Key Takeaways
- Tankless units heat water on demand, eliminating standby heat loss and delivering up to 35% greater energy efficiency than tank models.
- Tankless heaters are compact and wall-mounted to free up floor space, but require upgraded gas lines or electrical capacity, making installation more complex.
- With fewer corrosion-prone parts and no large storage tank, tankless units often last 20+ years and pose a lower leak risk, reducing maintenance headaches.
Tank and tankless hot water heaters offer numerous benefits for different industries and property types, but they both come with their share of cons. Trying to figure it all out can be a daunting task, especially when you’re unsure of the advantages and disadvantages of each. Whether you’re looking for longevity, cost effectiveness or energy savings, it’s important to ensure that your hot water heater is properly functioning and suited for you.
Pros and Cons: Tank Hot Water Heaters
There are varying opinions on tank versus tankless water heaters depending on what you’re looking for and who you speak to. Tank water heaters are most known for being the tried-and-true water heating system — not only are they reliable and easy to install, they also have an affordable upfront cost, with the average industry cost for a 40- to 50-gallon tank of about $900. The large size of tank water heaters allows for between 20 to 80 gallons of hot water storage, but this is often considered a drawback since they require so much space.
It also means that if the tank has been emptied, you’ll need to wait until your water heater produces more hot water, which could take some time due to its size. Keeping a tank full of hot water at all times can lead to significant energy waste, resulting in about 35%–40%less energy savings compared to a tankless water heater. It’s also important to note that tank water heaters typically have a shorter lifespan, and in the case of a malfunction, gallons of water could leak from the tank.
Tank Hot Water Heater Pros
- Tried-and-true, reliable technology
- Easy to install
- Affordable upfront cost (~$900 for a 40–50 gal tank)
- Large hot water storage capacity (20–80 gal)
Tank Hot Water Heater Cons
- Bulky footprint requires significant space
- After depletion, the tank must refill and reheat
- Continuous heat maintenance wastes energy (~35%–40 % less efficient than tankless)
- Shorter lifespan and risk of major leaks if malfunction occurs
Pros and Cons: Tankless Hot Water Heaters
Unlike tank heaters, tankless water heaters are known for their efficiency and for taking up less space. Homes with this type of hot water heater can expect up to $1,800 worth of energy savings throughout the equipment’s lifetime, plus ongoing savings from not keeping a large tank of hot water on site. They also have an increased life expectancy of 20+ years and a decreased risk of leaking or bursting, which saves a headache for property managers and homeowners.
Even then, the advantages of tankless hot water heaters come with a cost. The typical tankless hot water heater and installation runs for around $3,000, which is about triple the price of a tank water heater. The installation process isn’t as simple as compared to a tank hot water heater, as it can require changes to the property to accommodate the unit. They also take longer to generate and deliver hot water, resulting in inconsistent water temperature especially when several taps, appliances and showers are being used at the same time.
Tankless Hot Water Heater Pros
- Highly efficient, heats water on demand
- Compact footprint saves space
- Up to $1,800 in lifetime energy savings
- Longer service life (20+ years), 5–10 years more than tank models
- Lower risk of leaks or bursting
Tankless Hot Water Heater Cons
- Higher upfront cost (~$3,000 installed), about three times more than a tank hot water heater
- Installation may require property modifications
- Slower initial hot water delivery
- Possible inconsistent temperatures when running multiple fixtures simultaneously
What’s Best for Business?
Because of their size, energy efficiency and overall cost savings, tankless hot water heaters are great for single homes and industrial properties. On the other hand, tank hot water heaters are optimal for larger homes and commercial facilities: Not only can they provide water to multiple faucets or appliances all at once without a change in temperature, their significantly larger size also allows them to hold more gallons.
That said, both water heating systems can be beneficial to any property owner. It’s important to evaluate your budget, space, location and consumption needs.
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