Tankless Water Heaters: Benefits for Lower Energy Bills

Written on: July 13, 2026

How to Save Money and Enjoy Endless Hot Water

If you have a traditional tank-style water heater that’s hitting the twelve-year mark, you may be seeing higher energy bills and water that just doesn’t seem to get as hot. Any new water heater will be more efficient than older technology, but for super efficiency and savings, you should also weigh your options and consider switching to a tankless water heater.

Between bathing and showering, washing dishes, laundry, cleaning and other tasks, the typical American household uses between 60 and 65 gallons of hot water a day, so it makes sense to look for peak efficiency when it comes to heating water.

Tankless propane water heaters, also known as demand water heaters, instantly heat water when you need it, rather than keeping a large tank hot all the time. That can add up to big savings. Here are other ways a tankless water heater can help keep energy costs under control.

Save Energy, Save Money

Water heating can represent 30% to 50% of energy bills. Making the switch to tankless water heating can result in significant savings on your energy bills.

• According to the U.S. Department of Energy, a tankless water heater uses less energy than a conventional water heater, which translates into annual savings of $25 to $100, depending on usage.
• If your hot water use is higher than average, a tankless water heater may only be 8% to 14% more efficient than a storage-type water heater. But by installing small on-demand units at each hot-water faucet, you may see energy savings of up to 50%.
• Over a 13-year lifespan, a propane tank water heater costs $5,200 to operate compared with $8,245 for an electric tank water heater. A propane tankless water heater costs just $4,560 over 13 years.

One more number to consider: Marandola can help you take advantage of rebates of up to $100 from Rinnai on qualifying tankless water heaters, as well as other rebates and tax credits.

The Benefits of Going Tankless

In addition to helping you keep your energy costs under control, there are a few other great benefits to installing tankless water heaters.

• Unlimited hot water: Traditional tank heaters can run out of hot water if you use a lot at once. Tankless water heaters use electronic ignition and a hot propane flame to heat water instantly on demand. There’s no tank, so it can’t hit empty.
• Flexibility: Because there’s no storage tank, a tankless water heater is small. Even whole-house sizes take up considerably less room than a 55-gallon tank. Most are about the size of a suitcase. It can also be wall-mounted, which means a tankless water heater can be placed just about anywhere in the house, including closets and crawl spaces.
• Longer equipment life: The primary culprit in the limited lifespan of a conventional water heater is the corrosive water stored in its tank. Because it doesn’t store water, a tankless water heater can last a lot longer.

The Bottom Line

A traditional tank-style water heater is inexpensive to replace, but it can cost a lot more to run. That’s not a great return, even on a small investment. And it can’t really deliver enough hot water for more than two or three showers in a row, assuming no one is washing dishes or using hot water for anything else.

Ready to learn more about the benefits of a tankless water heater for your Connecticut home? We can help you choose the best option for your needs, install it correctly, and provide maintenance and repairs. Enjoy energy efficiency and all the hot water you need with a new water heater!

Contact us today to get started.