Three years ago, I installed a tankless water heater for a family in Stroudsburg who had five teenagers. Five! Can you imagine the morning shower battles in that house? Their old 50-gallon tank water heater couldn’t keep up—by the time kid number three got in the shower, they were dealing with lukewarm water at best.
Fast forward to today, and that same family enjoys endless hot water every morning. No more cold showers, no more scheduling bathroom time, no more arguments over who gets the last of the hot water supply. That’s the power of switching from a conventional storage water heater to a tankless system.
But what exactly is a tankless water heater? Simply put, it’s a water heating system that doesn’t store heated water in a tank. Instead, it heats water on demand as it flows through the unit. When you turn on a hot water faucet, cold water travels through the tankless heater where either a natural gas burner or electric element heats the water instantly.
After 36+ years serving the Poconos region, I’ve installed hundreds of these units, and I can tell you they’re game-changers for the right households. Let me break down everything you
need to know about tankless water heaters—the good, the challenging, and whether one might be right for your home.
How Does a Tankless Water Heater Work?
Understanding how a tankless water heater works starts with forgetting everything you know about conventional tank water heaters. Traditional storage tank water heaters constantly heat water in a tank and keep it hot 24/7, whether you’re using it or not.
A tankless system takes a completely different approach. Here’s the process:
Step 1: You turn on a hot water tap somewhere in your house.
Step 2: Cold water flows into the tankless water heater unit.
Step 3: A flow sensor detects the water movement and signals the heating system to activate.
Step 4: For natural gas units, a gas burner ignites. For electric tankless water heaters, high-powered electric elements activate.
Step 5: As water flows through the heat exchanger, it’s instantly heated to your preset temperature.
Step 6: Hot water flows directly to your faucet—no storage, no waiting, no running out.
The whole process happens in seconds. That’s why these systems are also called demand-type or instantaneous water heaters. The tankless water heater only heats water when you need it, which eliminates the standby energy losses associated with storage water heaters.
For comprehensive water heater services—including installation, maintenance, and repairs—visit our dedicated service page.
The Benefits of Tankless Water Heaters
Endless Hot Water Supply
The biggest advantage? You’ll never run out of hot water again. A properly sized tankless system can provide hot water on demand for as long as you need it. I’ve had clients tell me their teenagers now take 30-minute showers (not that I’m encouraging that!), and there’s still plenty of hot water for the dishwasher afterward.
Conventional storage water heater systems can only supply the amount of water in the tank. Once that 40 or 50 gallons is used up, you’re waiting 30-45 minutes for the tank to reheat.
Energy Efficiency
Tankless water heaters are typically 24-34% more efficient than storage tank water heaters for households using 41 gallons or less of hot water daily. Since the tankless water heater only heats water when you turn on the hot water tap, there’s no energy wasted keeping a tank full of water hot all day and night.
Space Savings
Tank water heaters take up significant floor space—usually 16-24 square feet including clearance requirements. A tankless unit mounts on the wall and typically measures about 24″ x 18″ x 10″. I’ve helped homeowners reclaim entire closets by switching to tankless systems.
Longer Lifespan
While conventional storage tank water heaters typically last 8-12 years (learn more about how long water heaters last), tankless water heaters often provide 15-20 years of service with proper maintenance.
No Risk of Tank Leaks
Since there’s no storage tank, you eliminate the risk of catastrophic tank failure. I can’t tell you how many emergency calls I’ve gotten for water heater leaking situations where a 50-gallon tank split open and flooded a basement. That simply can’t happen with a tankless system.
If you’re in Lake Harmony, our local lake harmony water heater services team makes scheduling on-demand installs and maintenance a breeze.
The Cons of Tankless Water Heaters
Let me be straight with you—tankless water heaters aren’t perfect for every situation. Here are the challenges you should understand:
Higher Initial Cost
The initial cost of a tankless water heater is greater compared to a storage water heater. A quality gas-fired tankless system typically runs $1,200-$3,500 for the unit alone, while electric tankless water heaters range from $500-$2,000. Installation costs are also higher because these units often require upgrades to gas lines, electrical systems, or venting.
Limited Flow Rate
Every tankless water heater has a maximum flow rate—the amount of hot water it can provide per minute. If you need enough hot water for simultaneous uses (shower, dishwasher, and laundry running at once), a single tankless unit might not supply enough hot water.
For large households with high hot water usage, you might need to install two or more tankless water heaters, or also install separate tankless water heaters for specific appliances.
Mount Pocono homeowners can get expert tankless or traditional system support via our mount pocono water heater services portal.
Inconsistent Temperature in Some Situations
With very low water flow rates, some tankless units struggle to maintain consistent water temperature. Quick on-off usage patterns (like rinsing dishes) can cause temperature fluctuations that some homeowners find annoying.
