Should You Buy a Tankless Water Heater to Save Money?
Tankless water heaters have a high upfront cost but will lower your monthly water bill
These days, many property owners are very focused on conserving energy. And in many people’s minds, saving energy is synonymous with saving money. However, the fact of the matter is that buying the most energy-efficient equipment available is no guarantee that you will actually save money on the deal.
Why?
Because high-tech, energy-efficient models tend to cost more upfront than their less efficient counterparts. This means that you have to do some math to figure out when you will actually begin to go into the black on your investment.
Let’s look at buying a new tankless water heater as an example.
Some of the top models of gas-fired tankless water heaters promise to cut your energy costs in half versus a traditional water heater. However, given the specific conditions in your home—like pipes that run through uninsulated walls and lose a lot of heat—you may not reach this ideal amount of savings. In testing by Consumer Reports, tankless models were an average of22 percent more energy efficient than gas-fired storage tank models. This worked out to an energy savings of about $100 per year for an average family. Obviously if you are a single person you will use less hot water and reap less savings.
The trouble is, a new tankless hot water heater can cost roughly double what a traditional hot water heater might cost. It will take many years for that $100 in annual energy savings to recoup the difference in price.
For example, let’s say you had the option of buying a $400 traditional model or an $800 tankless model. Saving $100 per year, it will take 4 years for you to break even on your investment and start actually saving money. This does not include the difference in installation costs, which can also be significantly higher for a tankless water heater. If you have never had one in your home before, it could easily cost at least $500 to install all the necessary equipment. This will add another 5 years to your break-even point.
Don’t Forget Potential Repair Costs
When trying to decide if you should buy a tankless water heater to save money, you will also want to give some thought to repair costs. Both tankless and traditional models need annual maintenance. However, with fewer moving parts, a tankless water heater typically needs repair less often. And there is one huge, costly repair that you will never have to deal with, namely a burst water heater tank and the ensuing water damage to your home. Peace of mind against this type of disaster is actually almost priceless in many people’s minds.
Want to Learn More?
If you would like more information about specific tankless water heater options, please contact The Stanley Louis Company today.
