Which is Better? Tankless vs. Storage Tank Water Heater
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Posted March 26, 2025
Is it about time to replace your home’s water heater? If so, you’ll need to make an important decision when choosing a new one. You can install different types of water heaters, including tankless and storage tank water heater.
So, which one should you choose? Well, it can be a tough choice, but we will try to make it a little bit easier on you by closely examining how these two water heater models compare. This should provide you with all the information you’ll need to make this difficult decision. Ready to get started? When considering many factors, keep reading to determine which type of water heater fares better.
Size
Many things distinguish a tankless water heater from a storage-tank water heater, but the size of each option is one of their most significant differences. When installed in your home, a storage tank water heater will take up a decent amount of space. Storage tank water heaters come in various sizes but are always larger than tankless ones.
You must ensure enough room in your basement or utility closet for a storage tank water heater. On the other hand, a tankless water heater can be strategically positioned on a wall where it won’t take up much space.
Energy Source
While many things separate tankless water heaters from storage-tank water heaters, they also have similarities. For example, many of them will use the same energy sources.
Whether you want a gas or electric water heater, you should be able to find both tankless and storage tank options. Before setting up a water heater installation, you’ll want to check which energy source your current water heater uses. It’s usually the most sensible decision to stick with the same energy source. It’ll make the installation process more manageable and save you money.
Energy Efficiency
Theoretically, it might not seem like a water heater would use too much energy in your home. But if you and your family are constantly taking showers, running the washing machine, using your dishwater, etc., your water heater might use its fair share of energy.
A storage tank water heater, in particular, can use a lot more energy than you might realize since it needs to be turned on constantly to keep the water in it warm. This can cause your energy costs to skyrocket, especially when most people’s energy costs are already on the higher side.
A tankless water heater is an excellent option if you’re looking for ways to trim your energy costs. Since it creates hot water on demand, it uses only a fraction of a storage tank water heater’s energy. You might be surprised to see how low your utility bill is after using a tankless water heater for the first month. For most homeowners, this will be an eye-opening experience.
Convenience
Believe it or not, there are a lot of benefits that can come along with taking cold showers. Cold showers can improve circulation, relieve pain, and lower stress levels. You might want to take an occasional cold shower to reap the rewards of it, but you’re most likely not going to want to get stuck taking cold showers all the time. That may happen if you have a storage tank water heater, though.
A storage tank water heater will eventually run out of hot water if too many people take hot showers in a row. This could make taking a hot shower inconvenient, as you’ll have to wait for the tank to fill up again.
You can skip this unnecessary step by investing in a tankless water heater. This heater creates hot water as needed, so it won’t ever run out, making it the more convenient option.
Cost
As you’ve undoubtedly noticed by now, tankless water heaters have an edge over storage tank water heaters in quite a few different departments. However, one way in which a storage tank water heater reigns supreme over its tankless counterpart is when it comes to cost.
Longevity
You might not devote too much time to considering how long a water heater will last when installed, but it should be on your radar since it could sway your decision and show you why paying more for a tankless water heater might be worth it.
The average storage tank water heater lasts 8 to 12 years. You might be able to extend its life slightly in certain instances, but if you do, it’ll be at risk of failing at any moment.
The average tankless water heater should last at least 20 years, if not longer. Since it’s not filled with water when it fails, you might be able to hang onto it as long as you possibly can without worrying about it failing and making a massive mess in your home. If you’re interested in replacing your water heater now and do not have to be concerned about doing it again anytime soon, going with a tankless water heater could be the right choice.
ROI
Whether you decide to install a tankless water heater or a storage tank water heater in your home, it should provide you with a little return on investment. You can increase your home’s value slightly, making it more attractive to buyers one day.
Buyers will be way more impressed with a tankless water heater, which is why it shouldn’t be surprising to hear that it offers a better ROI. After installing a new tankless water heater, your home’s value should jump significantly.
When you go to sell your home one day, a tankless water heater will be an excellent selling feature. You can almost guarantee that people will make better offers on your home once they see you have a tankless water heater.
Installation
As long as you hire the right plumbing company to handle water heater installation, you shouldn’t worry about the process and how it’ll play out. They’ll be able to install either a storage tank or tankless water heater without any problems. But as you might imagine, it might be trickier to bring a storage tank water heater into your home than a tankless water heater. Since water heaters with storage tanks are often on the larger side, it could cause some complications along the way.
Tankless water heaters won’t pose this same problem. Even the largest tankless water heaters are only a fraction of the size of storage tank options. Choosing a tankless option should make the water heater installation process a breeze.
Maintenance
If you choose a storage tank water heater for your home, you must habitually flush it occasionally. Sediment can build up inside and cause issues if you’re not careful. Fortunately, flushing a storage tank water heater should be simple enough for you when it needs to be done. You can hire any plumbing company to help you with this job, and they should do it in under an hour.
But wouldn’t it be nice if you didn’t have to worry about flushing your water heater? Well, you will still need to get rid of any minerals that might build up in a tankless water heater, but it won’t be as extensive a process as flushing a water heater with a tank. You’ll appreciate how easy it is to maintain a tankless water heater versus one with a storage tank. It will not force you to spend much time or money on it.
Availability
If you were installing a new water heater in your home just a decade ago, finding a plumbing company that could provide you with a tankless option may have been harsh. Nowadays, almost all of the major water heater brands specialize in manufacturing tankless water heaters, making it very easy for you to find options when you want to buy one.
At the same time, some of these brands have scaled back the number of storage tank water heaters they produce each year. This might limit your options as you shop around for a new water heater for your home.
For each of the reasons we’ve listed here, you should seriously consider buying a tankless or a storage tank water heater. This will help you hone in on the one that would work best for your home and leave you with a water heater you’ll love from the beginning. You’ll be glad you put the right amount of thought into which water heater you wanted once you start using it to take showers, clean clothes, etc., daily.
Do you need a Tankless or Storage Tank Water Heater? Call Us Now
At Hiller, we know that some homeowners struggle to decide whether to buy a tankless or storage tank water heater. We can walk you through all the options and show you as many different types of water heaters to choose from. Contact us today to begin shopping for the best water heater for your home.
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