Heat Pump Water Heater vs. Tankless Water Heater – Which One Will You Choose?
Hot water serves a multitude of essential purposes, spanning from maintaining cleanliness to promoting mental well-being. When selecting a new water heater for your home, it is important to be well informed of the many options available to you. In this article, we will explain the advantages and disadvantages of tankless electric water heaters and electric heat pump water heaters to help you determine which one is right for you. Gas-powered water heaters are not included in this discussion, as the Bay Area is moving away from gas-powered appliances. Understanding the benefits and limitations of these two electrical options is essential to make the right choice for your family’s needs.
You might be asking yourself if electric water heaters are worth it. If so, here are seven things to consider when comparing heat pump water heaters versus tankless water heaters:
- Purchase and installation cost
- Operational expenses
- Environmental impact
- Energy efficiency
- Performance
- Functional differences
- Size differences
We do suggest you check out this page to know more about water heaters in detail
Purchase and Installation Cost
For many of us, the initial cost determines whether we can even entertain the idea of switching to an electrical unit since price is such a big determining factor of what we put in our homes. For your benefit, here are a few simple cost differences between heat pump water heaters and tankless water heaters.
Electric Heat Pump Water Heaters
Electric heat pump water heaters do come with a higher upfront cost compared to traditional tank water heaters. However, thanks to rebate programs, installing a heat pump water heater can often be cheaper than a standard tank heater because these devices utilize heat pump technology to conserve energy which reduces utility costs. Installation of heat pump water heaters is similar to standard tanks, requiring no significant modifications. Government incentives additionally lower the buying cost, rendering heat pump water heaters a budget-friendly option.
Electric Tankless Water Heaters
Tankless water heaters often come with a higher initial price tag compared to other water heating systems available today. This is because they are more technologically advanced and need special parts, such as heat exchangers and electronic controls. Furthermore, installing a tankless system may necessitate home adjustments, such as enhancing the electrical wiring.
Operational Costs
Another significant consideration when choosing your water heating system is how it will affect your monthly utility expenses. Below is a pricing comparison of heat pump water heaters versus tankless water heaters.
Electric Heat Pump Water Heaters
Electric heat pump water heaters are highly energy-efficient because they utilize heat pump technology, drawing warmth from the air instead of generating heat with electricity.
The Department of Energy states these heaters are three times as energy-efficient as electric tank water heaters and this heightened efficiency leads to significant and consistent reductions in your utility costs.
Electric Tankless Water Heaters
Electric tankless water heaters have a standout feature – they provide hot water instantly. This means they prevent standby heat loss by heating water as needed, unlike conventional water heaters that store water and might use energy to reheat cooled water. While this efficiency is energy-saving, it doesn’t always result in significant cost savings. Electric tankless water heaters can be more expensive to operate compared to electric heat pump water heaters or gas tank heaters due to their higher electrical demand for on-demand heating, but if you want your water hot quickly, they are worth it.
Environmental Impact
When it comes to choosing a water heating system, understanding the environmental impact is crucial. Both electric tankless water heaters and electric heat pump water heaters offer potential advantages for sustainability. Here, we explore the eco-friendly aspects of these technologies and their impact on the environment.
Electric Heat Pump Water Heaters
Heat pump water heaters are incredibly energy-efficient, surpassing other systems. By extracting heat from the air instead of using traditional power sources, these systems decrease energy consumption and lower greenhouse gas emissions. This aligns seamlessly with how the Tri-Valley area aims to reduce its carbon footprint, diminish dependence on natural gas, and promote sustainability.
Electric Tankless Water Heaters
Compared to traditional tank water heaters, tankless options are more eco-friendly because they reduce energy consumption and environmental impact by eliminating standby heat loss. Hence, tankless water heaters support eco-friendly water heating.
Efficiency
Efficiency is a perfect parameter to understand the amount of help we can get from a device. A comparison of heat pump water heater versus tankless water heater efficiency can help us understand these devices better.
Electric Heat Pump Water Heaters
Heat pump water heaters utilize advanced technology to efficiently warm water by extracting heat from the surrounding air, which substantially reduces the energy required for heating. Our installations include units with impressive ratings of 3.3 and 3.5 Uniform Energy Factor (UEF), surpassing the Energy Star standard requirement of 2.2.
