Want to save on energy bills and reduce waste? Tankless water heaters could be your solution. These systems heat water only when you need it, cutting energy use by up to 34% compared to traditional water heaters. Here’s what you need to know:
- Energy Savings: Save $100+ annually and reduce water heating costs by up to 30%.
- Efficiency: Ideal for smaller households, offering 24%-34% efficiency gains.
- Eco-Friendly: Helps lower carbon emissions and reduces reliance on fossil fuels.
- Durability: Lasts over 20 years, outliving traditional water heaters (8-12 years).
- Space-Saving: Compact design frees up 80% more space than conventional systems.
Quick Tip: Professional installation ensures optimal performance and maximizes savings. Companies like Hernandez Plumbing in Miami specialize in expert installations, tailored to your needs.
Ready to upgrade? Keep reading to learn how tankless water heaters work, their benefits, and how to choose the right system for your home.
How a Tankless Water Heater Can Save You Money and Improve Your Home
How Tankless Water Heaters Save Energy
Tankless water heaters offer a smarter way to heat water by eliminating the energy losses tied to traditional systems. Unlike storage tanks that keep water hot 24/7, tankless systems heat water only when you need it. This on-demand approach can cut down up to 18% of a home’s energy costs by removing standby heat losses.
On-Demand Heating and Standby Heat Loss
The brilliance of tankless systems lies in their ability to heat water only as it’s needed. Traditional water heaters keep a tank of water hot at all times, leading to energy waste even when no one is using hot water. In contrast, tankless systems spring into action only when a faucet is turned on, delivering hot water instantly without the need to maintain a reservoir of heated water.
Efficiency Ratings and Energy Savings
The energy efficiency of tankless water heaters depends on usage patterns, but they consistently outperform traditional systems. Smaller households can see efficiency gains of 24% to 34%, while larger homes typically experience improvements of 8% to 14%. Gas-fired tankless models, for instance, are about 22% more efficient than their gas storage counterparts. While conventional storage tanks usually operate at 60% to 65% thermal efficiency, non-condensing tankless units can achieve around 85%. These efficiency gains are further boosted by modern system advancements.
Advanced Technologies for Efficiency
Today’s tankless water heaters are packed with features that enhance performance and energy savings. Modulating burners, for example, adjust the flame intensity based on water flow and temperature needs, ensuring no energy is wasted during periods of low demand. Digital controls allow users to fine-tune temperature settings and monitor usage effectively. Condensing technology takes it a step further by capturing heat from exhaust gases to preheat incoming water.
Some systems even incorporate smart recirculation technology, which learns your household’s water usage patterns to schedule hot water delivery more efficiently. And by opting for a model with an intermittent ignition device (IID) instead of a standing pilot light, you can further minimize energy waste. Together, these advancements can lower water heating costs by 30% to 50% compared to traditional systems.
"We know that consumers are still very excited by the technological appeal of a tankless water heater… With the underlying push for higher efficiencies has come a steady shift toward condensing products with premium features." – Isaac Wilson, Senior Tankless Product Manager, A. O. Smith
Key Benefits of Tankless Water Heaters
Tankless water heaters offer a mix of financial savings, practical advantages, and eco-friendly perks. These features make them a smart choice for both immediate cost reductions and long-term value.
Lower Utility Bills and Extended Lifespan
One of the standout benefits of tankless water heaters is their ability to cut energy costs. For example, a family using an ENERGY STAR-certified tankless heater can save at least $100 annually on energy bills. These savings come from eliminating the constant energy drain of keeping a large water tank heated 24/7.
In smaller households with lower water usage, savings can climb to as much as 30%. As noted, “With their ability to provide an endless supply of hot water, tankless systems are not only more efficient but also save you money on energy bills.”
Tankless systems also last significantly longer than traditional water heaters. While standard models typically need replacement every 8–12 years, tankless units can last over 20 years with proper maintenance. This means fewer replacements, less hassle, and more reliability over time.
Continuous Hot Water and Space Efficiency
Tankless water heaters supply hot water on demand, which means you won’t run out – even during high-demand periods. Their compact, wall-mounted design takes up about 80% less space than traditional storage tanks. According to ENERGY STAR, “a tankless system saves an extra closet’s worth of space compared to a gas storage water heater”. For tighter spaces, outdoor installation options add even more versatility.
Lower Environmental Impact
Beyond energy efficiency, tankless water heaters are better for the environment. Electric models are 99% energy efficient, making them an excellent choice, especially when paired with renewable energy sources. Additionally, their longer lifespan reduces the waste generated by frequent replacements – a common issue with traditional water heaters that typically last only 8–12 years.
