How a Tankless Water Heater Saves Your Energy Bill by 30% – Real-Life Examples
A tankless water heater, known as an
on-demand water heater, has gained popularity for solving energy consumption
problems for general people. The systems have a more energy-efficient way of
heating water without having any reserve tanks. The traditional water heating
method typically entails storing hot water in a reservoir, which is always
meant to be ready for use upon demand. Even when the water is not in use, it is
kept warm inside the tank continuously; thus, it wastes energy. On the other
hand, the tankless water heater only heats water when needed. There is no more
inefficiency as with the traditional type. It is essential to look at how these
heaters work, their possible energy savings, and some real examples of their
impact on utility bills.
In large part, the on-demand nature acts as
the principal reason for their higher energy efficiency. While a storage
tank-based water heater always keeps a large volume of hot water in reserve, a
tankless one fires up only when a user in the house turns a tap on for hot
water. Water passes through the unit and instantly starts heating, thus
providing an endless supply of hot water without constant reheating. This
system significantly reduces the standby heat loss familiar to conventional
systems. Standby heat loss is the energy wasted by keeping a big tank of water
hot for the day, even if that water isn't used.
Let's discuss how this can affect possible
energy savings with a tankless water heater. According to the Department of
Energy in the U.S., households use almost 41 gallons of hot water daily, which
could save energy by switching to a tankless system. For larger households that
use more water, this could be about 14% savings. While their initial upfront
cost is higher on a tankless unit, the energy savings can quickly offset this
higher-than-average initial investment. Whereas traditional systems may cost
$500 to $1,000, the average tankless water heater costs between $1,000 and
$2,000 to install. However, because they are more efficient, monthly energy
bills are generally lower, which pays back the extra cost over time.
One real-life example of the savings
potential comes from a homeowner in Oregon who switched to a tankless water
heater. The energy bills were significantly higher previously in his house,
particularly in the colder months, as they use more hot water for showers and
heating. He noticed that his energy bill would drop by around $10 to $15 per
month after a new tankless system installation. Over the year, this accounted
for a savings of about $180; over a couple of years, that saved the cost of the
new system.
Another consideration is the life span of
tankless water heaters versus conventional ones. Traditional tank-style heaters
last 10 to 15 years, depending on upkeep and water quality. On the contrary,
tankless water heaters can last up to 20 years or even more if properly
serviced. That fact, in addition to the general operating cost, makes them
cost-effective over a more extended period. Homeowners save energy costs over
the unit's life and eliminate the cost and hassle of replacing the system
nearly as often.
To put that into perspective, if the tank
had just been used and needed to reheat, a conventional 50-gallon water heater
would use approximately 4,500 watts per hour. The average household uses about
64 gallons of hot water daily, so those reheating sessions add up quickly. For
comparison, any tankless water heater's energy would fall between as much as
10,000 to 28,000 watts of electricity. Although the wattage sounds high, one must
remember that a tankless heater only operates when hot water is needed;
therefore, the overall energy consumption is lower.
For example, a family of four in Florida
reported that the tankless system has significantly reduced energy use. They
were consuming about 500 kWh a month just for hot water heating before
installing the tankless water heater, which was close to 25% of their total
energy bill. Thus, after installing a tankless unit, their hot water energy
usage decreased to about 300 kWh a month, saving them about 200 kWh a month.
Savings that, over the long run, more than justified the higher upfront cost of
the tankless unit.
The other big plus for a tankless water
heater is environmental concerns. Where traditional water heaters contribute
more to carbon emissions due to the near-constant use of either electricity or
gas to keep water hot, tankless systems reduce overall energy consumption and
hence carbon footprints because they only consume energy when water is heated.
This need for reduction is crucial for those households focused on becoming
greener and less dependent on fossil fuels.
Other examples include a small Colorado
hotel that replaced its old tank-style water heaters with tankless units.
Energy savings and the capacity to provide continuous hot water comfort to
guests were the motivators for the management team leading the hotel. Utility
bills for water heating dropped by about 30% after installation as the hotel
saw significant energy consumption reductions. Also, thanks to the continuous
hot water supply provided by the tankless system, the hotel guests were
becoming increasingly satisfied. The management estimated energy savings would
pay back the investment in tankless water heaters in five years.
Even though the benefits of using a
tankless water heater are impressive, careful consideration should be made when
choosing an appropriate unit for a single-family house. First of all, the size
of the system has to correspond to the family's hot water demand: In larger
homes that have more than one bathroom, there is a need for either a
higher-capacity unit or multiple units to ensure there is absolutely no
shortage of hot water when it is supposed to be utilized simultaneously for
showering, laundry, and dishwashing. Other homeowners like point-of-use
tankless water heaters; these serve individual fixtures, such as a kitchen sink
or a shower. These are also handy for huge homes where hot water takes a long
to reach the far ends.
It may be discouraging for some, but the
initial cost of a tankless water heater is justified by its long-term benefits.
The energy savings alone could pay back the upfront investment if the
homeowners plan to stay in their homes for several years. More importantly,
increased property value justifies the cost even more because property buyers
are always attracted to energy-efficient homes equipped with modern appliances.
The bottom line is that switching to a
tankless water heater realizes clear benefits in saving energy and costs while
reducing the ecological footprint. Sure, their upfront cost is higher than
traditional tank-based systems, but they quickly pay for themselves through
long-term energy bill savings and boast longer life spans. Whether lower
utility bills, a reduced carbon footprint, or the appeal of not running out of
hot water motivates you, adding a tankless water heater will be one of the wise
choices you will ever make in your home. Real-life examples from homeowners and
businesses illustrate potential monetary savings and efficiency improvements
these systems can afford.
