Specifically, what is the reason that a tankless water heater saves money on utility costs and what is the payback period?
Most tank-type water heaters lose about 3% to 4% of their heat every hour, 24 hours per day, every day. The tankless water heater heats water only when the faucet is turned on. A tankless water heater has no standby heat loss. With the exception of the miniscule amont of electricity necessary to power the digital standby display, a tankless direct-vent heater only uses energy when you are using hot water. The payback period for tankless water heaters is 3 to 7 years depending upon how much hot water you use and the cost of energy. (The smaller the amount of hot water that you use, the faster the payoff.) If you are single and are seldom at home using hot water, your energy bill reflects the low consumption because tankless water heaters DO NOT EXPERIENCE STANDBY HEAT LOSS. Additionally, you are contributing to protecting the planet as well as the future of fuel and fresh water supplies.
