
Tankless water heaters are becoming increasingly popular among homeowners due to their energy efficiency and endless hot water supply. Unlike traditional water heaters, these devices heat water directly without using a storage tank. This means they only heat water when needed, eliminating standby heat loss and making them a more efficient option.
However, before choosing a tankless water heater, it’s important to consider different factors. In this article, we’ll break down everything you need to know to make an informed choice.
What types of tankless water heaters are there?

The most common types of tankless water heaters are electric, gas, point-of-use, and whole-house. Each type has its own advantages and drawbacks, making it crucial to buy one that aligns with your household’s hot water needs and energy availability. Let’s consider all of them:
Electric tankless water heaters
Electric tankless water heaters use electric heating elements to heat water on demand. They are generally more affordable and easier to install than gas-fired models. However, they may have higher operating costs in areas with expensive electricity.
This type is ideal for small and medium-sized households with low to moderate hot water demand. It is also suitable for homes with unreliable gas lines.
Gas tankless water heaters
Gas tankless water heaters heat water using a gas burner. They have a higher flow rate and can meet hot water demands than electric models. Gas water heaters are more energy-efficient and cost-effective in regions with low gas prices.
These devices require proper ventilation and a gas line connection, which makes them difficult to install and potentially expensive. However, they provide a continuous hot water supply, making them ideal for large households or buildings with high hot water consumption.
Point-of-use tankless water heaters

Point-of-use tankless water heaters are designed to supply hot water to a specific appliance or device, such as a shower, sink or dishwasher. They are compact and can be installed directly at the point of use, eliminating the need for long hot water pipes and reducing water loss.
These units are often electric and are ideal for supplemental hot water supply in locations far from the main water heater or in homes with limited space. However, their limited capacity may not be suitable for providing hot water for the entire house.
Whole-house tankless water heaters
Whole-house tankless water heaters can provide hot water for the whole family. They have a higher flow rate and heating capacity than point-of-use models, and they provide an uninterrupted supply of hot water to multiple appliances.
These devices can be powered by electricity or gas and are suitable for large households with high hot water demands. Although they require more space and a larger initial investment, they provide long-term energy savings and convenience.
How to choose a tankless water heater size?

To determine how to choose tankless water heater size, you must calculate the hot water demand based on the number of appliances, flow rate, and peak usage times. This calculation helps identify the number of gallons per minute (GPM) required and ensures that the unit selected will be able to provide enough hot water when needed.
Example of calculating hot water demand:
USE | AVERAGE GALLONS OF HOT WATER PER USAGE | TIMES USED DURING 1 HOUR | GALLONS USED IN 1 HOUR |
---|---|---|---|
3 showers | 20 | x 3 | = 60 |
1 shave | 2 | x 1 | = 2 |
1 hand dishwashing | 3 | x 1 | = 3 |
Peak Hour Demand | = 65-66 |
Properly sized tankless water heaters offer several benefits, including energy savings, consistent hot water supply, and a long service life. Overly large units can lead to inefficient operation and unnecessary energy consumption, while undersized water heaters will not be able to meet the household’s hot water needs.
Factors to consider when choosing a tankless water heater

Buying the right tankless water heater involves more than just picking a model. Factors such as efficiency, installation requirements, lifespan, and maintenance must be weighed carefully to ensure optimal performance and long-term cost savings. Below, we break down the key considerations.
- Energy efficiency Look for Energy Star-certified units to ensure optimal energy efficiency and lower operating costs.
- Installation requirements Tankless water heaters may have specific installation requirements, including electrical, ventilation and space.
- Longevity and warranty Consider the equipment lifespan and the scope of the manufacturer’s warranty to ensure long-term reliability and protection from potential problems.
- Maintenance needs When selecting a tankless water heater for your home, evaluate the maintenance requirements of different models and buy the one that suits your preferences.
- Cost Compare the upfront, installation, and long-term operating costs to find the most cost-effective solution for your budget.
If you’re looking for expert guidance, Superior HVAC Service is here to help. Our professionals will assess your home’s needs, recommend the best tankless water heater, and handle installation with precision. Contact us today for a consultation and experience the benefits of an energy-efficient, on-demand hot water system.
We can handle various issues, ensuring your Water Heater works at its best.
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REFERENCES
1. Bohac, D., Schoenbauer, B., Hewett, M., Lobenstein, M. S., & Butcher, T. (2010). Actual savings and performance of natural gas tankless water heaters. Center for Energy and Environment. https://greenwoodhardware.com/wp-content/uploads/2021/06/Minnesota-Tankless-WH-study-2010.pdf
2. Luo, S. (2010). Achieving water conservation and energy efficiency with electric tankless water heaters. Journal‐American Water Works Association, 102(2), 84-85. https://awwa.onlinelibrary.wiley.com/doi/abs/10.1002/j.1551-8833.2010.tb10053.x
3. Schoenbauer, B., Bohac, D. L., & Hewett, M. J. (2012). Tankless Water Heaters: Do They Really Save Energy?. Pacific Grove, CA: ACEEE Summer Study on Energy Efficiency in Buildings. https://www.aceee.org/files/proceedings/2012/data/papers/0193-000010.pdf
4. Yuill, D. P., Coward, A. H., & Henze, G. P. (2010). Performance comparison of control methods for tankless water heaters. HVAC&R Research, 16(5), 677-690. https://www.tandfonline.com/doi/abs/10.1080/10789669.2010.10390927