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Tankless Water Heater

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Tired of running out of hot water? That’s not a problem with one of these compact, ultra-efficient units that heat water as you need it. Here’s what you need to know about choosing, installing, and living with a tankless water heater.

Tankless Water Heater Installation

These are the arguments for investing in a tankless water heater. It generates hot water only when you need it—and for as long as you need it—saving 27 to 50 percent of fuel costs over tank-type heaters. (A typical gas-fired tank wastes 40 to 50 percent of the fuel it burns.)

And because there’s no tank to fail, there’s almost no chance of a catastrophic leak. What’s more, since their introduction in the United States in the 1990s, tankless heaters have become increasingly sophisticated, with features like built-in recirculating pumps (for “instant” hot water), and wireless connectivity that tells you via smartphone exactly when a unit needs maintenance.

How Does a Tankless Water Heater Work?

  1. It all starts when you turn on the hot-water tap (1).
  2. flow sensor (2) detects water coming into the heater and sends a signal to the control panel to start producing hot water.
  3. In a gas-fired unit, the control panel (3) turns on the fan (4), which draws in outside air, opens the gas valve (5) that lets in the gas, and ignites the burner (6).
  4. The heat exchanger (7) captures heat from the flames and transfers it to the water moving through the exchanger’s tubing.
  5. The mixing valve (8) tempers the superheated water exiting the exchanger.
  6. If the temperature sensor (9) detects that the water exceeds or falls short of the desired setting, the panel will adjust the gas valve, the mixing valve, and the flow-regulating water valve (10) accordingly.
  7. A sealed vent (11) (or pair of vents) through a roof or outside wall carries away exhaust gases and conveys combustion air to the burner.

Pros and Cons of Tankless Water Heaters

PRO: They’re Compact

Newer tank-type water heaters have grown bigger as federal regulations now require thicker insulation to reduce standby heat loss.So they may not be able to fit into spaces where an old heater of the same capacity could go. Tankless gas heaters are about the size of a suitcase and hang on the wall.

PRO: They’re Safer

Unlike a tank-type heater, they won’t spill gallons of water if they spring a leak, or harbor Legionella bacteria, or tip over in an earthquake. And because the air supply and exhaust vents are sealed, carbon monoxide can’t leak into the house due to backdrafting.

PRO: They’re Easy to Winterize

Owners of vacation homes know well how long it takes to drain a water-heater tank before closing up a house for the winter. With a compressor, you can drain a tankless heater in a few seconds; then you just unplug it.

CON: They’re Sensitive to Slow Flow

If there’s too much scale buildup in the pipes, or faucet and showerhead aerators are clogged, or a turned-down faucet reduces water flow to about 0.3 gpm, these units automatically shut off.

CON: The Payback Takes Awhile

Compared with a tank-type heater costing $400 or so, a $1,000 tankless gas heater may save a household only about $100 per year, depending on how efficient it is and how much hot water is used.

But because these tankless gas units last longer, the savings kicks in after six years, about when many tanks are nearing their demise.

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