Hot water is a hot issue for builders, architects, and remodelers these days.

Why? Many current buyers are interested in homes that are energy efficient and economical to operate, which are factors that can be dramatically affected by a home’s hot water usage. According to the DOE’s Office of Energy Efficiency and Renewable Energy, water heating is the third-largest expense in most homes, accounting for 14% to 25% of a home’s expenses.

Currently, the most popular energy-efficient option for water heating is a tankless water heater, also known as an on-demand system. Unlike a traditional tank that heats a reservoir of water 24 hours a day, a tankless unit activates only as needed. When there is a demand for heated water, cold water travels through the tankless unit, where a gas burner quickly heats it to the preset temperature.

According to several different sources, the average annual operating cost for a conventional storage is between $230 and $285, nearly twice the cost for a tankless system.

Given the potential cost savings, does that mean you should convert over to a tankless water system?

Maybe, maybe not. While tankless technology can reduce a home’s energy costs by as much as 25% annually compared to a standard 40-gallon tank heater, there are other considerations. Standard storage tanks now qualify for Energy Star certification. And tankless systems may have other issues that negate its energy performance and lower operating costs.

So before you run out to your local DIY store, call us to discuss your needs and the potential for installing a tankless water heater in your home. You may be surprised at what you find out.