• Solar vs. tankless hot water heaters

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As a result of their performance & affordability/shorter payback periods, our clients generally opt for either a tankless water heater or a solar hot water system. The decision between the two typically comes down to two factors: budget constraints and desired payback periods.

Following is an overview of the pros and cons of each of the units. See which one you would pick if you were installing a new hot water system:

Tankless Water Heaters

Pros:

  • Continuous supply of hot water on demand
  • Does not unnecessarily heat a full tank of water at all times as regular tank-type heaters
  • Compact design
  • More affordable than solar
  • Comes in gas or electric unitsHigh efficiency factor
  • Plumbing is no different than a conventional tank type
  • Normally saves +/- 40 percent of energy used by traditional tank type water heater

Cons:

  • If an electric unit is used, it will most likely require an upgrade to electrical panel to compensate for additional amps needed. In new homes or major remodels this is typically not a problem as you can account for the increase in amps when designing the electrical load/upgrading the service.
  • Requires more of an upfront investment than regular tank-type heaters
  • Electric is a great choice where gas is not available, although you are drawing from a non-renewable source (unless your electricity is produced with renewable energy)

Solar Water Heaters

Pros:

  • Draws energy for renewable resource
  • Federal tax credit helps offset upfront costs by 30 percent
  • High efficiency factor
  • Least costly way to heat water
  • Simple system to install & maintain

Cons:

  • More of an upfront investment = longer payback period
  • Drain-back and storage tanks require more storage space than tankless
  • More parts involved = more opportunity for repair

Rheem has a solar water heating calculator available online to show how much you would save by going with solar.

See the full feature article on ProudGreenHome to read more about hot water heater options.

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User Comments – Give us your opinion!
  • Mary Jo Beniger
    49127473
    We installed two Natural Gas tankless water heaters. One is for our Restaurant, and the second for the apartment in the same building. Yes, they totally save 40-50% on heating of the water, but the biggest surprise has been the reduction of water use. The water use has dropped by aproximately half. With this factored in, the payback is even over a shorter time than anticipated. The operation has been flawless, but the way water is turned on becomes a mental change. The water must be turned on full and when hot, the flow needs to be turned down. The full force of the water causes trips the ignite feature.
    I would neve go back, and the life expectancy is 25 years.
  • mike johnson
    29227904
    the industry for on-demand water heaters have improved through the years. given the problem that tankless water heaters at times do not instantly deliver hot water (one has to wait for a few seconds or minutes) or one has to fully open the faucet for a few moments before hot water comes out, instant hot water heaters for showers and sinks have been manufactured as solutions to this problem. check this website out: Gadgetsgo.com.
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