For a family of four, you will likely need a tankless water heater capable of producing hot water for two to three bathrooms simultaneously. Factor in the temperature rise needed for your desired hot water temperature. Typically, a temperature rise of 70°F is required to achieve a 120°F hot water temperature.
Small households of two people need a tankless heater with a flow rate of 6 to 8 GPM, while a larger household of four people requires a flow rate of about 8 to 10 GPM. Remember to factor in temperature rise when deciding how big of a tankless water heater you need for your household.
Before you commit to buying a tankless water heater, the primary drawbacks to know include: Higher upfront costs. Tankless water heaters are, on average, quite a bit more expensive to buy and install than tank water heaters. Access to fuel.
You can go with a small tank and a small tankless water heater at the same time. You install this as a single device (1.5 gal per minute) tankless water heater with the output going to the tank and the tank feeding your household. If you need a lot of hot water quickly both water heaters run at the same time.
A small (50- to 60-gallon) storage tank is usually sufficient for one to two three people. A medium (80-gallon) storage tank works well for three to four people. A large tank is appropriate for four to six people.
The typical range for tankless heater installation is between $5,400 and $7,400 averaging out to around $6,400 (including the water heater, warranty and tune ups). The tankless installation without the unit can cost between $1800 and $3500, averaging out to around $2650. One of the big variables is labor rates.
If your bank account can manage the higher initial cost of a tankless water heater, you'll save more money over time by choosing tankless. But, if you are on a fixed modest income, a storage tank water heater might make more sense for you. Discuss the two types of water heaters with your plumber to weigh your options.
Some people hesitate to decide on a tankless water heater because they can be a slightly higher cost; however, you get significantly more life out of one. A standard water heater tank lasts about 8-12 years. A tankless water heater can last as long as 25 years!
The federal tax credit for tankless water heaters in 2024 is an excellent opportunity for homeowners to save money while investing in energy-efficient water heating solutions. This tax credit is effective from January 1, 2023, to December 31, 2032.
Even for homes with high water usage, up to 85 gallons per day, tankless water heaters can offer up to 14% energy efficiency savings. However, while they offer energy savings, the higher upfront costs and installation expenses can result in a long payback period, ranging from 12 to 27 years.
Electric Tankless Water Heaters
They're less expensive than gas-powered ones but aren't efficient if you run multiple hot water devices. They may struggle to keep up with multiple appliances at the same time.
While a tankless water heater will deliver an unlimited stream of hot water, they struggle to deliver a lot of hot water at one time. So while you might be able to take 100 showers in a row if you have the dishwasher, washing machine, and shower going at the same time you might have problems.
Because tankless water heaters only consume energy when you need hot water, they're more energy efficient, saving you money on water and energy bills.
But on average, different family sizes require the following sizes of tankless water heaters: Family of 2 — 6-8 GPM. Family of 3 — 7-9 GPM. Family of 4 — 8-10 GPM.
A 50-gallon water heater should be replaced with a tankless system with a 10 GPM flow rate just to be safe. Selecting the right flow rate ensures you won't experience cold showers or excessive energy costs. Proper sizing optimizes performance, providing hot water on demand without unnecessary waste.
Two people can shower at the same time with a tankless water heater, but it depends on the unit's flow rate and the hot water demand of both showers. Tankless water heaters are rated by their maximum flow rate in gallons per minute (GPM) and their ability to heat incoming water to the desired temperature.
Water Heater Tax Credit Details.
You can claim 30% of the project cost, up to a $2,000 maximum credit. Heat pump water heaters that have earned the ENERGY STAR are eligible for this credit. You can find a list of ENERGY STAR certified models here.
A tankless water heater cannot provide hot water faster than its ability to heat the water. While a tank unit can provide hot water for multiple uses at once, a tankless unit might not be able to support simultaneous usage, such as washing dishes, taking a shower and running a washing machine all at once.
Tankless water heaters are more efficient and don't experience standby heat loss. This can be especially cost effective if you travel a lot. Some tankless water heater units come with a federal tax rebate. You can get up to $300 off installation!
Additional Installation Costs
Tankless water heaters are much more complex than traditional hot water tanks. As a result, they require professional installation. If you're switching from a hot water tank to a tankless unit, you will likely need your gas lines rerouted, as well as a larger gas supply line.
Tankless Water Heaters: Tankless water heaters, also known as on-demand or instantaneous water heaters, heat water directly without the need for a storage tank. Plumbers recommend tankless water heaters for their energy efficiency, space-saving design, and endless hot water supply.
Lowe's Water Heater Installation
Let us replace and install your new water heater. Our Independent Service PROviders can help you with both tankless and traditional water heater tanks, including gas water heaters, electric water heaters and tankless gas water heaters.