Tankless water heaters heat water on demand rather than storing hot water in a tank. The result is that you don’t ever run out of hot water. In addition, tankless water heaters are much smaller than a standard tank unit.

Tankless gas water heaters use about 38% less gas than a gas tank water heater. While they cost more than a standard 40 gal tank water heater, a tankless gas water heater with an energy factor of .82 or better qualifies for a 30% federal tax credit. In addition, Citizen's Gas regularly offers rebates on some of these same water heaters. Payback period will vary, but five years or less isn't unreasonable.

Gas tankless heaters can vent through the sidewall, thus solving venting problems for about the same cost as a power-vent heater.

Electric tankless water heaters only offer about 5% saving over an electric tank heater and generally don’t provide the payback of a gas unit. For that reason, electric tankless generally aren’t cost effective.

Gas tankless must be sized properly and have adequate gas supply. Also, look for heaters that require 1/2 a gallon per minute or less for them to start.


Tankless websites: Rheem Rinnai Noritz Takagi


Rheem Tankless water heater



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