Maintenance Requirements
Tankless water heaters require annual maintenance, especially in hard water areas like parts of the Poconos. The heat exchanger needs descaling to remove mineral buildup. Unlike tank units where you can flush a water heater yourself, tankless maintenance typically requires professional service.
Tankless vs. Conventional Storage Water Heaters
| Feature | Tankless Water Heater | Tank Water Heater |
| Hot Water Supply | Endless hot water | Limited to tank capacity |
| Energy Efficiency | 24-34% more efficient | Standard efficiency |
| Lifespan | 15-20 years | 8-12 years |
| Initial Cost | $1,200-$3,500+ | $500-$1,500 |
| Space Required | Wall-mounted, minimal space | 16-24 sq ft floor space |
| Installation | May require upgrades | Usually straightforward |
| Maintenance | Annual professional service | DIY flushing possible |
The choice between tankless and conventional storage tank water heaters depends on your hot water needs and budget. Understanding what size water heater you need applies to both systems, but the sizing calculations are different.
Who Should Consider Installing a Tankless Water Heater?
Tankless Makes Sense If:
- You frequently run out of hot water with your current system
- You want to reduce energy bills long-term
- Space is limited in your utility area
- You're building new or doing major renovations
- You plan to stay in your home 10+ years
- You have natural gas available (gas units are more efficient than electric)
Stick With Tank Water If:
- You have multiple simultaneous hot water needs
- Initial cost is a major concern
- Your home lacks adequate gas supply or electrical capacity
- You prefer simpler, more familiar technology
I often tell homeowners that tankless water heaters are like luxury cars—they offer superior performance and efficiency, but they cost more upfront and require more specialized maintenance.
Need urgent help in Stroudsburg? Our stroudsburg water heater services team is available 24/7 for emergency repairs and replacements.
Installation Considerations for Tankless Systems
Installing a tankless water heater involves more than just swapping out your old tank water heater. Here’s what you might need:
Gas Line Upgrades: Gas-fired tankless water heaters require larger gas lines than conventional units. Your existing 1/2″ line might need upgrading to 3/4″ or larger.
Electrical Requirements: Electric tankless water heaters need substantial electrical capacity—often 100-200 amps. Most homes need electrical panel upgrades.
Venting Changes: Tankless units require different venting than storage water heaters. The venting must be sized for the higher BTU output.
Water Quality Considerations: Hard water shortens the life of tankless units. You might need a water softener to protect your investment.
At Statewide Rooter PA, we handle all these requirements. Our licensed technicians are fully compliant with PA plumbing, gas, and boiler codes, and we’ll assess your home’s infrastructure before recommending a tankless system.
The Bottom Line: Is Tankless Right for You?
After installing hundreds of tankless water heaters in the Poconos, I can tell you they’re fantastic technology for the right applications. They provide instant hot water, save energy over time, and eliminate the risk of tank failures.
But they’re not magic bullets. The higher upfront cost and installation complexity mean you need to think long-term. If you’re planning to move in the next few years, the payback period might not make sense.
The sweet spot for tankless water heaters? Households with 2-4 people who have moderate to high hot water usage, available natural gas, and the budget for proper installation. The family I mentioned at the beginning—five teenagers—actually needed two tankless units to handle their peak demand, but they’re still thrilled with endless hot water.
Frequently Asked Questions About Tankless Water Heaters
How does a tankless water heater work?
A tankless water heater works by heating water on demand as it flows through the unit. When you turn on hot water, sensors activate gas burners or electric elements to instantly heat the water.
Do tankless water heaters really provide endless hot water?
Yes, tankless water heaters provide endless hot water as long as demand doesn’t exceed the unit’s flow rate. You’ll never run out of hot water like with conventional storage tank water heaters.
What are the main benefits of tankless water heaters?
The benefits of tankless water heaters include endless hot water supply, 24-34% better energy efficiency, space savings, longer lifespan, and elimination of tank leak risks compared to conventional storage water heaters.
What are the cons of tankless water heaters?
The cons of tankless water heaters include higher initial cost, limited flow rate for simultaneous use, potential temperature fluctuations, and more complex maintenance requirements compared to conventional tank water heaters.
Are electric or natural gas tankless water heaters better?
Natural gas tankless water heaters are typically more efficient and cost-effective than electric tankless units. Gas-fired tankless water heaters heat water faster and have lower operating costs in most areas.
Ready to explore tankless water heating for your home?
- Call our 24/7 line for expert consultation
- Visit statewiderooterpa.com for free estimates
- Serving Stroudsburg, PA and the entire Poconos region
With 36+ years of experience and our 4.9★ HomeAdvisor rating, Statewide Rooter PA helps you choose the right water heating solution for your home and budget. Our licensed, bilingual technicians handle everything from assessment to installation to ongoing maintenance.