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Tankless and Storage Tank Water Heaters: The Pros and Cons of Both

Feb 02, 2016

You are most likely familiar with the storage tank water heater, which heats and stores hot water in bulk quantities. More recently however, tankless water heaters have been growing in popularity. It’s no wonder these are becoming more desirable; they are more energy efficient and able to continuously heat water.

However, both styles have pros and cons and it is important to consider the benefits and drawbacks of each if you are planning on buying a new water heater.

Ability to Heat Water

Storage Tank Heaters: These heaters heat water in bulk, so once all the hot water in a tank is gone, you’ll have to wait long enough for the entire tank to reheat. The storage tank will vary in size from 30 to 80 gallons.

Tankless Heaters: What appeals to many people is the fact that tankless water heaters produce hot water on demand. It is important to note that there are limitations as to how much hot water can actually be provided at one time.

How Efficient Are They?

Tank: The downside of the tank water heater is that it is not as efficient. Not only does the heater have to heat the entire reservoir, it also has to use energy to keep that hot water at a consistent temperature day and night.

Tankless: The primary advantage of a tankless water heater is the efficiency. It only uses energy to heat water when you need it.

Which is More Cost Effective?

This is debatable. A tankless water heater will have a much higher up-front cost, but will result in energy cost savings over time. The average family saves just over $100 a year. Because tankless water heaters can cost a little more, the investment won’t pay for a while. However, many people are willing to pay the higher up-front cost in favor of having lower power bills over time.

Tankless water heaters are also built to last. One will easily last 20 years or longer if it’s taken care of. A storage tank heater, on the other hand, will last around 8 to 10 years. Tank heaters wear out faster in Arizona due to the hard water.

You can still find efficient storage tank water heaters, and you’ll pay about a third of the price. If you want to learn more about what option might work best for your home and your budget, get in touch with Donley Service Center at 602-892-5547