With the sale of gas-powered water heaters starting in 2030, plenty of homeowners are making the early switch to electric tankless water heaters. As more families consider tankless electric water heaters, they’re all wondering what the pros and cons of electric tankless water heaters. 

Since 2007, we’ve installed and serviced all types of water heaters, whether gas-powered or electricity-only. At Monkey Wrench Plumbing, Heating, Air & Electric, our technicians receive hands-on training from some of the top tankless water manufacturers in the industry. The specialized training combined with years of experience has been extremely helpful in educating homeowners in Los Angeles and the surrounding areas about electric tankless water heaters. 

To help break it down further, we’ll highlight the pros and cons of electric tankless water heaters. 

The pros of electric tankless water heaters include,

  • Continuous hot water
  • Energy efficient
  • Saves space 

On the other hand, the cons of electric tankless water heaters include:

  • Electric system upgrades
  • Limited flow rate
  • Susceptible to outages

By the end of this article, you can compare the pros and cons of electric tankless water heaters and determine which best meets your home’s hot water demands.

Let’s dive right in!

 

Pros of Electric Tankless Water Heaters

Electric Tankless Water Heaters Provide Continous Hot Water

With an electric tankless water heater, your home will have continuous, on-demand hot water. Conventional water heaters hold hot water in a tank but can run out of it during high hot water usage times. Electric tankless water heaters do not have this problem because they heat water on demand whenever a hot water faucet is turned on. 

Here’s a closer look at how electric water heaters operate.

  • A hot water faucet is turned, and water enters the electric tankless water, activating a flower sensor.
  • The flow sensor kickstarts the heating elements by giving the heat exchangers inside a strong surge of electric currents. The charged currents heat the metal heat exchangers.
  • As water safely passes through, the generated heat is transferred to create hot water at a set temperature. The heated water is then transported to the fixture(s).

Tankless water heaters powered by electricity have controls that allow you to set the temperature of the hot water. The average set temperature is 120 degrees Fahrenheit, but it’s recommended not to go any higher to avoid any scalding. 

Besides providing on-demand hot water, electric tankless water heaters are highly energy-efficient. 

 

Tankless Electric Water Heaters Are Energy-Efficient

Electric tankless water heaters are some of the most energy-efficient water-heating systems available. According to the United States Department of Energy, they are up to 34% more efficient than conventional water heaters. 

When it comes to energy efficiency standards, electric tankless water heaters have some of the highest ratings available. All water heating systems use the Uniform Energy Factor (UEF) ratings to compare their energy efficiency. 

The lowest rating is .63 UEF, but tankless electric water heaters have an average rating above .90 UEF. This means that out of 100% energy consumption, electric tankless water heaters use 90% and only waste 10%. The difference can lead to energy savings for you and your family.

Conventional water heaters experience standby heat loss because they constantly use natural gas to maintain the stored water at a set temperature. On the other hand, tankless electric water heaters don’t have this issue because they can heat water on demand without requiring natural gas consumption. 

If your home has solar panels, you can make running your electric tankless water heater more cost-effective. Solar energy is a renewable source, and using it to power your electric tankless water heater can lower your home’s carbon footprint. 

With an electric tankless water heater, you won’t have to worry about bulky water storage tanks like conventional water heaters. 

 

Electric Tankless Water Heaters Save Space

Thanks to their compact design, electric tankless water heaters aren’t bulky and can free up space in your home. They also free up floor space, which can be beneficial for homes with limited space. 

Tankless electric water heaters offer flexible installation options. Unlike tank-style water heaters, which are stored in dedicated utility rooms or garages, electric water heaters can be installed in various locations with exterior wall space. 

As beneficial as electric tankless water heaters can be, they have certain limitations, which we will cover in the next few sections. 

 

Cons of Electric Tankless Water Heaters

Electrical System Upgrades Required for Electric Tankless Water Heaters

Your home needs to have the proper electric system layout to support an electric tankless water heater. These water heating systems need to have dedicated circuits with surge protectors to have a reliable power supply.

Many homes may not have the electrical system layout to support an electric tankless water heater, so you may have to pay extra to upgrade it before a tankless installation. Electrical panel upgrades may cost thousands of dollars in addition to the price you’re paying for the tankless electric water heater.

Failing to upgrade the electrical panel may lead to circuit overloads, outages, and potential safety hazards. Even if you decide to invest in electrical panel upgrades, electric tankless water heaters have a lower flow rate than gas-powered tankless water heaters.

 

Tankless Electric Water Heaters Have Limited Flow Rate 

Electric tankless water heaters have an average flow rate of 2 to 5 gallons per minute (GPM), which is lower than their gas-powered counterparts. Flow rate determines how many fixtures in your home, such as showers and faucets, can receive hot water at the same time without a decrease in temperature.

The average flow rate range of electric water heaters may not be enough to provide continuous hot water if you’re using a laundry machine and shower at the same time, for example. This may cause your home to experience a drop in water temperature during peak hot water usage times. 

Gas tankless water heaters have a flow rate above 5 GPM, which can be more suitable for homes with high hot water usage. Because electric tankless water heaters don’t run on natural gas, they may be susceptible to electrical outages. 

 

Electric Tankless Water Heaters Are Susceptible to Outages 

Due to their dependence on electricity, tankless electric water heaters can be powerless if there’s an outage. An electrical outage will leave you without hot water production since no power goes to your electric tankless water heater. 

Unless you have a backup generator, your electric water heater will be useless until there is electrical power again. You may have water running through your home, but it will not be heated. 

 

Are Electric Tankless Water Heaters Worth It?

Electric tankless water heaters are an alternative if you’re seeking an eco-friendly water heating system for your home. Even if they have a few drawbacks, these systems can benefit your home. Now that you know the pros and cons of electric tankless water heaters, you can decide if these units can meet your home’s hot water needs. 

Whether electric or gas-powered, our technicians at Monkey Wrench have the expertise to install and service all tankless water heaters. If you’re interested in an electric tankless water heater, contact us using one of the buttons below. 

If you want to learn more about how electric tankless water heaters compare with gas-powered units, check out this article that compares the two water heating systems.

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