To Be Tankless Or Not To Be Tankless, That Is The Question

Photo of a water heater on blue tiles

Upgrading your water heater can be a cost-efficient way to save money on your energy bills, as well as repairs, but do you buy a tankless water heater or stick with the traditional model? Here are some reasons you may want to think before you commit to purchasing a new water heater and plan your budget.


The biggest reason homeowners can see a spike in their energy bills throughout the year is standby heat loss, common with storage tank water heaters. Thankfully, you can avoid standby heat loss with tankless water heaters as you have a system designed to heat your water when you need it and avoid wasting energy.

We should note that while systems with electric ignition systems are far more energy-efficient, however, you can be looking at higher energy bills if your tankless water heater has a standing pilot light. The problem with standing pilot lights is the standby heat loss you face by having a constantly burning fuel source.


Many homeowners can overlook when purchasing a new water heater is the actual size of the system. Often with storage water heaters, you need to allocate a large amount of space in your basement to accommodate the tank. With tankless water heaters, you do not need to worry about space because the unit takes up little space and can be installed in most small homes, allowing you to have more space for storage.

Life Expectancy

The most significant benefit that tankless water heaters have over standard storage water heaters is, quite frankly, their life expectancy. With proper routine maintenance and care, you can have a tankless water heater last upwards of twenty years before needing a replacement. You can expect a good ten to fifteen years for storage water heaters, which is nothing to scoff at compared to tankless water heaters.

Cost Of Installation

While tankless water heaters can save you money in the long run on your energy bills, there is no getting around the fact that they are pretty expensive up front. The initial cost for many tankless water heaters is far pricier than your standard water heater. Many homeowners get traditional water heaters over tankless systems because of the installation fees and are well aware they are giving up[ some benefits to save money upfront.

Which To Choose?

We honestly would recommend that most homeowners consider purchasing a tankless water heater due to the benefits of a far more energy-efficient heating system. However, we understand that some purchases need to be made with a particular financial context in mind, and if you are leaning towards a traditional storage-tank water heater because of the lower installation cost, that is also a great option.

Regardless of which water heater you purchase, remember to get regular maintenance checks on your heating system. Even the most expensive water heater needs repairs, and that’s why At Yellow Dot Heating & Air Conditioning we’re here to help. Call us today at (919) 925-4235, and we can walk you through any water heater questions you may have or help with the installation of a new water heater.