Tankless Water Heaters

Save Money with a Tankless Water Heater

Tankless water heaters are also known as demand type or instantaneous water heaters, and they only provide hot water as it is needed. They can save you money on your energy bills as you don’t have the cost of storing heated water and the energy losses that can result from that kind of system.

A tankless water heater will heat the water directly without the use of the storage tank. Gas burners or an electric element will heat the water as it goes through the system. Tankless water heaters are valued for their ability to deliver a constant supply of hot water.

Klaus & Sons can help you decide if a tankless water heater is right for you. The value of a tankless water heater depends on the typical usage of hot water in your home or business. Multiple water heaters are sometimes installed to ensure an adequate supply of hot water.


For homes that use 41 gallons or less of hot water daily, demand water heaters can be 24%–34% more energy efficient than conventional storage tank water heaters. They can be 8%–14% more energy efficient for homes that use a lot of hot water — around 86 gallons per day. You can achieve even greater energy savings of 27%–50% if you install a demand water heater at each hot water outlet. ENERGY STAR® estimates that a typical family can save $100 or more per year with an ENERGY STAR qualified tankless water heater.

The initial cost of a tankless water heater is greater than that of a conventional storage water heater, but tankless water heaters will typically last longer and have lower operating and energy costs, which could offset its higher purchase price. Most tankless water heaters have a life expectancy of more than 20 years. They also have easily replaceable parts that extend their life by many more years. In contrast, storage water heaters last 10–15 years.

Tankless water heaters can avoid the standby heat losses associated with storage water heaters. Although gas-fired tankless water heaters tend to have higher flow rates than electric ones, they can waste energy if they have a constantly burning pilot light. This can sometimes offset the elimination of standby energy losses when compared to a storage water heater. In a gas-fired storage water heater, the pilot light heats the water in the tank so the energy isn’t wasted.

The cost of operating a pilot light in a tankless water heater varies from model to model. Ask the manufacturer how much gas the pilot light uses for the model you’re considering. If you purchase a model that uses a standing pilot light, you can always turn it off when it’s not in use to save energy. Also consider models that have an intermittent ignition device (IID) instead of a standing pilot light. This device resembles the spark ignition device on some gas kitchen ranges and ovens. (Energy.gov)

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