Water heaters are one of those home comfort systems that are relatively easy to take for granted, even though they are one of the appliances we rely on the most. Could you even imagine being without hot water for showering and all the other needs a modern household has?
Which Is Better for Your Home: Tank or Tankless Water Heater?
- Tank-style heaters store and continuously heat water in a 40–80‑gallon tank. They cost less upfront but can run out during high demand and lose energy through standby heat.
- Tankless heaters heat water on demand, offering limitless hot water, about 20–30% more energy efficiency, and a smaller footprint—but they require a higher initial investment and may need upgrades for gas lines or electric capacity.
- Choose based on your usage: A tank works well for low to moderate households, while tankless is ideal for high-demand scenarios or energy-conscious homeowners.
- Consider installation complexity: Tank models are easier and cheaper to install; tankless units might require venting updates and higher-capacity utilities.
- Evaluate long-term value: Tank heaters generally last 8–12 years, whereas tankless models can reach 20+, offsetting higher upfront costs with energy savings and longevity.
When it comes time to replace your water heater–yes that’s right, no water heater lasts forever–then you’ll want to do your due diligence in exploring your options to make sure you have the most efficient system possible. If you’re nearing that point, it’s smart to prepare for replacing your old water heater.
The two main options to choose from when selecting a water heater are the tank water heater and the tankless water heater. You may have heard a lot about the tankless system in recent years, as it is growing in popularity. It’s become an ultra-efficient option for many homeowners! However, that doesn’t necessarily mean it’s right for every home and situation. Read on as we uncover the differences between these systems, or review this guide comparing tank and tankless water heaters.
The Tank Water Heater
Tank water heaters are still very popular in homes today, and for good reason. They do the job required of them, and as long as you’re matched with the right one for your needs, it doesn’t cost a lot to use. The distinguishing feature of a tank water heater is the storage tank, which is actually available in different sizes–by the gallon.
Why do they come in different sizes? Once a tank water heater’s hot water supply runs out, there will be a delay in the hot water supply as it heats up a new batch. By having a larger reserve of water to draw from, you can use the hot water for longer (or for more appliances) without needing to refill it so frequently.
There is a drawback here, and it’s one that causes many to consider the tankless option–hot water that goes unused will encounter what’s called standby heat loss. If you have a tank water heater that’s actually too big for your needs, you’ll essentially be paying for the energy needed to heat up water that you aren’t able to use–so you’re paying more for less enjoyment.
The Tankless Water Heater
The tankless water heater, as we alluded to above, is becoming a popular alternative to the storage tank water heater. They function in a fundamentally different way than their tank water heater counterparts. First off, they don’t use a storage tank! Instead, a tankless water heater creates hot water through electrical resistance, with the hot water only being produced when you need it–when there is a demand for it from a hot water tap or appliance in your home.
This is why tankless water heaters are seen as more efficient–they don’t create standby heat loss. The drawback of a tankless system, however, is that it can be overwhelmed if too many fixtures and appliances are demanding hot water from it at once. This is why it’s so important to talk to a trained and experienced professional to make sure you’re getting the most bang for your buck! You can also explore ways to solve common water heater issues before moving toward a replacement.
Frequently Asked Questions
Question: How do I decide whether to choose a tank or tankless water heater?
Answer: Consider your household’s hot water demand, space, energy efficiency, and budget. Tank heaters are cheaper upfront and predictable for larger usage, while tankless units save energy, offer endless hot water, and fit compact spaces—though they cost more initially and may struggle with simultaneous use.
Question: What are the main benefits of a tankless water heater?
Answer: Tankless heaters deliver hot water on demand, avoiding standby heat loss. They occupy less space, often last 20 years or more, and can reduce energy usage—if sized and installed properly.
Question: What drawbacks should I consider for a tankless system?
Answer: Tankless units have higher upfront costs, need proper sizing to avoid insufficient hot water during peak demand, and require annual maintenance to prevent scale buildup in the heat exchanger.
Question: When is a traditional tank water heater a better choice?
Answer: A storage tank heater is ideal if you prefer lower installation costs, simpler maintenance, and steady hot water supply—even if it takes up more space and may run out during high usage peaks.
Question: How important is professional sizing and consultation?
Answer: Expert advice ensures your chosen system matches your household’s hot water use, preventing issues like inadequate supply in tankless models or high energy waste in oversized tanks. Accurate sizing maximizes efficiency and satisfaction.
DeHart Plumbing, Heating, and Air Inc. is your trusted resource for Modesto, CA water heater services. Contact us when you’re ready for your water heater installation!