One Of The Biggest Disadvantages Of Getting A Tankless Water Heater
Having hot water on demand is truly a modern marvel, and washing the dishes or taking a relaxing bath wouldn't be the same without it. Naturally, when your water heater quits working, it's pretty noticeable. If it's time for a new water heater, you might be considering getting a tankless model. Tankless water heaters have some downsides, although they are still quite effective. One disadvantage that might stop you cold is the upfront cost. Tankless water heaters are much more expensive than a standard water heater tank due to their more complicated installation process.
The exact cost of your new water heater will vary, but overall you can expect a water heater tank with installation to cost somewhere between $1,500 and $2,000. A tankless model generally costs between $2,400 and $5,400 (including installation), depending on whether you're using an electric or gas tankless heater. The units themselves aren't much more expensive than a regular tank unit, but the installation costs tend to be much higher. Additionally, you may have other associated costs. For example, if you haven't had a tankless water heater before, you may need to have your home's electrical grid checked and updated to ensure the correct amount of electricity can be channeled to the heater safely. This is also why saving money with a DIY installation isn't typically feasible, unless you happen to be an experienced electrician with the right permits. However, if your system needs a major upgrade, you could be looking at paying thousands more for the electrical work.
Is the cost disadvantage worth overlooking?
The high cost of a tankless water heater is a huge disadvantage, but is it enough to stop you from getting one? Your immediate budget, how urgently you need the water heater, and the current state of your home's electrical system are all things to keep in mind. If your current water heater is broken and you need a new one immediately, cost and time will likely be the deciding factors. Unless you already have an updated electrical system and the extra funds for a tankless water heater, you should probably opt for a standard tank. However, if you're simply considering a future upgrade and have time to plan, the cost may be less of a problem. Tankless systems do typically cost less to use, so if you can plan for the higher upfront cost, you can save money over time.
Your electrical system will likely need to be upgraded if you live in an older house, particularly if it was built before the 2000s and hasn't been updated. You may be able to mitigate the high cost somewhat by looking for incentives from your utility company or a government program. If you can, help your current water heater last longer through maintenance or repairs to give yourself a little more time to prepare. However, if you're planning on moving soon, then it may not be worth the higher cost. While upgrading your electrical can be appealing to buyers, there's no guarantee of it increasing your home value enough to recoup all your costs.