Yes, a tankless water heater is excellent for resale value. While it rarely translates into a massive dollar-for-dollar appraisal increase, it significantly boosts buyer appeal. Homes with tankless systems often sell faster and stand out against similar properties because buyers perceive them as a modern, high-value luxury.
Drawbacks of Tankless Water Heaters
As discussed above, the biggest downside of owning a tankless water heater is its higher cost. The initial installation and unit costs are more expensive than a traditional storage-tank water heater.
Gas tankless water heaters installed by December 25, 2025, might qualify for a $600 federal tax credit. The government is offered this 30% credit through December 2025 to help cover the cost of the unit and its installation. This tax credit comes from the 25C Energy Efficient Home Improvement Tax Credit program.
For the 2025–2028 tax years, individuals age 65 or older by the end of the tax year can claim an additional $6,000 deduction ($12,000 for married couples) under the "One, Big, Beautiful Bill". This deduction requires a Modified Adjusted Gross Income (MAGI) below $75,000 for individuals ($150,000 joint) and is available regardless of whether you itemize or take the standard deduction.
The most overlooked tax break depends on your situation, but the Saver’s Credit (Retirement Savings Contributions Credit) and out-of-pocket charitable/medical expenses consistently top the list. These breaks reduce your tax bill dollar-for-dollar without requiring you to itemize.
Plumbers often hesitate to recommend tankless water heaters because they act like high-performance sports cars. Unlike traditional tank models that are "workhorses" and can function while mostly ignored, tankless units require precise installation, regular maintenance, and are highly sensitive to mineral buildup.
For larger households, multiple showers, laundry, and dishwashing may run at the same time. Hot water demand could reach 10–12+ GPM. A high-capacity tankless water heater—or even two units installed in parallel—may be the best solution.
In freezing temperatures, condensate produced by a condensing tankless hot water heater can freeze inside the drain line, which can cause leakage, operation issues or shutoff. To help keep your indoor tankless water heater from freezing, use a direct vent exhaust & intake system.
Here are some common reasons why your tankless water heater might not be working and how you can troubleshoot these problems.
Here is a simple way to decide: Choose Navien if you want the highest efficiency, longest warranty, and built-in recirculation. Choose Rinnai if you have a large household and need the highest flow rates. Choose Rheem if you want a reliable brand at a lower price point.
Yes, tankless water heaters are generally considered safer than traditional tank-style water heaters. Their design eliminates the risk of massive, catastrophic tank ruptures and lowers the risk of bacterial growth. Because they heat water on demand rather than storing it, they also reduce risks associated with overheating or pressure buildup.
For a 3-bathroom home, you generally need a tankless water heater with a flow rate of 7 to 9 GPM (Gallons Per Minute). This size can effectively run 2 to 3 major hot water fixtures (such as a shower and a washing machine) simultaneously.
Factors that decrease property value the most fall into three main categories: location issues, structural damage, and poor neighborhood conditions. These factors can collectively slash a property’s value by 5% to 30% or more.
Natural gas is usually the cheapest way. Even with higher gas prices, a heating system fueled by natural gas is typically less than electricity, propane, or heating oil. Energy efficiency is another way to assess the cost of a heating system. An energy-efficient heating system saves you money on your heating bill.
Yes, you should drip both hot AND cold. Otherwise, the area inside the tankless water heater between the cold water line and the heating element can freeze up and burst (happened to me in 2021 freeze). If you drip both slowly, it ensures all water is running through all the lines.
As temps drop, the risk of having frozen pipes in your home increases. Typical high-risk areas for freezing include pipes within exterior walls, as well as exposed pipes that run through unheated or uninsulated areas such as attics or basements.
Electric tankless water heaters can still provide hot water in freezing temperatures, but their performance might decrease. It's important to ensure proper installation and use freeze protection methods like heat tape or insulation to maintain efficiency in cold weather conditions.
A tankless water heater usually goes cold mid-shower because the water flow drops below the heater's minimum activation threshold, or the system is overloaded by using too many fixtures at once. It can also happen if sediment blocks the filter or the unit is improperly sized.
If a standard showerhead is fitted, it will use around an extra half a gallon each minute, accounting for a 25-gallon emittance every 10 minutes, or 50 gallons throughout a 20-minute shower. *1 gallon = 4.54 litres.
Yes, a tankless water heater can fill a bathtub. Because tankless systems heat water on demand, they provide a continuous stream of hot water, which prevents you from running out halfway through filling a large soaking tub.
Yes, tankless water heaters frequently leak when they fail or malfunction. While they don't store large volumes of water like traditional tanks, they still have internal plumbing connections and a heat exchanger that can crack, burst, or corrode over time.
This problem usually comes down to capacity, heat production, or mixing issues inside your plumbing system. Sometimes the fix is simple, like adjusting your water heater temperature or flushing out sediment. Other times you may need a new mixing valve, an element replacement, or a different size water heater.
Broadly, heat pumps are the most efficient form of heating. They can be more expensive than a furnace, especially if you purchase a geothermal heat pump. However, geothermal heat pumps are one of the cleanest heating options on the market. A geothermal heat pump can produce 1/6th the CO2 of a natural gas furnace.