For new homeowners or existing ones, before you install a water heater in your home, you should consider the cost, efficiency, and lifespan or longevity of the new water heaters. Also depending on the hot water requirement and the size of the house.

This is not a daunting task to undergo though as the major aim of this post is to outline the benefits and otherwise of Storage or Tank-type and tankless or on-demand-type water heaters to show which is the best. By the way, I suggest checking to read helpful reviews of water heaters.

Tankless or On-Demand Type Water Heater

Tankless water heaters are also known as on-demand water heaters make use of high-powered burners or electric elements to quickly heat water as they pass through the heat exchanger in the units. While distributing it directly into your faucets or appliances that call for it without necessarily storing it in a storage facility.

According to Consumer Reports, tankless water heaters are 22 percent more energy efficient than storage-type water heaters.

Storage or Tank Type Water Heaters

Storage or tank-type water heaters are oftentimes called traditional water heaters as they are commonly found in most homes across the country. Also being the first kind of water heater.

They have an insulated storage tank that holds from 25 – 60 gallons of water depending on its varying size to heat and store hot water until it’s needed.

There is a heat-out pipe suspended from the top that takes water out of the tank onto the hot water pipe to wherever it is needed.

They make use of electric elements which are found inside the tank or the gas burner at the bottom of the tank to heat the water to a preset temperature on the thermostat. It is also the thermostat that regulates the temperature of the stored water.

When it comes to ensuring year-round hot water comfort, understanding how to choose a water heater that suits your needs is essential.

Storage or On-Demand Water Heaters?

  • The purchase price for the tankless or on-demand water heater is most times found to be twice that of a storage water heater. But about the cost of operation, the tankless water heaters is better as it reduces energy bill.
  • Also for homeowners with water usage ranging from 40-50 gallons of water daily, should go for tankless water heaters as it ensures energy efficiency than storage or tank-type water heaters.
  • Also, the tankless water heater has a life expectancy of 20 to 25 years in comparison to tank-type water heaters with 10 years lifespan. Though this can only be achieved if subjected to favorable water conditions and proper maintenance and care.
  • Tankless water heaters don’t consume much space and can easily be fitted into walls, cabinets even tight quarters, unlike a storage water heater that requires space both in height and width.
  • A tankless water heater provides you with hot water instantaneously without even waiting for 30 seconds. A tankless water heater provides 2-3 gallons of water within 2 minutes, unlike a storage water heater which demands you wait because it has to heat a larger body of water at once.
  • Tankless water heaters have complex components, unlike tank-type heater that operates simpler components. This makes the cost of maintenance of tank-type lesser and easier to carried out.
  • The tank-type water heater is easy to install but has costlier spare parts, unlike a tankless water heater that costs lower.


It can be seen from the above that both have their benefits and drawbacks as seen in the cost implications, maintenance and repair, energy efficiency, and also space and size.

Your choice of water heater is dependent on your daily water requirements, cash at hand, energy-saving priority, and if long-term saving is your priority.


Northern girl Laura is the epitome of a true entrepreneur. Laura’s spirit for adventure and passion for people blaze through House of Coco. She founded House of Coco in 2014 and has grown it in to an internationally recognised brand whilst having a lot of fun along the way. Travel is in her DNA and she is a true visionary and a global citizen.

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