Tankless Water Heaters vs. Storage Tank Water Heaters

January 24, 2022

Your basement has a big tank of hot water. Can you get the same amount of hot water (or more) from a portable water heater & save at least $100 on your utility bill?

But to change the water heater tank is not an easy part whether a storage tank or belongs to tankless water heater you a have to be smart while choosing a water heater.

For the help, Arnett's water systems shared the following details, brief the pros and cons of storage and tankless water heater, information helps you to choose wisely!

Tankless Water Heater

The on-demand water heater, also known as a tankless water heater, uses high-power burners to heat water without rapidly storing it in a tank. The hot water is sent directly to your faucet or shower without having to go through a heat exchanger first. Switch on the dishwasher or the washing machine, or otherwise, call for hot water.

Gas or electricity is usually used to power tankless water heaters. These water heaters were 22 percent more energy-efficient than models with gas-fired storage tanks in Consumer Reports tests.

Storage tank water heater

Most homes have storage tank water heaters which consist of an insulated tank that stores and heats water until it's needed. A pipe delivers hot water to sinks, kitchens, and bathrooms from the top.

Tankless water heaters gradually gain market share while still the most common type. It's because they run more efficiently, and heating water is the second-largest utility expense in the average United States home after heating and cooling.

How do The Tanks work?

Storage Tank:

A storage-tank water heater's capacity ranges typically from 30 to 60 gallons, but the most common size is 50 gallons.You should determine the capacity you need based on the size of your household and how much hot water you use. These tanks heat water continuously with natural gas, electricity, fuel oil, or propane. If you don't need hot water, you pay for it regardless.

Tanks can be up to five feet high and about two feet wide. Perhaps you don't mind the space your water heater takes up if it is located in the basement. You may have to store it in a closet if you do not have a basement-and that can be a tight fit. Even though a new storage tank may be the same capacity as an old one, federal energy regulations require that new ones be more insulated than older ones.

Tanks that hold less than 55 gallons maybe a little larger. If the energy-saving technology is advanced, 55-gallon tanks may require even more space.

Tankless Water Heater:

Unlike tank-style water heaters, tankless water heaters don't store water in tanks. Instead, they use a heat exchanger to heat the water rapidly as it passes through the unit. The heat is provided only when needed, so there are no standby energy losses with a storage tank.

Tankless systems fit into tight spaces and save floor space because they mount on the wall. They vary in size, about two feet tall and a little over a foot wide.

Energy Use and Efficiency

Storage Tank:

Conventional water heaters' gas and electric models have very good and fair annual energy consumption costs, respectively. Their efficiency is Good. The yearly operating cost for a gas model is $245 based on an average price of $10.86/1,000 cubic feet of natural gas.At the same time, an electric model is $580 based on an average electricity rate of $0.132/kWh.


A tankless water heater powered by gas or electricity runs more efficiently than a conventional water heater powered by the same fuel. An electric model costs Fair for annual energy consumption, but a gas model costs Excellent, but both rate Very Good for energy efficiency. For a gas tankless, the annual operating cost is $195, and for electric, it is $535.

Although the cost of operating gas water heaters is less than that of electric water heaters, this is due to the lower price of natural gas, not because they're more efficient. Despite their higher efficiency, electric models are more costly to operate because of the higher cost of electricity.

Installation Process & Price


The cost of a tank-style water heater is less than that of a tankless water heater. The company has seen tank water heaters priced for less at home improvement stores, such as $570 (electric) and $600 (gas) for two 50-gallon water heaters. These tanks have larger capacities and are more energy-efficient.

Some homeowners do the plumbing work to replace their older storage tanks with new ones of equal capacity. You may need a plumber because tank water heaters have changed, as noted, to meet tighter energy standards. If the existing hookups are compatible, installation can cost $600 to $800, depending on how much your plumber charges per hour.


A tankless water heater usually costs more upfront than a storage tank model. The nine models ranged from $525 to $1,150.HomeAdvisor estimates that installation will cost you between $800 and $1,500. Tankless gas water heaters may need a larger pipe between the tank and the gas meter because of their different venting requirements.For tankless electric models, which use 120 to 160 amps of power, you may need to upgrade your electrical device to 200 amps or more. A certified electrician or plumber should install tankless water heaters. To maintain the warranty, many manufacturers require installation by factory-trained professionals.

Performance Measurements


To compare the performance of conventional and tankless water heaters, the researchers used two conventional water heaters as a control. They easily reached our target 120° F water temperature with both the gas storage tank and the electric storage tank.


Gas and electric models have shown some differences in performance. The gas heaters met our target temperature of 120°F, and all had similar minimum flow rates. The electric models also met and maintained the set output temperature when the incoming water was 74° F, but two did not. It suggests that electric models are better suited to areas with warmer groundwater, like the South.

Life Expectancy


A tankless heater is expected to last longer than other types of water heaters when comparing their life expectancy. Storage tank water heaters are estimated to have a lifespan of 10 to 15 years,


Tankless can last as long as 20 years.


Your demand water heater's energy efficiency can be optimized through proper installation and maintenance.

An installation's success depends on many factors. The fuel type, the climate, local building code requirements, and safety issues, including combustion of gas-fired water heaters, are all factors to consider. Installing a demand water heater should be done by a qualified plumbing and heating contractor. When looking for a contractor, consider these factors:

-Send a written request for cost estimates

-Get references

-Consult the plumbing advisor in your area

-If a permit is needed, ask if the company can obtain one and know the local building codes.

Consult your water heater's manufacturer before installing it yourself. Installation instructions are usually available from the manufacturer. Additionally, contact your city or town for information if a permit is required.

Maintaining your water heater periodically will help prolong its life and minimize its loss of efficiency.

Size of heater & Space Consume


It's a big one. Large storage tanks may not be appropriate for properties with limited outdoor space.


A tankless water heater does not require a lot of space as they are small and can be installed in small spaces. They can even be mounted on the outside walls if your house has a lot of space constraints.


If your homies need always hot water in tabs so you go for storage water heater. If you belongs to small famliy and energy saver go for tankless water heater.

When you getting confuse what to use storage or tankless water heater, don't wait call professionals at arnett's water systems (619)223-1209.


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Carlos Diaz
I believe in making the impossible possible because there’s no fun in giving up. Travel, design, fashion and current trends in the field of industrial construction are topics that I enjoy writing about.

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