To put things into perspective, the U.S. averaged 17 metric tons of carbon dioxide emissions per person from 2011 to 2015. By switching to a tankless system, you can take a meaningful step toward cutting your household’s carbon footprint while still enjoying dependable hot water year-round.
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Factors That Affect Energy Savings
While tankless water heaters offer efficiency advantages, the actual savings you experience depend on factors like your hot water usage, the system’s location, and the type of fuel used.
Hot Water Usage Patterns
Your daily hot water usage plays a big role in determining energy savings. According to the U.S. Department of Energy, tankless water heaters can be 8% to 34% more efficient than traditional tank systems. Smaller households using about 41 gallons of hot water or less per day see the biggest gains, with efficiency improvements ranging from 24% to 34%. This is largely due to the elimination of standby heat losses. In contrast, larger households using around 86 gallons daily might see a more modest improvement of 8% to 14% efficiency. For homes with extremely high water demands, additional units may be needed, which can impact overall savings. Beyond usage, the type of system and its placement also play a key role in performance.
System Type and Installation Location
The type of tankless system you choose – whether it’s a point-of-use or whole-house unit – and where you install it can significantly influence energy efficiency.
- Point-of-use systems are installed near individual fixtures, cutting down on energy lost through long pipe runs.
- Whole-house systems, on the other hand, may experience minor losses if hot water has to travel greater distances.
Placement matters, too. Installing the unit close to high-demand areas, like bathrooms or kitchens, reduces the wait time for hot water, saving both energy and water. This strategic positioning also helps minimize the "cold water sandwich" effect, where cold water briefly flows before the hot water arrives.
Indoor installations generally offer better efficiency and durability since the unit is shielded from weather-related temperature swings. Outdoor setups can save indoor space and work well in mild climates, but they’re less ideal in cold or damp areas – like uninsulated garages or basements – where they may lose efficiency and have a shorter lifespan. Finally, understanding the differences between gas and electric models can help you make the most informed choice for your home.
Gas vs. Electric Models
The choice between gas and electric tankless water heaters impacts both efficiency and operating costs.
Electric models are highly efficient, converting nearly 98% of the energy they draw into heat. Their compact design and simpler installation make them a great fit for smaller homes or point-of-use applications.
Gas models, while slightly less efficient (operating at 80%–85% efficiency), often have lower operating costs due to the typically lower price of natural gas. Their Uniform Energy Factor (UEF) ratings range from 0.81 to 0.96, and they’re better suited for larger households with higher hot water demands. However, keep an eye on whether the gas model uses a pilot light. Older units with standing pilot lights can waste energy continuously, reducing potential savings. For better efficiency, opt for models with intermittent ignition devices (IID).
Here’s a quick comparison of the two:
| Feature | Electric Models | Gas Models |
|---|---|---|
| Efficiency Rating | 98%+ | 80%–85% |
| UEF Rating | 0.96 or higher | 0.81–0.96 |
| Cost | Higher upfront (varies by region) | 10%–15% lower operating cost |
| Ideal For | Smaller homes, point-of-use | Large households, high demand |
Local energy prices are a key factor in deciding which type will save you more in the long run. In areas where natural gas is inexpensive, gas models might have an edge despite their lower efficiency. Meanwhile, electric models could be more cost-effective in regions with competitive electricity rates or access to renewable energy programs.
Professional Installation and Services in Miami, FL
When it comes to getting the most out of your tankless water heater, proper installation is absolutely essential. Even the most advanced systems need expert installation to operate at their best and deliver the energy savings they promise.
Why Professional Installation Matters
A professional installation can make all the difference in how well your tankless water heater performs. These systems have the potential to improve energy efficiency by up to 34% compared to traditional tank models, but achieving those savings often depends on expert handling. Skilled installers ensure your system is correctly sized and calibrated, which helps avoid energy waste. Beyond just sizing, professionals fine-tune flow rates and temperature settings for optimal performance. They also ensure that both the unit and the connecting pipes are insulated properly, cutting down on heat loss and reducing energy consumption. Additionally, they place the unit in the ideal location, meeting local building codes and safety standards while maximizing efficiency.
This is where local expertise becomes invaluable. Companies like Hernandez Plumbing in Miami bring the necessary knowledge and experience to ensure your tankless water heater is installed to perfection.
Hernandez Plumbing‘s Expertise
For Miami homeowners, Hernandez Plumbing stands out as a trusted name. With over 50 years of experience as a family-owned, third-generation business, they are known for their high-quality installations that prioritize energy efficiency and long-term performance. Their team of licensed and certified technicians handles everything – from accurately sizing your system to ensuring precise installation techniques that help you save energy.
