Posted by Super Admin on Tuesday, April 15th, 2025 10:23am.
When it comes to heating water in your home, you've got two main options: traditional hot water tanks (also called storage water heaters) and tankless water heaters (also called on-demand systems). Both have their pros and cons, and the right choice depends on your household size, budget, and hot water usage habits.
Let’s break it down.
Function: Stores a large volume of hot water (typically 30–80 gallons) and keeps it hot at all times.
Heating Source: Usually gas or electric.
Delivery: Hot water is ready when you need it, but once the tank is empty, you have to wait for it to refill and reheat.
Function: Heats water on demand as it passes through the unit—no storage tank involved.
Heating Source: Also typically gas or electric.
Delivery: Provides a continuous flow of hot water, as long as your demand doesn’t exceed its capacity.
Energy Use: Constantly maintains the water temperature, which can waste energy (called standby heat loss).
Installation Cost: Lower upfront cost.
Operating Cost: Higher long-term utility bills due to energy loss.
Energy Use: More efficient since it only heats water when needed.
Installation Cost: More expensive to install, especially if retrofitting.
Operating Cost: Lower energy bills over time.
Footprint: Bulky—needs a dedicated space, like a basement or utility closet.
Aesthetic: Takes up visible space.
Footprint: Compact—can be mounted on a wall, even outdoors in some cases.
Aesthetic: Sleek and minimal.
Output: Limited by the tank size. You can “run out” of hot water during high use.
Recovery Time: Can take 30 minutes to an hour to heat more water.
Output: Endless hot water—great for back-to-back showers.
Limitation: Can be overwhelmed if multiple showers or appliances are running at once (depends on the unit’s GPM rating).
Lifespan: Around 8–12 years.
Maintenance: Regular flushing to prevent sediment buildup.
Lifespan: Around 15–20 years.
Maintenance: Descaling once a year in areas with hard water.
| Feature | Hot Water Tank | Tankless System |
|---|---|---|
| Upfront Cost | ✅ Lower | ❌ Higher |
| Energy Efficiency | ❌ Lower | ✅ Higher |
| Lifespan | ❌ Shorter | ✅ Longer |
| Unlimited Hot Water | ❌ No | ✅ Yes |
| Installation Space | ❌ Larger | ✅ Smaller |
| Multiple Use Capacity | ✅ Higher (temporarily) | ❌ Can be limited |
Go with a hot water tank if you’re on a tight budget, don’t mind some downtime between uses, and have the space.
Opt for a tankless system if you want long-term energy savings, unlimited hot water, and a compact design—especially in smaller homes or modern remodels.
Ultimately, the best water heater for your home depends on your priorities. If you're replacing an old system, think about how much hot water your household uses, your long-term energy goals, and how much you're willing to invest upfront.
Still unsure? A professional plumber or HVAC technician can help evaluate your home's needs and guide you to the right decision. Need a contractor? We got you covered! Call us at 780-819-5309 or look us up online at www.HomeSweetHomeEdmonton.com and we'll put you in touch with the right people for the job!
Images shown are of our own home before & after. Our original system consisted of 2 hot water tanks. 1 tank supplied the hot water for the home and the other supplied the hot water for our in-floor heating system. We upgraded to a Navien tankless Combi Boiler system and it freed up all that space where the 2 hot water tanks had been previously! Additionally, we installed a shallow pan under the assembly and added a water detector shutoff valve. When moisture is detected anywhere in the pan, it shuts off the main water supply to the home and sends us a text as well as an email to inform us there was a water leak detected!