May 18th - 2005

Going tankless – the wave of the future?

Never run out of hot water again and save up to 50 per cent on hot water heating bills – two claims being made by distributors of new “tankless” water heaters.

Never run out of hot water again and save up to 50 per cent on hot water heating bills – two claims being made by distributors of new “tankless” water heaters. As this new NASA-sponsored technology gains popularity in Ontario, it could become a great selling feature for energy conscious home buyers.

Since tankless hot water heater technology is relatively new, there’s very little available in the way of sales statistics. However, Grant Robertson, President and CEO of E-Tankless Water Heaters, says his company is experiencing very strong demand for the product and sales have been increasing at a considerable year over year rate for the past five years. 

“We are also receiving more and more dealer and contractor enquiries,” says Robertson. “As consumers, builders, and developers become more aware that the technology exists, and particularly, what the capabilities are of modern tankless water heaters compared to the small point-of-use tankless water heaters they might be more familiar with, we believe tankless water heaters will eventually replace traditional hot water tanks.”

Ontario accounts for the highest proportion of sales of this new technology, with particularly strong interest in cottage country. “The cost savings are typically magnified considerably in recreational properties due to the very high proportion of standby water heating cost associated with keeping water warm when the residents are not there,” Robertson says.

How it works
Tankless water heaters are about the same size as a briefcase and heat water entirely on demand, only when it is needed. When a hot water faucet is turned on and the water begins to flow, a sensor detects that hot water is being demanded. This sensor effectively turns on the heating elements/heat exchanger and a computer chip selects the correct power output to the elements/heat exchanger based on the heat setting selected by the user, the flow rate, and other parameters.

The water flows across the internal heating elements and exits the unit at the desired temperature. The start-up process takes a couple of seconds. The tankless water heater will remain on until the hot water faucet is closed. As soon as the flow sensor detects that water has stopped flowing, the power to the unit is turned off completely.

Advantages of going tankless
The biggest advantage of a tankless water heater is the proposed cost-savings for homeowners. Because the tankless water heater eliminates the “stand by” method of heating water and operates on an as-needed basis only, consumers can save money on hot water heating costs, even if they replace a natural gas water heater. Here are some of the benefits cited by E-Tankless:

  • The typical savings are 20 to 40% over natural gas water heaters and 30 to 50% over electric tank water heaters.
  • Tankless water heaters provide an unlimited hot water supply for an entire house and allow for back-to-back showers all day long, 24 hours a day if you wish.
  • Setting water heaters to 120 degrees can prevent scalding injuries; however, this often results in cold showers after very limited use. The tankless water heater supplies endless amounts of hot water at the desired temperature.
  • The reduction of power consumption in the household can have a positive effect on the environment.

Higher cost
The cost of a tankless water heater is probably its biggest drawback at just under $1,000. Compare that with a conventional water heater which can range in cost from about $250 to $500 depending on its size and efficiency.

According to the tankless water heater industry, the average "payback period" on the extra cost is three to five years in an average home here in Canada. However, in a recreational property, the payback is often as short as two years. In regions with higher electricity or gas prices, the payback can be even faster. The biggest payback distributors say comes when you compare the life expectancies of both products. A comparison on the “Get Tankless” web site states a conventional water heater is usually guaranteed for between two and nine years, but a tankless model has a lifetime warranty.

Another limitation, especially for older homes, is the tankless water heater’s electrical requirements. To be a candidate for a whole-house electric tankless water heater, a home would need to have a 200 amp electrical service to support it. Many newer homes in Canada have this and older homes can be upgraded to this service.

For more information about tankless water heaters visit the E-Tankless web site at www.e-tankless.com or Get Tankless at www.gettankless.com.

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For more information contact

Ontario Real Estate Association

Jean-Adrien Delicano

Senior Manager, Media Relations

JeanAdrienD@orea.com

416-445-9910 ext. 246

Ontario Real Estate Association
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