Demand (Tankless or Instantaneous) Water Heaters

Demand (tankless or instantaneous) water heaters provide hot water only as it is needed. They don't produce the standby energy losses associated with storage water heaters, which can save you money. Here you'll find basic information about how they work, whether a demand water heater might be right for your home, and what criteria to use when selecting the right model.

 

How They Work

Demand water heaters heat water directly without the use of a storage tank. Therefore, they avoid the standby heat losses associated with storage water heaters. When a hot water tap is turned on, cold water travels through a pipe into the unit. Either a gas burner or an electric element heats the water. As a result, demand water heaters deliver a constant supply of hot water. You don't need to wait for a storage tank to fill up with enough hot water. However, a demand water heater's output limits the flow rate.

Typically, demand water heaters provide hot water at a rate of 2–5 gallons  per minute. Gas-fired demand water heaters produce higher flow rates than electric ones. Sometimes, however, even the largest, gas-fired model cannot supply enough hot water for simultaneous, multiple uses in large households. For example, taking a shower and running the dishwasher at the same time can stretch a demand water heater to its limit. To overcome this problem, you can install two or more demand water heaters, connected in parallel for simultaneous demands of hot water. You can also install separate demand water heaters for appliances such as a clothes washer or dishwater that use a lot of hot water in your home.

Other applications for demand water heaters include the following:

• Remote bathrooms or hot tubs
• Booster for appliances, such as dishwashers or clothes washers
• Booster for a solar water heating system.

Although gas-fired demand water heaters tend to have higher flow rates than electric ones, they can waste energy if they have a constantly burning pilot light. This can sometimes offset the elimination of standby energy losses when compared to a storage water heater. In a gas-fired storage water heater, the pilot light heats the water in the tank so the energy isn't wasted. The cost of operating a pilot light in a demand water heater varies from model to model. Ask the manufacturer how much gas the pilot light uses for the model you're considering. If you purchase a model that uses a standing pilot light, you can always turn it off when it's not in use to save energy. Also consider models that have an intermittent ignition device (IID) instead of a standing pilot light. This device resembles the spark ignition device on some gas kitchen ranges and ovens.

For homes that use 41 gallons or less of hot water daily, demand water heaters can be 24%–34% more energy efficient than conventional storage tank water heaters. They can be 8%–14% more energy efficient for homes that use a lot of hot water—around 86 gallons per day. You can achieve even greater energy savings of 27%–50% if you install a demand water heater at each hot water outlet.

Selecting a Demand Water Heater

Demand water heaters cost more than conventional storage water heaters. However, you may find that a demand water heater may have lower operating and energy costs, which could offset its higher purchase price.

Before buying a demand water heater, you also need to consider the following:

• Size
• Fuel type and availability.
• Energy efficiency (energy factor)
• Estimate costs

Installation and Maintenance

Proper installation and maintenance of your demand water heater can optimize its energy efficiency.

Proper installation depends on many factors. These factors include fuel type, climate, local building code requirements, and safety issues, especially concerning the combustion of gas-fired water heaters. Therefore, it's best to have a qualified plumbing and heating contractor install your demand water heater. Do the following when selecting a contractor:

• Request cost estimates in writing
• Ask for references
• Check the company with your local Better Business Bureau
• See if the company will obtain a local permit if necessary and understands local building codes, etc.

If you're determined to install your water heater yourself, first consult the manufacturer. Manufacturers usually have the necessary installation and instruction manuals. Also, contact your city or town for information about obtaining a permit, if necessary, and about local water heater installation codes.

Most tankless water heaters have a life expectancy of more than 20 years. They also have easily replaceable parts that extend their life by many more years. In contrast, storage water heaters last 10–15 years. Periodic water heater maintenance can significantly extend your water heater's life and minimize loss of efficiency. Read your owner's manual for specific maintenance recommendations.

Heat Pump Water Heaters

Most homeowners who have heat pumps use them to heat and cool their homes. But a heat pump also can be used to heat water—either as stand-alone water heating system, or as combination water heating and space conditioning system.

How They Work

Heat pump water heaters use electricity to move heat from one place to another instead of generating heat directly. Therefore, they can be two to three times more energy efficient than conventional electric resistance water heaters. To move the heat, heat pumps work like a refrigerator in reverse.

While a refrigerator pulls heat from inside a box and dumps it into the surrounding room, a stand-alone air-source heat pump water heater pulls heat from the surrounding air and dumps it—at a higher temperature—into a tank to heat water. You can purchase a stand-alone heat pump water heating system as an integrated unit with a built-in water storage tank and back-up resistance heating elements. You can also retrofit a heat pump to work with an existing conventional storage water heater.

Heat pump water heaters require installation in locations that remain in the 40º–90ºF (4.4º–32.2ºC) range year-round and provide at least 1,000 cubic feet (28.3 cubic meters) of air space around the water heater. Cool exhaust air can be exhausted to the room or outdoors. Install them in a space with excess heat, such as a furnace room. Heat pump water heaters will not operate efficiently in a cold space. They tend to cool the spaces they are in. You can also install an air-source heat pump system that combines heating, cooling, and water heating. These combination systems pull their heat indoors from the outdoor air in the winter and from the indoor air in the summer. Because they remove heat from the air, any type of air-source heat pump system works more efficiently in a warm climate.

