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Tank vs. Tankless. Which One is Right for Your Customer?
While tankless water heaters are superior to tank water heaters in terms of both sustainability and the ability to deliver enough hot water, a retrofit to change from tank to tankless is more complex than simply swapping units. The chart below will help your client compare water heater types (print chart).

 
     
  Use this calculator to compare water heater energy costs between tank water heaters and tankless water heaters, based on planned usage.  


 
Tank Water Heater
Tankless Water Heater
 
Cost
Depending on the model, up-front purchase costs should range from $350 to $550 for the unit itself. Average annual operating costs are in the $230 to $285 range.
Purchase costs again depend upon the model, but are roughly double that of tank-type units. Average annual operating costs are about $165 to $170, or roughly half the cost of tank heaters.
 
Size

Spanning four to six feet in height, and up to roughly two and a half feet in diameter, tank water heaters are usually located in the garage or basement because of their size. In some cases, that places the hot water source far from the point of use, meaning clients have to wait longer for the hot water.

Storage tanks for residential use are typically either 40 or 50 gallons, although larger models up to 105 gallons and point-of-use models as small as 2.5 gallons are also available.

About the size as a medicine cabinet, tankless water heaters are a small fraction of the weight of a tank unit. Consequently, they are easier to handle (one-person installation is typical) and can be wall-mounted indoors or outdoors and easily hidden from view. Their compact size also makes it easier to locate them closer to the point of use, which results in faster hot-water delivery from the heater to the tap.

Flow rates depend on several factors, including the temperature of the inlet water being heated. Rheem units offer maximum flow rates of 4.2, 5.3 and 7.4 gallons per minute.

 
Installation
In new construction, installing any type of water heater will include running fuel lines or electrical connections and allowing for adequate venting - either vertically (through the roof) or horizontally (through a wall).

In remodeling, a new tank water heater will be less expensive to install than replacing a tank unit with a tankless water heater. Installed costs are typically between $500 and $800.
In new construction, the labor time required to install a tankless water is about the same as a tank water heater.

In remodeling, more labor is required to replace a tank water heater with a tankless water heater. Because tankless water heaters house more powerful burners than tank units, they require larger gas lines. Indoor tankless water heaters also require special venting, placed either vertically or horizontally.

Installed costs to replace a tank water heater with a tankless unit are typically between $1,500 - $3,000
 
Performance
If not sized correctly for peak demand, tank water heaters will run out of hot water.

Tank water heaters decrease in efficiency over time due to sediment buildup inside the tank.

Hot water temperature is adjusted by controls on the unit. There is a time lag between adjusting the controls and experiencing the change in hot water temperature.
Tankless water heaters never run out of hot water. Even the smallest tankless unit can fill the largest soaking tub. If not sized correctly, the hot water flow rate may be inadequate during times of peak demand.

Tankless water heaters resist sediment buildup because water isn't stored. However, if your client has a hard-water problem, we strongly recommend installing some type of softening equipment to treat the water before it enters the tankless unit.

Tankless water heaters are available with wall-mounted digital controls to change the hot water temperature as often as the user prefers for precise temperature control, convenience and safety. The new hot-water temperature is instantly available the next time the unit is turned on.
 
Sustainability

Energy Factor: Up to .62

The Energy Factor is a measure of energy efficiency in typical household use. A higher number indicates a more efficient use of energy to heat water.
For the highest rate of efficiency, select tank water heaters with advanced self-cleaning systems, and corrosion-resistant tank linings.

Look for ultra-low nitrous oxide (NOx) emissions. In Southern California, emissions are required to be no more than 10 nanograms per Joule.

Energy Factor: Higher than .80

Tankless gas water heaters are more energy efficient than tank water heaters, because tankless units eliminate the need to continually heat stored water.

All Rheem tankless water heaters are built to comply with the Southern California's stringent emissions standards for low nitrous oxide (NOx).

 
Maintenance
Periodic flushing of the water heater will help reduce sediment buildup. The filters on newer, gas-fired units with FVIR technology may need cleaning periodically. Rheem Guardian gas-fired residential units have no filters to clean or replace.
The intake air filter (on indoor power vent units only) needs to be brushed off from time to time. The inlet water filter also needs to be checked periodically. In hard-water areas, the unit will need to be flushed on a regular maintenance cycle to clean out scale build-up.
 
Limited Warranty
Rheem offers up to 10 years on the tank and parts.
Rheem offers 10 years on the heat exchanger and 3 years on parts (for residential use).
 
       
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