The Advantages and Disadvantages of Tankless and Tank-Style Water Heaters

When choosing a new water heater there are several types to choose from. Each offers advantages and disadvantages, here is a comparison, starting with the most popular water heater designs.

Storage Hot Water Heaters

Advantages

• Available in a wide range of sizes
• Inexpensive to purchase and install
• Energy source gas or electric
• Average EF rating 0.67

Disadvantages

• Tank size has increased with NAECA standards, so installation requires more space
• Limited supply of hot water during extended use
• Can waste up to 15% of energy through radiant heat loss
• Life expectancy of 10-15 years

Tankless Hot Water Heaters – On Demand Water Heaters

Advantages

• Consume 20% to 30% less energy than storage tank models
• Meets NAECA standards without increase in size or installation costs.
• Take up less space, can be mounted on a wall
• Very little standby energy waste
• Virtually endless supply of hot water
• Life expectancy of 20 or more years
• Average EF rating 0.75

Disadvantages

• Hot water flow rate is limited by the size of the unit
• Typically more complicated and expensive to install