On Demand Water Heaters – Pros and Cons

Technology is advancing not only in electric cars and space travel, but home comfort systems as well. On demand water heaters provide energy saving options for residential and commercial consumption by heating water as it passes through the unit, rather than storing large tanks of hot water that leech energy. With on demand systems, cold water is instantly heated to a desired pre-set end use temperature. Instantaneous heaters are more expensive to purchase initially, but use less energy than hot water tanks that lose heat through tank walls and water pipes. Typically, a 30 percent reduction in operating costs benefits home budgets and reduces carbon footprints.
Whole house units are a complete system that provide hot water on demand to your entire home. They completely replace standard tank water heaters and are larger than point-of-use units. Point-of-use units provide hot water for single fixtures and they are small enough to be located under the sink. They are a popular choice for legal suites and can compliment a home’s current hot water supply.


  • On-demand or tankless water heaters provide significant energy savings over a storage/tank heater.
  • On-demand heaters are much smaller in size, so are valuable as space savers.
  • And endless supply of instant hot water is yours to enjoy with these innovative systems.
  • The product lifespan is about twice as long as a tank/storage system.
  • Lower risk of leaks and water damage because they don’t store a large amount of water.


  • Limited flow rate.
  • Higher upfront product and installation costs.
For more information, see our Hot Water Systems page or call us to determine if this technology is right for you. For home renovations, the initial installation costs for on demand water heaters are higher than hot water tank replacements. Your new system may require significant setup work, including new plumbing and wiring that add costs to your renovation budget. Over time though, this cost is earned back through energy conservation and value is added to your real estate.
On demand water system installations in new builds are advantageous for several reasons including streamlining architectural design and the ability to plumb and wire these systems as construction proceeds. We invite queries from general contractors for our certified red seal plumbing and certified back flow prevention services. With over 37 years of experience, we have earned the confidence of industry partners.
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