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Tank vs. Tankless Water Heater: What Homeowners Need to Know

When it comes to home comfort and efficiency, your water heater plays a major role. Whether you're building a new home or replacing an old unit, one of the most important decisions you'll face is whether to go with a traditional tank water heater or make the switch to a tankless model. This choice impacts your upfront costs, energy bills, daily comfort, and even your home's resale value.


At Landry Plumbing, we get this question all the time from homeowners across Allen, TX and surrounding areas like McKinney, Fairview, and Lucas. In this guide, we break down the differences between tank and tankless water heaters, highlight the pros and cons of each, and help you decide which system is best for your home.


Understanding the Basics: Tank vs. Tankless

A tank water heater stores a specific amount of water (commonly 40 to 80 gallons) and keeps it hot 24/7 so it's ready when you turn on the tap. It works continuously, whether you're using hot water or not. This is the traditional water heater found in many Texas homes.


A tankless water heater, also known as an on-demand water heater, heats water only when needed. As cold water flows through the unit, it's rapidly heated by electric elements or a gas burner. There's no storage tank, and theoretically, you never run out of hot water.


Upfront Costs and Installation

The cost difference between these systems is significant:

  • Tank water heaters: $800–$1,500 installed

  • Tankless water heaters: $2,000–$4,500 installed (especially when retrofitting)

That higher cost reflects both the unit price and the labor involved in retrofitting your plumbing and potentially upgrading your gas line or electric panel.


Energy Efficiency and Operating Costs

This is where tankless models often shine. Traditional tank water heaters suffer from what's known as "standby heat loss," where energy is used to maintain the water temperature even when you aren't using hot water. Tankless water heaters eliminate this issue by heating only when needed.


According to the U.S. Department of Energy:

  • Homes using 41 gallons or less per day can expect 24% to 34% more efficiency with tankless.

  • Even heavy-use households can see 8% to 14% greater efficiency.


In practical terms, Allen homeowners switching to tankless often report savings of $75 to $150 per year on energy bills.


Lifespan and Maintenance

  • Tank water heaters: 10 to 15 years lifespan, with basic maintenance (yearly flushing).

  • Tankless water heaters: 20+ years lifespan, but require more technical maintenance like descaling.

Hard water in North Texas makes regular maintenance a necessity for both types to ensure optimal performance.


Performance and Hot Water Demand

If your household regularly uses a lot of hot water simultaneously (showers, dishwasher, laundry), a tank unit provides a consistent flow until the hot water runs out.


Tank water heater pros:

  • Handles multiple uses well (until depleted)

  • Simpler for larger simultaneous demand


Tankless water heater pros:

  • Endless hot water

  • Ideal for back-to-back showers or consistent usage


Keep in mind that tankless systems have a limited flow rate. If your household demand exceeds the unit’s capacity, you may need multiple units or a higher-capacity model.


Space Considerations

  • Tankless units: Wall-mounted, compact, and space-saving.

  • Tank units: Require a larger physical footprint.

Tankless is ideal if you're trying to free up space in a utility closet or garage.


Environmental Impact

Tankless systems tend to be more eco-friendly due to:

  • Lower energy usage

  • Longer lifespan (fewer replacements)

  • Potential eligibility for energy rebates and tax credits

However, either system can be inefficient if not installed and maintained correctly.


Common Myths Debunked

"Tankless water heaters are always better": Not true for every household. Budget, water usage, and infrastructure matter.


"Tankless units give instant hot water": There’s still a short wait as water travels through pipes.


"You can easily replace a tank with tankless": Retrofitting can be complex depending on your home’s plumbing and electrical layout.


So, Which One Is Right for You?

At Landry Plumbing, we evaluate your water usage patterns, household size, available infrastructure, and long-term energy goals. Here's a quick summary:


  • Choose tank if:

    • You're on a tighter budget

    • You're replacing an existing tank unit

    • Your water usage is moderate and predictable

  • Choose tankless if:

    • You want lower energy bills over time

    • You need a continuous supply of hot water

    • You want to save space or increase home efficiency


Final Thoughts for Allen Homeowners

Whether you go tank or tankless, proper sizing and professional installation are key. An improperly installed or undersized unit can lead to long-term issues, performance problems, and higher utility costs.


At Landry Plumbing, we guide homeowners across Allen and nearby communities through every step of the decision and installation process. We'll help you compare models, understand costs, and ensure your system is installed to code by licensed professionals.



Call Landry Plumbing today (+1 (469)537-0056) for a consultation or water heater inspection. Let’s make sure your next hot shower is efficient, reliable, and built to last.

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