Heating water accounts for 25% of the energy used in homes. While a tankless water heater costs three times as much to install as a conventional tank type, it can pay for itself over time in the energy saved.
That’s because conventional water heaters use energy around the clock to keep the water in the tank constantly hot. Tankless models, on the other hand, only heat water as you need it. This can result in a 20% to 30% saving in the energy used to heat water.
Danny Lipford: For every energy dollar you spend on your home, a full 25% goes to heating water. So it only makes sense to find some way to reduce that cost, right? Well, a tankless water heater that gives you hot water on demand is the best solution. It costs almost three times more than a conventional heater. But the tankless heater is still worth the cost because of the money you’ll save by not having to constantly heat water.
To better illustrate it, a conventional water heater is like trying to heat this glass of water with all these candles; and to keep the water hot, the candles have to keep burning. On the other hand, a tankless heater is like this propane torch which heats the water in this thimble almost instantly, and turns off when it’s done.