Is a Tankless Water Heater Worth It?

Tankless water heaters have been gaining popularity, and for good reason — they offer endless hot water, take up less space, and can last significantly longer than traditional tank models. But are they the right choice for every home? Here is what you need to know.

The biggest advantage of a tankless water heater is efficiency. Because it only heats water when you need it, there is no standby energy loss from keeping a tank of water hot 24/7. The Department of Energy estimates that tankless water heaters can be 24% to 34% more energy-efficient for homes that use 41 gallons or less of hot water daily.

However, tankless units have a higher upfront cost. The unit itself costs more than a standard tank water heater, and installation can be more involved — especially if your home needs gas line upgrades, new venting, or electrical work. For a typical Maine home, expect to pay more upfront but save on monthly operating costs over time.

One common concern is flow rate. Tankless water heaters heat water on demand, but they have a maximum flow rate. If you are running multiple showers, a dishwasher, and a washing machine simultaneously, a single tankless unit may struggle to keep up. In larger households, we sometimes recommend multiple units or a hybrid approach.

The lifespan advantage is real. A quality tankless water heater can last 20+ years with proper maintenance, compared to 10 to 12 years for a standard tank model. That longer lifespan helps offset the higher initial investment.

At RG Mechanical, we do not push tankless on everyone. We evaluate your household's hot water usage, plumbing configuration, and budget to recommend the best option. Sometimes a high-quality tank water heater is the smarter choice. We will always give you an honest recommendation.