Tankless vs. Tank Water Heater: What Kind Should You Buy?

Are you ready to replace your water heater—but unsure whether to go tank or tankless?
It’s a common question we hear at Blue Fox Heating Cooling & Plumbing! Most of our customers grew up in homes with storage-tank water heaters and are familiar with them. But what about tankless models?
Will they save you money in the long run? How efficiently do they work?
Our technicians always want to keep our customers updated about the latest products and services that can benefit your Central Indiana home. We want you to feel 100% comfortable whenever you are ready to update your heating, cooling, or plumbing systems.
So, let’s dive into the great water heater debate and help you decide which option is best for your home! We help homeowners and businesses in Bloomington, Delphi, Kokomo, Lebanon, West Lafayette, and all the surrounding Central Indiana communities.
The Traditional Workhorse: Storage-Tank Water Heaters
You know them, you probably grew up with them, and they’ve been a reliable fixture in homes for decades. A storage-tank water heater is essentially a large, insulated tank that stores and continuously heats a set amount of water.
How Tank Water Heaters Work:
Cold water enters the tank, and a thermostat senses its temperature. If it’s below the set point, the heating element (either electric or gas-powered) kicks in to warm the water. Once heated, the hot water waits patiently at the top of the tank until you turn on a faucet.
Pros of Tank Water Heaters:
- Affordability: Generally, tank water heaters have a lower upfront purchase price compared to their tankless counterparts.
- Consistent Hot Water Supply: For most average-sized households, a tank water heater provides a consistent and ample supply of hot water, even during peak usage times when multiple people might be showering or running appliances.
- Reliability: These systems are relatively simple in their design, which often translates to fewer complex parts that can break down.
- Easier Installation/Replacement: If you’re replacing an existing tank water heater, the installation process is usually straightforward, as the plumbing and venting are already in place.
Cons of Tank Water Heaters:
- Space Hogs: Let’s be honest, those big tanks take up a lot of valuable space in your basement, utility closet, or garage.
- Energy Waste: This is a big one! A storage-tank heater continuously heats water, even when you aren’t using any. This “standby heat loss” means you’re constantly spending money to keep water hot, even when no one is home. According to the U.S. Department of Energy (DOE), water heating is the second largest expense in your home, accounting for up to 18 percent of your utility bills.
- Limited Hot Water: While generally consistent, a tank water heater has a finite supply. If you have a particularly busy morning with back-to-back showers and laundry, you might find yourself running out of hot water, leading to chilly surprises!
- Potential for Leaks: Over time, tanks can corrode, especially if the anode rod (a protective rod designed to prevent corrosion) isn’t regularly inspected and replaced. A leaking tank can cause significant water damage to your home.
- Shorter Lifespan: Storage-tank water heaters typically start showing wear and tear around the 12-15 year mark.
The Modern Marvel: Tankless Water Heaters
In recent years, more Central Indiana homeowners have gone “tankless,” and it’s easy to see why! Tankless water heaters instantly heat your water whenever you turn on the tap, offering a modern solution for on-demand water heating.
How Tankless Water Heaters Work:
When you turn on a tap, cold water runs through a heat exchanger in the tankless unit. This heat exchanger rapidly warms the water to your desired temperature before it reaches the faucet.
And because they do not require a storage tank, a tankless model takes up very little space. You can mount your tankless water heater to a wall! They can run on electricity, natural gas, propane, or solar energy.
Pros of Tankless Water Heaters:
- Endless Hot Water: This is a major perk! Unlike tank heaters, which have a limited supply, tankless models provide a continuous flow of hot water. No more cold showers, even if everyone in the house is getting ready at once!
- Energy Efficiency & Savings: This is where tankless truly shines. They only heat water when needed, leading to significant energy cost savings compared to constantly heating a tank of water.
- Space Saving: They’re minimal and sleek—a small metal box that mounts to your wall. This compact size allows for flexible installation in tight spaces, whether in a closet, by the kitchen sink, or in a corner of your basement. That means more storage room and less eyesore!
- Longer Lifespan: With proper maintenance, tankless heaters can last over 20 years, exceeding the lifespan of traditional models.
- No Leaks! Because there’s no large tank of water sitting around, the risk of a catastrophic leak causing water damage is virtually eliminated.
Cons of Tankless Water Heaters:
- Higher Upfront Cost: Most tankless models are pricier than their storage-tank counterparts. This initial investment can be a hurdle for some homeowners.
- Installation Complexities: While the unit itself is compact, installing a tankless water heater, especially if you’re switching from a tank, can sometimes require new gas lines, water lines, or upgraded electrical service. This can add to the overall installation cost.
- Not Instant Water: It’s important to understand that “on-demand” doesn’t mean instant hot water at the tap. There’s still a short delay as the water travels from the unit to your faucet. One common solution to this is to add a recirculating pump, which helps bring hot water to your fixtures faster.
- Flow Rate Considerations: Tankless heaters have a lower flow rate, meaning they handle less water than a larger tank. For instance, a single tankless heater might not produce enough hot water to run multiple appliances simultaneously if your home is very large. However, a Blue Fox Heating, Cooling, & Plumbing professional can install more than one tankless unit when necessary to provide the perfect amount of water to meet your Central Indiana home’s needs.
- Maintenance Needs: Tankless systems have more moving parts than a traditional tank, and while reliable, they do require annual maintenance, particularly flushing to prevent mineral buildup from hard water. This helps ensure optimal performance and longevity.
Ready to Make a Decision?
The best water heater for your Central Indiana home depends on your specific needs, budget, and lifestyle.
- If you’re looking for the most affordable upfront option and have a moderately sized household, a modern, energy-efficient tank water heater can be a fantastic choice, offering reliable and consistent hot water.
- If you prioritize long-term energy savings, endless hot water, and a smaller footprint, and you’re comfortable with a higher initial investment, a tankless water heater is an outstanding upgrade.
Our team at Blue Fox Heating, Cooling, & Plumbing takes a lot of pride in helping our Central Indiana customers spend less on utilities while lowering their carbon footprint. We specialize in finding practical plumbing solutions that fit your budget and lifestyle.
Every home is unique, and before performing any replacement, we take a detailed inventory of your water system and make calculations to ensure we find a product that’s right for you. Converting to tankless is an upgrade, but it wouldn’t feel like one with an undersized heater!
Don’t forget to ask about our financing options for automatic maintenance reminders and discounts!
How Can We Help You?
Call us today at 765-252-0051 or request service online for a free consultation. Our licensed Central Indiana plumbers can help you decide the best water heating system for your Bloomington, home. We’re pleased to serve our neighbors in Central Indiana and build relationships with our customers that last a lifetime.