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Gas and Electric Water Heater Guide: Tank Heater vs Tankless Heater 

Introduction: Tank Heaters, Tankless Heaters, and Residential Heater Types

Choosing the right residential heater is the most important HVAC decision a homeowner makes. Gas heaters and electric heaters come in two main heater configurations: storage tank heaters and tankless on-demand heaters. Gas heaters include natural gas heaters, propane heaters, and condensing heaters. Electric heaters use a resistance heating element. 

Picking the right heater type, heater size, and heater fuel source prevents early heater failure and lowers energy costs. This heater guide covers heater performance, heater efficiency, heater cost, heater lifespan, and heater maintenance for all residential heater models.

How Does a Tankless on-Demand Heater Work?

A tankless on-demand heater is a wall-mounted HVAC heater that produces hot water instantly. Cold water enters the heater body when a hot tap opens. A gas heater burner or electric heating element inside the heater raises water to the set heater output temperature. Professional tankless water heater services help keep these systems working efficiently and prevent heating or flow issues.

A thermostat and flow sensor regulate the heater’s combustion chamber or heating element output. The tankless heater has no storage tank. The heater only fires when hot water is needed. This removes standby heat loss, which is the biggest energy waste in any storage tank heater.

Storage Tank Heater vs Tankless Heater: Key Differences

  • A storage tank heater holds 30 to 80 gallons in an insulated heater tank. A tankless heater holds no water.
  • A tank heater runs its heating element or gas heater burner all day. A tankless heater only fires on demand.
  • Tankless heater installation may need a heater flue upgrade, gas line upgrade, or electrical panel upgrade.
  • A storage tank heater costs less to buy and install. A tankless heater lowers long-term energy bills.

Pros and Cons: Tankless Heater vs Storage Tank Heater

Tankless On-Demand Heater Pros

  • Endless hot water with no heater tank to deplete
  • No standby heat loss from the heater tank means lower monthly energy bills
  • Tankless heater lifespan reaches up to 20 years
  • Compact heater body fits garages, utility rooms, and HVAC closets

Tankless On-Demand Heater Cons

  • Higher heater unit price and heater installation cost
  • A propane heater or natural gas heater may need a larger heater gas supply line
  • An electric tankless heater may need an electrical panel upgrade for the heating element

Storage Tank Heater Pros

  • Lower heater purchase price and heater installation cost for gas and electric heater models.
  • Propane heaters, natural gas heaters, and electric tank heaters fit standard HVAC plumbing.
  • Heater repair parts are widely available for all storage tank heater models.

Storage Tank Heater Cons

  • Standby heat loss from the heater tank raises monthly energy bills
  • Storage tank heater’s lifespan is only 10 to 15 years
  • The heater tank runs dry during peak household hot water demand

Heater Energy Efficiency: Storage Heater vs. On-Demand Heater

A tankless on-demand heater is more energy efficient than a storage tank heater. The gas heater burner or electric heating element only runs when hot water is needed. A storage tank heater reheats water all day, creating standby heat loss from the heater tank. 

A natural gas tankless heater cuts energy use by up to 34 percent for homes using 41 gallons or less per day. Heater efficiency is measured by the Uniform Energy Factor. An ENERGY STAR-certified condensing heater or electric heater delivers the best long-term heater energy savings.

Heater Cost: Storage Tank Heater vs Tankless Heater

A storage tank heater unit costs $300 to $700. Heater installation adds $150 to $500. A tankless heater unit costs $500 to $2,000. Tankless heater installation runs $500 to $1,500 due to heater venting, gas line, or heating element upgrades. The higher upfront heater cost is recovered through energy savings over the heater’s 20-year service life.

Heater Lifespan and Heater Maintenance

A storage tank heater lasts 10 to 15 years. A tankless heater lasts up to 20 years with proper heater maintenance. Flush the heater tank yearly to clear sediment from the heating element. Inspect and replace the heater anode rod every two to three years to prevent heater tank corrosion. 

Descale the tankless heater heat exchanger each year to maintain heater efficiency. A licensed HVAC heater technician handles all heater maintenance, heater inspection, and heater failure diagnosis.

Hard Water Effects on Gas Heaters and Electric Heaters

Hard water deposits calcium and magnesium inside gas heaters and electric heaters. Mineral buildup coats the heating element in a storage tank heater. It also clogs the heat exchanger and heater combustion chamber in a tankless heater. 

Both problems cut hot water output and raise heater energy costs. A water softener protects all residential heater types from hard water damage and extends heater service life.

Common Heater Problems: Gas Heaters and Electric Heaters

A storage tank heater runs out of hot water when demand exceeds the heater tank capacity. A failed heating element, faulty heater thermostat, or blocked heater pilot light causes most tank heater failures. A leaking heater tank means heater replacement is needed right away. 

A tankless heater may struggle when many hot water fixtures run at once. A second tankless heater unit in parallel solves most heater flow problems. A licensed HVAC heater technician diagnoses any gas heater or electric heater problem fast.

Best Heater Size for a Large Family

A family of six needs a whole-home heater with 60 to 80 gallons of capacity or two tankless heater units in parallel. Heater sizing depends on household size, peak usage hours, heater fuel type, and the heater BTU rating. A licensed HVAC heater technician picks the right heater size, heater type, and fuel source for any home.

Final Thoughts

A storage tank heater suits homeowners who want a low heater installation cost and a reliable residential heater. A tankless on-demand heater suits homeowners who want better heater energy savings and a longer heater service life. AAA Auger provides professional heater services, including heater installation, heater replacement, and heater repair across Texas.

FAQs

Do tankless gas heaters need electricity? 

Yes. A tankless gas heater uses electricity to run the heater ignition, heater thermostat, and heater control panel. A power outage shuts down the heater even when the gas heater burner has an active supply.

Is a tankless heater or a storage tank heater better? 

A tankless on-demand heater gives better heater energy savings and a longer heater service life. A storage tank heater has a lower heater installation cost. The right heater depends on household size, heater fuel type, and budget.

What is the main downside of a tankless heater? 

Higher heater purchase price, possible heater venting, gas line, or electrical panel upgrades at heater installation, and a limited flow rate for large homes.

Why do homeowners still choose storage tank heaters? 

A storage tank heater costs less to buy and install. Propane heaters, natural gas heaters, and electric tank heaters work with standard HVAC plumbing and are simple to repair.

Will an electric tankless heater raise my electricity bill? 

No. A point-of-use heater or tankless electric heater only runs the heating element when a hot tap opens. Removing standby heat loss from the heater tank lowers bills compared to a storage tank heater.

Why does my shower go cold with a tankless heater? 

A single tankless heater cannot meet demand when many fixtures run at once. A larger heater unit or a second tankless heater unit solves the problem.

How long will a 100 lb. propane tank run a propane heater? 

Two to six weeks, depending on the propane heater BTU rating and daily hot water usage.