Calculating Savings of a Point of Use Tankless Water Heater

Point of use tankless hot water heaters that are installed under the sink or other point of application are true energy misers. They eliminate the standby heat loss that occurs when heated water cools off in a tanked water heater or in pipes running from the heater to faucets around the house. Tankless Guide set this article up to help you understand how to calculate energy and water savings for electric and gas point of use tankless water heaters. You will see several terms describing point of use tankless heaters. Mini,under-sink,point of use,compact. These all mean the same thing. That is installing a tankless water heater that is designed to supply hot water to a single faucet or one room such as a bathroom. Bathroom tankless water heaters are a perfect place to start trying out a tankless system.
Quick Jump: Best Point of Use Tankless

Why Small Tankless Heaters Save Money

Before you jump into figuring your savings by installing a mini tankless water heater you should look at the overall concept behind tankless water heaters. This things to know about tankless is a great starting point.

Mini tankless heaters that serve one faucet or one room such as a bathroom or laundry room, can save you 25% each year. First, they use less energy than tanked water heaters. There is very little waste. Water is heated only as it is demanded. There is no standby heat loss as heated water cools off in a tank or in piping. That accounts for the energy savings. The water savings is a result of the fact you don’t run a faucet or shower for a few minutes waiting for hot water while many gallons of water that you’re paying for go down the drain. It has been estimated that as much as 40 gallons of good costly clean water are run down the drain per day in each household. I know that in Minnesota where I live that is huge.We pay 1.5 for sewage over and above our water cost. so if we pay 10 cents for a gallon of water we pay another 15 cents for sewage. Folks it adds up.

Calculating Energy Savings with a Small Tankless Water Heater

In terms of the savings on your water bill, in the average home, 30-40 gallons of water are wasted per day, waiting for the flow to heat up.  Multiply that number by 365 and that’s the approximate amount of water you’re wasting each year. See your water bill for the cost of water and do the math. You’ll see the amount of money you are wasting by NOT using a tankless water heater. See what Mn Power has to suggest to their  customers about saving water and saving cash

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So What Do You Save?

As for energy savings, most point of use tankless heaters are electric. This assumption is made only because it is easier to wire a under-sink tankless heater then to run a gas line and venting the unit. They use 40% to 50% less electricity than electric tanked water heaters. Now, heating water accounts for 15% to 35% of your home’s electric use. It will be closer to 15% if you also have an electric clothes dryer, electric stove, bright lighting, space heaters, etc. If you have a gas dryer and gas stove, and use electricity conservatively in other ways, it will be closer to 35%. Estimate how much of your monthly electric bill is produced by your hot water heater. Multiply that percentage by an average monthly bill. Then, multiple that dollar amount by 40% and 50% to give you an idea of how much you can save with small tankless water heaters. For example.

Monthly electric bill = $200

% of bill attributed to the water heater = 25%, or $50.

$50 x 40% or .40 = $20 in savings.

$50 x 50% or .50 = $25 in savings.


Multiply your monthly savings by 12 months and you’ll have an idea of how much you can save in a year by installing point of use tankless heaters the next time you replace your water heater. Add in your water savings if you used metered water. It isn’t hard to see why more homeowners are choosing tankless water heaters than ever before. Mini Tankless heaters like the Stiebel DHC are energy-efficient and they are environmentally responsible. You’ll save money and help save the environment every time you turn on the water when a small tankless water heater is supplying the heat. You will also find that these point of use tankless units are relatively easy to install.

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