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  • Writer's pictureJustin Shook

The Pros and Cons of Tankless Water Heaters

Updated: Sep 26, 2023


A 3D rendering of a tankless water heater with a digital display mounted to a turquoise colored wall.

Tankless water heaters have gained popularity in recent years as an alternative to traditional tank-based water heaters. These innovative appliances provide hot water on demand, eliminating the need for a storage tank. While tankless water heaters offer numerous benefits, they also come with a few drawbacks. In this article, we will explore the pros and cons of tankless water heaters to help you make an informed decision for your home.




Pros of Tankless Water Heaters

  1. Energy Efficiency: One of the biggest advantages of tankless water heaters is their energy efficiency. Unlike traditional water heaters that constantly heat and store water, tankless models only heat water when it's needed. This "on-demand" functionality eliminates standby heat loss, resulting in significant energy savings. According to the U.S. Department of Energy, tankless water heaters can be up to 34% more energy-efficient than conventional tank-based heaters.

  2. Continuous Hot Water: With a tankless water heater, you'll never run out of hot water. These units can provide a continuous supply of hot water, making them ideal for households with high hot water demand. Whether you have a large family or enjoy long showers, a tankless water heater ensures that hot water is always available.

  3. Space-Saving Design: Tankless water heaters are compact and wall-mounted, saving valuable space in your home. Unlike bulky tank-based heaters, tankless models can be installed in tight spaces, such as utility closets or even on exterior walls. This flexibility allows for more efficient use of space, especially in smaller homes or apartments.

  4. Longer Lifespan: Tankless water heaters tend to have a longer lifespan compared to traditional models. On average, tankless units can last up to 20 years with proper maintenance. In contrast, tank-based water heaters usually last around 10-15 years. Although tankless units may have a higher upfront cost, their extended lifespan can result in long-term cost savings.

Cons of Tankless Water Heaters

  1. Higher Initial Cost: The initial cost of a tankless water heater is generally higher than that of a traditional tank-based unit. Tankless models require advanced technology and professional installation, which contributes to the higher upfront investment. However, it's important to consider the long-term energy savings and lifespan when evaluating the overall cost-effectiveness.

  2. Limited Flow Rate: While tankless water heaters provide continuous hot water, they have a limited flow rate. This means that the unit can only supply a certain amount of hot water per minute. If multiple hot water outlets are used simultaneously, such as running the dishwasher while someone is taking a shower, the flow rate may be reduced, leading to a drop in water pressure. Proper sizing of the unit based on your household's hot water demand is crucial to avoid this issue.

  3. Additional Installation Requirements: Installing a tankless water heater may require some modifications to your home's infrastructure. For example, upgrading the gas line or electrical system might be necessary to accommodate the increased power demands of a tankless unit. These additional requirements can add to the installation cost and complexity.

  4. Maintenance and Servicing: Tankless water heaters require regular maintenance to ensure optimal performance. Hard water, common in many areas, can cause mineral buildup and affect the unit's efficiency. Flushing the system periodically and descaling are recommended maintenance tasks. Additionally, if any issues arise, servicing a tankless water heater may require a professional with specialized knowledge.

When considering the pros and cons of tankless water heaters, it's essential to evaluate your specific needs and circumstances. If you value energy efficiency, continuous hot water, and space-saving design, a tankless water heater may be the perfect fit for you. The long-term energy savings and extended lifespan can offset the higher upfront cost.


To maximize the benefits of a tankless water heater, proper sizing is crucial. A professional can assess your household's hot water demand and recommend the appropriate unit size to ensure adequate flow rate and avoid any issues with water pressure.


It's also important to factor in the additional installation requirements and maintenance needs. While the installation process may involve some adjustments to your home's infrastructure, the end result is a compact and efficient water heating system. Regular maintenance, including system flushing and descaling, will help maintain the unit's performance and prolong its lifespan.


Lastly, consider your budget and weigh the upfront cost against the long-term benefits. Although a tankless water heater may require a larger initial investment, the energy savings and extended lifespan can result in significant cost savings over time.


In conclusion, tankless water heaters offer a range of advantages such as energy efficiency, continuous hot water, space-saving design, and a longer lifespan. However, they also come with a higher upfront cost, limited flow rate, additional installation requirements, and maintenance needs. By carefully considering your specific requirements and consulting with a professional, you can make an informed decision about whether a tankless water heater is the right choice for your home. Evaluate the pros and cons, assess your household's needs, and make the decision that best suits your lifestyle and budget.


For assistance with the installation of a water heater or a tankless water heater contact Premium Rooter Plumbing Services by clicking here!


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