Do Instant Water Heaters Use More Electricity? The Truth

Instant water heaters generally consume more electricity per use compared to traditional heaters, but they can be more efficient overall due to reduced standby losses.

Instant water heaters provide hot water on demand without a storage tank. But do they consume more electricity than traditional tank heaters? The answer depends on usage patterns, heater type, and efficiency factors.

Instant water heater energy consumption comparison

How Instant Water Heaters Work

Instant water heaters (also called tankless or on-demand heaters) heat water directly as it flows through the unit. When you turn on a hot water tap:

  • Cold water enters the heater
  • Electric elements or gas burners instantly heat the water
  • Hot water flows to your faucet or shower

This differs from storage heaters that keep 20-80 gallons of water hot 24/7. For homes using under 41 gallons daily, tankless heaters can be 24-34% more energy efficient.

Instant water heater uses more electricity than storage

Electricity Consumption: Instant vs Storage Heaters

Power Draw During Use

Instant heaters use more power while operating than storage heaters:

Heater Type Typical Wattage
Electric Instant 8,000-36,000W
Electric Storage 3,000-5,500W

The higher wattage is needed to heat water instantly as it flows. Storage heaters heat water gradually over time.

Standby Energy Loss

Storage heaters constantly lose heat through tank walls (standby loss), requiring frequent reheating. Instant heaters have zero standby loss since they don’t store hot water.

Total Energy Use

For most homes, instant heaters use less total electricity despite higher power draw during use. The elimination of standby losses typically outweighs the higher operating wattage.

Factors Affecting Electricity Consumption

Hot Water Usage Patterns

Instant heaters save the most energy for:

  • Homes using under 41 gallons daily
  • Households with intermittent hot water use
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Large families with continuous hot water needs may see less savings.

Heater Size and Flow Rate

Oversized instant heaters waste energy. Proper sizing is critical:

  • Small units (2-4 GPM) for 1-2 people
  • Medium units (5-7 GPM) for families
  • Large units (8+ GPM) for whole-home use

Temperature Settings

Each 10°F increase in temperature setting can raise energy use 3-5%. Set to 120°F for optimal efficiency.

Maximizing Instant Heater Efficiency

Proper Installation

Have a professional install your heater to:

  • Ensure correct electrical wiring
  • Optimize water flow
  • Prevent heat loss in pipes

Maintenance

Regular maintenance improves efficiency:

  • Descale annually (hard water areas)
  • Clean inlet filters
  • Check for leaks

Usage Tips

  • Space out hot water use (avoid simultaneous showers/appliances)
  • Install low-flow fixtures
  • Consider point-of-use heaters for distant faucets

The Bottom Line

While instant water heaters have higher power draw during use, they typically consume less total electricity than storage heaters by eliminating standby losses. Proper sizing, installation, and maintenance ensure maximum efficiency. For most households, an instant heater is the more energy-efficient choice.

Joye
Joye

I am a mechanical engineer and love doing research on different home and outdoor heating options. When I am not working, I love spending time with my family and friends. I also enjoy blogging about my findings and helping others to find the best heating options for their needs.