Ive heard that I can save money with a tankless on-demand electric water heater. Is that true?
Compared to the least efficient new electric tank type water heater sold today, the savings from a tankless water heater are fairly small. For an average customer at current electricity prices, the savings are about $4.00 a month. If you purchase the most efficient electric storage water heater, the potential savings would be even less. A tankless water heater lowers the standby losses, but it does not lower the cost of heating the water that is actually used. Also, tankless water heaters are more expensive to purchase and install. In fact, it may be necessary to upgrade your electrical service to the power draw from an electric tankless water heater.
