Concerning the increasing world population, natural resources are decreasing day by day. Among natural resources, water is the most precious one. Where there is no water, there is no life. In the available water resource, only 0.3% are usable for humanity, among which 70% is used directly for food production, i.e., for agricultural purpose. Compared to world consumption, the United States uses the highest, 23% of world electricity, 22% natural gas, and 24% oil. Among total electricity production in U. S., 49% comes from coal energy. According to International Energy Agency, the proven reserves of coal is around 909 billion tonnes, with 5% production growth. This will support us until 2051. Natural gas will help us up to another 100 years with the current rate of consumption. So saving energy is a crying need today.
It’s time to concentrate on your home energy consumption for the sake of saving the environment as well as cut down your utility bills. To do this, you have to use the star-rated appliance and optimize your water, electricity, and gas use. According to ENERGY.GOV Info-graphic by Sarah Gerrity, water heating is the 2nd most significant expense, accounting for 14-18% of your utility bills. To cut your expenditure and lessen energy usages Tankless water heater will be the best option for you.
To understand the saving, we have to know about the fundamental difference between an old tank or storage water heater and a modern Tankless or on-demand water heater.
| Storage/ Tank Water Heater | Tankless Water Heater | |
|---|---|---|
| Definition | The heater usually holds 20-80 gallons of water, heats the whole water, and keeps it warm until it needs use. | The Tankless heater heats water during flow through a device using gas or electricity on-demand basis, no need to store water for a long time. |
| Size | It will occupy a large space inside your home. | A tankless water heater needs minimal space to install, and even you can set it under your kitchen cabinet. |
| Life Span | 10-15 years | 15-20 years |
| PRO | – Low upfront cost – easy installation – Get enough flow for multiple uses like shower, dish-washing, cloth washing | – Supply hot water constantly – 8-34% more energy efficient than the storage water heater – You may save about $100 per year based on your consumption |
| CON | – Wastage of power due to keeping the water warm in the storage tank – Need to wait for a more extended period after start the switch and get the hot water ready for a shower | – High upfront cost of the Tankless water heater installation by a skilled plumber – the limited flow rate of hot water hindered the simultaneous use of multiple appliances like dish-washing, cloth washing, kitchen use |
| Cost | Av. Price of the storage water heater is $750 | Av. Price of the tankless water heater installation is $1063 |
“Home is where our heart is.” It is a great idea to make this lovely home energy efficient. Not only for ‘Green Movement,’ but it will also help you save electricity and gas bills.
How much money can you save by buying Tankless Water Heater?
First of all, the significant advantage of a Tankless water heater is that there is no need to store water, which is the main reason for saving energy. You have to hold about 20-80 gallons of water (based on your heater capacity) and heat it to reach the desired temperature (120 – 140° F). Once started, the process of heating will continue until the end of the use. On the other hand, in a Tankless Water Heater, cold water flows through a device and supply hot water continuously whenever required. This process helps to save energy, and according to the U. S. Department of Energy estimation, a Gas Tankless Water Heater can save an average of $108. Electric Tankless can save $44 annually.
As per estimation by Energy.Gov average water use per day per household is about 64 gallons. To heat this water, they spend around $400 – $600 per year. The efficiency of Tankless Water Heater over storage-type heaters is 24 – 34%. Using Tankless Water Heater, you can save $96 – $200 per year (based on the heater’s usage, types, and capacity).
Related: 15 Ways to Save on Your Water Heating Bill
Potentiality against Higher Upfront Cost and Extra Lifespan
There is a myth that the upfront cost of a Tankless Water Heater is almost double that traditional water heater due to using luxury high-end technology. According to ‘Angie’s List’ the average price of a premium Tankless Water Heater is about $1063, with the installation a full 8-10 hours by a professional plumber. You also get a portable Tankless Water Heater by spending as low as $100, which is easy to install. At the same time, the average cost of traditional storage water heaters is about $750. However, according to Larry Murdock (a water heater specialist), the warranty for a Tankless Water Heater is 15 years and six years for tank one. Also, there is no breakdown issue for Tankless. So you will get extra nine years of life for Tankless, which will return you a minimal $100 x 9 = $900 approximately.
Energy Efficiency of a Tankless Water Heater
To maximize energy usage, we have to think about energy-efficient appliances. The energy efficiency is determined by the Energy Factor (EF), which is the amount of hot water produced per unit of fuel consumed. This factor depends on –
- Recovery Efficiency – efficiency of transferring heat from fuel to the water to heat it.
- Standby losses – percentages of heat loss per hour from stored water.
- Cycling losses – the loss of heat while circulating the water between tank and pipe.
The higher Energy Factor leads more efficient water heater. Usually, the Energy Factor for a tank water heater is 0.60 and 0.82 found in the Tankless one. The higher the Energy factor means, the lower the operating cost of fuel.
Tax Saving
According to Federal Tax Credit, if the Energy Factor (EF) remains a minimum of 0.82, that device (gas, oil, and propane-operated Storage and Tankless Water Heater) can save $300. However, it may vary from state to state.
Water-Saving
To get hot water at the point of the faucet from the tank water heater, you have to wait for few moments as it needs to travel a long pipe. Before coming hot water, it has to drain out cold water inside the tube, which wastes totally. On the other hand, you can get instant hot water from Tankless one as it is set just before your faucet, which also helps you save water and time.
Final Verdict
You will get hassle-free hot water flow as per requirement from Tankless Water Heater. Because of easy maintenance and less costly spares. Also, almost all parts of Tankless are replaceable and available in the market. Based on the above discussion, it is clear that despite the higher upfront cost, if you think for the long run, Tankless Water Heater is the prime option.