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Hot water always seems to be an issue in most homes as many homeowners struggle to decide between energy efficiency and cost when selecting a new hot water heater. These factors can greatly affect the home’s hot water usage. The Department of Energy’s (DOE) Office of Energy Efficiency and Renewable Energy reported that heating water for showers and cooking accounts for 14 to 25 percent of the energy consumed in the average home, making it the third-largest expense in most homes. Since expenses are so high, more and more homeowners are looking to energy conserving hot water solutions as a means to cut costs. Those people looking for energy efficient water heaters tend to install tankless water heaters since tankless systems are the most popular energy efficient system with an on-demand-system that activates only as needed. Tankless water heaters can reduce annual energy cost by an estimated 25 percent.

However, for many homeowners today, cost is a major factor and tankless water heaters cost significantly more than conventional systems. And today, many conventional water heaters have Energy Star Certifications, so it is possible for a homeowner to save energy and money. The conventional water heaters are less expensive and easier to install compared to tankless water heater. However, conventional water heaters are bulky and take up a great deal of space. Additionally, these water heaters can be inconsistent — their storage tank cycles on a regular basis to heat and reheat water at a preset temperature, using energy to heat the water whether a homeowner needs it or not.

Homeowners have to make the best decision possible for the building and the people that occupy it. It is important to carefully weigh out the pros and cons of both the tankless and conventional water heaters. has a handy guide outlining the pros and cons of tankless water heaters versus conventional storage tanks to help you evaluate which is the best option for your home.