We’re starting to think about replacing our water heater with a new tankless one.  The water heater we have now is still working fine, but it’s started making all kinds of loud cracking and popping noises as it’s heating the water.  It also looks like it was manufactured in 1996, so it’s getting pretty old and we imagine it won’t be too much longer before it stops working completely.

The main reason why we’re thinking about installing the new one now, though, is because the water heater, which used to be located near the old boiler, is now in a room by itself.  When the previous owners replaced the boiler with a new furnace, they also relocated it to a more central location in the basement.  As part of the project to replace the water heater, we’d like to move it to the new utility room also to free up some space where it currently is and help to clean up the mess of plumbing in the basement.  Because we’ll be relocating the water heater, we expect there will be more plumbing work involved than what would be required for a typical replacement, so we think it might be a good idea to get started on it while our water heater is still working rather than waiting until we have no hot water at all.

Our current water heater and the mess of plumbing that goes with it.

Our current water heater and the mess of plumbing that goes with it.

For the new water heater, we’re thinking about getting a tankless one that can be mounted on the wall in the utility room.  We like this option because of the increased energy efficiency of a tankless water heater, but also because of the space it saves.  Our plan is to relocate the water heater to the new utility room and mount it on the wall near the furnace.  Access to gas and water lines will be fairly easy from this location and routing the exhaust out the side of the house shouldn’t be a problem either.

The location for the new water heater.

The location for the new water heater.

We’re still researching the different brands of tankless water heaters to try to make a decision on what we think would be best for our application.  As long as we pick one with an efficiency greater than or equal to .80, though, we’ll be eligible for an income tax credit equal to 30% of the total cost of the water heater and installation (up to a max of $1500).  We’re also looking into any rebates we can get from our local utility provider that might help offset the cost and help us make the decision about whether or not now is the right time to start this project.

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One thought on “Thinking About a Tankless Water Heater

  1. Gene says:

    We’ve had a Takagi tankless for some years now, and love it. They do have more stringent requirements for the venting, and of course require power for ignition, etc. as well as gas for heating. For us, tankless made a lot of sense. There’s just two of us, and our hot water usage tends to come in bunches (e.g., laundry). For a larger family where hot water is getting used all the time, it may not make as much sense, especially as traditional tanked water heaters have gotten more efficient.

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