Tankless VS. Tank – A Duel In Energy Efficiency

One of the simplest ways to conserve energy in your home is to make the switch from a traditional hot water tank to a tankless water heater, as they use up to 40% less energy.

That sounds all well and good on the surface, but to understand where the savings are coming from, it helps to understand how a Tankless Water Heater differs from a standard hot water tank.

Standard Tanks

A standard hot water tank works by heating and reheating the water it holds to maintain the desired set temperature – regardless of usage or demand. This reheating of the same water causes additional energy expenditure which brings down the efficiency of the unit.

Tankless

With a tankless water heater, cold water enters the unit only when hot water is needed. The water is then heated, exits the unit and travels to the location where the water is needed. Tankless Water Heaters offer an endless supply of hot water whereas a hot water tank eventually runs out, and it does it all while using considerably less energy.

The table below compares the annual operating costs using a traditional water tank versus a high-efficiency Tankless Water Heater. As you can see, Tankless Water Heaters consume less energy, therefore, costing less to operate – not only saving you money but also reducing your carbon footprint.

Tank TechnologyFuel Type / Energy SourceUEF (Uniform Energy Factor)Annual Operating Costs*
Standard 50-Gallon Gas Storage TankNatural Gas0.60$309
Standard 50-Gallon Gas Storage TankPropane0.60$745
Standard 50-Gallon Electric Storage TankElectricity0.95$626
Tankless TechnologyFuel Type / Energy SourceUEF (Uniform Energy Factor)Annual Operating Costs*
High-Efficiency Non-Condensing TanklessNatural Gas0.81$228
High-Efficiency Non-Condensing TanklessPropane0.81$552
Super-High-Efficiency Non-Condensing TanklessNatural Gas0.92$201
Super-High-Efficiency Non-Condensing TanklessPropane0.92$487

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