Cost of the tankless water heater

Bookmark this page: Tankless water heaters

What is the true cost of a tankless water heater?

SOURCE: Consumer Energy Information: EREC Reference Briefs

A Tankless water heater cost more than conventional storage tank-type units did. Small point-of-use heaters that deliver 1 gallon (3.8 liters) to 2 gallons (7.6liters) per minute sell for about $200.  Larger gas-fired tankless units that deliver
3 gallons (11.4 liters) to 5 gallons (19 liters) per minute cost $550-$1,000.

The appeal of a tankless heater is the elimination of the tank standby losses, the resulting lower operating costs, and the heater delivers hot water continuously. Gas models with a standing (constantly burning) pilot light, however, offset some
of the savings achieved by the elimination of tank standby losses.  The reason for this is the energy that is consumed by the pilot light.  Much of the heat produced by the pilot light of a tank-type system heats the water in the tank.  This heat
is not productively used in a demand water heater.  The exact cost of operating the pilot light will depend on the design of the heater and price of gas.  It could range from $12 to $20 per year.  Ask the manufacturer of the unit how much gas the
pilot light uses for the models you consider.  In Europe, it is a common practice to turn off the pilot light when the unit is not in use.  Something I do when my family and I are on vacation.

An alternative to the standing pilot light is an intermittent ignition device (IID).  This resembles the spark ignition device on some gas kitchen ranges and ovens.  Not all demand water heaters have this electrical device.  You should check with
the manufacturer for models that have this feature.


--------------------------------------------------------------------------------

The information in this brief was reviewed for accuracy and updated in January 2003.

EREC is operated by NCI Information Systems, Inc. for the National Renewable Energy Laboratory/U.S. Department of Energy. The content of this brief is based on information known to EREC at the time of preparation. No recommendation or endorsement of any non-US Government product or service is implied if mentioned by EREC.


NOTICE
This report was prepared as an account of work sponsored by an agency of the United States government. Neither the United States government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States government or any agency thereof.