There are many reasons why homeowners are switching over to a tankless water heater, one of these reasons happen to be money savings. Making this change not only lowers electric bills, it helps with the environment. Of course, initial investment with energy-rated appliances tends to be larger, many times costing more than double what other models cost. Many times it can be hard to know if savings on a month-to-month basis will pay for the difference of this higher upfront cost. One of the best places for potential savings with heating and cooling expenses is water heaters, due to 14% of monthly bills coming from them alone.
Difference with Tankless Water Heaters
Traditional water heaters have tanks in which water is stored to keep warm until use. During this time water is kept heated, energy is being used even though the water is not needed at this time. However, with a tankless water heater there is no wasted energy as water is heated as it pours through the heater.
How Much Money per Year Is Saved
There are various reports on how much a tankless water heater actually saves homeowners. Some reports claim more than $100 per year, while other reports claim around $70-$80 per year. When estimating savings, consider the amount of water usage the household uses. Savings are more for households with a large family which use more water rather than a small family using a smaller amount of water.
Water Heater Lifespan Savings
A traditional water heater lifespan is approximately 13 years, while a tankless water heater is estimated to last up to 20 years. If a new, tankless water heater saves a homeowner $80 per year for more than 13 years, they saved more than $1,000 during this time in energy bills. Since they paid $800 more initially for the tankless model, there is a net savings of $200 when adding cost of use and purchase. Savings become more significant when considering reports that tankless models require replacement less frequently.
There are other benefits to consider other than just long-term savings. Many homeowners love the idea of the amount of space saved compared to traditional models. There may be a tax rebate available as well that homeowners find very useful. Another benefit that is enjoyed by homeowners, because there is no tank to run out of hot water – goodbye are the days of cold showers!