Pros and cons of installing an electric tankless water heater

Using an electric tankless water heater reduces the need for electricity, lessening pollution and global warming in the process. Moreover, it diminishes the need to buy oil from foreign countries or spend millions of dollars on new power plants.

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Tankless water heaters, also known as Demand Water Heaters can be much more energy efficient than their tank-filled counterparts. They only serve up the hot water as it's needed, thus there is no heating/cooling off periods.

Essentially there is an endless supply if hot water in a tankless unit, whether it's an electric model, or a gas fired unit. The average tankless water heater can supply hot water at rates of 2 to 5 gallons per minute, and higher in more expensive models. It is common industry knowledge that gas units will slightly outperform the electric models, but consumers in areas of low electric energy costs may not experience that.

There may be times when heightened appliance use may stretch a tankless water heater to it's limits. In these cases, multiple units can be installed, or smaller, water heaters can be used in conjunction with the heavy usage appliance to isolate it's drain.

In homes that use 40 gallons or less of hot water daily, Tankless Water Heaters can be 24% – 34% more energy efficient than conventional storage tank water heaters.

The following response assumes a whole home electric tankless water heater is being considered...

Pros:

1. Energy is not wasted keeping water warm while not being used.

2. No need to install natural gas or propane fuel gas piping

3. Heat exchange, i.e. electric to heated water is more efficient than the typical two element storage tank type electric water heater.

Cons:

1. There is significant electrical demand when the tankless water heater is in use, sometimes as much as 100A

2. Significant electric demand means large (expensive) electric conductors and appropriately sized breakers

3. Your home's current electrical panel may not have sufficient capacity for a load of 50-100A, thus an upgraded panel and utility service upgrade may be required

4. Should an utility upgrade constitute the main electrical service sub-grid be upgraded you can be responsible for the costs in certain service areas.

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