If you own a home in Chicago, there’s a good chance that a tall, white cylindrical tank sitting in your basement is heating your water. So, the question you are asking yourself is, “Should I stick with old faithful, or should I switch to a modern tankless water heater?”
Both tank and tankless hot water systems have their selling points and drawbacks. Our job at Baethke Plumbing is not to sway you in one direction or the other. We have been installing and servicing all types of water heaters for over 30 years, so we know that specific households need specific types of water heaters.
There are several things to consider when making your decision on which water heater will be the best fit. Your household usage, efficiency preferences and overall costs, are just a few things you will need to acknowledge as we compare these two systems. Let’s dive in and see how they compare with each other, and your household needs, giving you all the water heater knowledge you need to make the right decision.
Water Heater Performance and Daily Use
Daily comfort is a massive piece to the water heater option puzzle. Your household size and water usage habits can be wonderful sources of information when deciding which heater to choose.
Hot Water Supply
Is there anything worse than a cozy, hot shower turning ice cold on you when you’re covered in soap? The main issue most people have with traditional tank water heaters is the limited amount of hot water supply. Once the hot water is gone you must wait 30 to 45 minutes for the tank to heat a fresh batch of water.
The greatest comfort advantage for tankless heater systems is you will never run out of hot water. This is commonly referred to as “on-demand” hot water and as long as water flows through the unit, it stays hot. You could take a five-hour shower, and the water would remain perfectly warm.
Flow Rate and Heavy Usage
Tankless heaters win on endurance, but tanks win on teamwork.
A traditional tank can push hot water to multiple places at once without losing temperature. You can run the washing machine, the dishwasher and the shower at the same time without a drop in temp. You probably won’t have any hot water left afterwards, but if your needs don’t exceed this then a tank heater is probably a good fit.
Some tankless units can have a limited flow rate. If you demand too much hot water at once the water pressure might weaken, however you will never lose any water temperature if this occurs. This is usually an issue for larger households, running three showers at once and appliances at the same time. However, a common solution to this extreme amount of hot water usage is to simply add another tankless unit to your system.
When choosing either a tankless unit or tank heater, it is always recommended to discuss water usage habits with one of our licensed technicians before you make your decision.
Water Heater Cost Analysis: Upfront vs. Long-Term
Money is a major part of this decision. You need to look at both the initial price tag and your monthly utility bills.
Upfront Purchase and Water Heater Installation Costs
Traditional tank water heaters are the clear winners for budget-friendly installation. The units themselves are relatively inexpensive. Replacing an old tank with a new one is usually quick and simple, taking just a few hours.
Tankless water heaters cost significantly more upfront. The units are more expensive due to advanced technology. Furthermore, installation can be complex. If you switch from a tank to a tankless system, a technician may need to upgrade your gas lines, change your electrical wiring, or install new ventilation pipes.
Monthly Energy Bills and Efficiency
This is where tankless heaters shine. Because they only heat water when you need it, they are highly energy-efficient. They do not waste energy keeping a giant tank hot all night long. Homeowners who switch to tankless systems usually see an immediate drop in their monthly gas or electric bills.
| Cost | Tankless Water Heater | Tank Water Heater |
| Total Initial Cost | $4,500 – $12,000+ | $3,400 – $10,000 |
| Maintenance Cost | $100–$200 per year | $20–$50 per year |
Baethke Plumbing does offer finance options, services plans and additional warranties helping you reduce or defer initial upfront costs.
Water Heater Lifespan and Maintenance
Everyone wants to get the most bang for their buck, and purchasing a new water heater is a significant long-term investment. So, value and overall efficiency should be as important as day-to-day comfort. After all, more money in your wallet is never a bad thing.
General Water Heater Lifespan
- Tank Water Heaters: 10 – 12 years
- Tankless Water Heaters: 20+ years
One thing to remember about hot water heater lifespan expectancy, proper yearly maintenance is crucial if you want to get the most mileage out of your purchase. If you never change the oil in your car, eventually the engine will seize up, and you’ll be taking the train to work. If you don’t schedule yearly maintenance for your water heater it will suffer the same fate, but now your walk to the train will be after a cold shower.
Required Maintenance
Both hot water heater systems should be flushed, serviced or inspected at least once a year. This type of scheduled maintenance will make sure sediment, and residue doesn’t collect in the unit and heating elements. Think of it like an “oil change” for your water heater. Instead of every 10,000 miles for your car, it’s 365 days for your water heater.
How Available Space, Aesthetics, and Installation Costs Can Help You Pick the Right Water Heater
Space is another thing to consider before a final choice is made, especially in smaller homes, apartments or houses without basements.
Traditional tank heaters are the big, bulky offensive lineman of the water heater world. They take up a significant amount of floor space in a utility room, closet, or garage. You cannot easily hide them, and you must leave clear space around them for drainage and ventilation. Also, because they need to rest on the floor (typically in the basement) they can be subject to flood damage. Tank heaters are traditionally much easier to install, which will drive the cost of labor lower than a tankless unit.
Tankless heaters are the sleek, sporty super car of home heaters. Typically, these units attach directly to the wall and take up zero floor space so can be installed in tight spaces around the home. Like tank heaters, you must also compensate for space for venting, draining and electrical hook-ups. Usually installing a tankless heater will require either gas line upgrades and or electrical upgrades as well. These costs will increase labor, and this is generally why tankless units are more expensive.
Water Heater Price Comparison: Tank vs Tankless
| Feature | Traditional Tank Heater | Tankless Water Heater |
| Upfront Cost | Low | High |
| Lifespan | 10 to 12 years | 20+ years |
| Energy Efficiency | Lower (Standby loss) | Higher (On-demand) |
| Hot Water Limits | Limited by tank size | Endless supply |
| Simultaneous Use | Excellent for multiple taps | Ideal for simultaneous demand |
| Space Required | Large floor footprint | Small wall-mounted footprint |
Which Water Heater Is Right For You?
Hopefully we have shown you there is no single correct water heater choice for every homeowner. The right option, either tank or tankless, depends entirely on your house, your family and your budget.
Choose a Traditional Tank Water Heater if:
- You are on a tight budget right now.
- You plan to move out of your home in a few years.
- You want a simple, straightforward replacement.
Choose a Tankless Water Heater if:
- You plan to stay in your home for at least 10 to 15 years to recover initial costs.
- Your family constantly runs out of hot water during morning showers.
- You want to lower your carbon footprint and save money on monthly energy bills.
- You live in a small home and desperately need extra closet or floor space.
We have helped thousands of people just like you make this important decision over the last 30 years. At Baethke Plumbing we understand the proper water heater and correct installation for your home will maximize comfort, efficiency, and safety.
If you have any more water heater questions or would like to receive a quote from one of our experienced team members please contact us today.
Read more about hot waters: Best Water Heater Options for Chicago 2-Flats
Frequently Asked Questions
How do water heaters work?
- Tank: Stores and continuously heats 30 to 80 gallons of water to keep it ready in a large reservoir.
- Tankless: Heats water on demand as it flows through a high-efficiency heat exchanger, meaning it only turns on when you use a faucet.
What is the lifespan difference between the two water heaters?
- Tank: Lasts 10 to 12 years with proper care.
- Tankless: Lasts 15 to 20+ years with proper care.
