Tankless Water Heater Buying Guide: Benefits, Features, and Installation Tips

Ultimate Guide to Buying a Tankless Water Heater: Everything You Need to Know

Are you considering a tankless water heater for your home or off-grid living space? Tankless water heaters, also known as on-demand or instantaneous water heaters, offer numerous benefits over traditional tank models. But with various options available, making the right choice can be challenging.

In this ultimate buyer’s guide, we’ll walk you through the key factors to consider when buying a tankless water heater, from capacity and flow rate to energy efficiency and installation requirements.

1. What is a Tankless Water Heater?

A tankless water heater heats water only when you need it, offering on-demand hot water without the need for a storage tank. This results in lower energy bills, as there's no need to constantly reheat water in a tank. They’re a great solution for both small households and larger homes, especially if you're looking for energy savings, space efficiency, and endless hot water.

2. Benefits of Tankless Water Heaters

• Energy Efficiency: Unlike traditional water heaters that continuously heat and store water, tankless models heat water only when required, reducing energy consumption and cutting down on utility costs.

• Space Saving: Tankless units are compact and can be installed in smaller spaces, freeing up room for other essentials.

• Unlimited Hot Water: With no tank to run out of hot water, you can enjoy a continuous supply of hot water, ideal for large families or off-grid homes.

• Longer Lifespan: On-demand water heaters generally last longer than traditional tank heaters, often up to 20 years with proper maintenance.

3. Key Factors to Consider Before Buying a Tankless Water Heater

When choosing a tankless water heater, here are the essential factors to keep in mind:

Flow Rate (GPM)

Flow rate, measured in gallons per minute (GPM), determines how much water your heater can supply at a time. Make sure to choose a unit that meets your household’s hot water demands. For example:

• A small home with 1–2 bathrooms may need 3–5 GPM.

• A larger home with 3 or more bathrooms may require 7 GPM or more.

Temperature Rise

Temperature rise refers to the difference between the incoming water temperature and the desired output temperature. In colder climates, you'll need a unit that can handle a higher temperature rise to maintain hot water.

Energy Efficiency

Check the unit’s Energy Factor (EF) or Uniform Energy Factor (UEF) to understand its efficiency. Look for ENERGY STAR-rated models for maximum energy savings.

Fuel Type

Tankless water heaters can be powered by either electricity or gas (natural gas or propane). Gas units tend to offer higher flow rates but require proper venting. Electric units are easier to install but may not be able to handle high water flow rates.

4. Installation Considerations

• Gas Models: If you choose a gas-powered tankless water heater, you’ll need a dedicated gas line and proper venting. Ensure that the gas supply is adequate to meet the demands of the unit.

• Electric Models: Electric models are easier to install but typically require a higher electrical capacity and may not be suitable for larger homes with multiple bathrooms.

• Space and Location: Tankless heaters can be installed in a variety of places, including kitchens, basements, and utility rooms. Ensure you choose a location with proper ventilation (for gas models) and easy access for maintenance.

5. Maintenance and Longevity

One of the main benefits of a tankless water heater is its long lifespan, but proper maintenance is key to ensuring it lasts. Regular descaling is necessary, especially in areas with hard water, to prevent mineral buildup inside the unit. Many manufacturers offer maintenance guidelines, and some units come with self-cleaning features.

6. How Much Does a Tankless Water Heater Cost?

The cost of a tankless water heater can vary depending on the brand, size, and features. On average, tankless water heaters range from $500 to $2,000 for the unit itself. Installation costs can add an additional $500 to $1,500, depending on your home’s infrastructure and whether you need to upgrade your gas or electrical system.

7. Best Tankless Water Heater Features to Look For

• Smart Technology: Some models come with Wi-Fi connectivity, allowing you to monitor and control water temperature remotely.

• Quiet Operation: Look for units with noise-reducing technology, especially if the heater will be installed in a living area.

• High Flow Rate: If you have a large home or a family with high water demands, choose a tankless water heater with a higher flow rate.

8. Tankless Water Heater vs. Traditional Water Heater: Which is Better?