When it's time to replace your aging water heater, you'll need to decide between a conventional tank heater or a tankless on-demand heater.
While both provide hot water for your home, they function in very different ways. Understanding how each technology works, along with their unique pros and cons, will help you make the best choice.
This in-depth guide examines key differences including efficiency, operating costs, installation, maintenance, sizing considerations, and more.
Let's dive in to compare tank and tankless water heaters so you can make an informed decision for your home.
How Tank Water Heaters Work
Credits: Jaquar
Tank water heaters have traditionally been the standard option found in most homes. They consist of an insulated cylindrical tank ranging from 20-80 gallons that is constantly filled with water.
Cold water enters through a pipe near the bottom of the tank. An electric heating element then heats the water. As it heats, the water rises to the top of the tank through convection currents while more cold water enters the bottom. This creates a tank full of hot water ready for use.
When a hot water tap or appliance is turned on, heated water at the top of the tank gets discharged through a hot water outlet pipe. This allows fresh cold water to enter and get heated again. The thermostat precisely controls the temperature by turning the heating element or burner on and off as needed.
One downside is that tank heaters run cyclically, heating water even when not in use. This wastes energy through standby heat losses. Heat also gets lost into cold supply pipes and the surrounding air.
How Tankless Water Heaters Work
As the name suggests, tankless water heaters provide hot water instantly, without using a storage tank. When a hot water tap is turned on, cold water travels through a heat exchanger containing a series of copper pipes or stainless steel coils.
As the water passes through, it gets rapidly heated by electric current or gas burners. The now-heated water flows from the unit directly to the tap, delivering a constant stream of hot water on demand.
Tankless heaters have a computerized control system with a flow sensor that detects whenever hot water is being drawn. This triggers the heating elements to ignite, heating the water only as needed. With no tank losing heat, tankless models are more energy efficient overall. They also offer unlimited hot water capacity.
Comparing Efficiency
Credits: Jaquar
When selecting a water heater, efficiency plays a key role in determining energy costs and savings. Let's see how tank and tankless models compare:
Tank Water Heater Efficiency
Tank heaters are rated by an Energy Factor (EF), with higher numbers indicating greater efficiency. Minimum Energy Factor requirements are:
- Gas tank heaters - 0.90 EF
- Electric tank heaters - 0.92 EF
While tank heater technology has improved, standby heat losses through the tank walls and pipes still account for 25-40% of energy consumption.
Tankless Water Heater Efficiency
Tankless heaters have higher efficiency ratings of up to:
- Gas tankless heaters - 0.98 EF
- Electric tankless heaters - 0.99 EF
This increased efficiency stems from their on-demand heating without standby losses.
Energy Cost Comparison
Credits: Jaquar
The efficiency differences between tank and tankless water heaters directly impact operating costs and energy savings:
- Homeowners switching from a tank to a tankless heater experience energy savings.
- For a household using 41 gallons of hot water per day, a tankless heater can provide some annual savings.
- Over a 10 year period, energy savings from a tankless heater can offset the higher initial purchase price.
- Where available, gas tankless heaters offer greater energy savings than electric models due to lower energy rates.
While exact savings depend on several factors, tankless heaters provide significant efficiency improvements that reduce monthly utility bills.
Installation and Maintenance
Proper installation and maintenance ensures your tank or tankless heater operates safely and efficiently. Let's contrast key considerations:
Tank Water Heater Installation
- Most fit where your old unit was located.
- Require plumbing connections, electrical/gas hookup, and venting.
- Routine maintenance involves draining sediment and replacing heating elements or thermocouples.
- Anode rods need inspection and replacement when worn.
Tankless Water Heater Installation
- Mounted on walls, in attics, crawlspaces, utility rooms.
- May need electrical panel or gas line upgrades for adequate power.
- Condensate drain required for gas models.
- Proper exhaust venting is critical for gas models.
- Maintenance involves annual flushing to prevent mineral buildup.
- Heating elements may need replacement after 5-10 years (Subject to usage).
Gas tankless heaters have more complicated venting. Electric models have simpler installation.
Hot Water Capacity
Credits: Jaquar
An adequately sized heater ensures sufficient hot water for your household's needs. Key factors include:
Capacity
For tank heaters, the tank size or capacity needed depends on household requirements. Generally 40-50 gallons suits most families.
Tankless heaters provide unlimited on-demand hot water. Capacity is less of a concern.
Number of Bathrooms
For tankless units, the number of bathrooms needing simultaneous hot water impacts the size needed. More bathrooms demand a higher flow rate.
Peak Usage
Account for periods of high demand like mornings when multiple showers are running. Homes with over 2.5 bathrooms generally need a larger tank or tankless heater.
Professional sizing help ensures you purchase adequate capacity and flow rate.
Top Features of Tank Water Heaters
- Smaller sizes fit in more locations
- Continuous hot water storage
- Familiar technology
Top Features of Tankless Water Heaters
- Compact, space-saving wall-mounted design
- Unlimited on-demand hot water
- No standby losses increase efficiency up to 34%
- Reduce energy bills
- Higher flow rate meets high demand
- Long lifespan
Helpful Tips for Deciding
- Calculate lifetime costs rather than just upfront price
- Compare efficiency ratings - higher is better
- Seek professional sizing assistance for your household
- Ask about total lifetime costs including maintenance
- Consider gas vs. electric models based on your utility availability
- Check for available rebates on energy efficient models
Why Choose Jaquar Water Heaters?
Credits: Jaquar
Jaquar offers premium water heaters featuring the latest innovations for safety, efficiency, and convenience:
- Increased Safety - Double thermostats, multi-function valves, and circuit breakers prevent overheating, voltage fluctuations, and accidents.
- Enhanced Lifespan - Glass-lined inner tanks, Incoloy heating elements, and high-quality insulation minimize corrosion and leaks.
- Energy Savings - Optimized heating elements, magnesium anodes, and premium insulation reduce heat loss and energy usage.
- Digital Convenience - Futuristic features like remote voice control, digital displays, and automatic on/off timers add ease and automation.
With cutting-edge safety mechanisms, glass-lined tanks for increased longevity, optimized heating for energy savings, and convenient smart controls, Jaquar represents the pinnacle of water heater engineering. Invest in the trusted Jaquar name for hot water that is efficient, safe, reliable, and technologically advanced.
The Bottom Line
When selecting a replacement water heater, it's important to look past upfront cost and understand long-term efficiency, operating expenses, maintenance needs, and performance. While more expensive initially, tankless heaters provide greater energy savings.
For energy-focused households with sufficient gas or electric capacity, a properly sized tankless heater is typically the better overall value. But tank heaters may suit homes with smaller hot water requirements.