Technology Snapshot & Benefits:
Easy economic savings can accrue from instantaneous or the �on-demand� type of water heaters. In contrast to the traditional method of keeping 40 to 80 gallons of hot water at-the-ready in an insulated tank, �on-demand� heaters produce hot water only when it is needed. Since hot water is generally required for less than a few hours each day instead of 24, owners and occupants can easily benefit from high efficiency modern designs that provide hot water on demand. Less fuel is required for a given volume and temperature of water, with corresponding cost savings and pollution savings. Some manufacturers claim 50% savings when compared to conventional hot water tanks.
Estimated Cost Savings:
Assuming that you consume the same amount of hot water at the same temperature as before, you can save a lot of energy and money by eliminating the slow leakage of heat from the hot water tank and piping. Actual savings will depend upon how much water you use, how far it must be piped from your existing heater, and the extent to which that piping travels through unheated spaces. It is reasonable to expect improvements in your hot water bill of 20 cents on the dollar. For a monthly water-heating cost of $50 dollars, you may expect savings of $10 per month on your energy bill. If the switch to �on-demand� water heating is made when your old hot water tank conks out, the effective net cost of change will be much lower and your monthly cash-flow will improve immediately.
Issues:
Installation will be required in the immediate vicinity of bathroom, kitchen and/or laundry room. Space may be a concern.
Regional Issues:
If the new units are electric, you may wish to consider the stability of the electrical grid in your part of the country. Additionally, electricity is most often produced by large central-station plants and is delivered to you at an overall efficiency of about 30%. Unless your electricity is produced with renewable energy equipment, natural gas or LP gas are the fuels of choice for hot-water heating (just as with traditional hot water tanks). These fuels provide total system efficiencies of 80-90%.
Installation (Getting It Done):
If the new water heaters are fueled by natural gas or LP gas, there may be some fuel delivery piping and exhaust venting issues to be addressed by the installer. If the new units are electric, expect some minor rewiring and the installation of new circuit breakers.
Be sure to get bids from at least two or three installers and/or plumbing contractors to gain immediate perspective on the true costs of equipment and installation in your area.
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Hello Cyrus
I've always wondered how these tankless heaters worked. Do you have one? Is the water always hot?
Why yes, I do have one in my home. The water is not heated until it is needed. That's the beauty of it. No wasted energy.
Think of your coffee maker, it's a similar concept, cold water passes over hot elements, and comes out hot. This is the wave of the future, and I can see this really taking off. It's about MONEY! Even those who could care less about energy conservation like to save money.
Spread the word!
I installed one in my new home 18 months ago and I am very happy with it. I don't know if it still applies but I also received a $300 tax credit on my taxes last year. Mine runs on LP and since the home is new I don't have any good numbers on what I might be saving. They are considerably more expensive to purchase and install than a traditional water heater so I would think the payback is 4-5 years out. However from an energy conservation point of view it's a winner. Just logically thinking it seems like I not heating water you are not going to use is a no brainer.
The down side for me is, ours is located in our basement and is close to the master bath and the other main bathroom. As a result it is across the house from the kitchen and laundry rooms and hence it takes several minutes to get hot water to those area. So now I am wasting water instead of energy.
I also have one, but learned the hard way that it requires high altitude adjustments or you don't get hot water and you do get high gas bills. That is the only bad thing about going with new technology when not many people know about it yet. I also have one that serves as the boiler for my hot water radiant heat system.
Great information to share with clients and colleagues - Thank you.
I think the tankless hot water heaters sound great but they are so expensive. My husband and I had to replace our water heater this summer and I got quotes for the regular tanked water heater and the tankless. We went with the regular tanker water heater, just based on cost. I had several plumbers quote me between $3,500 - $4,000 for the tankless but it only cost us $1100 for the regular water heater. I just couldn't justify the cost. It would take a very long time to re-coup that cost difference.
"I had several plumbers quote me between $3,500 - $4,000 for the tankless but it only cost us $1100 for the regular water heater."
Depending on the plumbing, gas or electric supply and venting chnges required, it can get expensive to go tankless. I have five tankless units installed ad my home, my office and three rentals - they can work very well BUT that are some installation issues, especially if you are replacing an existing unit. I've put up a page on my experience an tankless water heater installation problems and how to avoid them here.