage tank, usually 20 to 80 gallons, that holds heated water. The water is heated continuously, so when you turn on the tap, heated water is drawn from the top of the tank and replaced with cold water from a drip tube.
These water heaters are common in older homes, but their major downside is that they can run out of hot water and take a long time to heat up if the tank’s entire capacity is used up.
How Tankless Water Heaters Work
Just as their name suggests, tankless water heaters don’t have a tank. Instead, water is heated on demand only when you turn on the hot water tap. The system instantly heats the water as it passes through a heat exchanger; none is stored for later use. They come in both natural gas and electric models.
Pros and Cons of Tankless Water Heaters
Advantages of Tankless Water Heaters
The benefits of tankless water heaters vs. tank water heaters include:
- Endless hot water supply
- More energy efficiency
- Compact size
- Longer lifespan (often 20+ years)
- Lower standby heat loss
Tankless Water Heater Cons
On the other hand, tankless water heaters have a higher upfront cost, and upgrades to your plumbing system may be required during installation. There may also be a limited flow rate during high-demand periods, and multiple units may be required for large homes.
Are Tankless Water Heaters More Efficient?
Tankless water heaters are more efficient because they have less standby heat loss. This often means savings on your energy bills, helping offset the higher purchase price.
Do Tankless Water Heaters Run Out of Hot Water?
Tankless water heaters don’t run out of hot water, but they can hit flow rate limits if multiple fixtures are running simultaneously. It’s important to choose the right water heater size to prevent this problem. If your tankless water heater runs out of hot water regularly, it may be time to upgrade to a higher-capacity model.
Pros and Cons of Traditional Tank Water Heaters
Benefits of Tank Water Heaters
Tank water heaters have numerous advantages:
- Lower upfront cost
- Easier installation
- Works well for predictable usage
- Compatible with most homes
Drawbacks of Tank Water Heaters
It’s important to consider that, unlike tankless water heaters, tank water heaters can run out of hot water, and they often come with a higher energy bill. They require more energy and more space in your home. Additionally, tank water heaters have a shorter lifespan at just 8 to 12 years, compared to 20 years for tankless water heaters.
Tankless vs. Tank Water Heater Cost
The best water heater type for your budget depends on your financial situation and preferences. Tankless water heaters have a higher upfront cost but offer better long-term savings, while tank water heaters can be more affordable at the time of purchase but result in higher energy bills and a shorter lifespan.
Here’s a breakdown of expected costs per water heater type:
| Tankless Water Heaters | Tank Water Heaters | |
| Unit Cost | $500 – $2,600 | $300 – $3,600 |
| Installation Costs | $800 -$3,000 | $1,000–$3,900 |
| Lifespan | 20+ Years | 8 – 12 Years |
| Annual Energy Costs | $75 – $600 | $199 –$755 |
| Maintenance (Annual Flush + Inspection) | $150 – $350 | $100 – $300 |
Tankless vs Tank Water Heater: Which Is Better?
Are tankless water heaters better? It depends on your budget, water needs, and home size. Here’s a breakdown:
- Best for large families: Tank systems often perform better when there’s simultaneous demand. Unless you have multiple tankless water heaters, they can struggle to keep up.
- Best for energy savings: Because they use less energy, tankless models will save you money on your monthly energy bill.
- Best for long-term value: Tankless water heater systems have a longer lifespan and lower energy bills, so they usually beat tank models in the long run.
- Best for lower upfront costs: Tank water heater units are typically priced cheaper than tankless options.
Should I Get a Tankless Water Heater?
Given the price difference, many homeowners are unsure if a tankless water heater is worth it for their home. Consider these questions before making your decision:
- How many people live in your home? Larger families may prefer a tank system.
- Do you run multiple showers/appliances at once? Due to flow rate restrictions on tankless water heaters, a tank model would be a better option.
- Do you want energy savings? Tankless water heaters are the winner in this category.
- Is your home ready for tankless installation? If significant changes to your plumbing system are required, a tank heater may be the easier option.
Best Tankless Water Heater Brands
There are many brands of tankless water heaters out there. Some reputable manufacturers we recommend include:
- Rinnai
- Navien
- Noritz
- Rheem
- Bosch
Professional Installation Matters
Whether you choose tank or tankless, don’t DIY a water heater installation. A professional plumber will properly size your system, ensure gas lines and venting are adequate, verify water pressure and flow rate, and install the unit in accordance with local code.
At Big Brothers Home Services, we help homeowners across the Salt Lake City area, including Murray, Millcreek, and Holladay, choose the best water heater for their needs and have it installed by our expert team.
Final Verdict: Tankless vs Tank Water Heater
It’s important to evaluate your household demand, budget, and long-term goals before reaching a decision. If energy efficiency, water-on-demand, a small footprint, and a longer lifespan matter to you, choose a tankless water heater. If you prefer a lower upfront cost, simple installation, and reliability, a tank water heater is the right choice.
Need Help Choosing a Water Heater?
If you’re still stumped on what to choose, call a professional plumber. They’ll help determine the right system based on your home’s hot water usage, plumbing setup, and energy goals.
For Salt Lake City-area residents, Big Brothers Home Services is proud to be your local neighborhood plumber. Homeowners love our fast, professional response and care for our local community. To schedule your free water heater consultation, contact us today!