Are you trying to make your home more energy efficient? This is not only good news for the environment, but for your budget as well. Finding energy-rated appliances and energy-efficient solutions is not that hard today. The hard part is making the decision! Which appliance to replace to save more money in the long run?
If you are considering whether to get a tankless water heater or not, you will benefit from knowing how much money it will save you. Let’s see how much tankless water heaters cost, how long do they last, and how getting one will affect your budget.
The Cost of a Tankless Water Heater
Traditional ones are considerably cheaper than tankless water heaters. Remember, not all tankless water heaters are the same. They vary in terms of energy, power efficiency, and of course, the brand.
The cheapest solutions on the market are portable tankless water heaters and they go as low as $100. On the other hand, there are premium tankless water heater models that cost around $1,000. As you can see, the upfront cost is considerably higher, which makes it important to look into the long-term operating costs of tankless heaters.
Average Lifespan of Tankless Water Heater
Tankless water heaters are built to last longer than their typical counterparts. Typical water heaters last anywhere between 10 to 15 years. Tankless water heaters come with a somewhat longer lifespan of approximately 20 years.
Why consider the lifespan factor in the first place? Going tankless is a type of investment. If you are planning to stay in your home for a while, a tankless water heater is a viable option to consider. On the other hand, if you are expecting to move out, calculate the upfront costs and potential savings to make the right decision.
How Much Money Can a Tankless Water Heater Save?
The Tank vs Tankless annual operating cost has already been considered by the U.S. Department of Energy. According to their report, tankless water heaters can save approximately $100 per year. To put things in perspective, let’s calculate the potential savings.
The initial cost of getting a tankless water heater is $1,000. A tankless water heater will save you $100 per year. This means that, in 20 years’ time, you will save $2,000 in energy bills.
You should also consider various opportunities to lower the upfront costs and make the investment more feasible. For instance, getting a tankless water heater can qualify you for a tax rebate and you can get 10% back on the purchase.
Finally, even tankless water heaters come with the energy factor (EF). This number indicates the heaters overall energy efficiency. More efficient tankless heaters have higher energy factors. Besides this, you should also check the fuel type, overall costs, its size, first-hour rating, and your family’s average water usage.
Traditional water heaters keep the water heated even when you are not planning on using it. Tankless heaters heat the water as it flows through the heater which enables you to save approximately $100 per year.