The Rochester NY Home Inspector on Tankless Water Heaters – efficient but not necessarily economical

Factor in location. Unlike a regular water heater, a tankless model’s water output is immediately affected by groundwater temperatures. The same model that produces 7.2 gallons per minute (GPM) when installed in a warm Florida garage will output only 4.2 GPM in a cold New England basement because the colder water requires the temperature to be raised 77 degrees rather than 44. Use your coldest groundwater temperature to calculate the gallons per minute you’ll need.

Know your flow. Undersizing a tank-less water heater is a common mistake. Use our online calculator, at How to size a water heater, to help you calculate your hot-water use for both tanked and tankless water heaters.

Get the details right. Look for an oxygen-depletion sensor that shuts off the water heater if carbon monoxide is detected and a film wrap around the heat exchanger that will shut off the device if it gets too hot. Since tankless models are still relatively uncommon, consider using manufacturer trained installers. Some companies extend the warranty if you do.

Look for rebates or incentives. Many tankless models qualify for utility rebates and state tax credits. Check the Database of State Incentives for Renewable & Efficiency at www.dsireusa.org.

Reprinted from Consumer Reports October 2008 (published version includes a cost chart showing payback period)

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