How Much Money Can Tankless Water Heaters Save You?

Posted by James Memije on Jul 24, 2015 9:54:00 AM
James Memije
Making your home more energy efficient is key – not only because it helps the environment, but because it lowers your gas and electric bills, as well. Here, we’ll discuss how tankless water heaters can increase energy efficiency, along with savings. So, just how much can one save you? Read on to find out! tankless water heaters

Why Tankless?

Traditional water heaters store water in a tank where it is kept warm until needed for use. This means that energy is being used to keep water heated even when you don’t need it. Tankless models, on the other hand, heat water as it flows through the device, letting you cut down on energy costs. Tankless models do cost more, however, starting at $3100 (compared to $1300 for traditional water heaters and $1900 for power-vented tank heaters). But, will you save more in the long run? Let’s break it down.  

How Much Can You Save? 

Tankless heaters, which use high-powered burners to quickly heat water as it runs through a heat exchanger, are 22 percent more energy efficient on average than traditional models. That translates into a savings of around $70 to $80 per year, and sometimes $100 or more per year. 

To estimate your savings, think about your household’s water usage. If you have a large family, your savings will likely be higher than someone who lives on their own and uses less water. If your new, tankless model saves you $70 per year over 13 years, you will have saved just over $900 dollars in energy bills. Since the tankless model only costs $700 more than the traditional to begin with, that’s $200 net savings when you add the cost of purchase with the cost of use. When you also consider the reports that you will have to replace tankless models less frequently, the potential savings becomes even more significant. 

Brand Comparison 

So now that we’ve covered tankless water heaters savings, let’s dig a little deeper and compare popular brands! 

Navien - Offers the ultimate in energy efficiency with hi-tech comfort and statistically saves 90% more energy than other tankless brands. 

Rinnai - Heaters are engineered with smart, advanced technology that features copper heat exchangers to provide maximum efficiency and meet ENERGY STAR qualifications, using up to 40 percent less energy than a traditional tank. 

Takagi - Offers high-efficiency Ultra-Low NOx condensing technology and a wide range of commercial as well as residential natural gas heaters. T-H3S-DV/OS, T-D2U, and T-D2-IN/OS are some of the most popular models.

Rheem - A sought after brand that includes Prestige condensing heaters, Mid-efficiency, Tankless Electric, and Commercial. Rheem is in the top 25 percent for efficiency. Depending on the age of your existing equipment, you can save from 15 to 40 percent on your utility bills. 

Bosch - Has quality indoor and outdoor heating systems. Both condensing and non-condensing systems are available. Bosch produces domestic hot water and indoor comfort solutions in an ultra efficient and environmentally friendly manner. 

Efficiency Factors 

They are all about efficiency, and they’re becoming even more efficient. The more efficient the heater, the more you’ll save. In the case of tankless, you’re not heating stagnant water – the water is only being heated during use. So, in turn, you save a lot of water. Remember that the quality of installation can also affect efficiency; if your tankless water heater is not properly installed, you’ll end up wasting energy and money.   

Making the switch can be a big investment, but you’ll see significant savings to both your wallet and the environment in the long-term. 

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Topics: Water Heaters

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