Are tankless water heaters worth the cost?
Tankless water heaters typically cost 2-3 times more than conventional tank models for purchase and installation, but many homeowners find them worth the investment for these reasons:
- Energy savings - Tankless units can reduce water heating costs by 24-34% in homes that use 41 gallons or less of hot water daily. Even with higher usage, they remain 8-14% more efficient
- Longer lifespan - Tankless units typically last 20+ years compared to 10-15 years for tank heaters, meaning fewer replacements over time
- Endless hot water - For families tired of running out of hot water during showers, this benefit alone can justify the cost
- Space savings - Wall-mounted units free up valuable floor space in utility areas
- Reduced risk of water damage - No stored water means no catastrophic 40-50 gallon leaks that can severely damage your home
- Potential tax credits and rebates - Energy-efficient models may qualify for incentives that offset initial costs
The financial break-even point typically occurs in 7-15 years, depending on your hot water usage, local utility rates, and installation costs. Families that use significant amounts of hot water or plan to stay in their home long-term often see the best return on investment.
Our plumbers can provide a detailed cost analysis specific to your household, including expected energy savings, available incentives, and projected payback period to help you make an informed decision.