If you are considering replacing your water heater, going tankless can be a great option. Tankless systems provide hot water on demand instead of storing dozens of gallons of heated water in a tank. They are compact, efficient, and can provide a steady supply of hot water when properly sized for your household.
However, choosing a tankless water heater involves more than picking out a brand or model. There are a few distinct types of tankless water heaters, and the right choice depends on your home’s energy source, hot water demand, existing plumbing, and other factors.
Understanding the differences can help you have a more informed conversation with your installer and choose a system that makes sense for your home.
Gas vs. Electric Tankless Water Heaters
One of the first decisions is whether you need a gas or electric tankless water heater. Both heat water as you use it, but they do so differently.
Gas Tankless Water Heaters
Gas-powered tankless water heaters typically use natural gas or propane. They can produce a high volume of hot water, making them a common option for households with significant hot water demand.
A gas system may be a good fit for families that regularly use multiple hot water fixtures at once. For example, you might need enough capacity to operate a shower while simultaneously running a dishwasher.
Installation can be more involved than simply connecting a new appliance. Depending on your home and the specific unit, the project may require changes to gas lines, venting, or other components. This is one reason professional sizing and installation are so important.
Electric Tankless Water Heaters
Electric tankless water heaters use electric heating elements instead of a gas burner. They can have a simpler installation in some homes because combustion venting is not required.
However, whole-home electric models can require significant electrical capacity. Your existing electrical panel and wiring must be able to safely support the unit’s power requirements.
A qualified installer should evaluate your electrical system before you select an electric model.
Condensing and Non-Condensing Tankless Water Heaters
If you are considering a gas model, you may also encounter the terms “condensing” and “non-condensing.”
A condensing tankless water heater captures additional heat from its exhaust gases and uses that energy to help heat the water. This design can help improve energy efficiency. Because the exhaust is cooler, these systems can also have different venting requirements.
A non-condensing tankless water heater uses a more traditional design. Hot exhaust gases leave the unit through the venting system rather than being used for additional heat transfer.
Neither option is automatically right for every home. Installation requirements, efficiency goals, budget, and existing venting should all be considered.
Whole-Home vs. Point-of-Use Tankless Systems
Tankless systems can also differ based on how much of your home they serve.
A whole-home tankless water heater is designed to supply hot water to multiple fixtures. It can replace a traditional tank water heater and serve showers, sinks, appliances, and other hot water needs.
A point-of-use unit serves a smaller area or individual fixture. These compact systems can sometimes be installed closer to where hot water is needed.
For most homeowners looking to replace their primary water heater, a properly sized whole-home model will be the main option to consider.
How Do You Choose the Right Size?
Sizing is one of the most important parts of selecting a tankless water heater. Unlike a traditional system, you are not primarily choosing based on the number of gallons stored in a tank.
Tankless systems are typically sized according to flow rate and the required temperature rise.
Flow rate refers to how many gallons of hot water your household may need per minute. Your installer will consider how many fixtures could reasonably operate at the same time.
Temperature rise refers to how much the system must increase the temperature of incoming water. If incoming water is colder, the unit has to work harder to deliver water at your desired temperature.
A system that is too small may struggle when several fixtures are operating at once. Simply choosing the largest model is not always the answer either. Proper sizing helps balance performance, efficiency, and installation costs.
What Are the Benefits of Going Tankless?
Depending on the system and household, benefits of going tankless can include:
- Hot water produced on demand
- Less standby energy loss than a storage tank
- Compact, space-saving equipment
- Long equipment life with proper maintenance
- Reduced risk of a large storage tank leaking
- Consistent hot water when the unit is properly sized
One of the most appealing benefits is the ability to produce hot water continuously. However, “endless” hot water does not mean unlimited capacity. Every tankless water heater has a maximum flow rate, which is another reason correct sizing matters.
Consider Your Home Before Choosing a System
The best tankless water heater is not necessarily the model with the highest efficiency rating or greatest capacity. It is the one that works correctly with your home.
Before installation, you should evaluate several factors, including your household’s hot water usage, available fuel source, gas line capacity, electrical service, plumbing configuration, and venting requirements.
Your installer should also consider where the equipment will be located. Tankless units are much smaller than traditional tanks, but they still require appropriate clearances and connections.
This evaluation is particularly important when converting from a traditional tank water heater. The existing connections may not meet the requirements of a new tankless system.
Why Professional Installation Matters
A tankless water heater is only as good as its installation. Incorrect sizing can leave you without enough hot water, while improper gas, electrical, plumbing, or venting connections can create performance and safety problems.
Professional installation starts with determining what your household actually needs. A qualified technician can evaluate peak hot water demand and determine whether your existing home systems can support the tankless unit you are considering.
Proper installation also helps the equipment operate at its intended efficiency and can help protect its service life. After installation, regular maintenance, including descaling when necessary, can help prevent mineral buildup and maintain performance.
Rather than purchasing a unit first and figuring out installation later, it makes sense to have your home evaluated before deciding which system to buy.
Find the Right Tankless Water Heater for Your Home
Homeowners have plenty of options when it comes to tankless water heaters. The key is finding a high-quality system that matches your household’s hot water demand and your home’s existing infrastructure.
At MSCO Inc. Heating & Cooling, we offer high-quality plumbing products, like the Navien condensing tankless water heater. We chose Navien because its systems combine efficient operation with dependable hot water performance. Their condensing technology uses a stainless steel heat exchanger to recover heat that would otherwise be lost, helping improve efficiency while maintaining lower exhaust temperatures.
A properly sized Navien system can provide a continuous supply of hot water on demand without keeping a large tank of water heated throughout the day. That can mean less wasted energy, more usable space in your home, and reliable hot water for showers, washing, cooking, and other everyday needs.
If you are considering a tankless water heater, let us evaluate your home, explain your options, and provide professional installation designed for reliable performance. Call MSCO Inc. Heating & Cooling at (757) 427-0016 today to schedule your tankless water heater consultation.
