Tank vs. Tankless Water Heaters: Pros, Cons, and How to Choose the Best Option for Your Home

In a typical American home, water heating makes up 18% of energy consumption. After heating and cooling, it is the second-largest consumer of energy. As a result, it is essential for homeowners to determine which type of water heating system is right for their needs. 

The basic choice is between a tank vs. tankless water heater. We’ll cover what each style is like and when they should be used. 

What Is a Tank Water Heater?

A tank water heater involves storing hot water in a tank for future use. While this means you have ready access to hot water, the actual amount is limited by your tank size. In most cases, residential water heaters can hold 30 to 80 gallons of hot water. 

Tank water heaters make sense if you have a large family that needs to use hot water simultaneously. They are also a good idea if you want a lower upfront cost. On average, these systems cost $600 to $2,500. 

What Is a Tankless Water Heater?

A tankless water heater can use electricity or natural gas to heat up water as it is needed. In many cases, tankless water heaters are a more efficient option than traditional units. 

For the average home, switching to a tankless water heater will lead to 33% lower energy bills. However, the upfront cost is often higher for tankless systems. On average, tankless water heaters cost between $1,400 to $3,900.

A tankless water heater can supply a flow rate of 5 to 10 gallons a minute. To put this in perspective, most showers use around 2.5 gallons per minute.

Tank Vs. Tankless: Key Comparison Factors

The main difference between a tank and a tankless water heater is the storage tank. While a tankless water heater heats up water on demand, a tank water heater warms up the water in advance and stores it in a tank. Then, this water is transmitted from the storage tank whenever someone turns on a hot water faucet. 

By carefully comparing the pros and cons of tank vs. tankless units, you can determine which option is right for your family’s needs.

• Installation Cost: The upfront costs of tankless water heaters are much higher than tank water heaters. However, some of the energy-efficient models may qualify for federal tax credits, which can lower the overall price that you pay.
• Operating Cost: Tankless water heaters use significantly less energy, lowering your overall costs. Part of this is because tank water heaters must keep a stored supply of hot water available, whether anyone is using it or not.
• Space Availability: Your home’s layout may end up determining which water heater is better. A storage tank takes up more space than a tankless water heater, so it isn’t ideal for small, cramped homes.
• Hot Water Availability: If multiple people need to use hot water at once, a tank water heater may be the best choice. For example, large families may want a tank water heater so that everyone can shower, wash dishes, and do laundry whenever they need to.
• Lifespan: Another important component in your water heater comparison is the lifespan. While storage water heaters last just 10 to 15 years, tankless water heaters often last over 20 years.
• Maintenance Requirements: In general, tankless water heaters need to be flushed and descaled each year. A tank water heater needs to be flushed every six months to ensure sediment doesn’t build up.
• Environmental Impact: Because tankless water heaters use less energy, they are a more environmentally sustainable choice.

Pros and Cons of Tank Water Heaters

When it comes to considering tankless water heaters vs. storage water heaters, it helps to review some of the pros and cons first.

Pros

• Inexpensive to repair
• Lower upfront cost
• Fully functional during power outages
• Still works when multiple people need to use hot water at the same time

Cons

• Higher energy costs
• Hot water can run out
• Shorter longevity 
• Larger space requirement
• May require earlier replacements

Pros and Cons of Tankless Water Heaters

As you decide between a tank vs. tankless water heater, check out some of the most important benefits and drawbacks to using tankless water heaters.

Pros

• Longer lifespan
• Improved energy efficiency 
• Lower energy bills
• Reduced space requirements

Cons

• Electrical models stop working during power outages
• Higher upfront costs
• More complicated installation process
• Additional maintenance requirements

How To Choose: Tank or Tankless?

Deciding between a tankless and traditional water heater isn’t easy. You have to consider your home’s size, budget, and water usage. Additionally, your family size also matters if you will need hot water for multiple uses at the same time.

Before you get a professional water heater replacement, our team will review the factors affecting your home’s decision and discuss the best options for your situation. 

• Household Size: If you have an especially large household, you may want a storage water heater to ensure that multiple people can use hot water at once. The size of your home will also impact the size of the tank that you need.
• Water Usage Habits: Similarly, the way you use water will determine the water heater you require. You may need a large tank for big families. If you spend half the year vacationing at your second home, a tankless water heater will help you avoid unnecessary energy charges during that time.
• Budget: Before you select a specific water heater, you should consider the upfront and operational costs. Tankless water heaters cost less to run, but storage water heaters have lower upfront costs. If you want to maximize your energy efficiency, you should consider investing in solar or smart water heaters.
• Space Availability: Traditional water heaters take up space, so the size of your home also plays a role.

If you’re unsure about the best water heater for homes in Colorado, we can help. Reach out to our team for expert guidance and support.

FAQs About Tank and Tankless Water Heaters in Littleton, CO

Over time, our water heater installation experts have fielded a range of common questions.

Which is a better water heater, tank or tankless?

It all depends on your needs. While tankless models cost more upfront, they have better energy efficiency, lower energy costs, and longer lifespans.

What lasts longer, a tank or a tankless water heater?

Tankless water heaters last longer, with lifespans of 20 years or more. In comparison, storage tank water heaters typically last around 10 to 15 years.

What is the best type of hot water heater?

The best type of water heater depends on your home’s space availability, usage preferences, and budget. An experienced plumber can evaluate your existing needs and recommend the best option.

What are the disadvantages of a tankless water heater?

Tankless water heaters tend to cost more to install, and the installation process is more challenging. Additionally, electric models won’t work during a power outage.

Can a tankless water heater work for a large family?

Absolutely. However, it’s important to consider your usage patterns and whether the unit can accommodate your needed flow rate.

Final Thoughts: Need Help Choosing?

Struggling to decide between tank vs. tankless water heaters for your Denver and Littleton home? Contact our water heater experts today for tailored recommendations and fast installation services.