Connexus Energy: Tankless Water Heaters

Tankless Water Heaters What Are They? Tankless water heaters, also known as demand or instantaneous water heaters, have been popular and readily available to consumers all over the world for many years. While the technology is not new in the United States, there is a growing interest and increase in the number of homeowner installations.

In general, tankless water heaters differ from the more common storage tank water heater in that it does not heat water and keep it stored in a tank waiting to be used. Rather, it heats the water as you use it. Manufacturers of tankless water heaters typically cite four advantages of tankless water heaters:

Unlimited (continuous) supply of hot water
Instantaneous hot water if installed at point of use
Reduced water-heating costs
Small amount of space required for installation

What You Need to Know Like with most things, choosing the type of water heater for your home is a personal decision. If you are planning to install a tankless water heating system, there are a few things you need to consider:

Tankless water heaters require a great amount of electricity to heat water quickly. Sometimes the electric demand of a tankless water heater can exceed the electric demand of the rest of your home by 2 or 3 times. You need to make sure your electric service, not just your electric panel, can handle the additional electric demand. Otherwise, you may experience power quality issues in your home (or neighborhood), including voltage fluctuations or flickering lights.
Neighborhood electrical systems are designed to meet the needs of a typical residential neighborhood. When homeowners install tankless water heaters, the increased demand may exceed the specifications and require system upgrades.

Prevent power quality issues. Contact Connexus Energy prior to installing a tankless water heater to find out if your home and/or neighborhood's electrical system is designed to handle the additional energy demand.
Free Water Heating Guide Water heating is often the second largest energy expense in Minnesota homes and may account for up to 20 percent of annual household energy costs. Download a free Water Heaters guide (pdf) from the Minnesota Department of Commerce to learn how to reduce hot water expenses.