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How an On Demand Water Heater Saves Money

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For those looking to have instantly hot showers, baths, and reduce water-heating costs simultaneously, an on demand water heater is an ideal option. Also known as a tankless water heater, it instantly delivers hot water to any location in your home the second you turn on the faucet. While traditional water heaters waste valuable gas or electricity keeping a huge tank full of water hot, instant water heaters heat water only when it is being used, saving both time and money.

Regular vs. Tankless Water Heaters

Regular hot water heaters heat 30 to 70 gallons of water and keep it hot in a storage tank until it is needed. When you turn on the faucet, hot water flows through the pipes and cold water goes into the tank to be heated. However, when you do not need hot water, traditional water heaters maintain water at a minimum of 120 degrees Fahrenheit, which increases energy bills.

In contrast, an on demand water heater warms water as you need it and raises the temperature of water based on flow rate. This means that the more water you use at once (for example, using the shower and dishwasher simultaneously) the water is not quite as hot. However, tankless water heaters produce hot water as long as you need it. In addition, instant hot water heaters can help you save up to 30 percent on energy bills.

A Good Investment

Instant hot water heaters can require more of an upfront investment than traditional water heaters. They typically range from about $360 for lower-end models to $1,800 (plus installation) for a new and fully featured unit. However, tankless water heaters usually have a longer life expectancy than traditional water heaters. Recent on demand water heaters even meet Energy Star criteria, which specifies rigorous standards tankless water heaters must meet.

An on demand water heater is an excellent way to save money on monthly water heating costs. It also provides the added benefit of instantaneous and constant hot water that never goes cold. Because of this value and convenience, an on demand water heater is a wonderful investment for any home.

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