Choosing the right water heater impacts your home’s comfort, energy efficiency, and long-term expenses. Whether you’re building a new property or replacing an outdated unit, the two main options are tankless water heaters and traditional (tank-style) water heaters.
Each has unique benefits and trade-offs, and the best choice depends on your household size, water usage, and budget. Below, we’ll break down the key differences to help you make an informed decision – and explain how our experts at Order a Plumber can provide professional installation and maintenance.

1. Understanding the Basics
Traditional Water Heaters
These models store hot water in a tank – usually ranging from 30 to 80 gallons – and maintain that water at a preset temperature throughout the day. Whenever you use hot water, it comes from this tank, and once it’s depleted, the tank refills and heats the new water.
Tankless Water Heaters
Also known as on-demand heaters, these systems heat water only when it’s needed. Water passes through a heat exchanger and comes out hot within seconds. Since there’s no tank involved, energy isn’t used to keep water hot all day long.
Related Post: Key Benefits of Switching to a Tankless Water Heater
2. Installation and Upfront Costs
Traditional Systems
Conventional water heaters are more affordable to purchase and install. Replacement is typically straightforward, especially when upgrading an existing tank system. Our local plumbers at Order a Plumber can handle these installations efficiently and ensure everything is set up for reliable, long-term performance.
Tankless Systems
Tankless units cost more upfront and require a more complex installation, particularly if converting from a traditional system. Our licensed plumbers at Order a Plumber carefully assess your home’s plumbing, gas, or electrical setup to ensure compatibility and a safe, professional installation.
3. Energy Efficiency and Operating Costs
Traditional Water Heaters
Traditional water heaters continuously use energy to keep water hot, even when you’re not making use of it. Your utility bills will eventually rise as a result of standby heat loss.
Tankless Heaters
Tankless systems eliminate this waste by heating water only when required. This makes them more energy-efficient, especially for households that don’t use a lot of hot water throughout the day. While the savings may not be immediate, they can add up significantly over the heater’s lifespan.
Our local plumbers at Order a Plumber can help you compare long-term energy savings and determine if a tankless system is the most cost-effective solution for your home.
4. Hot Water Supply and Usage
Traditional Heaters have a limited capacity. Once the hot water in the tank is used up – for example, after several back-to-back showers – you’ll need to wait for the tank to refill and heat again. This can be inconvenient in large households.
Tankless water heaters, on the other hand, deliver unlimited hot water as long as demand doesn’t exceed system capacity. For larger homes, our plumbers at Order a Plumber can install multiple tankless units to ensure consistent hot water across all fixtures.
5. Lifespan and Maintenance
Traditional water heaters typically last 8–12 years and require regular maintenance to remove sediment buildup, especially in areas with hard water.
Tankless water heaters can last up to 20 years with proper care. While they also need regular flushing to prevent scale buildup, especially on the heat exchanger, the frequency is generally less than that required for models of tanks.
Regular maintenance schedules can be established by plumbers from reputable businesses to prolong the life of your water heater and guarantee its continued effective operation.
6. Space Considerations
Traditional units are larger and usually need floor space in a basement or utility closet. If space is a concern, tankless systems are more compact and wall-mounted, making them a good fit for smaller homes or apartments.
Which One Is Best for You?
Choose a Traditional Water Heater if:
- You’re working with a limited budget
- You don’t have high or continuous hot water demands
- You want a quick and simple replacement
Choose a tankless water heater if:
- You value long-term savings and energy efficiency, get a tankless water heater.
- You need continuous hot water for multiple uses
- You’re looking to free up space in your home

Final Thoughts
Both tankless and traditional water heaters offer distinct benefits. Traditional models are affordable and reliable, while tankless systems are efficient, compact, and long-lasting.
Your decision should be based on your household size, water usage, and available installation budget.
Our experts at Order a Plumber can evaluate your home, recommend the most suitable system, and perform professional installation and maintenance – ensuring reliable hot water for years to come.
Related Posts: Common Water Heater Problems and How to Fix Them!
FAQs
Q: What is the disadvantage of a tankless water heater?
A: It costs more upfront and may take longer to deliver hot water if used in multiple places at once.
Q: Is a tankless water heater better than a traditional water heater?
A: Yes, it’s more energy-efficient and lasts longer, but it’s more expensive to install.
Q: Are tankless water heaters better for the environment?
A: Yes, they use less energy because they only heat water when needed.
Q: Why avoid a tankless water heater?
A: Avoid it if you have a tight budget or a large home needing hot water in many spots at the same time.

