Water Heater Blog

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Are Tankless Water Heaters More Efficient than Tanks?

Nov 26, 2021 | Tankless Water Heaters

Water heaters are an essential part of every comfortable home. Because they are consistently running to ensure there is always hot water for your household members or guests, it is normal for them to deteriorate over time. 

If the water heater can no longer be repaired and must be replaced, you may face a choice between a traditional tank or a tankless water heater. To help you decide what to install on your property, read on and learn about the difference between the two and which one is actually more energy-efficient. 

Tankless Water Heaters

More and more people are investing in tankless water heaters in recent years because they are believed to use less energy than standard storage-tank water heaters. And they do!

According to the Environmental Protection Agency (EPA), tankless water heaters are far more energy-efficient and use around 34 percent less energy than storage tank water heaters. Consumer Reports, on the other hand, found that the former is also about 22 percent more efficient than gas-powered tank water heaters. 

The Difference

Compared to tankless water heaters, tank heaters tend to lose more heat. This setup means that they have to work harder to keep the stored water warm, resulting in higher energy consumption. They also take longer to heat water compared to tankless water heaters that have high-powered burners. 

Why Tankless Water Heaters Are More Efficient

Also called demand-type or on-demand water heaters, tankless water heaters do not store and reheat water. Instead, they only heat it whenever it is needed. 

The equipment only starts running when turned on and quickly heats water with a high-powered burner. It does not store any water for later usage and does not have to rely on reheating. 

Why Invest in Tankless Water Heaters

Installing a tankless water heater on your property is a great way to maximize energy consumption and increase your savings. Many homeowners are looking at its potential to reduce energy consumption by around 50 percent. 

Naturally, tankless water heaters can be a bit pricier than traditional tank water heaters. You also need to take into account additional expenses for installation service, but this is pretty much the same for both tank water heaters and tankless ones. 

In terms of the actual amount you are saving with the usage of a tankless water heater, it is best to factor in your specific consumption rates. According to the Department of Energy, electric tankless water heaters reduce energy costs by about $44 per year, while gas-powered tankless water heaters can reduce about $100 in a year.


Installing a tankless water heater has proven to be an incredible way to reduce your carbon footprint on the planet and enhance the comfort of homeowners as well as their families and guests. Utilizing this modern technology increases the value of your property and lets you enjoy hot water anytime and anywhere you want.

When choosing a water heater installer, select a contractor that will help you determine the best type of tankless water heater for your home. They must also be able to provide you with comprehensive assistance throughout the process.

Are you on the lookout for water heater installation in Houston, TX? Contact Houston Water Heaters. We offer expert tankless hot water heaters for your property. Give us a call today!

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