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Hot Water Tank vs Tankless Water Heater

Hot Water Tank vs Tankless Water Heater: Which is best?

You may have heard of tankless water heating, but the majority of people have a hot water tank in their home.

Tankless water heating is a relatively new technology and not offered by many utility companies as a rental (although more are every year). They can be powered by gas (natural gas or propane) or electrically powered.

If you are building a new home, or needing to replace a current hot water tank, you may be facing the decision of whether or not to go tankless.

In this article, we will go over the pros and cons of upgrading to tankless. The truth is, it is not the perfect choice for everyone.

Your Incoming Water Temperature

Potentially the most important factor in deciding which tankless water heater you need to buy. In colder climates, with near freezing water temperatures in the winter, most tankless water heaters will not raise the temperature enough to be comfortable.

If you have frigid winters, you should probably continue using a hot water tank.

Sorry Canada.

Household Water Needs

Tankless water heaters can provide an unlimited supply of hot water, although not all at the same time.

For example it’s possible to have a tankless water heater that can’t power two showers at once. With a hot water tank, you eventually run out of hot water, but you can use more more at once.

However, this can be overcome by having multiple water heaters in your home, or following a few rules about using hot water in the home.


While the price of tankless water heaters has been coming down over the past few years, some of them can be quite pricey compared to a hot water tank.

A high powered tankless water heater for a whole house can cost upwards of $1,500 – $2,000, compared to $300-$500 for a hot water tank.

You will save some money on energy each month, but the payoff will take many years.

Bottom Line: Unlimited Hot Water is the Key

In my opinion, the most important reason for getting a tankless water heater is if your household “runs out” of hot water often.

Having the unit pay for itself in energy savings is not a very good argument for buying a tankless water heater. However, if you are more environmentally conscious and are looking for ways to reduce energy consumption, this can be an option to lower your overall footprint.

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