Homeowners primarily install geothermal heat pumps which draw heat from the ground during the winter and from the indoor air during the summer—for heating and cooling their homes. For water heating, you can add a desuperheater to a geothermal heat pump system. A desuperheater is a small, auxiliary heat exchanger that uses superheated gases from the heat pump's compressor to heat water. This hot water then circulates through a pipe to the home's storage water heater tank.

Desuperheaters are also available for demand (tankless or instantaneous) water heaters. In the summer, the desuperheater uses the excess heat that would otherwise be expelled to the ground. Therefore, when the geothermal heat pump runs frequently during the summer, it can heat all of your water. During the fall, winter, and spring—when the desuperheater isn't producing as much excess heat you'll need to rely more on your storage or demand water heater to heat the water. Some manufacturers also offer triple-function geothermal heat pump systems, which provide heating, cooling, and hot water. They use a separate heat exchanger to meet all of a household's hot water needs.

 

Selecting a Heat Pump Water Heater

Heat pump water heater systems typically have higher initial costs than conventional storage water heaters. However, they have lower operating costs, which can offset their higher purchase and installation prices.

Before buying a heat pump water heating system, you also need to consider the following:

• Size and first hour rating
• Fuel type and availability
• Energy efficiency (energy factor)
• Overall costs-

Installation and Maintenance

Proper installation and maintenance of your heat pump water heating system can optimize its energy efficiency.

Proper installation depends on many factors. These factors include fuel type, climate, local building code requirements, and safety issues. Therefore, it's best to have a qualified plumbing and heating contractor (or geothermal heat pump system installer/designer) install your heat pump.

Do the following when selecting a qualified professional:

• Request cost estimates in writing
• Ask for references
• Check the company with your local Better Business Bureau
• See if the company will obtain a local permit if necessary and understands local building codes, etc.

Periodic water heater maintenance can significantly extend your water heater's life and minimize loss of efficiency. Read your owner's manual for specific maintenance recommendations.

Conventional Storage Water Heaters

Conventional storage water heaters remain the most popular type of water heating system for the home. Here you'll find basic information about how storage water heaters work; what criteria to use when selecting the right model; and some installation, maintenance, and safety tips.

How They Work

A single-family storage water heater offers a ready reservoir from 20 to 80 gallons of hot water. It operates by releasing hot water from the top of the tank when you turn on the hot water tap. To replace that hot water, cold water enters the bottom of the tank, ensuring that the tank is always full.

 

Conventional storage water heater fuel sources include natural gas, propane, fuel oil, and electricity. Natural gas and propane water heaters basically operate the same. A gas burner under the tank heats the water. A thermostat opens the gas valve as the water temperature falls. The valve closes when the temperature rises to the thermostat's set point. Oil-fired water heaters operate similarly, but they have power burners that mix oil and air in a vaporizing mist, ignited by an electric spark. Electric water heaters have one or two electric elements, each with its own thermostat. With two electric elements, a standby element at the bottom of the tank maintains the minimum thermostat setting while the upper demand element provides hot water recovery when demand heightens.

Because water is constantly heated in the tank, energy can be wasted even when a hot water tap isn't running. This is called standby heat loss. Only tankless water heaters—such as demand water heaters and tankless coil water heaters avoid standby heat losses. However, you can find some storage water heater models with heavily insulated tanks, which significantly reduce standby heat losses, lowering annual operating costs. Look for models with tanks that have a thermal resistance (R-Value) of R-12 to R-25.

Gas and oil water heaters also have venting-related energy losses. Two types of water heaters a fan-assisted gas water heater and an atmospheric sealed-combustion water heater reduce these losses. The fan-assisted gas water heater uses a draft-induced fan that regulates the air that passes through the burner, which minimizes the amount of excess air during combustion, increasing efficiency. The atmospheric sealed-combustion water heater uses a combustion and venting system that is totally sealed from the house.

You might also want to consider some less conventional storage water heaters heat pump water heaters and solar water heaters. These water heaters are usually more expensive but they typically have lower annual operating costs.

Selecting a Storage Water Heater

The lowest-priced storage water heater may be the most expensive to operate and maintain over its lifetime. While an over sized unit may be alluring, it carries a higher purchase price and increased energy costs due to higher standby energy losses.

Before buying a new storage water heater, you need to consider the following:

• Size and first hour rating
• Fuel type and availability
• Energy efficiency
• Costs.

Installation and Maintenance

Proper installation and maintenance of your water heater can optimize its energy efficiency.

Proper installation depends on many factors. These factors include fuel type, climate, local building code requirements, and safety issues, especially concerning the combustion of gas- and oil-fired water heaters. Therefore, it's best to have a qualified plumbing and heating contractor install your storage water heater. Be sure to do the following when selecting a contractor:

• Request cost estimates in writing
• Ask for references
• Check the company with your local Better Business Bureau
• See if the company will obtain a local permit if necessary and understands local building codes, etc.

If you're determined to install it yourself, first consult the water heater's manufacturer. Manufacturers usually have the necessary installation and instruction manuals. Also, contact your city or town for information about obtaining a permit, if necessary, and about local water heater building codes.

Periodic water heater maintenance can significantly extend your water heater's life and minimize loss of efficiency. Read your owner's manual for specific maintenance recommendations.

Routine maintenance for storage water heaters, depending on what type/model you have, may include:

• Flushing a quart of water from the storage tank every three months
• Checking the temperature and pressure valve every six months
• Inspecting the anode rod every three to four years.