There are different kinds of water heaters in the market. In fact, it can be a bit confusing to find the right one for your home. However, the most common dilemma is to choose between tank and tankless option. Keep in mind that a water heater is a costly investment. This only means that you need to get it right.

Before you make the big decision of choosing a water heater, it is crucial to know the basics first. One, how exactly does it work?

How does tankless water heater work?

A tankless water heater is also called as an on-demand water heater. What it does is make use of a powerful burner in order to increase the temperature of the water that goes through the heat exchanger. This way, you get warm water in your faucets or shower.

How does the tank water heater work?

For the tank water heaters, this is a more common type of water heater. It usually holds around 30 to 50 gallons of water. What it does is it is heated and stored as needed. It usually makes use of either gas or electricity. You can make use of natural gas if you are planning to actually save some money. Natural gas option saves as much as 50% less energy than your typical electrical version.

So which option is actually cheaper? According to studies, homeowners that have a tankless water heater enjoy 34% more energy efficiency. That is if your household makes use of 41 gallons of water each day. Now, the good thing about the tankless version is that it increases its efficiency the more that you are using water. If you are consuming as much as 86 gallons of water in a day, then you get additional 8-14% energy efficiency.

Advantages and disadvantages

If you want a more efficient model to save a lot of money over time, you should stick with the tankless water heater. In fact, it is possible to save as much as $100 annually on the tankless water heater if your household is using around 41 gallons of water daily.

Next, another reason that you want to have a tankless version is the fact that it won’t be consuming too much space in your home. Remember that you also need to know exactly where to place the tank in your home.

But of course, there are some disadvantages that you will have to also deal with. For one, tankless option makes you spend around at least $2,000 on both the water heater and its installation. On the other hand, a good tank water heater costs only around $500. That’s a huge difference that makes tank water heater still popular.

Next, another drawback about the tankless option is when people inside the house are simultaneously using the water. If two people are using two different showers, expect that one of the showers will have a chilly experience.

Should you buy a tankless water heater or stick to the one that has a tank? In reality, it depends on your situation. You will still have to decide for yourself if you are willing to spend all that money and experience some of the drawbacks we’ve mentioned.

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