Replace water heater with tankless? You can have up to 50% energy savings if you have a tankless water heater in your home. This is possible because standby heat losses are kept to a minimum.
However, there’s more to that. Here we’ll discuss other costs, advantages and possible drawbacks of tankless heaters. Let’s start.
Upfront costs is much higher in tankless. The unit itself might cost 3x compared to traditional water heaters (also called storage heaters). In addition, the installation could cost thousands of dollars especially if there’s rewiring and reconfiguration needed.
Good thing is the long-term costs are lower in tankless (save at least $100 per year in energy). It’s more energy efficient and there’s minimal heat loss. Hot water is produced “on demand.” The water only gets heated when you need it (just-in-time hot water). There’s no heat loss during storage because it’s not stored in the first place.
A tankless water heater can still deliver a stream of hot water even when you’re bathing. However, the flow rate won’t get any higher than the default one. This is in contrast with storage heaters where the flow rate can get higher (but the refilling and heating might still take time).
If you’re still planning to install a tankless heater, make sure that the capacity and flow rate are high enough (even when the whole family’s using the water heater). This is to ensure there’s enough hot water for everybody even during peak hours of usage.
These water heaters can last up to more than 20 years. They can even last longer if they’re properly maintained. Also, replacement parts are readily available which makes their lifespans even longer.
In contrast, traditional storage heaters can only last up to 15 years. It’s a huge 5-year difference because you will then need to buy another unit after that period. In addition, you might as well enjoy the energy savings now to maximise the benefit you get.
In summary, tankless water heaters are more costly upfront. They’re more expensive per unit and the installation could cost thousands of dollars. But the good news is, it’s more energy efficient and can last many more years. Also, tankless water heaters are said to be ideal for small households.
If you have any questions about replacing your old water heater, you can call us today at 02 9199 2598. You can ask us about the costs of removal of your old water heater and installing a new more energy-efficient one.