If you’re in the market for a new water heater, you may have noticed you have a few more options than you did the last time you purchased one. And for good reason. According to the U.S. Department of Energy, traditional water heaters account for approximately 18 percent of a home’s energy usage. So it’s no surprise that the water heating industry responded with more energy-efficient models like tankless and heat pump water heaters. While each promise a reduced carbon footprint and lower utility costs, one may be a better for your home and lifestyle than the other.

Here’s a detailed comparison to help you decide which is best for your home.

Tankless Water Heaters

Tankless water heaters, also known as on-demand water heaters, heat water only when it is needed. When you turn on a hot water tap, cold water flows through the unit, which then heats it using electric elements or a gas burner. This process eliminates the standby heat loss associated with traditional tank water heaters.

Pros:

  • Provides a continuous supply of hot water, making it ideal for large families or households with high hot water demand.
  • Compact size allows for installation in small spaces, such as closets or on walls.
  • No standby heat loss, which can result in lower energy consumption compared to traditional tank heaters.

Cons:

  • Higher upfront costs for both the unit and installation. Retrofitting older homes can be particularly expensive.
  • May struggle to supply enough hot water for multiple simultaneous uses, such as showering and running a dishwasher.
  • Regular descaling is required, especially in areas with hard water, to maintain efficiency.

Heat Pump Water Heaters

Heat pump water heaters work by transferring heat from the surrounding air to heat the water. They use electricity to move heat rather than generate it directly, making them highly energy-efficient. These units typically have a storage tank to hold the heated water.

Pros:

  • They are two to three times more efficient than conventional electric water heaters, leading to significant energy savings.
  • Reduced energy consumption translates to a lower carbon footprint.
  • Lower energy bills over time can offset the higher initial purchase and installation costs.

Cons:

  • Higher upfront investment compared to conventional water heaters.
  • Requires more space and good air circulation, usually installed in areas like basements or garages.
  • Efficiency can be affected by the ambient temperature, making them less effective in colder climates.

Which is Best for Your Home?

If you’re unsure which type of water heater is best for your home, P.C. Plumbing can help. We’ll start by evaluating your home’s specific needs and circumstances, including hot water usage, budget, space, and climate, and help you choose the best fit for your home. Contact us today for a hot water usage analysis and new system proposal.