Hot water is essential in homes and businesses, from restaurants and hotels to office buildings and manufacturing facilities. Energy efficiency plays a crucial role in operational costs, directly impacting profitability. Choosing between tank and tankless water heaters can significantly affect long-term expenses and sustainability efforts. Traditional tank water heaters store and heat water continuously, leading to higher energy consumption and costs. In contrast, tankless water heaters heat water on demand, reducing waste and improving efficiency.
When selecting the right system, businesses with high water usage must consider factors like performance, maintenance, and return on investment. The decision goes beyond installation costs and influences energy bills, equipment lifespan, and overall operational efficiency. Understanding the differences between these systems helps businesses optimize resources and maximize savings.
In this blog, we will explore the key differences between tank and tankless water heaters, focusing on their energy efficiency and long-term impact on businesses.
What is a Tank Water Heater?
A tank water heater is a common type of water heating system. It keeps a certain amount of water in a big tank. This water is stored and heated to provide hot water when needed. It always keeps the water hot, so it’s ready whenever required. These heaters are usually found in homes, offices, and businesses that require a steady hot water supply.
How It Works:
- A heating element (gas burner or electric coil) warms the water inside the tank.
- The water remains heated until used, and the tank is refilled with cold water.
- The heater turns on and off to keep the temperature steady. This process uses energy. It happens even when you are not using hot water.
Key Features:
- Available in various sizes, typically ranging from 30 to 80 gallons.
- More affordable upfront but higher operating costs due to standby heat loss.
- It requires more space for installation than tankless models.
Tank water heaters are dependable. However, they might not save as much energy as other options. Businesses often want to reduce costs, and tank water heaters may not be the best choice for this goal.
What is a Tankless Water Heater?
A tankless water heater, also known as an on-demand water heater. It heats water only when you need it. Unlike traditional water heaters, it doesn’t store water in a tank. This system saves energy because it doesn’t always keep water hot. This reduced energy use makes it an efficient choice. Homes and businesses can lower their energy bills with this system.
How It Works:
- When a hot water tap is turned on, cold water flows through a heating unit powered by gas or electricity.
- The unit rapidly heats the water as it passes through, delivering instant hot water.
- The heater stops working once the tap is turned off, preventing unnecessary energy use.
Key Features:
- The compact design saves space, making it ideal for businesses with limited room.
- Higher energy efficiency as it only heats water when needed.
- Longer lifespan than traditional tank heaters, typically lasting 20–25 years.
Tankless water heaters are a cost-effective solution for businesses aiming to improve efficiency and reduce utility bills.
Difference Between Tankless and Tank Water Heaters
Choosing between a tank and a tankless water heater depends on several factors, including energy efficiency, cost, and space availability. Both types serve the same purpose but operate differently, impacting their performance and long-term savings. Below is a detailed comparison based on key aspects to help businesses and homeowners make an informed decision.
- Energy Efficiency
Energy efficiency is a significant factor when selecting a water heater, as it directly affects utility bills and environmental impact.
- Tank water heaters keep water heated at all times, even when there is no demand for hot water. This increases energy use from heat being lost while it sits idle. Their efficiency generally falls within the range of 60% to 65%.
- Tankless Water Heaters heat water only when needed, reducing energy waste. Depending on the model and fuel type, they offer an efficiency rate of 80% to 98%.
Tankless water heaters provide significant long-term savings for businesses aiming to cut operational costs by reducing unnecessary energy use.
- Heating Method
The way these heaters warm water is a crucial difference that affects performance and convenience.
- Tank Water Heaters use a heating element (gas burner or electric coil) to warm a large volume of stored water. Once heated, the water remains in the tank until needed. If hot water runs out, the heater must reheat a new batch, which can take time.
- Tankless Water Heaters heat water instantly as it flows through a high-powered heating element. This on-demand system provides unlimited hot water without the need for storage.
A tankless system may be the better choice for businesses that require a continuous supply of hot water, such as restaurants or hotels.
- Standby Loss
Standby heat loss refers to the energy wasted when a heater maintains water temperature, even when unused.
- Tank Water Heaters experience high standby loss because they must always keep a full tank of water heated. The heater cycles intermittently to maintain temperature even if hot water isn’t used.
- Tankless Water Heaters have zero standby loss, heating water only when needed. This makes them a more energy-efficient option for businesses looking to reduce waste.
- Recovery Rate
The recovery rate measures how quickly a water heater can reheat water after it has been used.
- Tank Water Heaters have a slower recovery rate, meaning they take longer to refill and heat a new batch of water. If demand is high, users may have to wait before getting hot water again.
- Tankless Water Heaters have a fast recovery rate since they don’t store water. Hot water is available on demand, eliminating the wait time.
Tankless systems benefit businesses with high hot water usage, such as salons, laundromats, and commercial kitchens, by ensuring continuous water supply without delays.
- Installation Cost
Initial installation costs vary depending on the type of water heater and the complexity of the setup.
- Tank Water Heaters have a lower upfront investment since they are easier to install. They can often replace an existing unit without requiring significant modifications to plumbing or electrical systems.
- Tankless Water Heaters require a more complex installation process, often needing upgrades such as additional gas lines, higher-capacity electrical connections, or venting adjustments. This makes installation more time-consuming and labor-intensive.
While tankless systems involve a more detailed setup, they compensate with greater energy efficiency and longer lifespan, leading to savings over time.
- Space Required
Available space is another important consideration, especially for businesses with limited storage areas.
- Tank Water Heaters require more space due to their large storage tanks (typically 30–80 gallons). They need a designated area, such as a utility room or basement.
- Tankless water heaters are space-saving and can be wall-mounted, saving precious floor space. This is particularly beneficial for businesses operating in limited areas, like cafes, retail shops, or small offices.
- Eco-Friendliness
Businesses striving for sustainability should consider the environmental impact of their water heating system.
- Due to continuous heating, Tank Water Heaters use more energy and produce higher carbon emissions. Their shorter lifespan also leads to more frequent replacements, contributing to waste.
- Tankless water heaters are more eco-friendly, use less energy, and produce fewer emissions. They have a longer lifespan, reducing waste and minimizing environmental impact.
In Conclusion
Both tank and tankless water heaters have their advantages. However, tankless water heaters reign supreme when it comes to energy efficiency by eliminating standby heat loss and heating water only when needed. Tank water heaters have a lower initial cost but higher long-term energy expenses. In contrast, tankless systems offer savings, continuous hot water, and a minor environmental impact. For businesses and homeowners looking to optimize efficiency, cost-effectiveness, and space, investing in a tankless water heater is a smarter choice despite the initial installation effort.
