Which One Do I Need: Storage Tank Water Heater or Tankless Water Heater?

Choosing the right water heater to equip your home's hot water needs is essential to most homeowners. Its performance, cost, and longevity are the main things you should consider when deciding what type of water heater you will invest in. 

You may hear about the most common or the traditional storage-tank water heater and a tankless water heater. To help you understand, we've devised this comparison to know what's the best for you! 

What is a Storage Tank Water Heater? 

One of the most common homeowners is the traditional storage-tank water heater due to its lower cost. While this kind of water heater is frequently used, its popularity nowadays is losing due to its inefficiency. The tank is filled with tap water and then heated for domestic use. If the water is not being used, it sits in the storage tank, continually heated until its subsequent consumption. Most homeowners pay to have heated water whether they need it or not. 

What is a Tankless Water Heater?  

The tankless water heater or commonly known as the on-demand water heater. What it makes different from a storage-tank water heater is that it only heats water when required, rather than continually running to keep water hot like a storage-tank water heater. The water is heated as it runs through a heat exchanger to bring up the temperature and directly to your shower or faucets. 

Now we have a glimpse of understanding between a storage-tank water heater and a tankless water heater will move forward to help you understand further. 

Cost Comparison 

Price is one of the most influential things that can affect when we consider purchasing a water heater. A tankless water heater costs higher compared to a traditional storage-tank water heater. If you have a traditional storage-tank water heater and are planning to upgrade to a tankless water heater, get financially ready because you might run into some extra expenses regarding plumbing installation changes.  

Energy-Efficient Water Heater 

Tankless water heaters are more efficient than most common traditional storage tank water heaters. As we have mentioned earlier, a tankless water heater only heats water by its demand, which is why it uses less energy than the storage-tank water heaters in which the water is heated all the time to its preset temperature in case you need it. Heat loss is a significant factor in higher energy costs and efficiency in storage tank water heaters, though adding insulation can reduce heat loss. 

The Life Expectancy of The Unit 

Working estimates for most tankless water heaters can last 20 years or more compared to the storage tank water heaters, which last about 10 - 15 years. 

Now, if you decide to go for a tankless water heater due to its longevity, let you know a storage-tank water heater can extend its life by having extra care such as routine maintenance like draining the water heater. 

Hot Water Heater Warranty

Many water heater manufacturers require or recommend the treatment of hard water for the customer’s warranty coverage to remain valid. 

Tankless hot water heaters can last decades if properly cared for. Regular maintenance is essential to ensure your water heater runs smoothly and to keep the manufacturer’s warranty active. 


Choose a tankless water heater if you want to save more money over time. And If you are on a tight budget, choosing a storage-tank water heater makes sense. No doubt that these two provide their purpose in having hot water in our homes.