Storage Vs. Tankless Water Heater: Which is Right for You?

water heater on the wall

Water heaters are necessary for every home. Whether you’re purchasing one for your new home or replacing an old one, it’s a necessary investment. Before making the big purchase, you should consider the cost, efficiency, and longevity of a new water heater.

Many people who have never purchased a water heater before don’t understand the difference between a storage-tank water heater and a tankless water heater. A tankless water heater uses high-powered burners to rapidly heat water as it runs through a heat exchanger and delivers it directly to your faucets or shower without storing it in a tank. A tank storage water heater typically holds 30-50 gallons of water. It heats and stores water until it is needed.


Advantages and Disadvantages of Going Tankless

One significant advantage of a tankless water heater is that you will be delivered a constant supply of hot water. However, they have a limit on the flow rate between 2-5 gallons per minute. Because of the limited flow rate, some houses run into complications when trying to run water in different places at the same time. To overcome this, you can install two or more tankless water heaters, but not everyone has the budget for that.

According to Energy Saver, homes that use less than 41 gallons of hot water daily, tankless water heaters can be 24%–34% more energy-efficient than conventional storage-tank water heaters. Because being energy efficient has become attractive to many consumers, the tankless water heater is becoming more popular in homes. The initial cost of a tankless version is higher than a tank storage heater, but it usually has a lower operating cost.


Pros and Cons of a Traditional Water Heater

Storage tank water heaters are very attractive to consumers because the initial cost is much lower. The necessary maintenance and repairs are much cheaper for storage-tanks because of their simple design. Those with storage tank heaters can also utilize various water sources without tampering with the water flow. Because the water flow is higher than a tankless version, so you can run the dishwasher and shower with little disruption.

A downside of storage tank water heaters is they often lead to higher utility bills because it heats the water and keeps water warm in the tank at all times. It has to work harder in the winter months, which drives electricity bills up. Storage tank water heaters take up more space in the house than a tankless water heater. They also need to be replaced more often.


Overall, both types are beneficial and are great for your home. There are attractive benefits and drawbacks to both, so what is best for your home is really up to you. You’ll have to keep up on maintenance for either choice, but if you need a new water heater, contact us today, and we can help you pick out the perfect one for you.

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