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Differences Between Traditional and Tankless Water Heaters

When it comes to choosing a water heating system for your home, two popular options are traditional water heaters and tankless water heaters. Both serve the purpose of providing hot water, but they have significant differences in terms of functionality, energy efficiency, and installation. In this blog post, we will explore the distinctions between traditional and tankless water heaters to help you make an informed decision for your home.

Operation and Functionality

Traditional Water Heaters

Traditional water heaters store and heat a large volume of water in a tank, typically ranging from 30 to 80 gallons. The water is constantly heated to maintain a preset temperature. When a faucet is turned on, hot water is drawn from the tank, and cold water enters to replace it, triggering the heating process to maintain the set temperature.

Tankless Water Heaters

In contrast, tankless water heaters, also known as on-demand or instantaneous water heaters, do not store hot water in a tank. Instead, they heat water directly as it passes through the unit. When a hot water tap is turned on, cold water flows through a heat exchanger, instantly heating the water to the desired temperature. This means hot water is available on demand without the need for storage.

Energy Efficiency

Traditional Water Heaters

Traditional water heaters tend to be less energy efficient because they continuously heat and reheat water in the tank to maintain a consistent temperature, regardless of whether hot water is being used or not. This results in standby heat loss, which can account for a significant portion of energy consumption.

Tankless Water Heaters

Tankless water heaters are known for their energy efficiency. Since they only heat water when it is needed, they eliminate standby heat loss, leading to reduced energy consumption. Tankless units are estimated to be 20-30% more energy-efficient than traditional water heaters, resulting in potential cost savings on monthly utility bills.

Space Considerations

Traditional Water Heaters

Traditional water heaters require a significant amount of space due to their large storage tanks. These tanks are usually installed in utility rooms, basements, or garages, occupying valuable floor space.

Tankless Water Heaters

Tankless water heaters are compact and wall-mounted, taking up significantly less space compared to their traditional counterparts. This makes them a suitable choice for homes with limited space or for those looking to maximize their usable space.

Lifespan and Maintenance

Traditional Water Heaters

On average, traditional water heaters have a lifespan of 10-15 years. Over time, sediment build-up can occur inside the tank, affecting its efficiency. Regular maintenance, such as flushing the tank, is required to prevent such issues.

Tankless Water Heaters


Tankless water heaters have a longer lifespan, averaging 20 years or more with proper maintenance. Since there is no storage tank, the risk of corrosion and leaks is reduced. However, annual maintenance, such as descaling, is necessary to ensure optimal performance.


Choosing the right water heater for your home depends on various factors such as energy efficiency, space constraints, and long-term cost savings. Traditional water heaters offer reliability and are suitable for larger households with simultaneous hot water needs. On the other hand, tankless water heaters provide on-demand hot water, are energy efficient, and save valuable space. Consider your specific requirements and consult with professionals to make an informed decision. At Great Lakes Heating And Air Conditioning, we can assist you in selecting and installing the ideal water heating solution tailored to your needs.