If you are looking for a more efficient way to have water heated in your house without using a gigantic tank, a tankless water heater might be for you. Before you make the switch, consider these pros and cons:

Pros

1. Lifespan

A typical water heater has a lifespan around 10-15 years; a tankless water heater can last up to 20 years. If you will be in your home a while, you will end up saving money by not paying substantial replacement/repair fees. Even if you are not going to be in your home for 20 years, it will be a good factor in the reselling of your home.

2. Energy Savings- Reduced Costs

Normally, when people are going to switch to a tankless water heater, their first question is: “How much money will I actually end up saving?” Starting out, you will spend more upfront buying a tankless water heater and setting up the plumbing for it. However, the costs you will be saving to run the tankless water heater will make up for it completely.

3. Space Savings

Typical water heaters with about a 40 to 60 gallon capacity are generally around 60″ tall and 24″ wide. If your home is requiring you to be creative with space optimization, a tankless water heater (that is about the size of a large computer) might be your only option.

Cons

1. Limited Output

The big tanks capacity (storing about 40 to 60 gallons) of hot water allows you to shower, do laundry, and other tasks that require hot water without running short. If you have a big family and need to supply hot water to several bathrooms at the same time, a tankless water heater will probably not get the job done.

2. Additional Costs

A normal water heater will most likely start around $300 to $400, but additional costs can run the price up to close to $1000. However, when you buy a tankless water heater you will be paying $1000 as a starting price. The large upfront cost of a tankless water heater is not for everyone.