If your old electric water heater needs to be replaced, we would highly recommend considering a tankless unit. Traditional electric water heaters are fairly energy efficient, but they will generally always use quite a bit more electricity than a tankless unit. With a traditional unit, the water in the tank will always cool off, and this standby heat loss means that these units need to run fairly frequently to keep the water inside their tank hot. This is one area where electric tankless water heaters are far superior as they will use much less electricity since they only ever heat when hot water is currently needed.
Comparing Tankless and Traditional Electric Water Heaters
Tankless water heaters do cost more than traditional units, and the price difference will be even greater if you’re switching from a traditional unit to a tankless model as your plumbing will also need to be slightly altered. However, tankless units will almost always be the cheaper long-term option since they should almost always use less energy and have a much longer expected lifespan.
On average, a tankless water heater will use around 22% less energy than a traditional unit since tankless units don’t suffer from standby heat loss. That being said, exactly how much less energy a tankless unit will use depends on how much hot water your home typically uses in a day.
The US Department of Energy estimates that homes that use less than 40 gallons of hot water a day will save around 34% in energy costs by using a tankless unit compared to a traditional electric water heater. Even if your home uses around 90 gallons of hot water each day, a tankless unit should still lower your electricity costs by around 14%. The average home spends somewhere around $400 to $600 a year on hot water, which means switching to a tankless unit could reduce your annual electricity costs by around $100 or even more.
If you need to have your water heater replaced or your unit needs any repairs, Anderson Heating & Cooling is here to help. We service and install traditional and tankless units, and we also specialize in all types of heating and cooling repair, maintenance and installation services. For more information on tankless water heaters or to schedule any water heater or HVAC service in the Oregon City area, give us a call today.
