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Pro and con for tankless water heater

A promoter's dream:
Spend $1000 to save $3 a month
pro and con for tankless water heater

Type of heater Saves energy over regular tank? Unlimited  hot water?  Easy to convert regular tank to tankless?  Susceptible to water pressure?  Susceptible to particulate in water? Life Expectancy?
Whole house tankless electric
No savings
Can cost more
Yes
If unit not undersized
No 
Requires 2-3 additional 30 Amp circuit breakers
Yes Yes - high tech sensors can clog Claims of longer life not backed by warranty.
No warranty without professional installation.
Whole house tankless gas Yes /$1-$8  month energy savings
see hidden costs
Yes
If unit not undersized
No
Requires 1-1/4" gas pipe
Requires air intake pipe
Requires stainless-steel flue
Requires 110V electric line 
Requires professional installation 
Yes Yes - high tech sensors can clog

Claims of longer life not backed by warranty.
No warranty without professional installation.
Regular electric water heater Save 3-5% operating cost by lowering thermostat 10º  
About 21 Gal per hour recovery
see chart
Regular electric water heater can be installed by homeowner No Over time - Slow build-up inside tank >
can be drained
6-12+ years
No extended warranty without professional installation.
Regular gas water heater Save additional 4-9% operating cost by insulating tank About 41 Gal per hour recovery
see chart
Regular gas water heater can usually be installed by homeowner No Over time - Slow build-up inside tank > can be drained  6-12+ years
No extended warranty without professional installation.
Tankless are made overseas and cannot be repaired by homeowner
compare tankless
Takagi TK1
Bosch 1600P






Why spend a $1000 to save $1 - $8 a month? Read Bradford White side-by-side test results
Save more more money and energy with a few changes on conventional tank heater see
Read about energy factor

Here's the research on tankless:

Tankless water heaters are manufactured overseas. Tankless units are highly technical and require specialized manufacturing. Tankless units do NOT last longer than regular tank heaters. Tankless problems are difficult to diagnose read1 read 2 When available, parts are not interchangeable between brands. Whereas regular water heaters can be repaired see, when a tankless stops working, normally the whole thing is thrown out and more dollars flow overseas. 

Electric type: Whole house tankless electric does NOT save money vrs regular tank heater. Electricity produces fewer BTUs than gas. Operation requires 3-4 30 amp circuit breakers to produce enough BTUs to heat water as it passes in a pipe see. By comparison, a regular electric water heater uses a single 30 amp circuit breaker since it heats water gradually over longer time.

Gas type: Whole house tankless gas saves $100 or less per year depending on amount of hot water used. Expensive to retrofit for tankless when home has regular tank heater. Requires larger gas line because tankless consumes more BTUs per minute than conventional tank. Requires stainless flue pipe to handle additional heat. Requires air intake. Requires 110 volt electric line for fan and electronics. Must be installed professionally. This is not a do-it-yourself project.

Operation: Despite broad verbal claims, nowhere does warranty say that tankless units last longer than conventional water heaters. Tankless units rely on high-tech precision that makes them susceptible to water pressure issues and particulate in the water. A water-softener is often required, adding another monthly expense. Unlike ordinary tank heaters, tankless units have a computer chip and electronics that cannot get wet. Your dealer/plumber might need a computer interface to figure out why tankless heat exchangers are more susceptible to lime build-up. 

Energy: On-demand heaters consume large quantities of BTUs as water flows past in a pipe. Savings comes from using less hot water, and from setting unit to account for seasonal changes of incoming water temperature. Tip for saving money in cold climates: install staging tank so water starts at room temperature.

By comparison, you can save more more money and energy by making changes on conventional tank heater see

A timer installed alongside regular electric water heater is not high-tech. A timer does not require heater replacement. A timer is made from off-the-shelf parts. You CAN do-it-yourself see. The savings start now. The payback is 1 year or less. Your regular heater will last longer and remain efficient longer. A timer is a low-cost savings straight to you that requires no maintenance or replacement of equipment. 
Read more
Bradford White water heater manufacturer: side-by-side test results
Tankless turns-on after toilet is flushed
Difficult to diagnose noise in tankless
1-year-old tankless is blowing breaker
Government site for energy efficiency
'Department of Energy DOE energy efficiency requirements'
DOE blurb on energy star water heaters

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