Will a Tankless Water Heater Save Me Money?

tankless water heaterSome of your high energy cost can be associated with your home’s hot water heater. As hot water leaves your water heater’s tank, it automatically refills, constantly heating the water and using energy.  A more cost effective alternative to these standard appliances is a tankless water heater. Also known as “on demand water units,” tankless water heaters only heat the water as needed.

With tankless water heaters, no money is spent heating 40 to 50 gallons of water and storing in a tank until someone is in need of hot water. Heated water that sits idly in a tank will eventually lose heat, even though the tank is insulated; requiring constant reheating. Tankless water heaters give you hot water on demand when you need it, so you do not heat water that is not needed. Thus, you save on energy costs. These tanks offer you a continuous supply of hot water enough to fill a big hot tub or a whirlpool. Compared with other tanks, tankless water heaters use 30-50% less energy. Depending on your usage, it gives you a savings of approximately $100 or more in one year. These heaters usually operate on natural gas or propane to heat water.

Tankless Water Heater Benefits

Along with saving you some cash, tankless water heaters offer some other great benefits.

  • Save you on Space. They are more compact than the standard water heaters, so they can be mounted on a wall or outdoors with an anti-freeze kit. The smaller units can even be mounted in a closet or under cabinets, nearer the point of use.
  • Tax Rebate. You get a federal tax rebate amounting to $300 with tankless units.
  • Availability of Hot Water. You get hot water whenever you need it.
  • Convenient to Use. Most of the tankless units are operated by remote control with four separate settings.
  • Clean Hot Water. You are assured of getting clean hot water because water is not stored in the tank that can lead to accumulation of rust and scale.
  • Clean Gas. The electric tankless heaters do not produce greenhouse gasses so you contribute to cleaner air and a healthier environment.
  • Long-Lasting. They have a life expectancy of 5 to 10 years with some lasting for more than 20 years compared to the conventional tank-type water heaters.
  • Durable. Less worries of leaks or flooding because of a ruptured tank causing water damage.


The operating costs of a tankless water heater differs from model to model. Read the manufacturer’s manual or call the manufacturer to get a better understanding of the product you are buying. Tankless water heaters are investments that pay for themselves. They increase energy efficiency and increases the value of your home with premium technology.  Contact one of our plumbers at American Air to discuss having one installed in your home.