The Tankless Water Heater

Even if you're not quite ready to replace that leaky old water heater in your basement, a bit of research will get you thinking about the return on investment that an energy-efficient water heater can yield.

Among the many types of water heaters on the market, some models – such as highly efficient gas storage water heaters, heat pumps, solar water heaters and tankless water heaters – are up to 50 percent more efficient than traditional gas storage water heaters.

Perhaps the least understood – though one of the most efficient - is the tankless water heater. As the name suggests, a tankless water heater is indeed a water heater without a tank. It provides hot water on demand, heating water only when you need it and guaranteeing that the last person out of bed doesn’t have to shiver through a cold shower.

Compare this to a conventional water heater, which stores water in a large tank (to 50 gallons in some models) and has to keep this water hot 24 hours a day to ensure an available supply whenever you need it. This means that the water is being heated even when you don’t need it – which means that you are wasting energy and money the majority of the day.

Since tankless water heaters save energy, they also save you money. According to the Environmental Protection Agency’s ENERGY STAR program, an ENERGY STAR-qualified tankless water heater will save an average of more than $40 per year for each person in your household, compared to a conventional gas model. This translates to an annual savings of about $175 for a family of four. The lack of a storage tank means that it can't leak or burst, eliminating the risk of water damage. Additionally, tankless water heaters are typically smaller than conventional models, saving space in your basement or utility closet.

A tankless water heater does cost considerably more than a conventional gas water heater, but the amount saved on your energy bills makes up for this difference just a few years into the water heater's 20-year shelf life – which is, incidentally, much longer than any conventional tank water heater. The initial costs can be further offset through a federal tax credit (valid until December 2010) worth 30 percent of the cost of the unit, up to a total of $1500 for all energy-efficient home improvements.

Perhaps your wheezy basement unit still has a few seasons left yet. In the meantime, fuel costs will continue to creep up, making it all the more practical to think about a long-term strategy for saving energy – and money – on your next water heater.

More information on the efficient water heater tax credit is available at http://www.energystar.gov/index.cfm?c=products.pr_tax_credits#c4 or http://energytaxincentives.org.

For tips on purchasing the water heater that is right for you, see http://www.energystar.gov/index.cfm?c=water_heat.pr_help_me.

 

Oh, I think ALL our water heaters have a tankless job.

OK, I'l shaddup now.

 

OSimpson--

We had one put in our farm home when we built over 5 years ago. Also, we have solar powered heating, etc. Husband is a "DIY-er" and engineer has helped. Great product.

Kaosdad--

Great pun!! Are you going "tankless" this summer--hope not!

Tell Brassy her berries (and others) will be ready at the Nature Center soon!

Have a good week--we are in Sunny Sarasota, FL.

Foodie

 

Oya - we just looked into this solution and it was PRICEY. Loudoun has some different regulations, such as a secondary outside vent, extra power and the strange configuration of our Water, Power & Gas lines.

We had Cropp Metcallfe, Norbitz & GE give us an estimate and the cost range was:

$7150 - $9100

It would take almost 20+ years for us to see any ROI.

 

Ouch, that is quite the chunk of Moo.

In order to switch over from a tank system to a non-tank system, what all is involved? Is it just replacing the tank with an inline heater or is there more involved.

 

Based on how our utilities are laid out within our home, these are required:

• Cutting into the foundation (apron) of the house for the mandatory ventilation - est cost $550
• replacing about 20-35' of ceiling & wall drywall (in a our finished basement) - est cost $625 (to include paint)
• moving recessed lights - est cost $425 (total of 9 lights to be moved)
• moving the cooling/freon line - est cost $1100-$1500
• moving the water & gas line - included in all the pricing
• moving a good chunk of our landscaping - est cost $450
• the most expensive adding more power into our circuit. est cost $1200 - $4400

Don't get me wrong I really wanted a tankless heater, but for right now it is just too costly. I honestly thought it would cost $2-3K, not triple the cost. I had a misconception that it would be a simple DIY project, but after 3 companies gave their estimates I started to ask, why more homeowners are NOT doing this.

Simple answer is, it is very expensive to retro fit a newish construction home with a tankless heater. The $7150 -$9100 didn't include the cost of drywall/painting, removing of landscaping or recessed lights. When I added those tasks into the project the cost went up another 15-25% and that's when I pulled the plug.

 

I agree. While this sounds like a good idea, the expense places it out of my reach.

I have a blanket around my heater, that is cheap and does help with the energy requirements a little. Every little bit helps.

 

We received an estimate for $6000 for a tankless. Besides the cost, we were concerned that the vent would be right at our patio level and the emissions would be unpleasant.