Tankless Water Heaters Can Save Money - Higher Natural Gas and Propane Prices Make Energy Saving Waterheaters More Popular

March 16th 2006

Outdoor and Indoor Tankles Water Heaters

Now that natural gas prices and propane prices have shot up, the hot story for consumers is the tankless water heaters. If you are considering purchasing a new water heater, you should consider the tankless models. Sure most people wait for the old one to go-out before they drive down to Home Depot or Lowes to shop for a water heater, but you could begin saving money immediately with these new heaters.

Conventional water heaters must heat water on standby before the water is even used. Tankless water heaters do not have a storage or standby tank, so the water is heated only when you turn the spigot.

According to California Edison, you can save 10% to 20% on your gas bills by switching to tankless water heaters. You will also save on space. Edison says “The average propane-powered tankless water heater is about 24 inches high, 18 inches wide and 9 inches deep -- significantly smaller than storage tank-type water heaters -- although sizes vary.”

Some areas may offer incentive programs for installing tankless water heaters. Most of the incentives are available for new construction, but you might want to check with your local governments to determine what programs are available in your area.

If there are no government funded incentive programs, you may still qualify for a factory rebate. The rebate may cover the installation costs.

There are electric models available as well. If you install this yourself, you should research the voltage requirements before you purchase. If the electric version requires 220-240 volts you may need an electrician to run the circuit.

Another advantage to the tank-less water heater is the absence of the tank. If you have ever had a water-heater tank burst in your home, you know what I am talking about. Most tanks are lined with an anti-corrosive material, but they may still corrode over time.

Our house had a water heater that was located about 60 feet from our living spaces. We had a recirculation pump attached to our water heater. This expedited the hot water flow, but it also cost us money. These pumps can save a little time, but they also cost money. The water heater will work harder to keep the water hot. We have decided to live with the added seconds for hot water rather than the extra cost.

Consumer reports estimates that purchasers of tankless water heaters will save $50 per year. This may be a conservative estimate, especially if gas prices increase substantially over the coming years.