Electric Tankless Water Heaters
When it comes to energy efficiency, tankless water heaters excel at minimizing standby heat loss, which happens when water lingers unused in a storage tank. These units provide hot water as needed, resulting in outstanding efficiency.
Performance
We all seek optimal performance from our appliances. When investing in new equipment, various factors come into play, but perhaps none more important than performance. To gain a clearer understanding of this crucial aspect, comparing the performance of a heat pump water heater with that of a tankless water heater can be highly informative.
Electric Heat Pump Water Heaters
Heat pump water heaters take longer to recover compared to tankless units or standard storage tanks. To optimize the efficiency and performance of an electric heat pump water heater, make sure the unit is appropriately sized for your household’s hot water demands.
Electric Tankless Water Heaters
Since tankless water heaters deliver hot water instantly, there is no need for a storage tank. This ensures a continuous hot water supply, provided you choose the correct size for your family. Thanks to their on-demand design, electric-powered tankless systems have quicker recovery times than traditional tank systems.
Functional Differences
The comparison of functional differences between heat pump water heaters versus tankless water heaters is another factor to think about when deciding which one to choose.
Heat Source
Heat pump water heaters provide heat by extracting it from the surrounding air. The tankless water heater heats water by using electricity.
Requirement of a Tank
Heat pump water heaters store heated water in a tank which is insulated to minimize heat loss, whereas tankless water heaters do not require a tank-they heat water whenever required by turning on the unit.
Energy Efficiency
Heat pump water heaters are heat-efficient since they convert heat from air and move it throughout the water. Tankless water heaters are more efficient since they only heat when required. There is no standby heat loss in tankless water heaters.
Suitable Climate
A suitable climate to heat water is necessary for heat pump water heaters since they depend on the climate and surroundings. A tankless water heater does not not depend on the climate and surroundings to work.
Size Difference
Comparing heat pump water heaters and tankless water heaters is essential, as it helps address the preferences of two distinct groups of people. One group favors heat pump water heaters, while the other leans towards tankless water heaters. Let’s begin by examining the physical differences, including size, space requirements, and installation locations for these heating systems.
Size
The heat pump water heater has a size comparable with standard water heater, but they are typically larger than the traditional water heater. Moreover, the heating unit and the water heater make it bulky. Therefore, a large area, such as a utility room or a large closet, is required to house the heat pump water heater.
On the other hand, when we speak of a compact option for water heaters, tankless water heaters come to our rescue. The tankless water heater is a space saving water heater since it is about the size of a small suitcase. Because of its compact structure and it being wall mounted, there is no need for any sort of “extra space”.
Space Required
Heat pump water heaters work by extracting heat from the surrounding air. Hence, they require an adequately ventilated system and significant space around its region for proper air circulation.
Tankless water heaters are small, wall mounted, and recommended for homes with limited spaces. These occupy a very small space, so they don’t require special cabinets or large utility rooms.
Installation Location
To ensure the proper functionality of the heat pump water heater, it is essential to have a well-ventilated area that can accommodate the entire unit.
For a tankless water heater, recommended installation locations include exterior walls, inside cabinets, or other available free spaces within your home.
Benefits and Drawbacks
In the world of water heaters, choosing the right type can be a critical decision for your home’s comfort and efficiency. To help you make an informed choice, we’ve prepared a comprehensive benefits and drawbacks list comparing heat pump water heaters and tankless water heaters. By examining the advantages and limitations of each, you’ll be better equipped to select the ideal water heating solution that meets your specific needs and preferences.
