Peak Demand

Sizing a tankless water heater is different than sizing a storage tank. Sizing a storage tank requires estimating the volume of hot water you will need within a couple hour time frame. Sizing a tankless water heater requires that you estimate your peak demand in terms of momentary usage; in other words, what is the most you will be running at the same time? For those with low demand, this could be a single shower. For others, this could be multiple showers plus dishwasher.

Gas or Electric

Many customers shopping our store have either gas or electricity available to them, but not both. In this case you would just pick the one that works with your existing setup unless you wanted to make a change. Others have the option to choose which they prefer, so it’s a question of determining which better fits their home and intended usage.

Electric: Electric tankless water heaters are generally hard to work with because they have a lower output and require a lot of electricity. Each electric heater has different electrical requirements and it is very important that you consult with an electrician prior to making a purchase. In terms of flow rate, most of the electric heaters we carry can only run one major application (shower, dishwasher, washing machine) at a time.

Gas: Gas tankless water heaters can supply more hot water and are a better choice for those with mid-high demand. Gas powered heaters can be installed indoor or out; though indoor is best in very cold climates to avoid a freezing risk. Outdoor installations can be less expensive since you eliminate the need for vent pipe.
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Save Money in Utility Bills

Tankless water heaters are more energy efficient than conventional heaters because they heat water as it is needed. Storage type water heaters have to keep water hot 24 hours a day which results in standby energy losses. The amount you can save on your energy bills depends on how much hot water you use. "For homes that use 41 gallons or less of hot water daily, demand water heaters can be 24%-34% more energy efficient than conventional storage tank water heaters. They can be 8%-14% more energy efficient for homes that use a lot of hot water-around 86 gallons per day. You can achieve even greater energy savings of 27%-50% if you install a demand water heater at each hot water outlet." ( www.energy.gov/taxbreaks.htm)

ImprovementDirect.com prides itself in providing the very best in ENERGY STAR-rated and other energy-efficient products. Among the hundreds of eco-friendly products we offer, few have the potential to be used as often and as reliably as tankless water heaters.

Recently signed legislation offers tax incentives to consumers (as well as businesses, utilities, and governments) who purchase, install, and utilize energy-saving products like skylights, hybrid and electric automobiles, and water heating equipment. Included in the water heating category are tankless water heaters, which are eligible for energy tax credits.

The story behind the energy tax credits

On Oct. 3, 2008, President George W. Bush signed into law the “Emergency Economic Stabilization Act of 2008.” As part of this piece of legislation, the United States government is offering tax incentives for consumers and businesses which purchase and install certain energy-efficient home improvement products—like a tankless water heater.

How do I know if I qualify?

Energy tax credits of $300 are available for home improvements “placed in service” from Jan. 1, 2009 through Dec. 21, 2009. If you use more than one tankless water heater in your home, you’re subject to a maximum of $500 per homeowner for all improvements combined. According to ENERGY STAR, the IRS defines “placed in service” as when the property is ready and available for use. All ENERGY STAR-qualified whole-home gas tankless and gas condensing models with an energy factor of 0.80 or greater WILL qualify (click here to read the U.S. Department of Energy’s explanation of energy factor).

As the qualifier is based on the date the unit is "Placed in Service", units purchased prior to January 1, 2009 but not yet installed may qualify if installed between Jan. 1, 2009 and Dec. 21, 2009

Qualifying tankless water heaters available on ImprovementDirect.com include all models from Rheem and Takagi.

Now, the bad news. Any qualified home improvements made in 2008 ARE NOT eligible for the energy tax credit. And ENERGY STAR-qualified, high-efficiency gas storage water heaters (those that store water in a large tank) WILL NOT qualify for the energy tax credit.

Be sure to save your receipt and the manufacturer’s certification statement for tax purposes. For complete information on products covered by the energy tax credit, click here.