Many of you know that tankless water heaters are promoted as energy-efficient, and you are here to know exactly how efficient are they? Well, that is a good question. According to the department of energy, it has been found that water heaters consume around 17% of the total energy consumed by a household. So this raises the question is switching to a tankless water heater due to its energy efficiency a viable saving option or not? Today, we’ll explain **how much electricity does a tankless water heater use in 2022** you can obtain additional information about this situation.

## How to calculate tankless water heater electricity consumption

There is no fixed answer to **how much electricity does a tankless water heater use in 2022** that as different models of tankless unit’s electricity consumption may vary. But that doesn’t mean that you cannot calculate the electricity consumption of your tankless unit. The electricity consumption of a tankless water heater depends on several things. How is the unit maintenance plan going? How old is the unit? At which temperature is the water heater working? What kind of tankless unit (gas or electric) is it? What are its average working hours per day?

An electric heater that needs to be powered by 120V power sources consumes 1125 watts, while a unit powered by 240V can consume 4500 watts of electricity. Based on how much watt the electric tankless water heater consumes, you can easily get a rough estimate. Simply multiply the price of one kWh with the watts your heater consumes and the number of hours you use the heater in a day, and divide it by 1000.

Heater electricity consumption in watt **x** price of 1 KWH **x** number of hours used in a day **/ **1000

**For example:**

You have got yourself a tankless water heater which consumes 7000 watts/hour, where the price of Kilo-watt-hour in your locality is $0.2, and you use your heater for an average of 1 hour a day.

__7000 x 0.2 x 1__

**1000**

So, your unit is going to cost you $1.4 a day, $42 a month, and $504 a year. Unlike tank water heaters, the tankless unit only operates when you open the tap, so you can expect the values to differ upon your use. But no doubt that they will be more efficient than a tank water heater, which will keep heating the water in the tank as it gets cold and consumes more electricity.

### How is the gas tankless water heater billed?

Like the electric tankless water heater, a gas tankless water heater is also affected by similar factors. You can estimate your gas consumption using the following formula.

BTU consumed by tankless per hour x Price of BTU x Number of hours used in a day

Where BTU stands for “British Thermal unit.” It is used to calculate gas consumption.

**For example**, you have a tankless gas water heater that uses 0.5 BTU of gas to function for an hour. The price of 1 BTU of gas is $1, and you use your water heater for an average of 3 hours a day. Hence you can the cost incurred by the water heater.

**0.2 x 1 x3 = $0.6**

So your cost will be $0.6 for a day, $18 per month, and $216 per annum. You can save much more with the gas tankless unit as gas is cheaper than electricity.

### Is investing in a tankless water heater a worthy investment

In terms of energy efficiency, tankless water heaters are much better than traditional water heaters. A gas tankless water heater has an excellent rating for energy efficiency, while an electric tankless water heater has a good rating for energy efficiency. So, suppose you plan to buy a tankless unit based on its energy efficiency. In that case, it is hard to say it is a worthwhile investment as the saving from the tankless unit can only pay back the cost of your investment after 6-12 years of use, but this is considering that tankless water doesn’t have any other fault in this period. It would be best if you also thought will you still be in the same house after 5-10 years to avail your cost of the tankless water heater.

Therefore, the more logical approach is first to evaluate your own needs. For instance, it is not rational if an individual wishes to purchase it. He/her have little needs and can be covered with a tank water heater and is a cheaper solution. It is more worthwhile for a bigger family with children to buy a tankless water heater as with children there will be more laundry, with more people there will be more dirty dishes. It would help if you had an endless supply of tankless units to meet the needs better. Similarly, tankless is safer in the matter of flooding and exploding than a tank water heater.

It is also a worthwhile investment when you build a new house as now you don’t have any previous pipelines set beforehand. So installation is easy and can also enhance the value of your home.

## Frequently Asked Questions

Do tankless water heaters use a lot of electricity?

That depends; if you are comparing it with a tank water heater, then it doesn’t use more electricity and is 24-34% more efficient than a tank water heater if both unit’s daily use is less than 41 gallons of water. But its use costs you more than the gas tankless water heater as natural gas is much cheaper than electricity.

How much does it cost to run an electric tankless water heater?

The cost to run an electric water heater ranges from $250-$600 and may vary from model to model. But you can quickly get a rough estimate using the following formula.

Heater electricity consumption in watt **x **price of 1 KWH** x** number of hours used in a day **/** 1000

If: Heater electricity consumption in watt = 5000 watt

Price of 1 KWH = $0.1

Number of hours used in a day = 2

5000 x 0.1 x 2

1000

So, your electric tankless water heater is going to cost you $1 a day, $30 a month, and $365 a year.

How much electricity does an electric tankless water heater use?

In terms of electricity use, as per the department of energy, if your consumption of water is less than 41 gallons per day, then an electric tankless water heater is 25-38% more efficient than a tank water heater. But tankless water heaters require 120 AMPs to operate, you have to upgrade your electrical circuit upon installing a tankless water heater, or it won’t work.

Can you run out of hot water with a tankless water heater?

No, tankless water heaters come with an endless supply of water as it doesn’t store the hot water but heats the water as your open the faucet. So, you will have an infinite supply of hot water if you do not exceed its capacity to heat the water. In which case, a tankless won’t have enough time to heat the water before it is sent to you.

## Conclusion

Due to their on-demand functionality of **how much electricity does a tankless water heater use in 2022**, tankless water heaters are energy efficient and can save you hundreds of dollars per year. However, tankless water heaters cost approximately 2-3 times as much as traditional tank water heaters Which negated a significant portion of the savings. Other than this, it comes with the convenience of an endless supply of hot water, small size, no chance of flooding or tank rupture, and lifespan of more than 20 years, and can enjoy a federal tax rebate of up to $300 on a gas-powered tankless water heater.