Water Heater Blog

Storage Tank Water Heaters vs. Tankless Water Heaters – Which Is Better for You?

Nov 12, 2021 | Tankless Water Heaters

A water heater is a long-term investment that every home in America needs. When you notice that your current water heater shows signs that it’s nearing its end, you need to decide whether to buy a storage-tank water heater or an energy-saving tankless water heater

How do you make a choice, though? A storage water heater is going to be cheaper initially. However, the cost of your decision goes up as the years pass. The US Department of Energy states that homes with tankless water heaters use less than 41 gallons of hot water in a day and save energy by up to 34%.

Of course, that’s not to say that tankless water heaters will work for everyone because it actually depends on the usage of the household and several other factors. 

If you are still undecided about what type of water heater you should get, this post is for you as Houston Water Heaters, a trusted supplier of tankless electric water heaters in Houston, shares some information that can help you make an informed decision:

What You Need to Know About Storage Tank Water Heaters

Most homeowners are more familiar with the storage tank water heater because this is considered the traditional water heater. The conventional storage water heater can hold between 20 and 80 gallons of water.

The way it works is that the tank is filled to its capacity and heated in the reservoir using the fuel source in your home, whether that’s gas, electricity, or propane. When someone turns on the hot water tap, hot water is released from the top of the storage tank and cold water comes in from the bottom until the tank is full again. That means you’ll have hot water available all the time. 

The problem here is standby heat loss which is the amount of heat that you lose when the water heater is not being used. The older the hot water heater is, the more standby losses can get and the higher your energy bills will be.

What You Need to Know About Tankless Water Heaters 

Also known as on-demand water heater, a tankless water heater heats water only when needed. It heats at an average rate of 2 to 5 gallons in a minute and could use one of the three fuel sources, too.

Gas-fired tankless water heaters also waste energy by making sure the pilot light is burning to heat water in the tank. This provides higher flow rates compared to electric water heaters. You can combat this by selecting a model that has an intermittent ignition device instead of a standing pilot light. 

Other Considerations You Need to Make

Of course, performance and function are not the only considerations you make. There is the purchase cost and the installation cost which are often deciding factors for homeowners. On this front, a storage hot water heater is the winner as it is significantly cheaper to buy and install.   

The demand of the household also matters. You won’t run out of hot water if you have the right capacity of a storage tank water heater. You can achieve the same with multiple tankless water heaters. That would mean extra cost, though. 

It is in energy efficiency that tankless water heaters beat storage water heaters as the former can be up to 34% more efficient. Their lifespan is also longer than storage water heaters by at least five years. 


In choosing between a storage-tank water heater or a tankless water heater, a tankless electric water heater wins in many categories. So, if you have the budget for it, you should just go with tankless water heaters. If price is an issue, you can use calculators to determine how much hot water you need and how much energy both options will use to see which makes more sense. 

Houston Water Heaters can provide you with the best tankless electric water heater in Houston, TX, and nearby areas. Contact us today to know more about our water heaters and services

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