Tankless water heaters are a better choice for an instant hot water supply. Without storage of hot water for long periods, it provides instant hot water when there is a need for it. A tankless hot water unit is more energy-saving because it runs only when there is a demand for heated water.
It is also known as an on-demand water heater, which acts as an instant hot water system to provide you with heated water in your home or commercial buildings. Bear Creek Heating and Air Conditioning offers its services for tankless water heater installation and maintenance in your area.
What Is A Tankless Water Heater, And What Are Its Types Based On Fuel Consumption?
Do you know what a tankless water heater is? What are its types based on fuel consumption? How does it assist you in your home or commercial property?
If you don’t know, no worries. Here is the right guide for you.
A tankless water heater is also known as an on-demand water heater, which directly supplies warm water into your home or commercial building plumbing. It does not store the hot water. It only operates when there is a need for heated water. So, it has a great impact on energy consumption, which gets lowered due to its running in case of need. It is also a space-saving solution because it has no storage tanks.
The following are types of tankless water heaters based on fuel consumption:
Electric Tankless Water Heater They use an electric supply for their smooth running. But they take some time to heat the water and cannot supply a large amount of hot water instantly. | Gas Tankless Water Heater These tankless water heaters run on natural gas or liquid propane. They can heat the water instantly and are more energy-efficient compared to electric ones. |
Advantages of a Tankless Water Heater
Have you ever wondered what the advantages are of a tankless water heater? If not, no problem. You are at the right place to get assistance.

Energy Efficiency
Tankless water heaters are more energy efficient because they operate when there is a need for hot water. They do not store the water and work continuously to keep that water warm.
According to the US Department of Energy A tankless water heater is 24% to 34% more energy efficient for small homes with low hot water demand, and for larger homes with higher water demands, it is 8% to 14% more energy efficient. |
Compact Water Heater Design
The tankless water heaters are designed compactly to cover smaller spaces in indoor or outdoor areas of homes. They do not have bulky storage tanks with them. Most of their models are wall-mounted, which does not affect the functionality of the home spaces.
Continuous Hot Water Supply
It is a continuous-flow water heater, which does not disrupt the warm water supply when it has an adequate energy resource. It runs only when there is a need for hot water; otherwise, it discontinues its operations. It is an ideal system for houses or commercial buildings with a greater need for a hot water supply.
Longer Lifespan
A tankless water heater has an average lifespan of 20 years. It is almost double that of the storage tank heaters, with 8 to 12 years. With proper maintenance, it can even go up to 30 years. So, tankless water heaters require a one-time investment that lasts long.
Potential Setbacks of A Tankless Water Heater
Have you ever come up with the drawbacks of tankless water heaters? Do you know what those disadvantages are?
If not, no problem. Here are some drawbacks explained in detail for your assistance.

Higher Installation Costs
The purchasing cost for a tankless water heater can range between 500$ and 3500$. These costs are higher than the storage tank heaters. Moreover, there will also be installation costs for a tankless water heater. Thus, its initial costs are higher than other water heaters.
A tankless water heater cannot supply an adequate amount of heated water simultaneously to multiple fixtures or plumbing. Where there is a high usage of hot water, it cannot fulfill the requirements instantly. This is all due to its limited heating capacity.
No Proper Functionality in Extreme Cold Weather:
In the areas where winters hit drastically, these systems are not suitable. When the water is frozen in the plumbing, it cannot get the proper water supply to heat it. So, there will be severe consequences in the form of a low hot water supply.
Conclusion
To sum up, tankless water heaters are the best solution for the low cold areas. They are more functional and cost-efficient than other water systems. They run when there is a need for hot water. There is no need for more space to install them because most are wall-mounted. Their installation does not affect the functionality of the home space. However, their initial installation costs are higher, and they cannot supply a large amount of hot water simultaneously.
FAQs
1: Which is a high-efficiency water heater?
A water heater without a tank offers high efficiency with energy savings from 8% to 34%.
2: What is a point-of-use water heater?
Point-of-use (POU) water heater is used to supply direct-heated water to a sink or any other place. This system does not rely on the central system to heat your home.
3: What are the costs of a tankless water heater?
The prices of tankless water heaters in the US range between $500 and $3500.
4: What is the average lifespan of a tankless water heater?
The average lifespan of a tankless water heater is about 20 years. But its maintenance at the proper time can make it last for 30 years.
5: Is a tankless water heater effective for extremely cold areas?
No, a tankless water heater is not effective for extremely cold areas. Because when the water freezes in the plumbing, the fresh water supply is disrupted, these water heaters become useless.