I know that the life expectancy of my hot water heater has passed, and so I decided to look into Tankless Hot Water Heaters. Below are some of my findings.
Tankless water heaters cost more to purchase ($800-$1250), and cost more to install (average installation according to Consumer Reports is around $1250). Many models have a life expectancy of around 20 years. It is estimated that the savings is in the neighborhood of $70-$80 per year, which means it could take up to 22 years to break even. There are often rebates or incentives which would improve this return on investment. Doing an online search, I’ve read that some of these units are more favorable than others, so do your homework.
Regular hot water heater tanks cost between $300- $500 to purchase for mid range models, and cost about $300 for installation. They don’t usually require much maintenance with the exception of running the overflow valve monthly to help eliminate sludge. This may vary according to the quality of water in your area.