Tank or tankless? How to find your perfect match in a water heater
November 18, 2021
When I was a little kid, my father would indulge in a hot bath almost every evening. But the hot water would always run out before he could fill the tub up deep enough. Undeterred, he’d head to the kitchen, fill up a big soup pot with water, and heat it up on the stove so he could use it to warm up the tub water. The rest of us would have to settle for tepid showers. Clearly, our water heater was not adequate for a household of six people!
Nowadays there are lots of options for water heaters—from a good ol’ storage tank with a standing pilot light, typically found in most Canadian homes—to the latest innovation in high-efficiency technology that’ll ensure you never
run out. And unless you rent, or live in a condominium with central hot water you pay for through your strata fees, at some point within the next 10 to 20 years you’re going to need to replace your water heater. But with so many options out
there, how do you find the perfect match for your household?
Find your perfect match
Do you prefer bubble baths by candlelight? Or maybe you’ve got a houseful of teenagers who each spend 20 minutes a day in the shower. However you use hot water in your home, trust me you won’t be able to go without it—unless cold showers in winter are your kind of thing. If your current water heater is a standard storage tank model and it’s a decade or more old, it could fail at any time. And there’s no fixing a leaky storage tank water heater. So why not avoid having to make a rash decision and plan ahead? To help you decide what type of water heater is right for your household consider the following:
- Efficiency and energy costs: a standard gas or electric storage tank is the cheapest type of water heater to purchase and install, but your ongoing water heating costs will be higher than with a high-efficiency model. Alternatively, you could spend more money upfront on a high-efficiency water heater and have lower water heating costs.
- Electric versus gas: do you want your new water heater to run on the same energy source as your current one does?
- Emissions: with the climate emergency, you might think going electric is the best option. But natural gas water heaters have come a long way in terms of efficiency, (meaning lower greenhouse gas [GHG] emissions) and if you sign up for Renewable Natural Gas, your gas water heater could be carbon neutral!
- The number of people and bathrooms in the home: this will help determine what size and heating capacity you need in a water heater.
- Space: if a tankless model would free up some much needed extra space it might be a good option.
- Venting: if the existing water heater runs on propane or natural gas it will be vented either through the chimney or a vertical vent, but some high-efficiency natural gas models may need to be vented through a side wall which can add to installation costs.
- Gas piping: if considering a tankless model, and you’re in an older home, you may need to have your gas contractor inspect your existing gas piping from the meter into your home, as a high demand for gas for short periods may require piping with more capacity.
Water heater types
The table below provides a snapshot of the options available. A licensed gas or electrical contractor can also help you choose the perfect match for your home and lifestyle. Note: the water heating costs stated below are average costs based on a four-person home.
Natural gas water heaters
Type | Efficiency | Average lifespan | Annual water heating costs1 | Pros | Cons | Rebate2 |
---|---|---|---|---|---|---|
Standard storage tank Note: water heaters manufactured after January 1, 2018 require a minimum Uniform Energy factor (UEF) of 0.67 | OK 0.51 to 0.66 UEF | 10-12 years | $312 to $404 |
|
| Not applicable |
ENERGY STAR® storage tank | Good 0.67 to 0.82 UEF | 10-13 years | $251 to $307 |
|
| |
Condensing storage tank | Even better 0.8 to 0.89 UEF | 12-15 years | $212 to $289 |
|
| |
Non-condensing natural gas tankless | Even better 0.82 to 0.88 UEF | 20 years | $234 to $240 |
|
| Not applicable |
Condensing natural gas tankless | Excellent 0.89 to 0.97 UEF | 20 years | $212 to $231 | In addition to non-condensing tankless pros:
| In addition to non-condensing tankless cons:
| |
Combination heating and hot water system | Excellent 0.92 to 0.97 UEF | 18-20 years | $212 to $224 (for water heating costs only) |
|
| up to $1,500 ($1,200 rebate plus $300 bonus) |
Electric water heaters
Type | Efficiency | Average lifespan | Annual water heating costs1 | Pros | Cons | Rebate2 |
---|---|---|---|---|---|---|
Standard storage tank | Good 0.86 to 0.9 EF | 10-12 years | $568 to $614 |
|
| Not available |
Heat pump water heater | Ultimate 2.3 to 3 UEF | 13 years | $176 to $230 |
|
|
What’s the UEF?
Water heater efficiency is measured by an Energy Factor (EF) or Uniform Energy Factor (UEF) ratio. The number means how much energy it can turn into useable heat. The higher the number the better. Most standard natural gas storage tank water heaters currently in homes today have a UEF of about 0.50 to 0.60. New ENERGY STAR storage tank models have a minimum UEF of 0.67. In comparison, condensing tankless models offer UEFs as high as 0.97.
We’ve got rebates
Once you’ve made a decision and had your new water heater installed, it’s time to apply for your FortisBC rebate2 (if applicable). To qualify, you must have your new water heater installed by a Technical Safety BC licensed contractor. Once installed, you have six months to submit your rebate application online.
2 Conditions apply. Rebate amounts listed are per appliance unless otherwise indicated. Terms and conditions are available on the respective program pages. FortisBC may modify or cancel programs at any time without notice.
3 Only for FortisBC electricity customers including Grand Forks, Penticton, Summerland or Nelson Hydro.