In the last issue, we wrote about the two types of storage tank water heaters used by Del Webb in Sun City, Huntley (open combustion and closed combustion). After 10-15 years of use, these water heaters will need to be replaced. Residents will have to decide whether they want another storage-tank water heater or one of the new higher efficiency tankless water heaters. The tankless water heaters do not store any hot water like the 40 to 50 gallons you have in your storage tank heater. Instead, it uses high-powered burners to quickly heat water as it runs through the unit’s heat exchanger each time you open a hot water faucet. There are pros and cons for both types but most people will make their decision based on cost.
To find the typical cost of heating water in Sun City, we asked several Woodchucks who only use gas for the furnace and the water heater to check what they spend to heat water by checking their July and August gas bills when the furnace is not used. The average was $25 per month. This equates to $300 per year. A tankless water heater is typically 25 percent more efficient, so it should heat water for $225 per year, or a saving of $75.
Tankless water heaters cost $800 – $1200, with the average about $1000. Tank water heaters cost $300 – $500, with the average about $400. Installation for a tankless heater averages $1500, while a tank heater averages $300.
| Tankless | Tank | Difference | |
| Cost of heater | $1,000 | $400 | $600 |
| Installation | $1,500 | $300 | $1,200 |
| Installed cost | $2,500 | $700 | $1,800 |
With an $1800 higher installed cost for the tankless heater, let’s see if the savings will offset this difference by extending out ten years.
A tankless water heater will cost $1800 more than a storage tank heater, and it will only save you $750 in the first ten years. The break-even point comes at 24 years.
| Tankless | Tank | Difference | |
| Annual gas cost | $225 | $300 | $75 |
| 10-year gas cost | $2,250 | $3,000 | $750 |
There is another cost that we have not addressed. Tankless heaters are subject to scale buildup. They have an indicator to warn of this condition, which requires the service by a qualified technician. Industry pros recommend servicing once a year to avoid damaging the unit. This service costs $200 – $300, which is higher than the $75 a year that the unit saves.
Even though the cost is higher, you may want to choose a tankless heater because you can get unlimited hot water. A large Jacuzzi tub cannot be fully filled with a 50-gallon tank heater but can be filled with a tankless heater because it continues to heat water as long as the faucet is open. It also takes less physical space and can be mounted on the wall.
There are a couple of cons that you should be aware of. With a tankless heater, you will not get any hot water during a power outage, as there are controls that need to be powered. This is not a problem with a storage tank heater since it runs entirely on gas and is not affected by an electrical outage. There is also a phenomenon known as a cold-water sandwich with tankless heaters that comes from low or intermittent use. For example, when shaving with a low hot-water flow, the unit will turn off and on, causing slugs of hot water interspersed with slugs of cold water. This will also happen if you turn the water off and back on repeatedly at the sink.
The bottom line is that the tankless water heater is about 25% more energy efficient than the storage tank heater, but because of its higher installed cost and its required maintenance cost, there are no dollar savings.
Reminder: The woodchucks will be holding their Ask the Woodchucks day at the Millgrove Woodshop on April 20. This is an opportunity for Sun City residents to bring a broken or damaged chair, table, or other wooden object to the shop for repair. It is necessary to reserve a spot for this service. Look for the flyer in the April Lifestyles magazine and sign up early.
If you have suggestions for future tips or have questions about maintenance around your home, submit them to ask.the.woodchucks@gmail.com.
