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Tankless Water Heaters

Thinking about replacing your current water heater? Before you go out and replace it with another tank based heater, you might want to consider going tankless. Tankless, also known as instant or on-demand heaters can provide instant hot water while conserving energy by not heating more water than you will use. These heaters are also much smaller than traditional water heaters and often have lower life cycle costs. Additionally, the technology is proven successful and has long been used extensively throughout Japan and Europe.

Are tankless heaters right for you?

Maybe so, maybe not. You're going to receive the most benefits from going tankless if you already have gas or propane supplied to your home. While there are good electric tankless heaters on the market, they often will require upgraded electrical equipment in order to function properly. That said, your water heater can account for nearly a quarter of your home's total energy consumption. Tankless heaters cost more than traditional heaters to install, but with high Energy Factors, you can recover and even exceed these upfront expenses over the life cycle of the heater. As an added incentive, the federal government is making going tankless even more attractive. Through 2007, most tankless gas water heaters qualify for a $300 federal tax credit. In many cases, this will offset the price differential between traditional and tankless heaters.

What to look for when you buy

When buying a tankless water heater you want to be sure to get a unit that can provide year round effective heating. To do so, look for units that function well when increasing the water temperature by 75 degrees Fahrenheit. Also, look for units that support a flow rate of at least 4 gallons per minute - this will allow for the operation of two showers simultaneously. Alternativley if you have long pipe runs, look into purchasing a large centrally located tankless water heater and supplementing that with smaller point of use heaters to provide instantaneous hot water and less heat loss in the pipes.

Does it make economic sense?

Check out the below table for a comparison of life cycle costs between a traditional gas water heater and a Takagi Flash T-K2 tankless water heater, a premier unit which more than meets the criteria we laid out above. Not only is the life cycle cost lower, but when you consider that the tankless system lasts 7 years longer, the total cost of ownership on an annual basis is even more compelling.

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	Traditional Gas	Takagi T-K2 Tankless
Price	$380	$929
2007 Tax Incentive		-$300
Annual Energy Use	$179	$90
Life (years)	13	20
Life cycle cost	$2,707	$2,429
Annual Cost	$208	$121