Top 5 Reasons to Switch to Tankless
While many consumers have heard about tankless water heaters, they don't know much about them and do not understand the many benefits that make them superior to traditional storage tank water heaters. Here we want to take a closer look at some of those benefits and see why tankless could be the smartest decision you ever make! Here are the top 5 reasons you should consider making the switch.
- Lifespan: Tankless water heaters are designed to last 20+ years with proper maintenance which makes them the most cost effective solution on the basis of years of service to cost ratio. The average traditional water heater is only expected to last 7-10 years. Life is expensive and things wear out much sooner than most of us would like and our water heater shouldn't be one of those things. You and I depend on hot water daily and take it for granted until the water heater finally bites the dust. Why should that be a semi regular occurrence? It doesn't have to be when your tankless is built to last at least twice as long as a traditional water heater!
- Efficiency: When it comes to natural resources, we all want to be responsible and use them wisely and if we can save money in the process then that's incentive enough! By comparison, a traditional water heater is only about 57% efficient as opposed to tankless water heaters that can have an efficiency rating as high as 97%! The U.S. DOE estimates that tankless water heaters save approximately $90 annually in natural gas. Over 20 years this equates to saving $1800!Saving up to 40% of the money you spend on energy bills can certainly add up to serious money in your pocket over a 20 year span!
- Endless hot water: Not only do tankless water heaters conserve resources and save us money on energy costs, they have an added benefit of giving us an endless supply of hot water so no more running out of hot water in the middle of a shower! We've all been there my friend, everybody in your house is trying to get ready in the morning for school or work and sooner or later, the traditional water heater runs cold and there you are trying to decide if you have time to wait for the water to get hot again or if that shower is going to have to wait. Ugggh, who needs those kind of problems? Say goodbye to your worries when you have an endless spring of piping hot water that never runs out!
- Warranty: Most traditional water heaters only have a 6yr tank/parts warranty and in some cases labor may be covered for 1 year. Once the warranty expires, its usually not long before trouble comes along and your faced with costly replacement.....again. Many reputable tankless water heater manufacturers offer great warranties. Rinnai and others offer a 15 year warranty on the heat exchanger, 5 years on parts and one year on labor. If you purchase a Rinnai tankless water heater and register the unit with the factory within 90 days of installation, the labor warranty is extended to 5 years. No other manufacturer makes this offer currently.
- Rebates/Credits: Many gas utilities offer rebates to customers who switch from a storage tank water heater to a tankless units and the rebates can be substantial. For instance, in Arkansas, Summit Utilities offers $500-$700 rebates depending on the efficiency rating of the particular model. Additionally, they have a free program available for senior citizens and low income individuals that can add $200 to that rebate!
- Section 25C of the inflation reduction act of 2022 gives taxpayers a $600 tax credit for any single energy proerty item which includes tankless water heaters! You do need to act quickly as this credit expires at the end of 2025.
These are some really solid benefits that support a decision to go tankless. I had a professional tankless specialist company install one in my home several years ago and have never regretted the decision. I do strongly recommend utilizing the services of a company that specializes in tankless water heaters as they tend to be very knowlegable about these products and how to recommend the right model for your particular application and also have the training and knbow how to properly install them so that you get the optimum performance and value out of your tankless water heater.
Why Tankless Is the Smart Choice for Modern Properties
If you're a homeowner, property manager, or maintenance supervisor, efficiency, reliability, and long-term savings are non-negotiable. That’s why many are switching to tankless water heaters — a modern solution with powerful benefits for both residential and commercial properties.
Let’s break down the top five reasons a tankless upgrade is worth serious consideration.
1. Exceptional Efficiency = Lower Energy Bills
Unlike traditional units that keep 40–50 gallons of water heated 24/7, tankless water heaters heat water only when you need it. This “on-demand” approach reduces standby heat loss and results in up to 97% efficiency, compared to just 57% for conventional models.
Over 20 years, that efficiency could save you approximately $1,800 in natural gas costs. In high-occupancy settings like rental homes or apartments, those savings scale up fast.
2. Long Lifespan Means Fewer Replacements
Tankless units can last 20+ years with regular maintenance — double the average life of a standard water heater. That means fewer replacements, less downtime, and a stronger return on investment, especially for properties with long-term tenants.
3. Say Goodbye to Cold Showers Forever
Running out of hot water is a top complaint in households and rental properties. A tankless system provides a continuous flow of hot water, so multiple people can shower, do laundry, and run the dishwasher — all without interruption. For maintenance teams, that means fewer urgent calls and complaints.
4. Lower Long-Term Cost of Ownership
While the upfront cost of a tankless unit may be higher, the total cost of ownership is significantly lower. Between energy savings, fewer replacements, and long-term reliability, it pays for itself — and then some.
5. Choose Qualified Installers for Optimal Performance
Tankless water heaters are high-performance systems that require proper sizing and expert installation to deliver the best results. Always work with trained, factory-certified professionals who understand how to match the system to your specific needs and layout.
For example, Rinnai-certified installers not only ensure top performance — they also unlock extended warranties when units are registered within 90 days.
Rebates & Tax Credits Add Even More Value
Incentives make the switch even more appealing:
- Summit Utilities (Arkansas) offers $500–$700 rebates for qualifying installs.
- Low-income and senior programs may add an extra $200.
- The Inflation Reduction Act (Section 25C) gives a $600 tax credit for qualifying tankless water heaters.
These savings often reduce the initial investment significantly — a game-changer for value-conscious owners.
Final Thoughts: Tankless Is a Smart Investment
Whether you're managing a multi-family complex, upgrading your home, or overseeing commercial properties, tankless water heaters offer unmatched performance and value. By working with certified professionals and taking advantage of rebates and incentives, you’ll make a smart, future-ready investment.