Dec 8, 2025

How a Tankless Water Heater Works: Pros, Cons & Real Savings

Learn how tankless water heaters work, their advantages and disadvantages, and real savings potential for Sacramento homeowners. Discover if a tankless system is right for your home.

Tankless water heaters, also known as on-demand water heaters, provide hot water without storing it in a tank. Understanding how they work, their advantages and disadvantages, and real savings potential helps Sacramento homeowners decide if a tankless system is right for their home. This guide explains everything you need to know about tankless water heaters.

How Tankless Water Heaters Work

Tankless water heaters heat water directly as it flows through the unit, eliminating the need for a storage tank. When you turn on a hot water tap, cold water flows through the unit, where it's heated instantly by either a gas burner or electric heating elements.

Gas Tankless Water Heaters

Gas tankless water heaters use a gas burner to heat water as it passes through a heat exchanger. These units typically provide higher flow rates and are more efficient for larger households or homes with high hot water demand.

Electric Tankless Water Heaters

Electric tankless water heaters use electric heating elements to heat water. These units are typically smaller and easier to install but may have lower flow rates than gas models.

Flow Rate and Temperature Rise

Tankless water heaters are rated by flow rate (gallons per minute) and temperature rise (the difference between incoming and outgoing water temperature). Understanding these ratings helps you choose the right size for your home's needs.

Not sure if tankless is right for your home? Contact Beaver Brothers Plumbing for a free consultation. We can assess your hot water needs and help you choose the right system.

Advantages of Tankless Water Heaters

Tankless water heaters offer several advantages over traditional tank water heaters, making them an attractive option for many Sacramento homeowners.

Energy Efficiency

Tankless water heaters are more energy efficient than traditional tank water heaters because they only heat water when you need it. Traditional water heaters continuously heat and reheat water in the tank, even when you're not using hot water, wasting energy.

Unlimited Hot Water

With a properly sized tankless water heater, you'll never run out of hot water. As long as water flows through the unit, it will be heated, providing continuous hot water for as long as you need it.

Space Savings

Tankless water heaters are much smaller than traditional tank water heaters, taking up significantly less space. This makes them ideal for homes with limited space or for installation in areas where a traditional tank wouldn't fit.

Longer Lifespan

Tankless water heaters typically last 20 years or more, compared to 10-15 years for traditional tank water heaters. This longer lifespan can offset the higher initial cost.

Lower Operating Costs

Because tankless water heaters are more energy efficient, they typically have lower operating costs than traditional tank water heaters. The exact savings depend on your hot water usage and local energy costs.

Disadvantages of Tankless Water Heaters

While tankless water heaters offer many advantages, they also have some disadvantages that Sacramento homeowners should consider.

Higher Initial Cost

Tankless water heaters typically cost more upfront than traditional tank water heaters. The initial investment includes the unit cost and potentially higher installation costs, especially if your home needs electrical or gas line upgrades.

Limited Flow Rate

While tankless water heaters provide unlimited hot water, they have a limited flow rate. If multiple hot water fixtures are used simultaneously, the flow rate may be insufficient, causing reduced water pressure or temperature fluctuations.

Installation Requirements

Tankless water heaters may require electrical or gas line upgrades, ventilation modifications, or other installation requirements that add to the cost. Professional installation is essential for proper operation and safety.

Maintenance Requirements

Tankless water heaters require regular maintenance, including annual flushing to remove mineral buildup. Without proper maintenance, efficiency can decrease and the unit may fail prematurely.

Cold Water Sandwich

Some tankless water heaters can experience a "cold water sandwich" effect, where a brief burst of cold water occurs between hot water uses. This is typically a minor issue but can be annoying for some users.

Real Savings with Tankless Water Heaters

Understanding the real savings potential of tankless water heaters helps Sacramento homeowners make informed decisions about whether the investment is worthwhile.

Energy Cost Savings

Tankless water heaters can save 24-34% on energy costs compared to traditional tank water heaters, according to the U.S. Department of Energy. For a typical Sacramento household, this can translate to $100-$200 or more in annual energy savings.

Long-Term Savings

While the initial cost is higher, the combination of lower operating costs and longer lifespan can result in significant long-term savings. Over 20 years, the total cost of ownership may be lower than a traditional tank water heater.

Rebates and Incentives

Some utility companies and government programs offer rebates or incentives for installing energy-efficient tankless water heaters. These incentives can help offset the initial cost.

