Before actually purchasing your tankless water heater, you’ll need to consider the fuel type you need, where you will put the unit, and what size unit to purchase (determined by your hot water demands and the application of the unit). 

As for fuel type, your choices are either an electric tankless water heater or a gas-fired tankless water heater.  In many cases, this is determined by the type of energy set-up you already have in your home.  Check with a qualified local plumbing contractor to determine what options are available in your home if you don’t already know.  For electric-powered water heaters you’ll have to have appropriate amounts and types of electricity to install the unit; and for gas-fired ones, type of gas available to you and certain venting requirements will be the restrictions you must deal with.  If you research local building codes to ensure that your water heater is within the guidelines of your specific location, you’ll have an easier time of making an informed decision about your purchase. But remember, gas-fired tankless water heaters may still require a minimal electrical connection, so review installation requirements for the units you are considering.

Next, consider where you will need hot water, the location as well as the application.  These factors will determine where to put the units so as to best deliver hot water to the locations you need it in.  For example, do you need a unit that will heat the water at one bathroom sink (single point application), an entire bathroom (multipoint application), or an entire house, apartment, or condo (whole house application)?  Recognizing the number of fixtures that will require hot water since each fixture will have its own demands, is an important consideration when deciding where to locate your unit(s).

Typically, tankless water heaters provide hot water at a rate of 2 to 5 gallons (7.6 to 15.2 liters) per minute, with gas-fired ones, in most cases, producing higher flow rates than electric ones.  And, smaller tankless water heaters are not always capable of supplying enough hot water for simultaneous, multiple uses in large households; so make sure you are aware of approximately how much hot water you use in your home to determine what size tank you want to purchase.  If you do have a large household, and anticipate the need for lots of hot water, you can install a “whole house” type tankless water heater or two or more tankless water heaters, either connected parallel to one another or as separate tankless water heaters for individual appliances, such as your clothes washer or dishwater, that use a lot of hot water.  If you are unsure of what size to choose, ask your installer for recommendations about the size you need.

Consider these factors before purchasing your new or replacement tankless hot water heater and you’ll have hot water to enjoy for years without giving it another thought.  Taking the time to research the purchase of any appliance you’ll use for years is always a great investment of your time and energy.

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Insulate Your Water Heater and Hot Water Pipes
Insulating your water heater tank and pipes will save you about 4 to 9 percent in water heating costs. To insulate hot water pipes use blankets or other heat infusing material.  You can usually purchase and install an insulating pre-cut jacket or blanket yourself on an electric water heater, available for about $10.00 to $20.00.   You’ll want to choose one with an insulating value of at least R-8 and make sure your thermostat is set below 130 degrees Fahrenheit.  For a gas water heater, the installation of a blanket or jacket is a bit more difficult so make sure you carefully read and follow the installation instructions so as not to block the drain at the bottom or the flue at the top of your heater.  You’ll want to be careful not to block the airflow to the burner and not cover the thermostat to prevent your insulation from igniting.

Install a Drain-Water Heat Recovery System
A drain-water heat recovery system captures water before it goes down the drain from other water sources and preheats the cold water from this drainage before it enters the water heater.  By trapping and recovering heat from hot water used in showers, bathtubs, sinks, dishwashers, and clothes washers, a drain-water heat recovery system can save you valuable dollars on your hot water expenses.  You’ll need a qualified water heater plumber and heating contractor to install your system with the range of expense being $300 to $500. 

Other easy ways to lower your water heating costs is by being careful not to waste hot water, fix leaks, install low-flow fixtures, and purchase energy-efficient appliances.  Being a conscientious homeowner will always pay off with lower household expenses.
 
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A solar water heating system, in theory, is a very simple water-heating system that consists of a solar collector and a storage tank.  You have two choices of the type of solar water heating system to use: 1) an active system with circulating pumps and controls, or 2) a passive system without circulating pumps and controls.

The foundation of a solar water heater is a well-insulated storage tank with an additional outlet and inlet connected to and from a solar collector. Systems come in a two-tank version and a one-tank version. If you chose a two-tank system, the solar water heater works to preheat water that, after heating, enters your conventional water heater to pump that hot water into your home.  A one-tank system combines the back-up heater with the solar storage unit in one tank but basically works the same as the two-tank version and takes up less space. 

