Our ever -increasing efforts to conserve energy and water are leading many to consider demand – or “tankless” – water heaters because they heat water only when it’s called for; they have no tanks storing water that need to be heated between actual usages.

Homes with high water demand, about 86 gallons a day or more, are 8 to 14% more efficient using tznkless water heaters than comparable homes with storage tanks, according to the National Renewable Energy Laboratory (NREL) of the U.S Department of Energy. Homes using low amounts of hot water, about 41 gallons a day or less, are 24 to 34% more efficient than comparable homes with hot water tanks, according to the NREL. And efficiency improvements range from 27 to 50 % with individual tankless water heaters supplying each major water outlet (such as dishwashers, washing machines and showers).

Tankless water heaters, however, may not provide enough hot water under heavy load conditions. So the household capacity required for producing enough hot water at the desired temperature (the “first-hour” rating of its water heating equipment) is critical in making selections of water heaters, with tanks or tankless.

Today’s water heaters, with or without tanks, are so much more efficient than old ones that any upgrade of your hot water system will pay for itself in a few years through energy and water savings. And you’ll enjoy improved system performance all the while, from Day One of your upgrade.