You may have heard that tankless water heaters are much more energy efficient than traditional water heaters with tanks. That’s true, and the lower energy usage should translate to a lower utility bill. But, exactly how much money does a tankless water heater save you? To help you understand what you should expect, we’ll translate those energy efficiency ratings into a dollar amount.
Tankless Water Heaters Savings
The Department of Energy has done the math on how much the average family can expect to save with a tankless water heater. First, the Department estimated that a tankless water heater is 24-34% more energy efficient than a water heater with a tank. This translates to an average cost savings of $108 per year.
This is just an average. A few different factors could significantly increase your savings. For example, the more expensive your energy, the more you’ll save. Also, if you believe you use more hot water than the average family, you may save more money than this estimate.
Tankless water heaters also have about double the life span of a tank water heater, of 20 years instead of 10. Over the twenty-year life of the tankless water heater, it could save you a total of $2,160. This more than covers the cost of the tankless water heater.
Is a Tankless Water Heater Worth It?
Sure, a tankless water heater isn’t the dramatic cost savers that some people make them out to be. That being said, it may be an important part of your plan to increase the energy efficiency of your home and reduce your utility costs. Or, it may not be worth the switch for your family.
That being said, a tankless water heater offers more than just energy efficiency. Read on to get the full picture on the other benefits tankless water heaters can offer you.
Other Benefits of Tankless Water Heaters
Tankless water heaters offer a few advantages over water heaters with tanks, including:
- Unlimited hot water: Tankless water heaters raise the temperature of your water as it passes through the pipe. It can keep doing this for as long as you want. No matter how long you stay in the shower, the water won’t turn cold.
- More space: Tankless water heaters are installed inside your walls. If you have a tank water heater now, that space will be empty once you have a tankless water heater. This can help you make the most of your floor space. If you have yet to finish your basement, switching to a tankless water heater beforehand can help you cut down on the size of your furnace room/HVAC room.
- Longer life: Tankless water heaters can have double the life span of a tank water heater. This means you can go much longer without needing to replace your water heater.
- It’s a luxury you can afford: Home shoppers and renters recognize tankless water heaters as luxury equipment, so adding one to your unit is a great way to help it stand out in a crowded real estate market. However, as home builders have noted, it can cost you in the form of higher utility bills if you’re renting and your tenants love long showers a little too much.
Talk with an Expert
Need to get some more hard numbers on how much money a tankless water heater will save you? A plumber can give you a more personalized estimate based on your last water and utility bills. They can also help you determine if a hybrid water heater is a worthwhile option for your home.