What Should You Consider When Buying Electric Tankless Water Heaters?

12, Mar. 2026

 

Understanding the Benefits of Electric Tankless Water Heaters

When considering a new water heating system, you may have come across electric tankless water heaters. Unlike traditional storage water heaters, these systems heat water on demand, which means you won’t run out of hot water during a shower or while washing dishes. But before you make a purchase, there are several factors to consider to ensure you select the best option for your home.

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1. Assess Your Hot Water Needs

One of the first things to evaluate is your household's hot water demand. Calculate how many outlets you will be using simultaneously—like showers, washing machines, and kitchen sinks. A good rule of thumb is that a single outdoor electric tankless hot water heater can typically provide up to 5 gallons per minute (GPM) at a specific temperature increase. If your family frequently has multiple hot water demands, you might need a larger unit or even multiple units.

2. Evaluate Power Supply Requirements

Electric tankless water heaters require a significant amount of electrical power. Check your home's electrical capacity to determine whether you need an upgrade. Most units operate on 240 volts and require dedicated circuits. Consult with an electrician to ensure your system can support the heater you intend to buy. This is crucial not only for the performance of the heater but also for the safety of your home.

3. Consider Energy Efficiency Ratings

Energy savings is a primary selling point for electric tankless water heaters. Look for units with high energy efficiency ratings, such as those certified by ENERGY STAR. These models use advanced technology to minimize energy usage while delivering hot water on demand. Although the upfront cost may be higher, the reduction in utility bills can lead to long-term savings.

4. Choose the Right Size and Flow Rate

Sizing is another critical factor. A heater that's too small will struggle to meet high demands, while an oversized model can lead to unnecessary energy waste. Many manufacturers provide sizing calculators on their websites to help you match your needs with the right unit. Make sure to consider the climate in your area, as incoming water temperature impacts how efficiently the unit can heat water.

5. Installation Considerations

The installation of your outdoor electric tankless hot water heater will be less troublesome if you factor in accessibility. Most units can be mounted on a wall, either indoors or outdoors, but outdoor installations might require additional weatherproofing. Also, check local codes and regulations, as permits may be necessary for installation. Hiring a licensed plumber or electrician can ensure the heater is installed safely and correctly.

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6. Maintenance and Warranty

Regular maintenance is essential for the longevity of your investment. Consider models that are easy to maintain and have accessible components for service. It's also wise to read through the warranty options. A quality product will often come with a longer warranty, which provides you peace of mind against potential malfunctions. Some manufacturers offer up to 15 years on specific components, which is a good indicator of reliability.

Common Questions Regarding Electric Tankless Water Heaters

What are the benefits of using an electric tankless water heater?

Electric tankless water heaters provide an endless supply of hot water, are energy-efficient, and take up significantly less space than traditional tank heaters.

Can I install a tankless heater myself?

While some handy homeowners may attempt a DIY installation, hiring a licensed professional is recommended. This ensures compliance with local codes and reduces the risk of improper installation.

How long do electric tankless water heaters last?

With proper maintenance, these heaters can last over 20 years, which is significantly longer than traditional tank heaters.

How do I know if my household needs a tankless water heater?

If your family often runs out of hot water during peak usage times, or if you want to reduce energy consumption, then an electric tankless water heater may be a wise investment.

In conclusion, investing in an electric tankless water heater can provide significant benefits to your household, from energy savings to an uninterrupted supply of hot water. By considering your hot water needs, power supply, energy efficiency, proper sizing, installation, and maintenance, you can make an informed decision that will serve your home for many years to come.

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