Do Tankless Water Heaters Really Save You Money?
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Tankless Water Heaters: Are They a Smart Financial Choice?

Tankless water heaters are an energy-efficient option for Houston homeowners, making them a popular choice for those trying to cut monthly costs. By providing on-demand water, these systems only heat water when needed and do not use energy to keep a large tank hot, but do tankless water heaters really save money?

In this article, the experts at Village Plumbing & Air compare the costs of traditional and tankless systems and identify the potential tankless water heater savings for Houston residents.

Electric tankless water heater closeup

How Tankless Water Heaters Work

Tankless water heaters use a gas burner or electric element to heat water once you turn on a hot water tap in your home. Once the cold water flows through a heat exchanger, it goes directly to the faucet in use to provide an unlimited supply of hot water.

Comparing Costs: Tankless vs. Traditional Water Heaters

The initial cost for a tankless water heater is higher than a standard tank system. The average cost to install a tank system in Houston is $1,000-$1,500 while a tankless system could cost anywhere between $2,000-$5,000. This is because tankless systems are more sophisticated and require a more complex installation, especially if your home needs to be retrofitted.

Where You Save: Energy Efficiency and Monthly Utility Bills in Houston

The real savings with tankless water heaters come with the reduction in your monthly utility bills. Since these are energy-efficient water heaters, your gas or electric bill can be significantly lower. In Houston, the average gas tank system costs $300-$500 to operate annually, while a gas tankless system costs $150-$300. Similarly, an electric tank system in Houston costs $400-$600 to operate annually, while an electric tankless system costs $250-$450.

Long-Term Benefits and Maintenance Considerations

There are several long-term benefits to choosing a tankless water heater, including:

  • Long-term savings: A high-efficiency system means lower energy bills and savings overtime.
  • Longer lifespan: Tankless systems last almost a decade longer than tank systems, delaying your need for an expensive replacement.
  • Space saving: Without a large storage tank, tankless systems offer a compact design that saves space in your garage or utility room.
  • Endless hot water: Tankless systems are ideal for large families who may run through a large tank quickly.

There are some maintenance needs that homeowners may need to consider. On top of annual descaling and professional flushing, homeowners should note that these systems are more sensitive to installation errors and require frequent filter cleanings to keep them operating at peak performance.

When a Tankless Water Heater Might Not Be Right for Your Houston Home

Not all Houston homes will benefit from a tankless water heater. These systems may not be the best choice for your family if you have:

  • Low hot water demands: Small houses and families likely won’t recoup the higher upfront costs if they use a small amount of hot water.
  • Simultaneous use: Tankless units can struggle to supply multiple showers, appliances, and more with enough water.
  • Short-term ownership: If you’re looking to sell in 5-7 years, you won’t see a return on your investment in a tankless system.

Schedule Tankless Water Heater Installation in Houston Today

Ready to upgrade your comfort and convenience? Call Village Plumbing & Air today to schedule tankless water heater installation for your Houston home. With over 75 years of experience, our licensed and insured team can help you choose the best system for your needs and provide precise installation for maximum performance. Plus, we provide upfront pricing and available financing to help you make a smart investment.

Contact Village Plumbing & Air today to schedule tankless water heater installation for your home.

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