If the time has come to replace your home’s water heater, you have a wide range of options. Tank water heaters are the traditional choice, but you now have the option of condensing and heat pump systems as well. There are also tankless water heaters. They are becoming increasingly popular and deliver a potentially endless hot water supply.

Tank Water Heaters

Tank water heaters store and heat water in a tank. The average household in Canada has a tank size between 150 and 190 liters. There are much smaller tanks available for households with only one or two people, and much larger tanks for households with four or more people. An advantage of a tank water heater is that the hot water is ready when you need it. A disadvantage is that if you run out, you must wait for the system to recover. These units are also inherently inefficient in that they spend energy maintaining water temperature.

Fuel-Burning Tank Water Heaters

Gas-burning water heaters are the most common type found in Canadian homes. Gas units cost more to purchase and install than electric units. Yet, they provide better long-term values due to the lower cost of gas compared to electricity. Most units burn natural gas. There are also tank-style water heaters that burn propane for homes that lack natural gas access.

Condensing Tank Water Heaters

Traditional gas water heaters lose a certain amount of heat through their exhaust systems. Condensing models have a second heat exchanger to help curb that loss. They cost more due to the added equipment but save money long term through lower fuel consumption.

Electric Tank Water Heaters

Electric water heaters are more efficient than gas units. Still, they usually aren’t as cost-effective due to the higher cost of electricity.

Heat Pump and Hybrid Heat Pump Tank Water Heaters

Heat pump water heaters are the exception because they use a heat pump rather than a heating element. Heat pumps exchange heat energy rather than create it. One downside is that they’re slower to recover. Hybrid systems overcome this issue by having both a heat pump and a heating element. These systems use the heat pump most of the time but the heat element during high demand.

Tankless Water Heaters

The industry also refers to tankless water heaters as on-demand and instant water heaters. They are not a new technology and have been around for many decades. Still, they’ve become more popular over the years due to lowering costs and sophisticated advancements. Tankless water heaters don’t store hot water but rather heat it on demand. Sizing them is a matter of choosing a high enough flow rate to meet your household’s peak demand. With an undersized unit, you probably won’t run out of hot water, but you will experience low hot water pressure and other issues.

Fuel-Burning Tankless Water Heaters

As with tank water heaters, natural gas, and liquid propane water heaters are the most cost-effective for the long term. They do cost more than their electric counterparts initially.

Condensing Tankless Water Heaters

Condensing tankless water heaters have a second heat exchanger just like the tank models. That makes them more expensive initially but notably more affordable to run.

Electric Tankless Water Heaters

Electric instant water heaters are very efficient but usually not as cost-effective due to the cost of electricity. There are exceptions, such as small homes with low hot water demand. In those cases, an electric unit can be a lot more affordable to run. It will be cheaper up front too.

Hot Water Demand

How much hot water you use daily is an important aspect of the decision. The average Canadian household uses about 75 liters of hot water daily. The hotter water you use, the less energy savings a tankless system provides. If you use 300 liters, for instance, it will take you much longer to recoup the added investment. Any additional savings may not be worth it.

A heat pump water heater can provide great savings even with high usage. That said, peak usage is a consideration. If you have a large household that will tax the system often, a traditional tank setup will perform better. If you use significantly less than 75 liters daily, then an electric tankless water heater system is a compelling option.

Electrical Panel

Most homes are already set up for a traditional water heater. There are no additional requirements or added costs to consider. That isn’t the case with tankless and heat pump water heaters. In older homes, the electric panel may not provide enough amps for the new system. You may need to upgrade the panel, add a dedicated circuit, and add surge protection.

Home Size

It can be more difficult to install tankless systems in homes that are larger than average. That’s because the distances are greater between the water heater and endpoints. That can cause issues, such as long hot water delays and the cold-water sandwich effect. A water heater with a recirculating pump is often a necessity in larger homes. In particularly large homes, you may need additional equipment. That can include a compact tank under the kitchen sink and point-of-use tankless water heaters for your showers.

Water Hardness

Hardness in this context refers to the calcium and magnesium content of your water. Hard water is problematic for all water heaters because it can decrease efficiency and shorten unit lifespan. That said, hard water is much easier to deal with for tank water heaters. They have a sacrificial anode rod. If you flush the tank regularly and replace the rod as needed, the heater should continue to work well. With a tankless system, you’ll need regular descaling, but even that may not be enough. You may want to consider an anti-scale device for the water heater or a water-softening system for the home.

Short and Long-Term Costs

Consumers can expect to pay between 25% and 50% more for a tankless unit than a tank water heater. That can make it more difficult for your budget. Still, if you can afford it, it’s generally worth it. The month-to-month operating costs will be lower with the on-demand water heater. The life expectancy is also 20-25 years rather than 10-15 years.

Rebates and Grants

Homeowners considering a new water heater should explore potential rebates and grants. These offers are more readily available and often bigger for tankless and heat pump systems. Grants and rebates can make energy-efficient water heaters much more affordable. They can also help you recoup your added investment and begin enjoying the savings sooner.

Tank & Tankless Water Heater Installation in Nanaimo

Twin Peaks Plumbing, Heating & Gas is a local and trusted plumbing contractor serving homeowners throughout Nanaimo and the surrounding areas. We encourage all homeowners considering a new water heater to schedule an in-home consultation. We’ll explore your options and provide our professional recommendation. Our team is available 24/7 for emergencies. We specialize in kitchen and bathroom fixtures, repiping, gasfitting, leak detection, backflow prevention, sump pumps, and more. For your heating and cooling needs, we have HVAC technicians who install and service boilers, radiant heating, furnaces, heat pumps, air conditioners, and ductless mini-splits. We also provide duct and indoor air quality services. Call today or contact us online to schedule an appointment.

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