Choosing the best water heater for your home can be difficult, especially with many alternatives available today. Heat pump water heaters and tankless water heaters are two standard options that are frequently explored. While both choices provide efficient and environmentally beneficial solutions, they differ in ways that suit various households. In this blog post, we will compare the benefits and drawbacks of heat pumps and tankless water heaters to help you decide which is best for your needs and preferences.
Heat Pump Water Heater vs Tankless: How Do They Work?
A heat pump water heater is an energy-efficient device that transfers heat from the surrounding air to the water in a storage tank instead of generating heat directly. Similar to a refrigerator, but in reverse. The heat pump extracts heat from the air and uses it to heat the water, reducing energy consumption compared to traditional electric water heaters. You can read our detailed guide on Heat Pump Blowing Cold Air.
On the other hand, a tankless water heater, also known as an on-demand water heater, heats water only when needed. It has no storage tank but heats water as it flows through a pipe using a gas burner or an electric element. It provides a continuous hot water supply without wasting energy on standby losses.
Essential Factors to Consider Before Comparing Tankless vs Heat Pump Water Heater
Before we dive into the pros and cons of each type of water heater, let’s look at some essential factors you should consider before comparing. These factors include:
- Purchase and installation cost
- Operational expenses
- Environmental impact
- Energy efficiency
- Performance
These factors will help you evaluate each water heater’s overall value and suitability for your home.
Understand Heat Pump Water Heater vs Tankless
| Aspect | Heat Pump Water Heater | Tankless Water Heater |
| Working Mechanism | Efficiently transfers heat from air to water. | Heats water on-demand without a storage tank. |
| Size and Installation | Requires more space and specific ventilation. | Compact, wall-mounted or installed under sinks. |
| Lifespan | Generally lasts 10-15 years. | Typically lasts 20-30 years. |
| Energy Efficiency | Uses up to 60% less electricity than conventional heaters. | Offers quick hot water without standby losses. |
| Cost | Generally lower upfront cost and potential tax incentives. | Higher upfront cost but lower operational and maintenance. |
| Space Requirement | Needs a well-ventilated space with at least 1,000 cubic feet. | Compact, ideal for homes with limited space. |
| Noise Level | May produce noise due to the fan and compressor. | Operates quietly with minimal noise. |
| Suitability for Cold Climates | May struggle in extremely low temperatures. | Performs well in various climates, even cold regions. |
| Maintenance Needs | Requires regular cleaning of filters and compressor checks. | Annual flushing to prevent mineral buildup. |
| Environmental Impact | Reduces carbon footprint, using less electricity. | Efficient use of energy, minimizing environmental impact. |
Benefits of Heat Pump Water Heater
A heat pump water heater has many benefits, making it an attractive option for homeowners who want to save money and reduce their environmental impact. Some of these benefits are:
Reduced energy consumption
According to the US Department of Energy, a heat pump water heater can use up to 60% less electricity than a conventional electric water heater. This means you can save much money on your energy bills over time.
Reduced carbon footprint
A heat pump water heater can also reduce greenhouse gas emissions by using less electricity from the grid, often generated by burning fossil fuels. According to a study by the National Renewable Energy Laboratory, a heat pump water heater can reduce CO2 emissions by 1.6 tons per year compared to a conventional electric water heater.
Less expensive option
A heat pump water heater is generally less costly than a tankless water heater, both in purchase and installation costs. The average cost of a heat pump water heater is $1,200 to $3,500, while a tankless water heater costs $2,000 to $4,500.
Potential tax incentives
A heat pump water heater may also qualify for federal, state, or local tax credits or rebates, depending on where you live and your chosen model. For example, the US federal government offers a tax credit of 10% of the cost of a heat pump water heater, up to $300, until December 31, 2023.
Disadvantages of Heat Pump Water Heater
A heat pump water heater also has some drawbacks you should be aware of before buying one. Some of these drawbacks are:
Requires a more prominent space
A heat pump water heater needs a well-ventilated area, drawing heat from the air. The US Department of Energy recommends a space of at least 1,000 cubic feet. You may need help to install it in a small area, such as a closet or basement.
Shorter lifespan
Heat pumps have a shorter lifespan than tankless water heaters because they have more moving parts. The average lifespan of a heat pump water heater is 10 to 15 years, while a tankless water heater is 20 to 30 years.
