Myth: Tankless Hot Water Costs Too Much!

“Tankless hot water heaters cost a lot of money and you don’t get much savings in return.”

Myth #1: The Cost is High

Tankless water heaters have been around for decades. They’re complex little water computers, and for this reason people often have many questions. Some people believe that tankless water heaters cost more to run because of the initial cost to have one installed. The reality is that when compared to traditional tanks, tankless units are incredibly efficient. A traditional storage tank water heater that many people have in their home have an Energy Factor of .65 to .67. In contrast, tankless water heaters have Energy Factors between .96 to .99, with efficiency ratings of up to 99%!

Thanks to their high efficiency, tankless water heaters help to save you money. The initial investment is higher than a traditional tank, but with energy savings of up to 20% per year (that’s up to $99 for a family of 5), the tank will save you money and you can go ahead with that bathroom or kitchen renovation you’ve always wanted to do!

Tankless water heaters also have a longer warranty and a longer lifetime compared to traditional hot water tanks, so you won’t be incurring a replacement fee for 15-20 years.

How do tankless water heaters last longer? Firstly, the units do not store any water inside of them. Water is heated using a heat exchanger inside the unit, and so water only flows through the unit; it doesn’t sit there. Tankless water heaters function to supply hot water as needed rather than having a tank that is constantly filled and maintained at a particular temperature.- this is why storage tanks have a higher energy cost. Water heating accounts for up to 20% of your home’s energy cost, which is the second biggest portion after space heating.

To calculate your home’s approximate annual energy cost, you can use the online calculator on FortisBC’s website.