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Storage tank: In our tests, we judged the annual energy consumption cost of the conventional water heaters to be Very Good for the gas model and Fair for the electric. Both rate Good for energy efficiency. Tankless: Gas and electric tankless water heaters run more efficiently than the conventional water heaters of the same fuel type. We rated the annual energy consumption cost Excellent for a gas model but only Fair for an electric, but both rate Very Good for energy efficiency.
Storage tank: Our payback calculations are based on replacing a gallon storage tank water heater with a tankless water heater, then calculating how much the tankless model costs to operate and how much energy it saves.
We used the installation of a tank water heater as the benchmark. Caccia, the third-generation plumber, says that once you make the switch, labor costs are less for replacing an old tankless water heater with a new one than for replacing an old storage tank with a new one. In part that's because removing a large tank takes more time and effort than removing the much smaller tankless units. While tankless water heaters run more efficiently than storage tank water heaters, replacing a tank water heater with a tankless can be expensive, and the payback time can be longer than the warranty.
Also many manufacturers of tankless water heaters recommend preventive maintenance to be done on their units. Manufacturers also recommend that you periodically drain a tank water heater to flush out the sediment. If you have hard water, like many regions of the country, periodic flushing of the heat exchanger to remove hard-water deposits is necessary.
How often you flush your tankless water heater depends on the quality of your water. It has a holding tank like a conventional water heater, but sitting atop the tank is a heat pump that captures warm air and transmits it to the water—sort of like a refrigerator working in reverse. Basically the heat pump is moving heat from one place to another rather than generating heat itself.
The payback time for a replacement installation and new construction was under a year. Because the heat pump adds height, the water heater needs more headroom than a conventional tank, at least 7 feet. They also need about 1, cubic feet of surrounding air to draw from, about the amount circulating in a byfoot room. Check for rebates. Whether your water heater installation is new or a replacement, you may be eligible for a rebate from your local utility company, which can offset some of the cost.
Knowing that I wanted to be a journalist from a young age, I decided to spiff up my byline by adding the middle initials "H. But the real thing is so much better. Follow me on Twitter. We respect your privacy. All email addresses you provide will be used just for sending this story. Tankless Water Heaters vs. By Mary H. January 25, Typically, tankless water heaters provide hot water at a rate of 2—5 gallons 7.
Gas-fired tankless water heaters produce higher flow rates than electric ones. Sometimes, however, even the largest, gas-fired model cannot supply enough hot water for simultaneous, multiple uses in large households. For example, taking a shower and running the dishwasher at the same time can stretch a tankless water heater to its limit. To overcome this problem, you can install two or more tankless water heaters.
You can also install separate tankless water heaters for appliances -- such as a clothes washer or dishwater -- that use a lot of hot water in your home.
However, additional water heaters will cost more and may not be worth the additional cost. In some cases you may be able to achieve even greater energy savings if you install a demand water heater at each hot water outlet. The initial cost of a tankless water heater is greater than that of a conventional storage water heater, but tankless water heaters will typically last longer and have lower operating and energy costs, which could offset their higher purchase price. Most tankless water heaters have a life expectancy of more than 20 years.
They also have easily replaceable parts that may extend their life by many more years. In contrast, storage water heaters last 10—15 years. Tankless water heaters avoid the standby heat losses associated with storage water heaters.
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