How to Choose Between a Tankless and Traditional Water Heater

When it comes to selecting a water heater for your home, the choice between a tankless and a traditional water heater can be daunting. Both types have their advantages and drawbacks, and understanding these can help you make an informed decision that best suits your needs.

Traditional Water Heaters

Traditional water heaters, also known as storage water heaters, are the most common type found in homes. They consist of a large tank that holds and heats water, keeping it ready for use.


  1. Lower Initial Cost: Traditional water heaters are generally less expensive to purchase and install compared to tankless models.
  2. Simplicity: These units are straightforward and typically less complex to maintain.
  3. Hot Water Supply: They provide a steady supply of hot water, making them suitable for households with high hot water demands.


  1. Energy Inefficiency: Traditional water heaters constantly heat and reheat water to maintain a set temperature, leading to higher energy consumption and costs.
  2. Limited Hot Water: Once the stored hot water is depleted, you must wait for the tank to refill and reheat, which can be inconvenient during high usage times.
  3. Space Requirement: They require a significant amount of space, which can be a downside for smaller homes.

Tankless Water Heaters

Tankless water heaters, also known as on-demand water heaters, heat water directly without the use of a storage tank. When hot water is needed, cold water travels through a pipe into the unit, where it is heated by a gas burner or electric element.


  1. Energy Efficiency: Since they only heat water as needed, tankless water heaters use less energy, leading to lower utility bills.
  2. Endless Hot Water: They provide a continuous supply of hot water, making them ideal for households with high hot water demands.
  3. Space-Saving: These units are compact and can be installed in smaller spaces, freeing up valuable storage room.


  1. Higher Initial Cost: Tankless water heaters are more expensive to purchase and install compared to traditional units.
  2. Complex Installation: They may require upgrades to your home’s electrical system or gas lines, adding to the installation complexity and cost.
  3. Flow Rate Limitations: In homes with simultaneous high hot water demands (e.g., running multiple showers and appliances at once), a tankless unit might struggle to keep up.

Factors to Consider

When choosing between a tankless and a traditional water heater, consider the following factors:

  1. Budget: Assess your initial budget for purchase and installation. While tankless units are more costly upfront, they can save money in the long run through lower energy bills.
  2. Hot Water Demand: Consider your household’s hot water usage. A traditional water heater might be better for large families with high simultaneous hot water needs, while a tankless unit is great for homes with staggered usage.
  3. Space Availability: Evaluate the space available for installation. If you have limited space, a tankless water heater’s compact size can be a significant advantage.
  4. Long-Term Savings: Think about the long-term energy savings. Although tankless water heaters have higher initial costs, their energy efficiency can result in substantial savings over time.


Both tankless and traditional water heaters have their merits, and the right choice depends on your specific needs and circumstances. Traditional water heaters are cost-effective and reliable for consistent hot water supply, while tankless water heaters offer energy efficiency and endless hot water on demand.

By considering your budget, hot water demand, space, and long-term savings, you can select the water heater that best fits your home and lifestyle. If you’re still unsure, consulting with a professional HVAC technician can provide personalized guidance to help you make the best decision.