Benefits of a Tankless Water Heater

Today’s homeowners are looking for energy-efficient equipment options. Between washing dishes, clothes, cleaning the house and showering or bathing, Canadians use an average of 75 liters of hot water at home each day.¹ It’s no wonder water heaters represent nearly 20% of total energy used in the average Canadian household¹ and 60% of residential indoor water use.²

While there are several key benefits of tankless water heaters — also known as on-demand water heaters — there are some limitations and considerations to keep in mind as you decide whether a tankless water heater is the right choice for your home. 

Tankless Water Heater Benefits 

Continuous hot water

• Tankless water heaters provide continuous hot water while saving energy.
• While tankless water heaters don’t instantly produce hot water — it can take approximately 30-60 seconds for the heated water to reach your tap.  

You set the temperature

• Set the water temperature exactly where you want (within regulated standards) with the touch of a button.
• The unit maintains your set temperature, ensuring consistent hot water — even during extended use.  

Safety

• When installed properly, tankless water heaters use a two-pipe direct vent system. This type of venting pulls fresh air from the outdoors for combustion and exhausts the byproduct gases back outside. Without a fresh air vent, there is a risk of negative air pressure in the home that can cause back drafting of exhaust gases, such as carbon monoxide, from other appliances into the home. Traditional conventional and power vented water heater models do not have a fresh air vent that pulls from the outside. 

Space saving design

• Space-efficient, tankless water heaters can be installed in very compact areas, allowing more usable space in your home for other comfort upgrades.
• While conventional water heaters take up floor space, a tankless water heater is mounted on the wall.
• The unit is roughly the size of a carry-on suitcase, making it easy to install in compact spaces. Traditional storage tanks require up to 16 sq. ft. of floor space.

Efficiency

• Tankless water heaters typically run at 95% efficiency and can lower your energy consumption by only using hot water when you need it.³
• Conventional storage water heaters are typically between 53%-70% efficient, with an average efficiency of 62%,⁴ and take about 30 minutes to fully heat a tank of water from cold water.
• Tankless water heaters recognize when hot water is turned on. For example, if your bathroom has a leak, the tankless unit won’t turn on because the minimum water flow rate is not met.  
• An ENERGY STAR^® certified tankless water heater can save up to 30% more energy compared to  conventional storage tank types.⁵
• Tankless water heaters can have an average life expectancy of up to 15+ years.

Tankless Water Heater Disadvantages

High initial cost

• Tankless heaters are usually more expensive to rent or purchase than storage tank models.
• Although costs are higher, you can recoup that with the possible long-term energy consumption savings that energy-efficient tankless water heater models can provide.

Limited water flow rate

• While the amount of hot water is unlimited, water moves through the home at the flow rate specified by the manufacturer. Water pressure with tankless systems can be affected when you’re doing multiple activities in your home, such as taking a shower while doing dishes and laundry. It’s important that the unit is sized properly to avoid this. By comparison, storage tank water heaters will maintain water pressure, but there is a limited amount of hot water.

Requires electricity to operate

• All tankless water heaters require electrical power in addition to gas supply — meaning if the power goes out, you won’t have hot water.

Other Considerations

Sizing 

• It’s important to assess your needs, as every family is different. Tankless units come in a range of sizes, and you’ll want to make sure to choose one that will meet your home’s hot water needs.
• Tankless water heaters supply limitless hot water, but the pressure may not keep up with demand if everyone needs it at the same time. Considerations should be made on how many appliances are running in the house.  For example, tankless models supplying five gallons per minute (GPM) could potentially accommodate two showers running at the same time without compromising on water pressure if the showerheads have a standard flow rate of 2.5 GPM. Results may vary with different unit sizes and showerhead flow rates. 
• The Experts at Enercare recommend sizing the unit to the environment and occupants, looking not just at how many showers you have, but also the types of showerheads and flow rates, which affect water pressure.

Energy source

• Most tankless water heaters are heated by natural gas or propane, but you can also get electric models.
• Gas-fired tankless water heaters produce higher flow rates than electric ones. This means gas units produce more hot water per minute.
• Because of the lower flow rate, electric units typically go under the sink as opposed to in the basement. This can prove to be challenging to run power, particularly in a finished or drywalled area. Electric units require a dedicated power source to each location.
• Electric powered tankless water heaters have significantly reduced greenhouse gas emissions, although it may be more costly to install and operate.
• If natural gas is your current fuel source, it is likely easier to install a gas-powered tankless water heater than an electric system.

Installation 

• Installation quality is paramount, not just to make sure the equipment works properly, but to meet safety regulations. There are three key factors that you’ll want an expert to assess to ensure you have the mechanical components you’ll need:
  • Venting – water heaters that use natural gas or propane need to be vented according to building safety codes.  
  • Gas – the size of your gas line determines how much gas can flow to your home’s tankless water heater and other gas appliances. If your gas line is not sized properly, you might experience potential equipment malfunction.
  • Electrical – all tankless water heaters require a reliable power source. It’s important to check your home’s electrical panel and components to ensure it can handle the additional load.
• At Enercare, installation time is usually between 4 to 6 hours, which includes removal of your old water heater.

Hard water buildup

• Hard water can cause a buildup of scale inside your water heater, which can cause your unit to lose efficiency. If you live in a hard water area, you may want to consider using a water softening system to help extend the lift of the unit. 
• You may also want to conduct regular flushing or descaling of your tankless water heater every 2 – 5 years or when you notice a change in water pressure (whichever is sooner) to prevent calcium buildup.

Hot water use

• While tankless water heaters can lead to energy savings due to their efficiency, the freedom of endless hot water can lead to an increase in water usage.
• The freedom of endless hot water that tankless models bring can lead to an increase in water usage — for example, after getting used to taking five-minute showers to conserve hot water, suddenly 20-minute showers are no longer an issue.
• Making a habit of increasing your daily water usage can lead to negating these energy savings, so it’s good to maintain an awareness of your lifestyle habits if energy savings are a priority for you.

Renting vs. Buying

• The average cost of installing and purchasing a natural gas tankless water heater can be up to $5,000.
• Renting your tankless water heater allows you to avoid a large upfront purchase and installation costs.⁶
• When you rent with Enercare, free water heater installation is included as well as repair coverage for the life of your equipment.⁶

If you’re ready to take the next step, our Enercare Energy Management Consultants can perform a comprehensive evaluation of your home, water systems, and family needs to determine the right water heating system for your family. To learn more about water heater options, check out our Buyer’s Guide to Water Heaters. 

1. Natural Resources Canada, Water heaters. ↩︎
2. Indoor water use was calculated by summing cleaning, bathing & showering, and laundry percentage water use statistics. Source: Global News, This is how much water Canadians waste. ↩︎
3. Average efficiency of tankless water heaters was calculated using the Energy Star directory of certified water heaters. ↩︎
4. Natural Resources Canada, Water Heater Guide. ↩︎
5. Government of Canada, Guide to Residential Water Heaters. ↩︎
6. Terms and conditions and certain exceptions apply. See rental agreement for details.
   ™/® Enercare and Enercare Advantage are trademarks of Enercare Inc., used under license ↩︎