Tankless Gas Water Heater Pros and Cons For 2021

The use of hot water in our daily life is vital, and it is rare that you don’t use hot water at least once a day. A water heater provides hot water for a home.

Advances in the design of these devices now give homeowners the option of installing a conventional system with a tank or tankless heater that heats the water according to demand.

If you are thinking to setup tankless water heater in your home but confuse whether it will be the right choice for you or not, then this article is for you.

In this article, I will discuss the pros and cons of Tankless gas water heater from various aspects.

What is Tankless Gas water heater?

The tankless gas water heater is the water heater without a traditional tank that is beneficial in many ways.

Its primary purpose is to heat the water to wash, dishwashing or showering. You will find many types of Tankless water heaters in the market.


The main benefit compared to the traditional water heater is that it saves space in your washroom or other places. It is also lightweight.

The heater does not store water in the tank. When the heater is on, the heat exchanger heats the water as you need.

However, as the traditional water heater, the tankless version also needs to be maintained. You can also do the maintenance if you learn how to do it.

What are the Different Types of Tankless Water Heaters?

As the water heater needs the energy to heat the water, the tankless water heater can be divided into two types in terms of the power source.

Some of the tankless water heater powered by the electricity while some are powered by propane or other gas.

No matter what is the power source, both of the water heaters can provide hot water on demand to help you with washing, showering etc.

Electric: electric water heaters are tied in the power lines that you use for other home devices to generate the heating power.

Natural gas: If you have access to the power of natural gas, you might want to look into a propane heater, which uses the same pipes as your other gas-powered accessories.

Indoor: Indoor water heaters will take the place of the inefficient tank-style water heater that is currently operating in your basement.

Tankless-Gas-Water-Heater-indoorOutdoor: As the name implies, outdoor water heaters are installed outside the home and then send hot water through a piping system.Tankless-Gas-Water-Heater-outdoor

Is a Tankless water heater right for you?

Before making the decision, you need to consider some things to go tankless water heater.

First, you need to determine the water demand in your house. Consider if you are using this for the entire home or just on the bathroom.

Consider the type of water heater you want to use. Electric model will cost you ensuring the proper voltage, circuit breaker, and amperage. However, the gas model does not require this type of additional concern.

The water heater needs to be placed within the 50 feet from the power source. You can mount the heater on the interior or exterior wall.

Tankless water heater requires an expert to install it. Make sure you hire the top rated plumber to do the job. Sometimes, the dealer where you purchased from provides the installation service for free.

Tankless Water Heaters: Electric or Gas?

After you decide whether or not to use the tankless water heater, now it’s time to consider the type of heater you are willing to use.

Therefore, first, you need to decide which type you want to go for. Don’t worry, I am going to help you by exposing the differences between these two types of heaters.

There are lots of differences between electric and gas tankless water heater in terms of price, installation cost, operating, and flow rates, etc.

The gas heater’s price is almost twice of the electric heater. The average cost of a gas heater is 1000 to 1200 dollars where the electric heater costs about 500 to 700 dollars.

The installation cost of a gas heater is also higher than the electric heater. Along with the value, the gas water heater requires venting options, fresh air, and a gas line. So it is an extra investment.

When it’s about the operating costs, here also the electric water heater is the winner. It saves lots of operating costs comparing to the gas heater. Also, the electric heater has less impact on the environment, makes it more suitable in every aspect.

In terms of maintenance, electric water heater does not need any annual maintenance. On the other hand, the gas water heater requires yearly maintenance.

Pros and Cons of Tankless Gas Water Heater

The on-demand or tankless water heater is different from the traditional water heater. It comes with many advantages.

Besides that, it also has some disadvantages. Below, I am going to describe both the advantages and disadvantages of a tankless water heater.


Pros of Tankless Gas Water Heater

According to the United States Department of Energy, “Heating water accounts for more than 20% of the average annual electricity budget of an average household.”

The Research Center of the National Association of Home Builders (NAHB) conducted a recent study to estimate how much energy it saves on electricity with hot water systems.

The efficiency of tankless water heaters is almost 100% compared to tank heaters. Tankless heater system achieves a decrease in annual electricity consumption equivalent to nearly 80% in households of little consumption and 58% in high consumption households.

Size and space

As its name suggests, a tankless water heater eliminates the need to store the tank in the garage or closet.

A tankless water heater is much smaller and is installed on the wall, operating within the plumbing lines of a home.

Water saving 

Tankless gas water heaters heat the water only when it is time to use it. The water heats up quickly and stops when the demand for the tap ceases. By heating the water soon, it wastes less energy.

Financial impact

The tankless water heater has a high effect on saving money. As it uses less water, it reduces the water expenses of you every month.


Tankless water heaters are approximately 100 percent more efficient than tank storage models with energy. Instead of using a storage tank, they heat the water directly as it travels through the system.

Flow rate

Tankless water heaters offer an endless supply of hot water for the home. Heaters with a storage tank, on the other hand, can provide only the amount of hot water that the tank can hold.

To save and reduce energy costs, you may consider a tankless water heater.

Cons of Tankless Gas water heater

Although the tankless heater system is a smart choice and gives you many advantages, it also has some disadvantages.


Variable water temperatures

An electric tankless water heater does not begin to heat the water until someone opens the hot water faucet.

Although manufacturers have tried to design tankless heaters that supply the fluid to meet the demands of users, these devices sometimes fall short.

A survey commissioned by Consumer Reports magazine found that variable water temperatures were one of the main complaints of homeowners with appliances of this type.

Respondents reported that heaters did not always turn on when the hot water tap was adjusted for moderate flow.

Also, the water that rested in the pipes was integrated into the flow coming from the hot water tap, which also created variable temperatures.

Requires additional maintenance

During the tests carried out by Consumer Reports on tankless water heaters, a warning indicator of the accumulation of mineral plaque appeared.

Consumer Reports hired a plumber at the cost of US $334 (price of September 2010) to empty the system and install a special valve to prevent future problems.

Based on this problem, in conjunction with the advice of industry officials, Consumer Reports recommends that homeowners maintain their tanks every year.

Thus it will prevent the buildup of the mineral plate, which can put the System’s ability to function and can cause irreversible damage.

It consumes more electrical energy to work

The California Energy Commission states that electric water heaters consume more electrical power immediately than the tank water heater systems.

When energy companies charge more for electricity during peak demand times, a tankless heater becomes costly.

Moreover, because it heats the water according to the demand in these systems, heaters tend to consume a relatively high amount of electricity in a short period of time, which all electrical systems do not support.

Final Words

Energy Star Rating is a program of the Environmental Protection Agency of the United States created in 1992 to promote electrical products with efficient electricity consumption.

Energy Star organization recommends using an electric tankless water heater so that it does not impact on the environment.

Many people choose the tankless gas water heater these days, but you should know all the advantages and disadvantages of the tankless gas water heater.

Lots of tankless gas water heater sellers exaggerate about the electric heater and gas heater. Before you make a decision know about both of them thoroughly.

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