If you chose to go with an active solar water system, you can install either a direct circulation system which works to pump circulated household water through collectors into your house and works well in locations where the temperature rarely dips below freezing; or an indirect circulation system that has a pump that circulates a non-freezing, heat-transferring fluid through collectors and a heat exchanger into your house and works well in freezing climates.
 
As for passive solar water heating systems, these are usually less efficient than the active ones and less expensive as well.  But, on the plus side, passive systems are more reliable and last longer than their active counterparts.

For a passive system, you have two basic choices, integral collector-storage or thermosyphon systems.  The integral collector-storage passive system works best in climates where freezing doesn’t occur often and in households in which the occupants use their most significant amount of hot water in the daytime and evening.  With a thermosyphon system, the water flows through the collector by warm water rising in the solar take as cooler water sinks. Consequently, the collector in a thermoshpon system must be installed below the storage tank so the warm water rises into the tank.  A reliable system, a thermoshpon system requires the use of tanks that are heavy, are more expensive and a bit of a challenge to find a location where they fit, if you have a steep roofline on your house.

While solar water heating systems are fuel-efficient, you will need a backup system for times of increased demand of hot water or on cloudy days.  Most people who use a solar system have a conventional storage water heater as a backup.  In fact, solar system installation companies typically offer packages that include a backup system to accompany their particular solar water heater products.

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Tankless Water Heater Maintenance
To optimize the energy efficiency of your tankless water heater you must make sure that it is properly installed and that you handle maintenance issues regularly.

Proper installation and maintenance of tankless water heaters depends on the climate you live in and local building code requirements. To determine if you are within codes, you should have a qualified, licensed plumbing contractor install your tankless water heater.
 
Precautions To Take To Ensure Your Tankless Water Heater Is Installed Correctly
Take precautions in choosing a contractor to install your tankless water heater by requesting a cost estimate in writing, asking the contractor for references, checking with your local Better Business Bureau to see if unfavorable reports have been filed against the contractor, and confirm that the company has a local permit and understands your local building code requirements.

Manufacturers of tankless water heaters usually provide installation and instruction manuals with their product; so make sure your contractor is aware of this and that he has a copy of these installation instruction materials. In addition, make sure that your contractor has contacted your municipality for information about obtaining a permit to install your tankless water heater, if necessary, and that your contractor is educated in the codes required to be followed when installing your tankless water heater.

Life expectancy of most tankless water heaters is more than twenty years, so verify that parts for your particular water heater will be available for at least ten to fifteen years.

Consult the manufacturer’s website or literature for detailed warranty information about your tankless water heater.  And, remember, periodic water heater maintenance can significantly extend your water heater’s life as well as minimize your loss of efficiency. Be sure to read your owner’s manual for specific maintenance recommendations and follow those recommendations.

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While today’s choices for a water heater are greatly improved over previous choices, you still have several factors to consider when making your selection.  And, since the life expectancy of a water heater is approximately thirteen years, your choice is an important one.

Gas vs. Electric
Your first choice is to select whether you want a gas water heater or an electric one.  Sometimes the choice is easy as your home may only be equipped with the capability of one or the other; otherwise, you must pay for whatever tasks must be performed to set you up.  If your home is not set up for natural gas or natural gas is not available, the choice is an easy one.  If you do have a choice though, remember, that as a general rule, water heated by electricity is less expensive that the same amount of water heated with natural gas.  However, if propane gas is available as an option, then be aware that propane gas water heating is less expensive than electric water heating.

Type of Water Heater
One you decide the gas versus electric question, you’ll want to consider the type of water heater to purchase.  A qualified licensed plumber can also provide advice and assitance when choosing a hot water heater. These choices include:

 Solar water heaters, which use the sun’s heat for hot water provisions;
 Tankless coil and indirect water heaters, which use uses your home’s space heating system to heat the water;
 Heat pumps, which do not heat water directly but move heat from one place to another;
 Demand water heaters (tankless or instantaneous), which directly heat water without a storage tank; or
 Conventional storage water heaters, which have a storage taken filled with hot water.

Selecting the right water heater to meet your needs is more complicated than it might seem.  Do a little research on the front end of your purchase and you’ll find of a water heater that will meet your needs and satisfy your pocketbook.

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