Trusted for Generations

Tank v. Tankless Water Heaters & Pros and Cons

Tank v. Tankless Water Heaters & Pros and Cons

Compare Advantages and Disadvantages of Tankless Water Heaters

There are many advantages to going tankless, but homeowners should carefully weigh the pros and cons to determine if a tankless water heater is the best choice.

Whichever you choose, it is a good idea for New Jersey homeowners to replace or convert their water heater sooner rather than later!

New, more stringent water heater regulations go into effect this April 16th. In the end, these regulations are good for consumers because they will save them money every year on utility bills. Still, the upfront costs will be more expensive.

After April 16th, replacing or converting your water heater will become for expensive due to new requirements and more complex installations. If you get your water heater converted or replaced before this date, you will still meet all of the requirements but won't have to shell out for the new water heaters and will benefit from energy-efficient products that are on the market now.

For more information:

Since you will be deciding soon whether or not you should replace or convert your existing water heater, here are the Pros and Cons of opting for a Tankless Water Heater:

Tankless Water Heater:

Cartoon Anatomy of a tankless water heater


When you turn on your hot water, cold water passes through the small unit, turning on the electric or gas component which heats up the water before passing through your faucet. Traditional storage tank water heaters always have a pilot flame on, making this a clear advantage: you save money and energy and have continuous hot water available.

Tankless Water Heater Advantages:

  • Savings – by only heating water when you need it, you save money and energy, about $70-$80 a year.
  • Neverending Hot Water – you don't have to worry about being the last one to take a shower anymore.
  • Longer Lifespan – compare tankless's 20+ years to tank's 10-15 years.
  • Easy & Precise Thermostat Control
  • No More Water Tank Leaks – since tankless water heaters don't store water, you eliminate the risk of damaging leaks
  • Space Saver – tankless water heaters take up a lot less space.

Cartoon of different types of water heaters

Tankless Water Heater Disadvantages:

  • Higher Upfront Costs – you can have one small unit that won't be enough for sinks and bathtubs to be running at the same time or have a larger unit installed which can get expensive.
  • Complicated Installation
  • Limited Output – although tankless water heaterrs provide limitless hot water, it only supply a couple gallons at a time, making it difficult to run the dishwasher and shower at the same time unless you opt for a larger, more expensive unit.
  • Complicated Installation – tankless water heaters require larger fuel lines and more complicated installation, contributing to the high upfront costs
  • Lag Time – it takes a couple minutes sometimes for water to pass through your unit and heat up, depending on distance and the temperature of the water entering the unit.

To calculate your lifetime energy cost savings use this handy calculator from

For ways to save on hot water heating costs regardless of your system, check out our blog post, How to Lower Your Water Heater Energy Bills and Water Heater Maintenance Essentials.

Side-by-Side Comparison of Storage v Tankless Water Heaters (courtesy of

Storage vs. Tankless Water Heater infographic

Many others have compared the advantages and disadvantages of tankless hot water heaters:

According to, water heating accounts for 14-22% of your utility bills. Although the upfront costs of tankless water heaters are more expensive, you should be able to offset these costs from energy savings over just a couple of years. Still, sometimes the neverending hot water a tankless system provides leads to longer showers and increased use of hot water, so be careful.

Visit our other pages for more information on storage water heaters and tankless water heaters.

We also repair and install hybrid electric heat pump systems, which combine the best of both storage and tankless water heaters.

For all your water heater needs, call Gold Medal Service for efficient and effective repairs, replacements, and installations.

To schedule water heater conversion or replacement, or for further advice, contact the professionals at Gold Medal Service.

Just call your friendly Gold Medal customer service representative or schedule an appointment online and we'll be there with our same day service guarantee to fix your hot water heater or install a new more energy-efficient tankless water heater.

Give us a call today at (732) 365-3199 (live support available 24/7)

And don't forget to follow us on Facebook, Twitter, and Google+ for more useful information and