• It may not be the right choice-There are certain things to consider before just installing a tank less water heater. Whether a tank less water heater is right for your home depends on how much hot water you use and where and when you typically use it. It is important to keep in mind that the initial cost of a tank less water heater can be high compared to traditional water heaters (from $200 to $1000), especially when you factor in installation costs (an additional $300 to $1500), so you will need to figure the potential return over time. Basically a tank less water heater makes sense if saving energy is a high priority for you; the math may not work if you are only interested in saving money.

You will also need to consider these factors:

• Your return on your investment will typically be quicker the less hot water you use.


• You should have a clear picture of how much hot water you use by asking yourself the following questions:

1. How many people are in your household?
2. Do they usually shower or otherwise use large quantities of water (dishwasher, clothes washer, etc.) at the same time?
Keep in mind that the size of the tank less water heater you buy, and therefore the price, goes up with the amount of heated water you will need at once. It is also important to realize that tank less water heaters also work better when hot water usage points are located in close proximity in your house; otherwise, you may need more than one heating unit.

• A propane tank less water heater-While you have already heard that tank less water heaters are a great way to save space, conserve water and reduce energy consumption you can take it a step further by using a propane tank less water heater instead of electric one. Best of all the propane version is Energy Star-certified by the U.S. Environmental Protection Agency, but the electric model is not. A propane tank less water heater produces 63 percent less in carbon emissions than an electric tank less version. And if you decide to make the switch to a propane tank less water heater from a regular electric tank-style model, the difference can be even more significant since your carbon footprint shrinks as much as if you had switched from a typical mid-size sedan to a hybrid.


• Know how a tank less water heater works-The idea behind a tank less water heater is rather simple. Water is heated only on demand via a unit installed near the point of use instead of being heated and stored in a big tank. The way you save energy is because you do not have to keep a large quantity of water hot while you are waiting to use it, and you conserve water because you do not have to run the faucet while you wait for heated water to travel through the pipes. The bottom line is that in times of heavy use, you will never run out of hot water!


• You can recoup the cost of installation-Over time; the cost of installation can be recouped through utility bill savings, (particularly if you do not use hot water in huge volumes). Tank less water heaters will reduce standby energy loss by up to 20 percent compared to storage water heaters, and they cost approximately 60 percent less to operate. In addition because a tank less water heater is less prone to corrosion, the lifespan of the heater is about 20 years, or about twice as long as a storage water heater. You should know that you may also qualify for energy rebates or tax credits by installing a propane tank less water heater. Check with your state to see if they offer a rebate and view the latest federal tax incentives.