Many Alberta homes look to upgrade their hot water tanks to a tankless type when their conventional, tank-style heaters approach the end of life.
New, tankless water heaters are generally more efficient than their predecessors—and offer several other advantages—especially if the older model is exceptionally old.
Let us look at what you need to know about tankless water heaters, including the main types, what happens during installation, and the main pros and cons to look out for if you are considering making the switch.
Tankless water heater installations
The installation of a tankless water heater is not a DIY job and should only be handled by a licensed plumbing professional.
The old water heater will need to be removed and the new unit installed. Generally speaking, the newer unit should save space but there are other factors to consider that may not be obvious to a homeowner.
A licensed plumber with training and experience in all types of water heaters will ensure a professional installation that is safe, efficient, and cost-effective for your home.
The cost of installation will vary depending on the unit’s size and type, as well as the type of fuel the water heater uses and whether any modifications will need to be made to the home during installation.
When considering the costs of a new water heater (see below), the installation costs should be factored in. While some models are more affordable than others, they may be more complex to install, which will add to the total upfront costs of the new unit.
What are the main types of tankless water heaters?
You need to make some important decisions when researching which tankless water heater to purchase. There are several main types on the market in Alberta.
The main considerations are:
- How does the unit heat water?
- What fuel is used?
- Is the unit designed for whole-home or point-of-use heating?
The most basic choice you will need to make is between a gas and electric water heater. With the abundance of affordable natural gas in Alberta, homeowners in Calgary have traditionally opted for gas solutions for home and water heating—so let us start there.
Gas tankless water heaters
Most heaters in Alberta use natural gas to heat the water but propane may be an option. You will also need to consider whether the unit is non-condensing or condensing.
A non-condensing water heater burns natural gas or propane and uses a primary heat exchanger to rapidly heat the water as it flows through the system. Because of the combustion gases created, hot exhaust gases must be vented through stainless-steel flue pipes. This type of heater is more affordable than an electric heater, but the installation costs may be higher because of the need for an expensive exhaust system.
A condensing tankless water heater, on the other hand, is more efficient because a secondary heat exchanger uses heat from the exhaust to warm the water before it reaches the primary heat exchanger. This also has the benefit of cooling the exhaust gas without the need for an expensive exhaust system, making installation cheaper (though the units are more expensive).
Condensing hybrid tankless water heaters are third-generation systems that include a small holding tank to maintain a hot water reservoir, improving efficiency to .92 – .96 UEF with a consistently operating efficiency of 94% with little to no degradation due to short draws. They minimize issues like the “cold water sandwich” effect, pressure fluctuations, and can be vented with cost-effective PVC. While reliable, it’s essential to choose reputable brands due to potential quality concerns with newer models.
Most Alberta homes choose whole-home water heaters but another option is to install a point-of-use tankless water heater. These are attached to a single faucet or appliance (like a shower) and designed to heat the water there—and only there.
Pros and cons of tankless water heaters
Compared to their traditional tank-storage cousins, modern tankless water heaters have some definite advantages and disadvantages. Here are the main pros and cons we have discovered for Calgary homeowners:
Pros of tankless water heaters
- Space-efficient: tankless water heaters require much less space than water heaters with tanks.
- Only heat water as needed: tankless systems heat water as needed rather than continually heating an entire tank of water.
- Energy-efficiency: modern tankless water heaters are more energy-efficient as the technology has improved and they only heat water as needed, saving you money every month.
- Limitless hot water usage: the tankless model will heat water on-demand and deliver to any faucet while a tank system only produces a volume of hot water according to the size of the tank. No more cold showers!
- Durability: Tankless water heaters last for up to 20 years before needing replacement (the average tank-style water heater lasts around 10-12 years).
- Low maintenance costs: tankless water heaters are generally easier to maintain than systems with tanks.
Cons of tankless water heaters
- Higher purchase and installation costs: generally, the costs of purchasing and installing a new tankless water heater are at least double those of a tank-style heater.
- Flow rate limitations: some cheaper tankless water heaters may provide flow rates that are too low for your home, reducing the temperature of the hot water available.
- Multiple units may be required: larger homes with a high number of occupants may require more than one unit to keep the whole family happy or a very high-end system, which increases the upfront costs.
Average price of a tankless water heater in Alberta
When considering the overall costs involved with a tankless water heater in Alberta, we need to factor in installation costs as well as the initial purchase price of the unit and the costs of the fuel used to run it.
First, considering the upfront purchase costs of a tankless water heater in Alberta, you will need to budget $2,000 to $6,000 for a high-quality, high-efficiency unit. With installation, that is closer to $3,000 to $7,000 or more in some instances. Prices vary largely depending on the make, size, type, model, and energy efficiency.
Factors that affect the cost of a tankless water heater
Let us take a quick look at the main factors affecting the costs of a tankless water heater:
- Unit type: Is it a whole-house unit (more expensive) or a single point-of-use unit?
- Flow rate: Most average-sized homes in Alberta need a flow rate of 10-11 GPM to comfortably manage hot water needs.
- Unit size: Most average-sized homes require 160,000-180,000 BTU units.
- Efficiency rating: The higher the rating, the better the efficiency, and the lower your monthly bills—but efficiency usually comes at a price (though you may qualify for a federal rebate).
- Gas or electric configuration: Is it a natural gas or electric model? If so, will the current gas/electric configuration in your home require major amendments?
- Warranty: Does your model have a five-year chamber and one-year parts warranty as per usual? Note that extended warranties may be available too.
The costs of a tankless water heater may also vary by brand. It is best to discuss your options with a professional plumber before deciding on the best tankless water heater.
Contact Pete the Plumber for Furnace help before it is too late
At Pete the Plumber, we are committed to helping homeowners make informed decisions regarding their heating systems.
Our experienced technicians can assess your furnace’s condition, discuss your options, and provide personalized recommendations tailored to your specific needs and budget.
Do not wait until the freezing temperatures arrive—contact us today for a thorough evaluation and expert advice on whether to repair or replace your furnace, ensuring your home remains a cozy sanctuary throughout the winter season.
Looking to switch to a tankless water heater?
If you are in or around the Calgary area, our licensed professional plumbers can help you select and install the right hot water system for your home. Call Pete the Plumber at (403) 257-1766 to arrange a visit & consultation.