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The Pros and Cons of Tankless Water Heaters

Posted by Kelly Tripp on

Tankless Water Heater Pros and Cons

When it comes to water heaters for your home there are many choices. One of the newest technologies is the tankless water heater. When comparing water heating products, your budget and how much water you normally use daily are just two variables to consider before deciding what is best for your new house plan or existing home.

An Economical Choice

The most obvious benefit of a tankless water heater is that it saves you money. Per the DOEs Office of Energy Efficiency and Renewable Energy, water heating is the third largest expense in most homes, accounting for 14-25% of a home’s expenses. Because most brands of tankless water heaters are designed to heat only when water is running through the unit, this can save a typical family over $100 per year, depending on water usage.

Artwork courtesy of Bosch Water Heating


Another plus of a tankless water heater is it provides a continuous supply of hot water. Like long showers? No more worries about running out of hot water, though flow can be affected when being used from more than one source.

Tankless water heaters are durable, energy efficient, and have a life expectancy of 20 years or more. They are compact and can be installed almost anywhere inside your home, such as in a closet, the utility room, or even the garage of the small luxury home plan, “Florianne".

 Florianne-Front Elevation-Plan #6514

This Mediterranean beauty has a functional layout with 1727 square feet and is ideal for starting out or downsizing.

So, why not just go with the unit that saves you the most money and takes up the least space no matter the size of your home? It’s important to be an informed consumer, so here are some realities of the tankless water heating system for today’s home plans.

Since a tankless water heater is more difficult to install, the cost is about twice as much as traditional water storage tanks. Many companies will give free estimates, but be wary of low bids. This is a job that you want done correctly as cutting corners could cost you more in repairs and shorten the lifespan of the unit.

The best tankless water heaters are gas units, so if your house is total electric this might not be the best choice for you. Electric units are not Energy Star rated and require more energy to use. Also, no storage of hot water is available in case of a power or gas outage. This could be troublesome, especially if your dream home is in a remote area.

Overall, it’s important to do your research before purchasing a product for your home that will last for many years with proper care and maintenance.

It’s also important to do your research when it comes to choosing a pre-drawn house plan or building a custom designed home. At Sater Design, we can help guide you through this important decision process. Questions? Call us today!


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