HOW DOES A TANKLESS WATER HEATER WORK?
April 26, 2023

Imagine stepping into a hot shower only to have the water turn ice-cold halfway through. Something is clearly wrong with your current water heater. Wouldn’t it be nice if a water heater could provide a continuous hot water supply, save money on energy bills, and make your home more efficient?
To achieve all these aims, water heaters used to be large and take up a lot of space. But that’s no longer the case, thanks to tankless water heaters. So, what is a tankless water heater? And how does a tankless water heater work?
Keep reading to learn more about this functional addition to any space. And if you’re looking for a tankless water heater installer in Nevada or Utah, call YES! at 844-216-9300.
WHAT IS A TANKLESS WATER HEATER?
Tankless water heaters, also known as on-demand water heating systems, are an innovative type of water heater that produces instant hot water for your sink, washing machine, dishwasher, shower, and more. Unlike standard water heaters that store heated water in a large tank, tankless systems heat water when needed, reducing energy waste.
Tankless water heating units are much smaller than traditional water heaters and can be mounted to the wall. Installation can occur in various locations, including utility rooms, basements, and even closets. Multiple units may be required for larger homes to ensure a sufficient supply of water.
The key components of a tankless water heater include:
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Heat exchanger: Heats the water as it flows through the unit
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Burner (gas models) or heating element (electric models): Provides the heat source
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Flow sensor: Detects water flow and activates the heating process
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Control panel: Regulates temperature and system diagnostics
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Venting system (gas models): Expels exhaust gases safely
HOW DOES A TANKLESS WATER HEATER WORK?
Typical water heaters use fuel or electricity to heat water in a tank. However, tankless water heaters do away with the storage tank by using a heat exchanger to raise the water temperature. Depending on the device, the heat exchanger may be powered by propane, natural gas, or electricity.
Here’s a breakdown of how a tankless water heater heats water:
STEP 1: WATER FLOW ACTIVATION
When a hot water tap is turned on, cold water enters the tankless unit, triggering the flow sensor.
STEP 2: HEATING PROCESS BEGINS
Step one activates the heat exchanger using a gas burner or an electric heating element.
STEP 3: TEMPERATURE REGULATION
Water flows through the primary heat exchanger, allowing it to reach the desired temperature. Condensing models have a secondary exchanger to improve water heater energy efficiency.
STEP 4: HOT WATER DELIVERED ON DEMAND
Once heated, the water flows directly to the faucet, shower, or appliance, providing as much hot water as needed.
STEP 5: SYSTEM SHUTS OFF
When the tap is turned off, the flow sensor stops heating, preventing unnecessary energy consumption.
TANKLESS WATER HEATER FEATURES
If you’re still wondering how tankless water heaters work, it’s helpful to learn more about their features. Some of the notable features include:
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Compact design: Can be wall-mounted, saving valuable space
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Wi-Fi compatibility: May allow remote monitoring and adjustments via smartphone apps
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Fuel flexibility: Available in gas, propane, and electric models to fit different home setups and preferences
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Advanced temperature control: Ensures consistent water temperatures with built-in sensors
CONDENSING VS. NON-CONDENSING TANKLESS WATER HEATERS
There are two types of tankless water heaters: condensing and non-condensing. Condensing water heaters have two heat exchangers, making them more efficient. Condensation drains from the bottom of this type of heater.
Non-condensing water heaters have just one heat exchanger and ventilate exhaust gas from the top of the heater. These tanks are easy to maintain and do not require the draining of condensation.
Here’s a side-by-side comparison of their features:
Feature |
Condensing Tankless Water Heater |
Non-Condensing Tankless Water Heater |
Efficiency |
Ultra-high efficiency (UEF up to .96) |
High efficiency (UEF > .80) |
Exhaust Gas Temperature |
Cooler |
Hotter |
Maintenance |
Annual service recommended |
Minimal |
Venting Requirements |
Uses PVC venting (cheaper) |
Required stainless steel venting (costlier) |
Best For |
Colder climates with low groundwater temperatures |
Warmer climates with higher groundwater temperatures |
Cost |
Higher than comparable non-condensing models, but venting materials (PVC) can be cheaper |
Lower initial cost, but metal-based exhaust vent system is required |
BENEFITS OF A TANKLESS WATER HEATER
Many homeowners wonder if tankless water heaters are better than traditional storage tank water heaters. An increasing number of people are making the switch, and it’s easy to see why. Tankless water heaters offer a host of benefits, making them a wise investment for energy-conscious homeowners.
