Should You Install a Tankless Water Heater? Pros and Cons Explained

When it’s time to replace your water heater, one option gaining popularity among homeowners is the tankless water heater. Known for their energy efficiency and on-demand hot water, tankless systems offer several advantages—but they’re not right for every home. Before making the switch, it’s important to understand both the benefits and drawbacks.

Here’s what you need to know to decide if a tankless water heater is the right fit for your home.

What Is a Tankless Water Heater?

Unlike traditional water heaters that store and heat a large tank of water continuously, tankless water heaters heat water only when you need it. When you turn on a hot water tap, the unit quickly warms the water as it passes through, delivering a continuous supply of hot water.

The Pros of a Tankless Water Heater

1. Energy Efficiency

Tankless water heaters use significantly less energy than traditional models because they don’t maintain a tank of hot water 24/7. According to the U.S. Department of Energy, households using 41 gallons or less of hot water daily can expect energy savings of 24% to 34%.

2. Endless Hot Water

Say goodbye to cold showers. Because tankless systems heat water on demand, you’ll never run out of hot water—perfect for families or homes with high water usage.

3. Space Saving Design

Tankless units are compact and typically mounted on a wall, freeing up valuable floor space. They’re ideal for smaller homes or utility closets.

4. Longer Lifespan

Tankless water heaters generally last 20 years or more, outlasting traditional water heaters by 5–10 years when properly maintained.

The Cons of a Tankless Water Heater

1. Higher Upfront Cost

The initial cost of a tankless water heater—including the unit and installation—can be significantly more than a traditional model. However, many homeowners find the long-term energy savings help offset the upfront expense.

2. Flow Rate Limitations

While tankless systems provide continuous hot water, they may struggle to supply enough for multiple simultaneous uses (e.g., two showers and a dishwasher). Larger homes may need multiple units or a hybrid system.

3. Installation Considerations

Installing a tankless water heater often requires updates to your home’s electrical or gas systems. These modifications can add to the overall cost and complexity.

Is a Tankless Water Heater Right for You?

Choosing the right water heater depends on your household size, water usage habits, available space, and budget. If energy efficiency and endless hot water are top priorities, a tankless system could be a great investment. However, if upfront cost or installation logistics are a concern, a traditional model may still be the better option.

Talk to the Experts at Plumbco

Still unsure which system is best for your home? Our experienced team at Plumbco can help you weigh the pros and cons and recommend the best water heating solution for your needs.

Call us today at (251) 758-0173 to schedule a consultation and get expert guidance on upgrading your water heater.