Tankless Water Heaters

I'm originally from Europe where higher energy costs and space restrictions have long since persuaded people to move over to tankless water heaters and even heating. I have often looked into doing the same thing since I moved to the USA. It still seams to be a relatively new idea here although there are many products available. But I guess that is unsurprising since energy is much cheaper and most people have a basement or garage to install those large hot water tanks. However as energy prices are rising even in the USA and with the increasing focus on protecting the environment I think they are sure to become more popular.

What are the benefits?

• A traditional water heater stores hot water in a large tank (40 gallons +). That water is kept hot 24x7 whether you need it or not. That wastes a lot of energy however well the tank is insulated. A tankless water heater heats the water on-demand so there is no energy wasted heating water that you are not using.
• When you take away the tank you greatly reduce the size of the water heater leaving you with more precious space to store those things you just can't live without.

What are the options?

• Natural Gas - If you have Natural Gas in your home this is the best option.
  
• Electric - If like me you don't have Natural Gas in your home all is not lost as there are also many Electric Tankless Water Heaters available.

How Much will it cost?

• Natural Gas - $800 - $1000 + installation should cover most homes.
  
• Electric - $500 - $800 + installation should cover most homes.
  

How Much could you actually save?
Tankless Water Heaters should save 10-20% in energy costs. How about looking at some real figures created by the people selling them?

"The United States Department of Energy has calculated that a family of four will use 64.3 gallons of hot water per day, not including dish washing or clothes washing. The chart below provides an approximate monthly operating cost comparison between a 40 gallon hot water tank and the TANKLESS™ Whole House Electric Hot Water Heating System."

120 Gallons Per Day Monthly Cost		60 Gallons Per Day Monthly Cost	30 Gallons Per Day Monthly Cost
40 Gallon Hot Water Tank	$112.25	$56.20	$28.10
-VS.-	-VS.-	-VS.-	-VS.-
TANKLESS™	$26.95	$13.48	$6.74
Savings	$85.30	42.72	21.36

paragraph and chart from here

That's quite a saving. If you take the middle example of 60 gallons the new Electric Water Heater should pay for itself in 2 years.

So why don't I have one yet?

If my current Water Heater goes up in smoke then this will be a no brainer. However I'm not sure I can bring myself to throw away a Water Heater that probably still has many years left in it.