1. Tankless water heaters heat water directly without using a storage facility. They typically provide hot water at a rate of 2 to 5 gallons per minute.
2. Tankless water heaters have trouble keeping up with demand in a household that uses a lot of water. For example, it a dishwasher and a shower are used at the same time, it a small tankless water heater may be stretched beyond its capacity. It may be required to install multiple tankless water heaters for different areas in the house, or on individual appliances.
3. According to Consumer Reports, a tankless water heater is about 22 percent more energy efficient on average than a standard storage water heater. That translates to a savings of around $70 to $80 per year based on 2008 average energy costs.
4. Most tankless water heaters cost considerably more than a standard water heater. Because of the cost difference, it may take up to 22 years to break even over the cost of a standard water heater – longer than the 20 year life expectancy.
5. Temperature control when using a tankless water heater can be tricky. The faster the flow, the less time the water spends in the heating element. Mixing hot and cold water from a single faucet can take time adjusting to the nuances.
6. All tankless water heaters are not created the same. Initial water temperature has been found to vary from manufacturer to manufacturer. Tankless water heaters are not always a guarantee for instant hot water.
7. Tankless water heaters are thought to promote water conservation because hot water is instantaneous. But there are other options. A Hot Water Circulation System can be installed to your existing hot water heater at a fraction of the cost of a tankless water heater, and provide the same water –savings opportunity for instant hot water.