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Not suitable for cold climates
A heat pump water heater may need to perform better, relying on air heat. If temperatures are too low, it may struggle to provide enough hot water or switch to backup heating, increasing energy consumption. The US Department of Energy recommends it for regions with an average annual temperature of at least 40°F.
- Reduced energy consumption
- Reduced carbon footprint
- Less expensive option
- Potential tax incentives
- Not suitable for cold climates
- Shorter lifespan
- Requires a more prominent space
Benefits of Tankless Water Heater
A tankless water heater has many benefits, making it an appealing option for homeowners who want a continuous and convenient hot water supply. Some of these benefits are:
Smaller footprint
A tankless water heater is much smaller than a heat pump water heater, as it does not have a storage tank. It can be mounted on a wall or installed in a closet or under a sink, saving you valuable space in your home.
Long lifespan
A tankless water heater has a long lifespan, as it does not have a tank that can corrode or leak over time. It also has fewer parts that can break down or malfunction. The average lifespan of a tankless water heater is 20 to 30 years, which is twice as long as a heat pump water heater.
Quieter operation
A tankless water heater is quieter than a heat pump water heater, as it does not have a fan or a compressor that can make noise. It also does not release cool air into the room, which can create a draft or a noise. A tankless water heater only produces a low humming sound when barely noticeable heating water.
Water heats quickly
A tankless water heater can heat water quickly, as it does not have to wait for a tank to fill up or reheat. It can provide hot water within seconds of turning on the faucet, which is convenient and satisfying. It can also deliver a consistent temperature and hot water pressure without fluctuations or drops.
Disadvantages of Tankless Water Heater
A tankless water heater also has some drawbacks that you should consider before buying one. Some of these drawbacks are:
More expensive
A tankless water heater costs $2,000 to $4,500, double a heat pump water heater. Installation costs vary based on fuel type, unit size, and plumbing/electrical complexity.
Peak demand concerns
Tankless water heaters may need help with peak demand in large households or when multiple appliances use hot water simultaneously. Limited flow rate means potential drops in water temperature or pressure. Installing multiple units or choosing a larger size may be necessary to address this.
New plumbing may be Required.
Switching to a tankless water heater from a tank-style one may require new plumbing. This includes a more extensive gas line or higher voltage electric circuit, potentially incompatible with existing plumbing. Installing new vents, pipes, valves, or pumps may also be necessary, adding to installation costs and complexity.
- Smaller footprint
- Long lifespan
- Quieter operation
- Water heats quickly
- New plumbing may be Required.
- Peak demand concerns
- More expensive
Heat Pump Water Heater vs Tankless Cost
The purchase and installation costs and the operational and maintenance costs determine the cost of a water heater. To compare the cost of a heat pump water heater vs tankless, you need to consider the following factors:
Bonus: Which One Is Better for You?
When choosing between a heat pump water heater and a tankless one, your specific needs should guide your decision. Suppose you prioritize energy efficiency and cost savings. In that case, a heat pump water heater can be the right choice as it can save up to 60% on electricity bills, has potential tax incentives, and has a generally lower upfront cost.
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On the other hand, if you prioritize space savings, longevity, and quick hot water delivery, a tankless water heater might be a better fit. It offers convenience and efficiency with a lifespan of 20 to 30 years, a smaller footprint, and virtually instant hot water. To make an informed decision aligned with your preferences, consider local climate, available fuel types, and household size.
Frequently Asked Questions (FAQs):
Which is better, a heat pump water heater or a tankless water heater?
Consider your priorities when choosing between a heat pump or a tankless water heater. Heat pumps transfer heat from the air, while tankless heaters provide hot water on demand. Factors such as upfront costs, energy efficiency, and hot water usage patterns will influence the better choice for your needs.
What is the most efficient hot water heater?
To choose the right hot water heater, consider your preferences and circumstances. Heat pump water heaters are highly efficient, while tankless heaters offer on-demand hot water. Assess energy consumption, installation costs, and space requirements for the best choice.
What are the disadvantages of a heat pump water heater?
Some of the major disadvantages of heat pump water heaters are as follows:
- Requires a more prominent space
- Shorter lifespan
- Not suitable for cold climates
What is the lifespan of a heat pump water heater?
A heat pump water heater typically lasts 10-15 years, influenced by usage, maintenance, and model. Regular maintenance, including filter cleaning and refrigerant level checks, can extend lifespan. Proper installation and usage also contribute to overall longevity.
