Does a Tankless Water Heater Save Money?

When you think of the household items that are most to blame for your high electric bill, chances are good that you pinpoint the usual suspects. Most people think of the television, lights, kitchen appliances, and washer/dryer combos as being some of the biggest offenders. But you would probably be surprised to learn that the number one reason behind your high electric bill is an item that operates 24 hours a day. Your storage tank water heater is robbing you blind, and you may not even realize it. The reason for this is because a standard storage tank water heater is constantly working to keep water heated, even when you are not using it. This leads to increased energy usage and an inflated electric bill. However, many homeowners looking to save some bucks have recently turned to alternative devices known as tankless water heaters. In this article, we'll examine just how effective these types of systems are, while answering the question: Does a tankless water heater save money?

A tankless water heater works in quite a different way than a storage tank heater. A tankless water heater kicks into action only when you turn on a hot water tap, heating water through copper and brass heating elements. When you shut the water off, the tankless water heater also shuts off. This leads to the preservation of energy and subsequently lowers electric bills. In fact, most homeowners can save on average between 30% - 50% off their current bill. Pretty nice, huh? But this is only one of the more obvious ways in which a tankless water heater can save you money. Let's turn our attention to some other cost-cutting features that come along with this device.