Tankless water heaters are becoming more and more popular. They are an energy-efficient approach to heating your water, but they cost significantly less than solar water heating systems. If you are considering switching to a tankless water heater, ask yourself these important questions, which will help you determine if a tankless system really is right for you.

Can You Afford an Expensive Investment?

Tankless water heaters are expensive to install. On the bright side, they don't cost nearly as much as a solar water heater, but they still cost more than a traditional water heater. Options vary, and so does the price. For starters, you can choose between single room tankless water heaters or whole-home heaters. You can also choose a gas powered heater or an electric heater. If you choose to purchase a standard whole-house gas tankless water heater, you'll pay between $1800 and $5000 for the whole system and installation. A standard water heater costs between $300 and $3500.

There is an upside, however. Tankless water systems tend to last longer than typical water heaters. The average lifespan of a tankless water system is 20 years, but a traditional water heater only lasts about seven. Unfortunately, they tend to require more care than traditional systems, and experts agree that the system should be serviced about once a year.

Do You Want to See Your Monthly Energy Bills Drop?

At first, the cost might scare you, but if you consider the monthly savings, you can end up breaking even in just a few short years. Although tankless water systems use a lot of power to heat the water, they actually use less energy than traditional water heaters. This is because a traditional water heater needs constant energy to keep the water hot and ready for use. A tankless water heater only uses energy when you need hot water.

How much you end up saving really depends on how much hot water you use. If you use 41 gallons of water or less daily, you end up saving 24 to 34 percent on your energy costs. That may sound like a lot of water, but it really isn't. Just one hot bath uses between 35 and 50 gallons of water. Other appliances, such as the washing machine and dishwasher, also use hot water, which lowers your savings.

Are You Okay With Limited Hot Water Usage?

A traditional water heater stores hot water in a water heater tank. You can still run out of hot water, but the water is constantly refilled and heated, so you always have a large supply of hot water on hand. A tankless water system only heats the water when you need it. On the bright side, it means you never have to wait long for hot water like you do when a traditional water heater runs out of hot water. However, it also means there are serious limitations on your hot water.  

If you live alone, you probably won't notice too many problems, but if you have a full house, the demands of hot water could be too much, especially if you get an inferior or cheap water heater. The system may not be able to heat your shower, wash the dishes and provide hot water to the kitchen all at once. When you have a tankless water heater, you have to be more conscientious about when and how you use hot water.

A tankless water heater may be the perfect solution for your home, but only if you can afford it and are willing to put up with the hot water limitations. If you would like to know more about a tankless water heater or you want to request a quote, contact a dealer in your area today. You can also get more information from local plumbing companies like CampbellCare Plumbing Heating & Air.