Storage Wars - Tanks vs Tankless Systems

The origin of the natural gas water heater dates back to the 1860s. Back then, the heater had a cast iron body with a copper heat exchanger and a gas actuator valve which turned on the burner when a faucet was opened.

With the cost of iron and copper going up, the push came about to develop a galvanized storage tank with a burner, and in the 1940s, the glass lined storage water heater was born. While more cost effective, they were not as long lasting. In the late 1990s, the pendulum swung towards separate heater and tank systems, and the modern-day mid-efficiency boilers came to be. In the most recent iteration, amidst the drive to heat up water faster and cheaper, the tankless heaters came to be. The shift to tankless brought to bear the challenge of keeping up with peak demand and that brought the incorporation of storage tanks in many tankless installs. So where does all this back and forth leave us?

Pros of Tankless Systems

• Endless hot water

• Space saving

• Lower gas bills (even though cost of installation is similar to a standard tank-based system)

Cons of Tankless Systems

• Heaters are considered “disposable”; hard to repair or rebuild

• Run out of hot water during peak demand

• Need to be descaled frequently, especially if there is hard water

In making the decision that’s best for your building, here are some things to consider:

• Determine if weight or space is a consideration

• Determine maximum dump load i.e. peak demand

• Equipment location (indoor/outdoor)

• Treatment of waste products

• Maintenance plan

• Rebates and regulations