Tankless Water Heater Installation: Frequently Asked Questions

Tankless Water Heater Installation

Switching to a tankless water heater is a decision many homeowners consider when looking for better efficiency, longer lifespan, and endless hot water. Over the years, we’ve helped many Colorado homeowners with tankless water heater installations and guided them through whether this upgrade makes sense for their specific needs. Every home is different, so we take the time to explain the pros and cons of tankless water heaters, review pricing, and walk through the installation process before moving forward.

In most cases, the installation itself takes about two to three hours, and payment is collected at the time of service. One important thing to keep in mind is that tankless water heaters operate differently than traditional tanks, which often leads to a few common questions. Based on our experience installing these systems, we’ve gathered the questions homeowners ask most often, and we’ll answer them throughout this article.

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Is it worth getting a tankless water heater?

Yes! That is if your household benefits from continuous hot water. Tankless systems are often worth it when:

  • You have a large family
  • You use multiple showers at once
  • You have a large soaking bathtub
  • You want energy savings over time
  • You need a compact unit (small mechanical room)

However, for small households with low hot water demand, the higher upfront cost may not provide strong financial payback.


What are the downsides of a tankless water heater?

The main disadvantages include:

  • Higher installation cost – May require electrical upgrades, gas line upsizing, or new venting.
  • Annual maintenance required – Descaling the heat exchanger is recommended (especially with hard water).
  • Flow rate limits – Very high simultaneous demand may exceed capacity.
  • Cold water sandwich effect – Brief temperature fluctuation when cycling on/off.
  • Longer wait time in some homes – No stored hot water means water must travel from heater each time.

How long do tankless water heaters last?

Tankless water heaters are built for longevity, often lasting 15–20 years with proper maintenance, and some high-quality units can even exceed 20 years of service. In comparison, traditional tank water heaters typically need replacement after 8–12 years. The reason tankless systems last longer comes down to their design. Because there’s no storage tank constantly holding hot water, there’s no tank corrosion, which is one of the most common causes of failure in conventional units. They also experience less thermal stress, since water is heated only when needed rather than kept hot all day. In addition, many of the internal parts, such as the burner, sensors, and valves are replaceable, allowing the system to be serviced and maintained over time instead of replaced entirely.


Are tankless water heaters better?

Tankless water heaters aren’t automatically better for every home, they are better for specific situations. Imagine a household where multiple people need hot showers back-to-back, a large soaking tub fills regularly, and space in the utility room is limited. In that scenario, a tankless system makes a lot of sense. It provides endless hot water, operates with higher energy efficiency, and often lasts longer than traditional units. Because there’s no bulky storage tank, it also saves space and eliminates the standby heat loss that occurs when stored water cools over time. However, in a different home, perhaps one where budget is the top priority or where installation needs to stay simple, a traditional tank water heater may be the better choice. Tank systems typically have a lower upfront cost, are easier to install, and can handle high simultaneous demand without needing careful sizing calculations.


How much electricity does a tankless water heater use?

When it comes to electricity use, the story changes depending on whether the tankless heater is gas or electric. A gas tankless water heater actually uses very little electricity. It only needs power for the control board, ignition system, and small fan or vent motor, typically drawing around 50–200 watts, which is roughly the same as a standard light bulb. The main heating is done by gas, not electricity. Electric tankless water heaters, on the other hand, rely entirely on electrical resistance heating and therefore consume much more power. These units typically require 18–36 kilowatts, which often means installing multiple dedicated breakers and sometimes upgrading to 240-volt electrical service. In simple terms, gas tankless systems use minimal electricity, while electric tankless systems require a significant electrical capacity to operate.


How does a tankless water heater work?

A tankless water heater heats water only when you turn on a hot water tap. There is no storage tank, so hot water is produced on demand. Here is what the process looks like:

  1. Cold water flows into the unit
  2. A flow sensor detects demand
  3. Heating elements or gas burner activate
  4. Water passes through a heat exchanger
  5. Hot water exits immediately
  6. Unit shuts off when flow stops
Tankless water heater key components

How tankless water heater works

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