Tankless water heaters work by heating water as needed. Tank water heaters use 58%–60% of energy to heat your water effectively, and they last for around eight to 12 years. As a result, these tanks have higher utility bills and a shorter lifespan. Established as the conventional water heater that’s easy to install, storage tank heaters are less expensive than tankless systems, running between $820–$1,290.Īlthough a more affordable option, tank heaters are less energy-efficient since they constantly run to maintain the desired tank temperature. Storage tank water heaters are easier to install than their tankless counterparts, requiring about three hours of labor. To heat the water, tank water heaters typically use electricity or natural gas. Water heaters are installed out of sight, oftentimes in a garage, basement, or utility closet. Storage tank water heaters are a popular choice for homeowners, constantly holding and heating gallons of water. Tank and tankless water heaters are two of the most common types of water heaters available.
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