Blog, Heating

The Ultimate Guide to Tankless Water Heaters

February 13, 2026

By: webteam

By: R&R Team

Tankless water heaters

Unlike conventional heaters, which store hot water in a tank, on-demand or tankless water heaters provide hot water only when it is needed. This can provide significant energy savings depending on your hot water usage. Some households, however, will get more benefits than others. R&R Heating and Cooling, serving Grand Rapids, MI, and beyond, helps you make the right decision with our tankless water heater guide.

Key Takeaways

  • Tankless water heaters produce hot water on demand without a large storage tank.
  • Tankless water heaters are compact, long-lasting, and energy efficient, but they have limited output and are more expensive to install and maintain.
  • Your energy savings with a tankless water heater will depend on your unit size, type, and the amount of hot water your household uses daily.
  • R&R Heating and Cooling can help you select the unit type and size that is most appropriate for your home.

What Is a Tankless Water Heater?

Tankless water heaters, also called on-demand or instantaneous water heaters, don’t require a tank. Instead, they use gas-powered or electric heat exchangers. When you turn on the faucet, cold water is heated as it moves through the pipe. Hot water is created on demand without the need for storage.

Traditional water heaters keep a storage tank full of water at a consistent temperature. Hot water is piped from the tank to your sink, shower, or dishwasher. While this allows for hot water when you need it, it has a few flaws. First, the tank must constantly be heated, even when nobody is using hot water. Second, using too much hot water at once can deplete the tank. While cool water continues to refill the tank, it doesn’t spend enough time there to get hot.

Tankless Water Heater Benefits and Downsides

The unique design of tankless water heaters offers several advantages over traditional units. Install a tankless water heater in your home for the following benefits:

  • Energy savings: Unlike traditional water heaters, which use energy constantly to keep a tank warm, tankless heaters only use energy when you are actively drawing hot water.
  • Endless heat: Because tankless water heaters don’t store water, they can’t run out. Your supply of hot water is effectively limitless, enabling hot showers for your entire household.
  • Compact design: Tankless water heaters are more compact than traditional heaters, making them easier to fit inside homes and apartments with limited amounts of space.
  • Longer lifespan: Tankless water heaters typically last longer than traditional heaters, though both types require routine maintenance to maximize their functional lifespan.

However, tankless heaters have some downsides as well. They may not be the best choice for every household. Weigh the following disadvantages before making your selection:

  • Limited flow: On-demand heaters can only heat so much water at once, limiting their possible output to a few gallons per minute. They work best with water-conserving fixtures.
  • Expensive installation: Tankless water heaters are complex to install, meaning that the initial investment is higher, though you may recover the difference with your bill savings.

Not sure which to choose? R&R Heating and Cooling can help. Our knowledgeable representatives will evaluate your household water usage and help you select the best unit type and size for your home.

How Efficient Are Tankless Water Heaters?

Energy savings are among the top reasons to invest in a tankless water heater. Not every household, however, will get the same benefits. The amount of energy you will save depends on your:

  • Heat type (gas vs. electric)
  • Water usage
  • Number and location of haters

If your home uses 41 or fewer gallons of hot water daily, then a tankless water heater can be up to 34% more efficient than a conventional storage tank. If you use a lot of hot water (over 86 gallons), however, then a tankless heater may be only 8% to 14% more efficient. You may also be able to maximize savings by installing tankless heaters at each outlet (point-of-use water heaters), but this increases your initial expense.

Find Tankless Water Heater Services Near You in Grand Rapids, MI

Are you intrigued by these tankless water heater benefits? Get in touch with R&R Heating and Cooling to learn more about how a tankless water heater may benefit your home. We serve Grand Rapids, MI, and beyond with installations, replacements, maintenance, and expert guidance. Contact us today to learn more about our services or to get help with selecting your ideal tankless unit.

Tankless Water Heater FAQ

How long do tankless water heaters last vs. traditional heaters?

Tankless water heaters can last up to 20 years if well-maintained. Traditional tank water heaters, meanwhile, last only 10 to 12 years.

What are the disadvantages of tankless water heaters?

The disadvantages of tankless water heaters include expensive installation and limited flow.

Are tankless water heaters worth it?

Whether tankless water heaters are worth it depends on your household. While the initial cost of installation may be higher, you are likely to earn back your investment through savings on your monthly energy bill. Financing options are also available to help pay for installation.

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