Do you turn on the water and have to wait for it to warm up? Tankless water heaters bypass this problem by heating the water where it is being used. Tankless water heaters don't have to pipe hot water as far as is with tank heated water nor do they need to store and maintain water at a constant temperature, both of which can save money on energy costs and improve water efficiency.
Small tankless water heater
Source: Public domain
Although there are certain advantages and disadvantages to this type of heating system they can be useful, efficient and cost effective in the right usage applications. For example, when one is not using the shower which is typically most of the day, one's hot water tank periodically turns on to keep the water at a minimum temperature setting. This uses energy when nobody is home and/or using water. A tankless water heater only operates 'on demand' and therefore uses energy when it is needed and not when it is not needed.
Types of Tankless water heaters
There are several types of tankless water heaters including propane, natural gas and electric tankless water heaters. These heaters require more energy at the time of water use but may use less overall energy and water. The heaters come in different sizes and energy requirements based on the application. (plumbingstore.com)For example, if one just wants on demand water heating for faucets there are tankless water heaters specifically for use in faucets. A shower and/or laundry machine would require a different size of tankless water heater because it uses more water. This link explains this concept in more detail.
Cost effectiveness
Tankless water heaters are cost effective because they have an expected life expectancy of approximately 33% -50% more than a conventional water heater. Also, the time one spends waiting for water to warm up one is using water needlessly. Over time this can use 100's of gallons of unneeded water and cost; a tankless water heater can help reduce this excess water consumption. Also, tankless water heaters are believed to be 20% more energy efficient than conventional water heaters leading to even more potential savings.
Brands, installation and type
Another way to save money with a tankless water heater is by shopping around. Different brands, installation methods and types will cost different amounts. Alsoi, if one purchases a tankless water heater for the water consumption usage used most in the home that is likely where the most energy savings will be derived from. For example, toilets don't need hot water, but showers typically do. Furthermore, brushing teeth and washing hands can be done with cold water. This being the case, a tankless shower heater is probably the best option of the three uses of water in terms of application.
Tankless water heaters may also be tax deductible or have some tax benefits depending on the country in which one lives. Plumbing supply store, home improvement stores and online are good places to start shopping around for a tankless water heater. Company brands include Bosch, Powerstar, and Niagra Industries Inc. Do it yourself installations are obviously the most cost effective water heaters to install, however this may be difficult depending on one's water distribution system and/or existing plumbing. The smaller the heater the easier it may be to install. What's more if installed in conjunction with a home warranty or with the purchase of the heater the cost may be reduced significantly.
Tankless water heaters can also be used with other heaters. For example, in a hot climate a solar heater may be the main type of heater used and the tankless heater may be a back up for colder days. How one uses a tankless water heater, and the cost of the heater and its installation are probably going to be the factors that most influence the energy savings and benefits of the system. These heaters are used more in European countries like Britain but are gaining exposure in North America as the demand for energy conservation increases. By shopping around, assessing water consumption uses and comparing prices and installation one can benefit from a tankless water heater and help create an energy efficient home and environment.
Sources:
1. http://en.wikipedia.org/wiki/Water_heater
2. http://www.topix.net/forum/home/building/T4OC4S149FIPABO9A
3. http://ezinearticles.com/?Does-A-Tankless-Water-Heater-Save-Money?&id=255328
4. http://www.articlecity.com/articles/home_improvement/article_1991.shtml
5. http://www.tanklesswaterheater.com/products.htm
6. http://tinyurl.com/57hkn2
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