Hernandez Plumbing is also known for its customer-first approach. They offer upfront pricing, round-the-clock emergency services, and an impressive track record of completing 91% of repairs on the spot. Their consistent 4.4-star ratings on platforms like Yelp and Angi reflect their dedication to quality service. For instance, in June 2025, they replaced a 9-year-old, out-of-warranty tankless water heater for a customer in Pinecrest, showcasing their expertise in both installations and replacements.
If you’re considering upgrading to a tankless water heater, Hernandez Plumbing offers a $49 residential plumbing diagnostic (a service regularly priced at $97). This evaluation allows their technicians to assess your current system, discuss your hot water needs, and provide personalized recommendations to help you achieve your energy-saving goals. With their decades of experience and commitment to excellence, Hernandez Plumbing ensures your tankless water heater delivers peak performance right from the start.
Maximizing Energy Savings with Tankless Water Heaters
Tankless water heaters are already known for their efficiency, but there are ways to make them even more effective. Here’s how you can get the most out of your system.
Energy Efficiency Strategies
To maximize savings, it’s crucial to size your tankless water heater correctly and position it near areas with high water demand. This helps maintain its high Energy Factor (EF) rating. Setting the temperature to 120°F (49°C) strikes the perfect balance between performance and energy conservation.
Regular maintenance is key to keeping your system running efficiently over its 20-year lifespan. This includes annual descaling, cleaning air filters, and ensuring proper ventilation. Simple upgrades like installing low-flow fixtures and insulating water pipes can also reduce energy waste significantly.
The Department of Energy estimates that updated efficiency standards for gas tankless water heaters can save households an average of $112 over the appliance’s lifetime. Johanna Neumann, Senior Director of Campaign for 100% Renewable Energy at Environment America, emphasizes the broader impact of efficiency:
"Efficiency standards embody the phrase ‘waste not, want not’ and benefit all American families by making sure we’re using energy wisely."
Choosing Hernandez Plumbing for Your Needs
While following these strategies can improve efficiency, professional installation and maintenance are essential for achieving the best results. That’s where Hernandez Plumbing comes in.
Hernandez Plumbing specializes in ensuring that every installation meets local building codes while maximizing energy efficiency. Their $49 residential plumbing diagnostic (regularly $97) provides a thorough assessment of your current setup and tailored recommendations to meet your energy-saving goals. From proper gas line sizing to safe electrical connections and code-compliant venting, their team ensures everything is done right.
For a system that performs at its best from day one, trust the expertise of Hernandez Plumbing. Their professional approach ensures your tankless water heater delivers on its promise of energy savings.
FAQs
What are the differences in installation complexity and costs between tankless and traditional water heaters?
Tankless water heaters often come with a higher price tag and more involved installation process compared to traditional models. Installing a tankless unit can cost anywhere from $1,000 to $1,500 or more, particularly if your home’s gas lines or electrical system need upgrading. In contrast, setting up a traditional water heater is much simpler and usually runs between $300 and $600.
The advanced design of tankless systems often requires professional installation, as adjustments might be needed to handle their increased energy demands. Traditional water heaters, however, are straightforward to install and rarely call for major changes to your home’s setup. While the initial cost of a tankless system is higher, its energy efficiency can result in long-term savings, making it an appealing option for many homeowners.
What are the best maintenance tips to keep a tankless water heater running efficiently and lasting longer?
To keep your tankless water heater running smoothly and lasting longer, regular upkeep is essential. Start by flushing the system once a year to clear out mineral deposits and sediment buildup, especially if you have hard water. This helps prevent scaling and keeps the water flowing efficiently.
Also, make it a habit to clean or replace the inlet filter every six months to avoid clogs. While you’re at it, inspect the unit for any signs of leaks or unusual wear. Don’t forget to check the pressure relief valve to ensure it’s functioning correctly. For extra reassurance, consider scheduling a professional inspection annually to address any potential problems before they become serious. These straightforward steps can help you keep your water heater working efficiently for years.
How do I choose the right size and type of tankless water heater for my home?
To pick the right tankless water heater, start by figuring out your household’s peak hot water demand in gallons per minute (GPM). For instance, a shower generally uses about 2.5 GPM, while a kitchen faucet typically needs around 1.5 GPM. Add up the flow rates for all the fixtures and appliances you expect to use at the same time to calculate your total demand.
Next, think about the temperature rise you’ll need. This is the difference between the temperature of the incoming water and your desired hot water temperature (usually around 120°F). Ensure the unit you choose can meet both your GPM requirements and the necessary temperature rise.
Getting the size right is key for steady water temperature, efficient operation, and saving energy. If you’re not sure which unit to pick, reaching out to a professional plumber can help you make the best choice.
