Not all water heaters need to store hot water! Some water heaters simply heat water on-demand, accessing it directly from a water pipe in your home. These types of units are called tankless water heaters.
Generally fueled by propane, a tankless water heater is a great way to lower your energy bills while making the process of heating water much more efficient. After all, don’t you deserve a hot shower anytime you like?
Tankless water heaters take up such a small space that you can actually reclaim all the square footage your old electric or propane water heater was taking up. Most tankless units hang on a wall and are about the size of a small suitcase. They will last about twice as long as a standard storage-tank water heater.
Let’s take a deeper dive into the ins and outs of a propane tankless water heater. Here is what you’ll find in this comprehensive guide to propane tankless water heaters:
Tankless water heaters are an affordable option for energy savings. It’s a great alternative to a traditional storage tank water heater, which constantly uses energy to heat and reheat water. But standby heat loss wastes a lot of energy. Since going green is very important to many homeowners, a tankless heater is a fantastic investment. Tankless units allow you to easily reduce waste and make your home more energy-efficient while adding to its value as well.
Heat as much water as you need without paying to keep it stored. With a tankless model, you benefit from a constant supply. Simply turn on the hot water faucet!
Source NavienTo make sure a tankless water heater will be able to meet your household’s needs, your contractor will need to calculate three factors:
| Fixture | Average Flow Rate/ Gallons Per Minute (GPM) |
 Tub | 4.0 |
 Shower | 2.5-3.0 |
 Washing Machine | 2.0 |
 Dishwasher | 1.5 |
 Kitchen sink | 1.5 |
Learn more about flow rate here.
Prices range from about $170 for small gas-fired units to more than $2,000 for high-output heaters, which can supply two showers at the same time. On average, the cost is about $1,000 per unit.
But keep in mind that propane gas-burning tankless water heaters should operate for 20 years or more. That’s two or three times longer than most storage tank water heaters as well as electric tankless water heaters.
If you experience the average energy savings of $150 per year, these savings should pay for your investment in a tankless water heater in about six or seven years. After that, you can pocket all of the savings on heating the water in your home.
It’s recommended that you get annual maintenance done on your tankless water heater. One of the most important tasks is getting your tankless unit flushed to remove mineral deposits that have collected during the year. Left unchecked, a build-up of minerals can damage the heat exchanger in the unit, shortening its life span.
Your tankless water heater also contains both an air filter and water filter that should be checked and cleaned regularly.
Read more about recommended tankless water heater maintenance here.
| Type of water heater | EF (Energy Factor) | Annual Operating Costs* |
| Propane Tank | 0.58 | $682 |
| Propane Tankless | 0.82 | $482 |
| Propane Condensing Tankless | 0.96 | $412 |
