What Is a Tankless Water Heater?

Mother helping child wash hands in kitchen sink

A tankless water heater, often called an on-demand water heater, is an efficient appliance that produces hot water only when you turn on the tap. Unlike traditional systems that store hot water in a bulky reservoir, the unit heats water instantaneously to the right temperature and delivers it directly to your faucet. This cutting-edge water heating method offers many benefits, but make sure it’s suitable for your home before making the switch.

How Does a Tankless Water Heater Work?

When you use a hot water tap, a sensor in the tankless unit detects the flow of water. This triggers either a gas burner or an electric heating element, based on your fuel source, which quickly warms the water as it passes through. Once you turn off the tap, the system shuts down and stops heating, which eliminates standby energy loss.

Benefits of Tankless Water Heaters

More homeowners in Phoenix are choosing tankless water heaters to experience these excellent perks:

Endless hot water: Picture your family taking numerous back-to-back showers without the last person in line not having enough hot water. That’s the reality with a tankless unit, which supplies virtually unlimited hot water as it flows rather than requiring 30 to 60 minutes to replenish a tank of water.

  • Energy efficiency: Tankless water heaters are up to 34% more energy efficient than tank models. The less hot water you use, the more you save. After all, you only pay for the hot water you actually need, instead of throwing money away heating a huge tank of water 24/7.
  • Long lifespan: If you plan on staying in your home for the long haul, a tankless water heater is a wise investment. These units often are in service more than 20 years, almost twice as long as traditional tank heaters—which have an estimated lifespan of 10 to 15 years.
  • Compact design: You may be accustomed to your large, cylindrical water heater tank, but it doesn’t have to be this way. Most tankless systems are about as big as a carry-on suitcase fixed to the wall. Because of this you can install tankless water heaters in limited locations like closets or small utility rooms.
  • Lower risk of water damage: Since tankless water heaters lack a tank, there’s no danger of a ruptured unit damaging your home.

Is Using a Tankless Water Heater Right for You?

Tankless water heaters are eco-friendly, economical technology, but they might not be perfect for every home. Think about these factors before switching to a tankless system:

  • Higher initial costs: Tankless systems have a higher upfront price tag than traditional models. On the other hand, HVAC tax credits and rebates for energy-efficient appliances help reduce these costs.
  • Fuel sources and venting requirements: Tankless systems are available in electric and gas models. Gas units have a higher flow rate but must have venting to safely safely remove exhaust gases. If you don’t already have a vent, putting in one will raise the installation cost. Electric models are simpler to install but are constrained by their less powerful performance. They also aren’t eligible for energy-efficiency tax credits.
  • Temperature rise requirements: Tankless systems raise the temperature of water as it flows through, which demands a significant temperature boost. The colder the incoming water, the more powerful the heater must be and the more energy it needs. For instance, if the groundwater temperature is 40 degrees F in a northern state, and you desire 110-degree water in the bathroom, your system must accommodate a 70-degree rise. While possible, this is the upper limit of most gas-fired tankless units.
  • Limited flow rate: Since tankless heaters don’t store water, they can only deliver a limited amount of hot water at a time. The unit’s flow rate indicates how much hot water you can use simultaneously, a critical factor to consider if you have a houseful of people trying to shower while the dishwasher and washing machine are running! One solution to mitigate a drop in hot water is to install multiple point-of-use models in high-demand locations. But, this escalates upfront and operating costs.
  • The cold-water sandwich: Tankless water heaters create a “cold-water sandwich,” a short blast of cold water when the unit turns off and on again. It also happens if you only run a tiny amount of hot water, which is not enough to keep the tankless unit running. While merely a small drawback, it’s worth being aware of before making the switch.

Prepared to Go Tankless? Contact the Experts at Hays Cooling, Heating & Plumbing 

Hays Cooling, Heating & Plumbing is here to guide you through the process of finding the right water heating solution, whether that’s a tankless or a traditional storage tank. Thanks to our 100% satisfaction guarantee, you can feel certain that our water heating specialists will have your unit set up and running perfectly. If you’re prepared to switch or still have concerns, reach out to our team at 602-767-4891 today for more support.