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You have two main choices when it comes to water heaters: conventional tank water heaters and tankless water heaters. Once isn't necessarily better than the other when you need water heater replacement. The best solution depends on your unique needs. Learn more about the difference between tankless water heaters and traditional water heaters. 

Efficiency: Tankless Water Heater

Tankless water heaters boast high-efficiency ratings since they don't require energy to make up for tank heat loss. Instead of keeping water warm in a tank, tankless water heaters heat water on demand (up to 5 gallons per minute). While most tankless units come with an Energy Star rating, there is variation. The most efficient tankless models are electric tankless water heaters and condensing gas tankless water heaters.  

Size: Tankless Water Heater

If you have limited space, your tank water heater can feel in the way. A tankless water heater uses far less space and many models fit conveniently on the wall or under a sink. 

Cost: Tank Water Heater

Tankless water heaters frankly cost a lot of money, especially when you upgrade from a traditional water heater. The installation of a new setup requires significant time, causing the labor bill to add up quickly. A tankless unit may also require an upgrade to the electrical outlet or the gas line, adding to the installation bill even more. Furthermore, the unit itself will be more expensive. 

For families on a budget, a tank water heater will be the better solution. The unit will be cheaper, and the installation will be far less complicated, keeping the cost down. 

Longevity: Tankless Water Heater 

Tankless water heaters last an average of 20 years, while tank water heaters last about 10 to 15 years. Many people claim that the initial cost of a tankless unit pays for itself when you consider the higher efficiency and longevity of the unit. However, this only applies if you plan to stay in your home for the next decade or mode. Otherwise, you may not see a return. 

Effectiveness: Tank Water Heater

Tank water heaters tend to provide warmer water. When two devices use the hot water, it generates hot water to both fixtures at the same rate. When two devices use hot water from a tankless unit, it split the hot water production between the two devices. In a large home, you may need to wait for the hot water tank to reheat, but you'll always have hot water with a tank water heater. Multiple people won't' be able to get hot water from a tankless unit unless you include additional smaller units to specific fixtures. 

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