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Tankless vs. Tank Water Heaters: Which One Is Right For You?

Tankless vs. Tank Water Heaters: Which One Is Right For You?

Traditional tank water heaters are not known for efficiency. They take up a lot of space in Buford homes and they heat water that your family never uses. Of course, upgrading to greener, more efficient tankless water heaters means installation and new equipment costs. Would the switch make sense for your family?

Here is a look at tankless vs. tank water heaters if you are considering an upgrade:


With traditional hot water heaters, a large storage tank keeps water heated whether or not someone will use it. When no one is using the hot water in your home, that energy is wasted. It affects your monthly utility bills as well as your carbon footprint. Meanwhile, a 6-foot metal tank is taking up valuable storage space in your home. Chances are you could find a better use for that real estate.

Tankless water heaters heat water “on demand,” which means the system is activated only when someone turns on the hot water knob. That eliminates the waste of tank water heaters. According to the U.S. Department of Energy (DOE), tankless water heaters are anywhere from 8 to 34 percent more efficient than tank models.

In dollars, says you could save more than $100 in energy costs every year with a tankless model.

Cost of Ownership

The capacity of your water heater will determine its overall value for your family. If your hot water use is 40 gallons per day (the average for a family of four), the DOE estimates you can save the full 34 percent on energy costs. Families that use between 40 and 86 gallons a day (a high amount) will enjoy closer to 14 percent in energy costs.

The upfront costs of tankless water heaters also have come down in recent years. Once considered too expensive to recoup the costs on energy savings, tankless heaters are now in the same price bracket as traditional tank models. Surveying home improvement websites, you can find tankless water heaters for two-bathroom homes priced just a few hundred dollars more than tank models. Factoring in the savings every year, the (slightly) higher investment will make sense for most Atlanta-area families.

When comparing tankless vs. tank water heaters, tankless models win on energy and space savings. Though the upfront investment is slightly higher, it is usually the smarter choice in the long run. Let Casteel walk you through the best options for your family when a new water heater is on the menu.