| Electric Heat Pump Water Heater Benefits | Electric Heat Pump Water Heater Drawbacks | |
| Energy Efficiency
Modern water heaters, such as tankless and heat pump water heaters, are designed to be energy efficient, which helps reduce energy consumption and utility bills. |
Higher Upfront Costs These tend to have higher upfront costs compared to traditional tank-type water heaters. |
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| Environment Friendly They produce less greenhouse gases than gas water heaters because they use electricity and heat transfer instead of burning fossil fuels. |
Space Requirements Heat pump heaters require more installation space than tankless units due to the combination of the tank and the heat pump unit. |
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| Versatility Heat pumps work well in various climates and are suitable for multiple areas. |
Installation Complexity Installing a heat pump water heater can be more complicated and requires special ventilation and electrical requirements. |
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| Quiet Operation Heat pumps operate quietly compared to other water heating systems. |
Size and Placement Due to their size and ventilation requirements, finding a suitable installation can take time and effort. |
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| Less Maintenance They generally require less maintenance. They are built to last, which can result in fewer replacements and lower long-term costs. |
Climate Dependent Their effectiveness can be influenced by the ambient temperature. In very cold climates, they may rely more often on an electric backup heating element, reducing their overall energy efficiency. |
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| Lower Monthly Bills They can significantly reduce water heating costs, reducing monthly electricity bills over time. |
| Electric Tankless Water Heater Benefits | Electric Tankless Water Heater Drawbacks | |
| Continuous Hot Water Supply Tankless water heaters heat water on demand, providing unlimited hot water as long as there is a water source and the unit is sized to meet the household’s needs. Unlike tank-type water heaters, they do not run out of hot water. Hot Water becomes available almost immediately. Their instant availability allows the saving of time and water. |
Limited Flow Rate Tankless water heaters provide hot water on demand, but their capacity is limited by the size and power of the unit. The simultaneous use of hot water in several devices can cause a decrease in water flow and temperature. |
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| Energy Efficiency These water heaters are very energy efficient because they heat water only when needed. They do not have the standby heat loss which occurs with traditional tank-type water heaters that keep large amounts of water hot all the time. We can also call these water heaters as No storage water heaters. |
Higher Initial Cost Tankless water heaters typically have higher upfront costs than traditional tank-type water heaters. This can include the cost of the unit itself and installation costs, especially if you need to change existing plumbing or electrical systems. |
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| Compact Size Their compact design frees up space in your home because they can be mounted on walls. You don’t require a specific tank, which makes it a Tank free water heater. |
Complex Installation Installing a tankless water heater can be more difficult than replacing a traditional tank-type unit. This may require electrical and plumbing changes, proper ventilation, and compliance with local building codes. |
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| Longer Lifespan Tankless heaters typically last longer than other tank-type units. |
Inconsistent Temperature If the demand for hot water exceeds the capacity of the device, tankless water heaters can have difficulty maintaining a constant water temperature. This can cause water temperature fluctuations during use. |
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| Less Risk of Water Damage Without a large water tank, tank leaks and water damage are less risky. |
Complex Repairs When a tankless water heater malfunctions or needs repair, it can be more complex and potentially more expensive than conventional water heaters. |
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| Lower Environmental Impact The energy efficiency of tankless water heaters reduces greenhouse gas emissions and environmental impacts compared to less efficient water heating systems, especially when they run on clean energy sources. |
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| Low Maintenance Tankless water heaters generally require less maintenance compared to tankless heaters. Maintenance may include regular flushing to remove minerals that have built up in the heat exchanger. |
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| Long Term Saving You get the benefit of long-term energy savings and a longer lifespan, which can compensate for the initial high cost. It acts like a one-time investment with negligible maintenance required, and a huge lifespan allows it to go further. |
In conclusion, the choice between a tankless water heater and a heat pump water heater ultimately depends on your specific needs, priorities, and circumstances. Both types of water heaters have their unique advantages and limitations.
Tankless water heaters offer on-demand hot water, saving space and energy by avoiding standby heat loss. They are an excellent choice for smaller households with lower hot water demands and can be particularly efficient in homes with easy access to natural gas.
On the other hand, heat pump water heaters are renowned for their exceptional energy efficiency, as they harness heat from the surrounding air to warm your water. They work well in various climates and are a green choice for those looking to reduce their carbon footprint.
Ultimately, your decision should consider factors such as your hot water requirements, available space, installation costs, and your environmental concerns. While tankless water heaters may be more suited to some, heat pump water heaters may be the perfect fit for others.
It’s important to conduct a thorough assessment of your specific situation and consult with one of our highly knowledgeable technicians to determine which water heater type aligns best with your goals and budget. By doing so, you’ll be on the path to enjoying efficient, cost-effective, and eco-friendly hot water for years to come.
For all of your hot water needs, we suggest units from reputed brands like:
AO Smith | Rinnai | Navien | State