Tankless Water Heater vs. Tank Storage Water Heater

August 15, 2023

Instant,Tankless,Electric,Water,Heater,Installed,On,White,Tile,WallWhen it comes to choosing a water heater for your home, two popular options stand out: tankless water heaters and tank storage water heaters. Both systems have their pros and cons, and understanding the differences between them can help you make an informed decision. In this blog post, we will explore the key factors to consider when choosing between a tankless water heater and a tank storage water heater.

1. How They Work:

Tankless Water Heater:

A tankless water heater, also known as an on-demand water heater, heats water as it flows through the unit. When you turn on a hot water tap, cold water enters the unit, where electric coils or gas burners heat it instantly. As a result, you only heat the water you need, eliminating the need for a storage tank.

Tank Storage Water Heater:

A tank storage water heater, on the other hand, heats and stores a specific amount of water in a tank. The water is continuously heated to maintain a set temperature until it is needed. Once the hot water is used, the tank fills up again and begins heating the water.

2. Energy Efficiency:

Tankless Water Heater:

One of the main advantages of a tankless water heater is its energy efficiency. Since a tankless system only heats water when it’s needed, it eliminates standby heat loss, which occurs with tank storage water heaters as they constantly heat and reheat water. This results in energy savings and lower utility bills.

Tank Storage Water Heater:

While tank storage water heaters are not as energy-efficient as tankless models, newer models have improved insulation and other energy-saving features to reduce standby heat loss. Additionally, some tank storage water heaters offer options like high-efficiency insulation and heat traps to improve energy efficiency.

3. Hot Water Supply:

Tankless Water Heater:

Tankless water heaters provide an unlimited supply of hot water. Since they heat water on demand, you can enjoy hot water for as long as needed without worrying about running out. This is especially beneficial for larger households or homes with high hot water demand.

Tank Storage Water Heater:

The hot water supply of a tank storage water heater depends on the size of the tank. Once the tank is depleted, it takes time to reheat the water, resulting in a temporary shortage of hot water. If you have a larger tank or if you don’t have high hot water demand, tank storage water heaters can still provide sufficient hot water.

4. Space Requirements:

Tankless Water Heater:

Tankless water heaters are space-saving options as they do not require a large storage tank. They are typically compact and can be installed on walls or in tight spaces, making them ideal for smaller homes or areas with limited space.

Tank Storage Water Heater:

Tank storage water heaters require sufficient space for the tank and other components. They are bulkier and need a dedicated area for installation. If you have a larger utility room or basement space, a tank storage water heater may not be an issue, but it may not be suitable for smaller homes or apartments with space limitations.

5. Lifespan and Maintenance:

Tankless Water Heater:

Tankless water heaters tend to have a longer lifespan compared to tank storage water heaters. On average, tankless models last around 20 years or more. Additionally, they often require less maintenance, with periodic flushing and cleaning to remove mineral deposits.

Tank Storage Water Heater:

Tank storage water heaters typically have a lifespan of around 10-15 years. However, regular maintenance, such as flushing to remove sediment build-up and checking the anode rod, is necessary to ensure optimal performance and extend the system’s lifespan.


Choosing between a tankless water heater and a tank storage water heater depends on your specific needs and preferences. Tankless water heaters offer energy efficiency, unlimited hot water supply, and space-saving benefits, while tank storage water heaters are suitable for lower hot water demand and easier installation. Consider factors such as energy efficiency, hot water supply, space requirements, and maintenance when making your decision. By understanding the differences between these two options, you can select the right water heater for your home’s hot water needs.

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