Heating water accounts for up to 30 percent of the average home’s energy budget, making efficiency an important feature to consider when looking at appliances.
Tankless water heaters provide hot water only as it is needed. Therefore, they avoid the standby heat losses associated with storage water heaters and can be up to 40 percent more efficient than traditional water heaters.
According to the Environmental Protection Agency’s Energy Star program, tankless water heaters save the typical family more than $100 a year on utility bills compared to a standard storage model. Individual savings vary greatly due to the size, age and efficiency of the water heater being replaced.
• How they work: Tankless water heaters heat water on demand without the use of a storage tank. When a hot water tap is turned on, cold water travels through a pipe into the unit. A gas burner heats the water. As a result, tankless water heaters deliver a constant supply of hot water. You don’t need to wait for a storage tank to fill up with enough hot water. However, a tankless water heater’s output limits the flow rate. Typically, tankless water heaters provide hot water at a rate of 2 to 5 gallons per minute.
• Higher upfront costs: Tankless water heaters cost more than conventional storage water heaters. The units normally cost $1,000 to $1,500, compared with $300 to $500 for the regular storage-tank types.
Tankless models need electrical outlets for their fan and electronics, properly sized gas piping and gas meter, and appropriate ventilation system. That can bring average installation costs to $1,200, compared with $300 for storage-tank models.
Professional installation is a must. Additionally, some municipalities may require permits and inspections from building code officials.
• Other benefits: With up to a 20-year service life, most tankless water heaters last two to three times longer and are significantly smaller in size (about the size of a carry-on suitcase) than traditional tank water heaters, thus reducing the amount of material that ends up in landfills.
The primary components of tankless water heaters, including the copper heat exchanger and stainless steel burners, are recyclable. And with a tankless model, the risk of tank leaks and water damage is virtually eliminated. The compact design of tankless water allows flexibility with installation so it can be located closer to fixtures and appliances, saving on water consumption because the “wait” time for hot water is reduced.
• Tax credits: The American Recovery and Reinvestment Act of 2009 has made significant changes to homeowner tax credits for specified energy-efficient home improvements. Homeowners who purchase and install a qualifying tankless water heater between Jan. 1, 2009, and Dec. 31, 2010, will be eligible for a tax credit equal to 30 percent of the full purchase and installation price up to a maximum of $1,500. Be sure to review eligibility rules before you buy.
• Problems or complaints: Many consumers confuse the tankless water heaters with terms such as instantaneous or continuous. Although tankless models will begin heating the water almost instantly, consumers will continue to encounter the initial cold water that is left in the pipes just like storage water heaters. Another common complaint is that most models have a minimum flow rate before combustion occurs and may not ignite when just a trickle of hot water is needed for shaving. Additionally, all tankless models have electronic controls, so you’ll lose hot water during a power outage.
Tankless water heaters have many attributes that make them a standard in green and energy efficient construction. They are significantly more energy efficient and have a very long life expectancy.
If you are considering building or remodeling, a tankless water heater will provide many years of trouble-free service. Scott Allred is chairman of the Triad Green Building Council and owner of Precept Construction. He can be reached at scott@preceptconstruction.com or 286-6811.
