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Tank water heaters are popular for their up-front affordability and high capacity, but tankless water heaters can reduce energy usage by 30-40% comparatively.

Tank Water Heaters

Water heaters with a tank are the most popular, offering the following advantages:

• Ideal for heavier usage
• Store and heat water in 20- to 80-gallon capacity tanks (stored water can cool down and have to be continually reheated)
• More affordable up-front
• Generally use more energy than tankless
• Can be positioned in a closet, basement or garage
• Require little maintenance
  

For tank water heaters, you must also consider the first hour rating. That’s how much hot water you get from your water heater in its first hour of operation. Your tank’s first hour rating, or FHR, will be printed on the tank.

The FHR should be very close to how much water your family uses at its peak time, perhaps in the morning when the shower is running, along with the dish washer and washing machine.

Tankless Water Heaters

Tankless water heaters are also called instantaneous, or on-demand, water heaters because they provide hot water more quickly.

• Heat water as needed with a coil (could run out of hot water during heavier usage)
  
• Prevent potentially damaging water leaks
  
• Require a larger up-front investment
  
• Can reduce energy consumption by 30-40% compared to tank-based units
  
• Require less space (without a tank, these hang on a wall and free up floor space)
  
• Require ventilation and an electrical plug within 3 feet of the unit
  
• May require yearly “flushing”
  

Consider how many bathrooms are in your home and how many fixtures will require hot water at the same time. It’s important not to under-size your choice of tankless water heater to save money. This could result in diminished hot water pressure across the house.

Also keep in mind the climate in the area you live. In cold climates, the ground water temperature sinks during winter. This impacts the selection of tankless water heaters that will fit your needs.

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