Tankless Water Heaters

A lot of people who want to make their homes more energy efficient, often ask me about solar panels. (Read why that isn't realistic in Memphis here.)

The second most popular inquiry I get is about tankless water heaters. Heating & cooling are the two biggest energy users, and water heating is the third. So reducing the amount of hot water you heat and/or use, can definitely make a difference on your utility bill.

Mike Thompson, of SFE Enterprises in Nashville, provided me with some useful information on the advantages of tankless water heaters:

1. Eco Friendly - They have less carbon emissions, use less energy, and have replaceable parts which could keep them out of landfills.
2. Endless Hot Water - When sized properly for your home, tankless heaters provide unlimited hot water.
3. Space Savings - They are the size of a travel suitcase and can mount on the wall.
4. Energy savings - They only operate when there is a demand for hot water, rather than heating water 24/7 like traditional water heaters.)
5. Life Expectancy - They will last 2-3 times longer than a conventional tanked
water heater.

So what's the catch? Tankless water heaters are more expensive on the front end, and installation costs can also be expensive. Thompson estimates that they pay for themselves in 3-5 years, but a study done by Consumer Reports shows that it might be more like 22 years.

Consumer Reports also noted that inconsistent water temperatures were a common complaint among their poll respondents. Finally, they found that tankless units might need more care due to scale buildup. Many industry pros recommend that tankless models be serviced once a year by a qualified technician. Calcium buildup can decrease efficiency, restrict water flow, and damage tankless models. Experts suggest installing a water softener if your water hardness is above 11 grains per gallon. Ignoring this advice can shorten your warranty.

Consumer reports recommends buying a conventional storage water heater with a 9- or 12-year warranty unless you care more about saving energy than money.