Are the tankless water heaters worth the money in 2022? The answer is yes and no. The reason is that when we try to evaluate something regarding whether it is worth it or not, we decide on two main criteria. These two main criteria are cost and utility. Furthermore, the cost includes five factors. These five cost factors are; Initial cost, Installation cost, Maintenance cost, Energy savings, and Rebates.
Let’s discuss some factor of “Are Tankless Water Heaters Worth the money”
- Initial unit cost
Tankless water heaters are, without a doubt, more expensive than conventional tank water heaters. They can cost you double the price of a tank water heater. At the same time, an electric tankless unit is cheaper than a gas tankless unit. In terms of cost, you can see the following trends.
Following the trend in the above chart, you can see that water heater units’ prices are more significant for gas units than Electric units. The most expensive units are condensing units, which are a variant of gas-powered tankless units.
- Installation cost
A tankless water heater, unlike a tank, does not keep water in storage. What it does is brings the water to the desired temperature whenever you open a tap. That is why they need a lot of power to bring the water temperature to meet users’ needs quickly. Hence, it would be best to have additional installations to give the tankless unit the power to work perfectly.
Typically, in the case of an electric tankless water heater, you need to upgrade your circuits to 200 AMP. While in the case of a gas tankless unit, you need to install two vital installations of a new gas pipe and a vent to dispose of the harmful byproducts of gas combustion.
Because of these factors, a tankless water heater installation is more expensive than a tank water heater installation.
- Maintenance Cost
The cost of maintenance is another thing to reflect on when getting a tankless water heater. The reason being that the tankless water heaters are more sensitive and need periodic maintenance to function perfectly. As a result, maintenance should be performed every six to twelve months. The frequency of it depends on hard water in your locality.
The maintenance process is easy, and you can do it yourself. You could also hire a professional for approximately $300. If you do it yourself, it will cost you around $180 for the first time, and every other maintenance will cost around $50, as most of the tools purchased are reusable. Similar is the case with the tank, but you only need to replace an anode rod for a tank water heater, which will cost you $30-$50.
- Energy saving
It is the most debated point for a tankless water heater. A tankless water heater indeed gives you many savings, but you must remember that it is a long-term investment. A gas tankless water heater usually takes 18-20 years to pay back the investment, while an electric tankless unit has a 10-12 years payback period.
However, it must be noted that a tankless water heater payback the investment amount in the form of savings. Hence, if you had bought and used the tank water heaters for a similar duration, all you would have gotten was the hot water. While in the case of a tankless water heater, you get hot water and have savings equal to your investment. Therefore, it makes them worthy of the money spent on them.
Rebates or tax credits are additional points that make a tankless water heater all the more attractive. According to the federal policy, this relief is available to people switching to a more energy-efficient alternative (at least 14% more energy efficient). Some tankless heaters come with a rebate of up to $300. Similar to this, many of the utility companies also give rebates on their products. This is available for the most gas tankless water heater. So be sure to check for rebates before you buy a tankless water heater or are replacing an old one. You can typically avail of the rebates within three months of purchase.
- Endless water supply
A tankless water heater gives you an endless supply of water. As long as the water is coming from the supply line and electricity is available, a tankless can give you hot water on demand. You don’t need to wait for it. As long as you desire it, it will bring you hot water in seconds.
- Energy savings
A tankless water heater uses innovative technology to save as much energy as it can. Most of the time, it remains turned off when water is not drawn or the water drawn is in a minimal amount. This way, it saves energy which reflects into extra savings.
- Easy controls
A tankless water heater uses a computer display screen that makes it easier to control your heater’s setting. This way, you can accurately set the tankless water heater to match your settings.
- Easier problem locating
The latest tankless water heaters come with intelligent technology that diagnoses the tankless unit and tells you the problem. For this, they use different error codes to tell you where the problem lies and what kind of problem it is. You can match the error code with your owner’s manual to understand the problem.
Frequently Asked Questions
Do you really save money with a tankless water heater?
Tankless water heaters are a valid money-saving option. It can help you save around $30 to $150 annually. However, it is on the premise that you take proper care of your tankless unit. By properly taking care of your tankless water heater, it can help you save enough money equal to the amount you invested in it at the time of purchase. What it means is that if a person had both a tank and a tankless unit, a tankless unit would only cost him half of the amount he spent on buying and using the tank water heater.
How long does it take for a tankless water heater to pay for itself?
There are two basic tankless water heater types; electric and gas tankless water heaters. An electric tankless unit is comparably cheaper and can pay for itself in 10-12 years. While a gas tankless unit is more expensive can take 20-22 years to pay for itself from the savings.
Why is tankless water heater installation so expensive?
Tankless water heaters don’t store water but heat water on demand, which means they heat it as soon as you open the fixture. They bring the water to the desired temperature in a couple of seconds, for which they need a lot of power. This power can’t be provided to the tankless by the old system in place. Hence additional installations are needed, which makes installations so expensive.
How often should a tankless water heater be flushed?
Mostly, flushing a tankless once a year is enough, but it is not absolute as it depends on the hard water. You may have to flush it twice a year or once every 2 years.
A tankless water heater is an intelligent machine that can assist you for a long time. Although they do have a bigger drawback of having colossal upfront costs. But they can assist you for a longer time, are easy to operate and work with, and give back their value “are the tankless water heaters worth the money“. This makes it worthy of your invested money.