Special Offers

At Beaver Brothers Plumbing, we offer $500 off tankless water heater installation for Sacramento homeowners. This special offer makes upgrading to a tankless system more affordable.

Interested in tankless water heater installation? Contact Beaver Brothers Plumbing today. We offer $500 off installation and can help you determine if tankless is right for your home. Call 916-885-1005 today — $500 off tankless water heater installation for Sacramento homeowners.

Is a Tankless Water Heater Right for Your Home?

Determining if a tankless water heater is right for your home depends on several factors, including your hot water usage, available space, and budget.

Ideal Candidates

Tankless water heaters are ideal for:

  • Homes with high hot water demand
  • Homes with limited space
  • Homeowners who want energy efficiency
  • Homes where multiple people need hot water simultaneously
  • Homeowners planning to stay in their home long-term

Considerations

Before choosing a tankless water heater, consider:

  • Your hot water usage patterns
  • Available space for installation
  • Electrical or gas capacity
  • Initial cost vs. long-term savings
  • Maintenance requirements

Professional Assessment

A professional plumber can assess your home's hot water needs, available space, and installation requirements to help you determine if a tankless water heater is the right choice.

Tankless Water Heater Installation

Professional installation is essential for tankless water heaters to ensure proper operation, safety, and efficiency.

Installation Process

Tankless water heater installation typically includes:

  • Removing the old water heater
  • Assessing electrical or gas requirements
  • Installing the new unit
  • Connecting water and gas/electrical lines
  • Testing and commissioning

Installation Requirements

Installation may require:

  • Electrical upgrades for electric units
  • Gas line modifications for gas units
  • Ventilation system installation or modification
  • Water line modifications
  • Permits and inspections

Professional Installation Benefits

Professional installation ensures:

  • Proper sizing for your home's needs
  • Correct installation and connections
  • Compliance with local codes
  • Warranty protection
  • Safe and efficient operation

Maintenance for Tankless Water Heaters

Regular maintenance is essential for tankless water heaters to maintain efficiency and extend lifespan.

Annual Flushing

Tankless water heaters should be flushed annually to remove mineral buildup that can reduce efficiency and cause damage. This maintenance is especially important in areas with hard water, like Sacramento.

Filter Cleaning

Some tankless water heaters have filters that need regular cleaning. Check your unit's manual for specific maintenance requirements.

Professional Maintenance

Professional maintenance ensures your tankless water heater operates efficiently and safely. At Beaver Brothers Plumbing, we offer maintenance services to keep your system running smoothly.

Comparing Tankless vs. Traditional Water Heaters

Understanding the differences between tankless and traditional water heaters helps Sacramento homeowners make informed decisions.

Cost Comparison

Traditional tank water heaters typically cost less upfront but have higher operating costs and shorter lifespans. Tankless water heaters cost more upfront but have lower operating costs and longer lifespans.

Efficiency Comparison

Tankless water heaters are more energy efficient because they only heat water when needed. Traditional tank water heaters continuously heat and reheat water, wasting energy.

Space Comparison

Tankless water heaters are much smaller than traditional tank water heaters, making them ideal for homes with limited space.

Common Questions About Tankless Water Heaters

How long do tankless water heaters last?

Tankless water heaters typically last 20 years or more with proper maintenance, compared to 10-15 years for traditional tank water heaters.

Can a tankless water heater supply enough hot water for my home?

Properly sized tankless water heaters can supply unlimited hot water for your home. A professional plumber can help determine the right size for your needs.

Do tankless water heaters really save money?

Yes, tankless water heaters can save money through lower energy costs and longer lifespans. The exact savings depend on your usage and local energy costs.

What maintenance do tankless water heaters require?

Tankless water heaters require annual flushing to remove mineral buildup. Some units also have filters that need regular cleaning.

Can I install a tankless water heater myself?

Tankless water heater installation should be done by a licensed plumber to ensure proper installation, safety, and compliance with local codes.

Conclusion

Tankless water heaters offer many advantages for Sacramento homeowners, including energy efficiency, unlimited hot water, space savings, and longer lifespans. While they have higher initial costs and some limitations, the long-term savings and benefits often make them a worthwhile investment.

At Beaver Brothers Plumbing, we help Sacramento homeowners choose and install the right water heater for their needs. We offer $500 off tankless water heater installation and professional maintenance services to keep your system running efficiently.

Contact Beaver Brothers Plumbing today to learn more about tankless water heaters and whether they're right for your home. Call 916-885-1005 today — $500 off tankless water heater installation for Sacramento homeowners.

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