Top Benefits of a Tankless Water Heater
1. ENDLESS HOT WATER
One of the most significant advantages of a tankless water heater is its ability to provide unlimited hot water. Unlike storage tank water models that deplete their hot water supply, tankless water heaters heat water continuously on demand, so homeowners never have to worry about conserving hot water during showers or baths.
2. LOWER ENERGY BILLS
Because they only heat water as needed, tankless water heaters are rated as highly efficient, saving up to 34% more energy than traditional tank water heaters. Since they use less energy, your monthly bills are lower.
3. ENVIRONMENTALLY FRIENDLY
Tankless water heaters help lower carbon footprints by reducing energy waste and consuming less fuel. Many models are also compatible with energy-efficient recirculation pumps, further enhancing sustainability.
4. SPACE-SAVING DESIGN
Tankless water heaters are less than half the size of storage tank water heaters, meaning homeowners can save on precious storage space in the garage, basement, and beyond. The small size means water heaters can be stored wherever makes the most sense for the homeowner.
5. ADVANCED SMART FEATURES
Many modern tankless water heaters have Wi-Fi connectivity, allowing homeowners to monitor usage, adjust temperature settings, and receive maintenance alerts remotely through a smartphone or other mobile device. This functionality adds a layer of convenience and control to home water heating.
6. LONGER LIFESPAN
The life expectancy of water heaters can vary depending on models. The typical storage water heater requires replacement every 10 years and may require costly maintenance before needing replacement. However, tankless water heaters last about twice as long, up to 20 years, and any necessary repairs are usually far more cost-effective.
7. INCREASED HOME VALUE
Although you may never want to leave after installing a new tankless water heater, investing in one can boost your home value. Prospective buyers often seek energy-efficient and space-saving features in modern homes.
Ready to install a tankless water heater in your home? Call 844-216-9300.
POTENTIAL DOWNSIDES OF A TANKLESS WATER HEATER
1. HIGHER UPFRONT COST
Does a tankless water heater cost more than a tank water heater? Although tankless water heaters generally cost more to purchase and install than traditional models, energy savings offset the initial investment over time.
2. LIMITED FLOW RATE
If multiple appliances or showers run simultaneously, water pressure may drop based on the heater’s maximum output. The flow rate in tankless water heaters limits how much hot water is available.
3. COLD WATER SANDWICH EFFECT
Brief periods of cold water can occur when the system cycles on and off, which may be noticeable when taking consecutive showers.
4. LONGER WAIT TIME FOR HOT WATER
Unlike traditional models that store hot water ready for use, tankless systems may take a few seconds longer to heat water, especially if the unit is farther away from the faucet or appliance.
TANKLESS WATER HEATER INSTALLATION PROCESS
For a tankless water heater to work correctly, every component—from gas lines to venting—must be put in properly, making professional installation a must. Each step requires careful precision to prevent leaks or pressure issues. Homeowners in our service areas in Nevada and Utah can trust the professional plumbing team at YES! to handle the process.
A standard tankless water heater installation includes:
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Assessing home requirements: Evaluating household water usage and choosing the right unit
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Upgrading gas lines or electrical systems: Ensuring compatibility with the new heater
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Mounting the unit: Wall installation for space-saving efficiency
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Connecting water supply & venting system: Ensuring proper flow and exhaust safety
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Testing & adjustments: Verifying water temperature and system performance
Our team at YES! is ready to provide our professional installation services in your home. Call us at 844-216-9300 to get started.
WHEN TO CALL A PROFESSIONAL FOR A SECOND OPINION
If you're considering switching to a tankless water heater, it’s important to consult with an expert before making a decision. At YES!, we offer free second opinions and can help determine if a tankless system is right for your home. Our team brings over 45 years of experience, and we care about each client. Call us if you:
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Experience inconsistent hot water supply
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Notice rising energy bills due to an aging water heater
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Need advice on the best tankless model for your home
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Observe any of the common signs of water heater failure
LEARN MORE ABOUT TANKLESS WATER HEATERS TODAY
With a better understanding of how tankless water heaters work, you can take the next step and enjoy the benefits, including improved energy efficiency and unlimited access to hot water. Whether you want to upgrade, install a new system, or get a second opinion, YES! is here to help in Utah and Nevada.
Contact us today to schedule a consultation or request a quote for the perfect tankless water heater for your home!