Tankless vs. Conventional Water Heaters: Which Water Heater Replacement is Right for You?

water heater replacement

When it’s time for a water heater replacement, one of the biggest decisions homeowners face is choosing between a tankless and a conventional (storage tank) water heater. Both options have their advantages and drawbacks, and selecting the proper choice depends on your household’s needs, budget, and energy efficiency goals. 

Understanding Water Heater Basics

Conventional Water Heaters store and heat a specific amount of water (usually 30–80 gallons) in a tank. The water remains heated at all times so that hot water is available when needed.

Tankless Water Heaters, also known as on-demand water heaters, heat water only when needed. Instead of storing hot water, they use high-powered burners to instantly heat water as it flows through the unit.

Pros and Cons of Conventional Water Heaters

Lower Initial Cost – Conventional water heaters are typically less expensive to purchase and install compared to tankless models.

Simple Installation & Maintenance – Since traditional storage tanks are common, most plumbers are familiar with their installation and upkeep.

Reliable Hot Water Supply – These systems provide a steady supply of hot water, making them ideal for homes with high water usage.

Higher Energy Costs – Because the water remains heated at all times, energy is used even when you’re not using hot water, leading to higher utility bills.

Limited Hot Water Supply – Once the tank is empty, you must wait for it to refill and reheat, which can be inconvenient for large households.

Pros and Cons of Tankless Water Heaters

Energy Efficiency – Since water is heated only when needed, tankless systems are more energy-efficient. This will very likely lower your monthly utility bill.

Endless Hot Water – With no storage limit, you won’t run out of hot water as long as the unit can keep up with demand.

Space-Saving Design – Tankless water heaters are compact and can be installed in small spaces. This can free up a lot of room for storage.

Higher Upfront Cost – Tankless models tend to have a higher initial purchase and installation cost.

May Require Upgrades – Some homes may need additional plumbing or electrical upgrades to accommodate a tankless system, increasing installation expenses.

Which Water Heater Replacement Is Best for You?

  • If you’re on a tight budget and need a straightforward replacement, a conventional water heater may be the best choice.
  • If you’re looking for long-term savings and an energy-efficient solution, a tankless water heater is worth considering.
  • Large households that use a lot of hot water at once may prefer a conventional heater. However, smaller families or those with lower water usage may benefit from a tankless system.

Upgrade Your Water Heater With Moonlight Plumbing

Both tankless and conventional water heaters have their advantages, and the right choice depends on your specific needs. If you’re considering a water heater replacement, consulting with a professional and experienced plumber can help you determine the best option for your home.

Need expert advice? Contact Moonlight Plumbing today for a consultation on your water heater replacement!