Which is Better Hot Water Heater or Tankless?

Installing a new water heater or replacing your old one involves a significant investment. Knowing that you would be using the appliance for a decade at least, it’s logical to make an informed purchase decision. While your Sydney plumber would install the appliance, you need to decide the type of the appliance in the first place. Of course, when you get rid of the old model, you would be looking for something cost and energy efficient. To ease up your decision-making process, have a look at this comparison between tankless and hot water heaters.

Where are tankless water heaters?

Also referred to as on-demand heaters, tankless water heaters are capable of rapidly heating the water using high-powered burners. The usable water passes through a heat exchanger before reaching the shower or faucet. The mechanism does not involve the use of a tank. These heaters usually run on gas or electricity. In this case, no energy is wasted, given that the system does not store hot water that may eventually cool down.


  • Although tankless water heaters are expensive in terms of initial cost, they can save you money over the long run.
  • In terms of energy efficiency, they can help you save at least 25% energy. 
  • Generally, tankless water heaters last for two to three decades. This is much longer than tank water heaters.
  • Tankless heaters are ideal for tight quarters in terms of space efficiency. To cope up with space challenges, you may install them in the external walls of your home.
  • Tankless heaters are designed to deliver 2-3 gallons of water every minute. Therefore, you can instantly obtain the water on demand.


  • The initial cost would be higher, as compared to the traditional systems.
  • Homeowners also need to shell out higher installation costs.
  • If you are replacing a tank water heater with a tankless one, plumbers might need more time.

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What are tank storage water heaters?

Traditionally used by many households, tank storage water heaters come with an insulated tank, holding up to 50 gallons of water. This water gets heated and stored in the tank. However, you can use this heated water only when you need it. Using pipes, this water reaches its destination, such as sinks, bathrooms, kitchens, etc. However, these systems lack energy efficiency, as the hot water in the tank might cool down by the time you use it.


  • With these tanks, the initial expense would be significantly lower.
  • The operation of these tanks is simpler, as compared to the tankless variants.
  • The repairs and maintenance costs are relatively lower. 


  • Over time, you would be paying more on utility bills. Since the water stored in tanks can lose heat, it eventually leads to cost-inefficiency.
  • Due to the presence of tanks, they occupy more space. Therefore, it would become challenging to install one if you have space constraints.
  • In terms of durability, they last for just 10 to 15 years. This is just the half of the average lifeline of tankless water heaters.

 Why to hire a professional installer?

Whether you need an expert hand for installation or hot water repair, hiring professionals is highly recommended. Established installers and service providers carry an adequate experience in the field. Eventually, you can get the heaters installed and service properly to leverage their functionalism and efficiency.

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