Tankless water heaters, also known as demand-type or instantaneous water heaters, provide hot water only as needed. Tankless water heaters can save money and natural gas because they don’t create the standby energy losses associated with storage water heaters.
Tankless water heaters heat directly without a storage tank, eliminating the wait time when a conventional tank water heater fills up with hot water. In a tankless system, when a hot water tap is turned on, cold water travels through a pipe where it is heated. As a result, tankless water heaters deliver a constant supply of hot water.
While the initial cost of a tankless gas water heater is higher than a conventional storage gas water heater, tankless water heaters typically last longer and have lower operating and energy costs. Most tankless water heaters have a life expectancy of more than 20 years and have easily replaceable parts that extend their life by many more years. In contrast, storage water heaters last 10–15 years. These savings alone could offset the higher price of a tankless unit, and Energy Trust offers cash incentives to further offset costs.
Energy Trust offers incentives for both tankless and conventional gas water heaters. See the website for details on incentives for gas water heaters.
| Equipment | Requirements | Estimated Average Energy Savings | Cash Incentive |
|---|---|---|---|
| Domestic Tank Water Heater | Minimum 91% thermal efficiency | 1.37 therms/kBtuh input | $4/kBtuh input |
| Domestic Tankless Water Heater | Minimum 0.738 Energy Factor with electronic ignition Office buildings do not qualify | 1.42 therms/kBtuh input | $2/kBtuh input |
For questions, contact Nick Dreves, Existing Buildings trade ally coordinator, at 503.568.3324.