Tricks of the trade

Top 5 benefits of switching to a tankless water heater

Heather Mahr, a Ferguson author

by Heather Mahr


Plumbing pros know that there are multiple factors to take into consideration when selecting a water heater. While some water heaters are better suited for certain plumbing jobs over others, tankless water heaters boast a number of benefits that you should consider when weighing your water heater options with your customers. According to the U.S. Department of Energy, tankless water heaters can be up to 34% more energy efficient for residential customers over storage water heaters depending on water usage. In addition to their residential energy savings, tankless water heaters offer advantages for a variety of commercial applications. Explore five benefits of tankless water heaters and see how going tankless could be the right solution for your next plumbing project.

  1. They save space.
    Under to the 2015 NAECA water heater standards, storage water heaters became larger in general. Additionally, storage water heaters of all sizes also require more room for airflow under this legislation. Replacing an older storage water heater is a challenge if there’s not enough room to install a new model that meets the NAECA standards. A tankless water heater could be the answer since they meet energy efficiency requirements and are much smaller than storage water heaters.

    Pro tip: Small tankless water heaters can also be used to solve water heating problems when water has to travel a long way from a central water heater. Adding a small Point of Use, or POU, water heater to plumbing fixtures that are a far distance away from a central water heater can help minimize energy loss. Outdoor showers, kitchens and hot tubs are some applications in which a POU tankless water heater is well-suited.

  2. They can help meet safety regulations.
    OSHA directive STD 01-08-002 requires that eyewash, facewash and drenching stations be available in certain facilities where hazardous material is handled. The water temperature must be heated between 60 F to 105 F and be available at any moment. Tankless water heaters are an excellent solution for meeting this safety requirement since they provide consistently warm water on-demand while eliminating the issue of standby loss.

  3. They can help you grow your business.
    Tankless gas water heaters are extremely efficient. Homeowners reap the benefits over time of the energy savings, while professional contractors have the opportunity to install a value-added system for their customers. Because there are technical elements to consider when installing tankless water heaters, it is recommended that only experienced professionals install and perform system maintenance. Becoming a tankless water heater expert allows plumbers to offer a unique service that can help you grow your professional plumbing business.

    How does a water heater earn an ENERGY STAR Label? Find out >>

  4. They can qualify for rebates.
    Some states and local utility companies offer tax credits and rebates on tankless water heaters. In addition to the other benefits listed above, your customers might be persuaded to opt for a tankless water heater if they know they can get some money back for their purchase. Use the ENERGY STAR rebate finder to see what rebates are offered on ENERGY STAR tankless water heaters in your area.

  5. They can earn LEED credits.
    Buildings that are pursuing a LEED certification from the U.S. Green Building Council can benefit from tankless water heaters. Those participating in the LEED program can earn points and improve their building’s rating simply by installing certain tankless water heaters. Check the manufacturer's specifications to find out how many LEED points a tankless water heater offers.

Ferguson is your one-stop shop for tankless water heaters. Your local Ferguson can help you select the right water heater for the job.

Browse online for the water heater parts and accessories you need to serve your customers.

Heather Mahr, a Ferguson author

Heather Mahr

As Ferguson’s in-house copywriter, Heather is dedicated to providing readers with valuable information. She is passionate about helping people find the answers they need to make their life easier with her words.