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Pros and cons of an on-demand water heater

Tankless water heaters have grown in popularity in recent years. This is, in part, due to their heightened energy efficiency. However, they are not necessarily suitable for all homes. Here’s what you need to know to decide if an on-demand water heater is right for you.

Pros of On-Demand Water Heaters

  • Virtually Unlimited Hot Water – The best thing about an on-demand water heater is that it heats up the water as you need it. This way, you’ll never run out of hot water at the end of your shower again.

  • Energy Savings – Because you won’t be wasting any energy maintaining heat inside a large water tank, an on-demand water heater can save you a lot of money on your energy bills. Both gas and electric models are available to suit your needs and preferences. However, at this time, we haven’t found many benefits with electric models. Contact our office and we can help you find the right water heater for your needs.

  • Small Space Requirements – Tankless water heaters mount directly on a wall, so they don’t have the same large footprint as traditional water heaters. This will free up space in your garage for your vehicle or for additional storage for your home.

  • Long Life Span – Whereas traditional water heaters typically last about 10 years before needing to be replaced, on-demand water heaters are usually good for about 20 years.

  • Possible Tax Breaks or Government Rebates – Because on-demand water heaters are energy-efficient, you may be eligible for some financial incentives. These can include local and federal government rebates, as well as tax breaks from the IRS. Check with your tax professional or other financial services provider to be sure.

Cons of Tankless Water Heaters

  • Higher Cost – On-demand water heaters are more expensive than traditional water heaters, which can turn off some buyers. However, you’ll make your money back in energy savings over the years. Tankless water heaters tend to cost at least double what you would pay for a heater with a tank.

  • Specialized Equipment – Many on-demand water heater models require you to have a water softener, which can add to your cost. Your plumber may also need to reroute pipes to accommodate the new equipment. This added labor will add to your costs even further.

  • Limited Capabilities – Although tankless water heaters are capable of delivering an endless stream of hot water, they can only produce a limited amount at a time. This means that you can only get hot water in a single location at once. For example, if you were running the dishwasher, you may not be able to get enough hot water to take a shower at the same time.

Weighing Your Options

To decide which style of water heater makes the most sense for your home, you’ll need to carefully weigh these pros and cons. The factors that are most important for you may not be the most important to someone else. Only you can decide which route to take.

Be sure to consider not just the convenience of various models, but also any additional installation requirements. Keep your budget in mind when evaluating these added costs. If you can afford the high upfront cost though, you could stand to save a lot of money in the long run. Not only that, but you’ll be doing your part to help the environment as well by minimizing your energy usage.

Learn More about On-Demand Water Heaters

If you are interested in finding out whether an on-demand water heater might be right for your Phoenix home, get in touch with the experts at Forrest Anderson Plumbing & Air Conditioning. We can help you select the most appropriate unit to meet your needs and install everything for you.

Contact Forrest Anderson Today!

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