Benefits of a Tankless Water Heater

Ashley deHaan
February 19
5 min read

Homeowners today are looking for energy-efficient equipment options. Between washing dishes, clothes, cleaning the house and showering or bathing, Canadians use an average of 75 liters of hot water at home each day.1 It’s no wonder water heaters represent nearly 20% of total energy used in the average Canadian household1 and 60% of residential indoor water use.2

While there are several key benefits of tankless water heaters — also known as on-demand or instantaneous water heaters — there are some limitations and considerations to keep in mind as you decide whether a tankless water heater is the right choice for your home. This article will focus on gas-powered tankless water heaters.

Benefits 

Convenience

  • Tankless water heaters provide continuous hot water while saving energy.
  • While tankless water heaters don’t produce instantly hot water, as the water takes time to travel from the unit to the tap, they do heat on demand, giving you the reliability of consistent and endless hot water.

Comfort

  • You can set the water temperature exactly where you want (within regulated standards) with the touch of a button.
  • The unit won’t release water below your fixed temperature, whereas when a tank, or conventional, water heater runs out of hot water, you’ll start feeling cool or cold water. 

Safety

  • Tankless models reduce the risk of water heater leaks. A typical tank water heater holds 50 gallons, which is a big problem if there’s a leak. 

Space Saving

  • Space-efficient, tankless water heaters can be installed in very compact areas, allowing more usable space in your home for other comfort upgrades.
  • Unlike conventional water heaters that take up floor space, a tankless water heater is up on the wall, out of the way.
  • Typically no bigger than a carry-on suitcase, tankless water heaters can be placed in almost any room. Traditional storage tanks can take up to 16 sq. ft. of floor space.

Efficiency

  • Tankless water heaters run at 95% efficiency and can lower your energy consumption by only using hot water when you need it.3
  • Conventional storage water heaters are between 53%-70% efficient, with an average efficiency of 62%,4 and take about 30 minutes to fully heat a tank of water from cold water.
  • Tankless water heaters recognize when hot water is turned on — if a hot water tap is dripping or your upstairs bathroom has a leak, the tankless unit won’t turn on because the minimum water flow rate is not met.  With a conventional water heater, it will constantly keep firing when there’s a leak.
  • An ENERGY STAR® certified tankless water heater can save up to 30% more energy compared to  conventional storage tank types.5
  • Tankless water heaters can have an average life expectancy of up to 15+ years.

Disadvantages

High Initial Cost

  • Tankless heaters are usually more expensive to rent or purchase than storage tank models.
  • Although costs are higher, you can recoup that with the possible long-term energy consumption savings that energy-efficient tankless water heater models can provide.

Limited Water Flow Rate

  • While the amount of hot water is unlimited, water moves through the home at the flow rate specified by the manufacturer. Water pressure with tankless systems can be affected when you’re doing multiple activities in your home, such as taking a shower while doing dishes and laundry. It’s important that the unit is sized properly to avoid this. By comparison, storage tank water heaters will maintain water pressure, but there is a limited amount of hot water.

Requires Electricity to Operate

  • All tankless water heaters require electrical power in addition to gas supply — meaning if the power goes out, you won’t have hot water.

Considerations

Sizing 

  • It’s important to assess your needs, as every family is different. Tankless units come in a range of sizes, and you’ll want to make sure to choose one that will meet your home’s hot water needs.
  • Tankless water heaters supply limitless hot water, but the pressure may not keep up with demand if everyone needs it at the same time. Considerations should be made on how many people live in your home and the specifications of your appliances. For example, tankless models supplying five gallons per minute (GPM) could potentially accommodate two showers running at the same time without compromising on water pressure, if the showerheads have a standard flow rate of 2.5 GPM. Results may vary with different unit sizes and showerhead flow rates.
  • The Experts at Enercare recommend sizing the unit to the environment and occupants, looking not just at how many showers you have, but also the types of showerheads and flow rates, which affect water pressure.

Energy Source

  • Most tankless water heaters are heated by natural gas or propane, but you can also get electric models.
  • Gas-fired tankless water heaters produce higher flow rates than electric ones. This means gas units produce a more hot water per minute.
  • Because of the lower flow rate, electric units typically go under the sink as opposed to in the basement. This can prove to be challenging to run power, particularly in a finished or drywalled area. Electric units require a dedicated power source to each location.
  • Electric powered tankless water heaters have significantly reduced greenhouse gas emissions, although it may be more costly to install and operate.
  • If natural gas is your current fuel source, it is far easier to install a gas-powered tankless water heater than an electric system.

Installation 

  • Installation quality is paramount, not just to make sure the equipment works properly, but to meet safety regulations.
  • There are three key factors that you’ll want an expert to assess to ensure you have the mechanical components you’ll need:
    • Venting – water heaters that use natural gas or propane need to be vented according to building safety codes and to minimize the possibility of exhaust gases coming back into your home. 
    • Gas – the size of your gas line determines how much gas can flow to your home’s tankless water heater and other gas appliances. If your gas line is not sized properly, you might experience potential equipment malfunction.
    • Electrical – all tankless water heaters require a reliable power source. It’s important to check your home’s electrical panel and components to ensure it can handle the additional load, or you can select a unit that uses less power and can be on a shared circuit. 
  • At Enercare, installation time is usually between four to six hours, which includes removal of your old water heater.

Hard Water

  • Hard water can cause a buildup of scale inside your water heater, which can cause your unit to lose efficiency. If you live in a hard water area, you may want to consider using a water softening system as well to help extend the lift of the unit. 
  • You may also want to conduct regular flushing or descaling of your tankless water heater every 2 – 5 years or when you notice a change in water pressure (whichever is sooner) to prevent calcium buildup.

Lifestyle

  • While tankless water heaters can lead to energy savings due to their efficiency, there can be a certain “lifestyle creep” associated with going tankless.
  • The freedom of endless hot water that tankless models bring can lead to an increase in water usage — for example, after getting used to taking five-minute showers to conserve hot water, suddenly 20-minute showers are no longer an issue.
  • Making a habit of increasing your daily water usage can lead to negating these energy savings, so it’s good to maintain an awareness of your lifestyle habits if energy savings are a priority for you.

Renting vs. Buying

If you’re ready to take the next step, our Enercare Energy Management Consultants can perform a comprehensive evaluation of your home, water systems, and family needs to determine the right water heating system for your family. To learn more about water heater options, check out our Buyer’s Guide to Water Heaters. 

Explore Tankless Water Heaters
  1. Natural Resources Canada, Water heaters. [https://natural-resources.canada.ca/energy-efficiency/energy-star/water-heaters] ↩︎
  2. Indoor water use was calculated by summing cleaning, bathing & showering, and laundry percentage water use statistics. Source: Global News, This is how much water Canadians waste. [https://globalnews.ca/news/3016754/this-is-how-much-water-canadians-waste/] ↩︎
  3. Average efficiency of tankless water heaters was calculated using Energy Star directory of certified water heaters. [https://www.energystar.gov/productfinder/product/certified-water-heaters/results?SetLanguage=English&NRCAN=on] ↩︎
  4. Natural Resources Canada, Water Heater Guide. [https://natural-resources.canada.ca/sites/nrcan/files/oee/files/pdf/equipment/WaterHeaterGuide_e.pdf] ↩︎
  5. Government of Canada, Guide to Residential Water Heaters. [https://natural-resources.canada.ca/stories/spotlight-energy-efficiency/guide-residential-water-heaters] ↩︎
  6. Terms and conditions and certain exceptions apply. See rental agreement for details.
    ™/® Enercare and Enercare Advantage are trademarks of Enercare Inc., used under license ↩︎