Selecting a water heater isn’t just about having instant hot water. You must factor in the installation cost, utility bills, the number of people living in the house, and performance in the freezing winter weather in Southern Ontario.
The decision between a tank water heater and a tankless one comes down to which of these two types would work best for residents in Vaughan, Toronto, Richmond Hill, and other areas around there. Both types offer advantages, but choosing the right one will be contingent upon your family’s hot water consumption and budget.
According to Natural Resources Canada, water heating comprised 17.2% of total energy consumption in Canada in 2019. Having a good heating unit may help in controlling energy consumption, but that will depend on how much hot water you use and the type of equipment you install. Now let’s take a look at both of them.
Tankless vs. Tank Water Heaters: What’s the Difference?
The typical function of the tank water heater is to heat the water in a tank, which is then kept ready to use. On the other hand, the tankless water heater heats up water as it flows through its heating element. The comparison is as follows:
| Feature | Tank Water Heater | Tankless Water Heater |
| Initial cost | Generally lower | Generally higher |
| Hot water supply | Limited by tank capacity and recovery time | Continuous within the unit’s capacity |
| Energy efficiency | Loses some heat while storing water | Avoids most standby heat loss |
| Space | Requires room for a tank | Compact, wall-mounted unit |
| Maintenance | Tank flushing and component checks | Descaling and filter cleaning, as needed |
| Typical lifespan | Around 8–12 years | Around 15–20 years |
| Best for | Budget-conscious replacements | Homes seeking space savings and “potential energy savings |
How Does a Tank Water Heater Work?
The storage tank water heater has water in storage in the form of a 40 to 60 US gallons tank of hot water. Once you turn on the water tap, hot water is discharged from the tank, and cold water enters in its place.
Advantages of Tank Water Heaters
- Reduced start-up expenditure: The expenses incurred in purchasing tank units may be much lower than having to replace your old heaters with tankless models.
- Hot water availability: You can have hot water whenever you need it for washing clothes or taking a bath.
- Quick replacement: You can change the heater without having to modify the plumbing system.
- Preferred option: Unlike tankless heaters, many variants are available for customers to select from.
Disadvantages of Tank Water Heaters
One of the disadvantages is low capacity. If many members of the household shower one after another, all of the hot water will get used up before the water heater refills it.
The water heater loses some of its heat to maintain the water at a high temperature regardless of whether someone is using it or not. And due to the tank taking up space on the floor, it may not be suitable for small utility rooms.
The tank water heater is something that you should consider if you are looking for an inexpensive replacement and there have been no problems with the existing water heater.
How Does a Tankless Water Heater Work?
Tankless heaters heat up the water that passes through them. They either make use of gas burners or electrical heating components, depending on the type of tankless heater installed.
Once the hot water is turned on at any faucet, heating begins. When the demand for hot water is finished, heating stops.
Advantages of Tankless Water Heaters
- More hot water availability: The right-sized unit will allow hot water to be available for long periods of time.
- Less heat loss: No need to maintain a large amount of water in the tank at all times.
- Floor space saving: Its compact design means less space is taken up on your floor.
- Possible longevity: They tend to have a longer lifetime than regular storage models.
Disadvantages of Tankless Water Heaters
The tankless units are usually more expensive to buy and install. Changing from the tank will involve alterations to gas lines, venting, electrical connections, or the drainage system.
There is a limit to the flow rate of the unit. In case two or more showers or appliances are running at the same time, the unit may not be able to provide water at the required temperature.
Also, descaling can be done in order to prevent mineral deposits from building up inside the unit.
The tankless water heater is something that should be considered if you need to save space and reduce heat loss.
Which Water Heater Costs Less?
It all depends on whether you are looking at the cost of installation or the overall cost throughout the life of the system.
1. Upfront Installation Cost
A conventional water heater is usually less costly to install, especially when replacing an existing water heater with a similar model.
Tankless installation is usually more costly due to the higher cost of the equipment and possible upgrades to other services in your house, such as the gas line. This can be done by your plumber during the site inspection before installation takes place.
2. Monthly Energy Bills
Tankless water heaters may save energy by eliminating most of the heat lost due to standby losses. But energy savings will depend on factors like how much you use your heater, its efficiency, what type of fuel you use, and energy costs.
According to Natural Resources Canada, ENERGY STAR qualified tankless water heaters consume 30% less energy compared to storage water heaters. This is an average and does not mean that you will save 30% on your energy bills for sure.
Those people who use hot water more often will benefit more from their use.
3. Long-Term Value
A tankless system can be more economical if its savings on energy and extended lifespan are able to compensate for increased installation expenses.
A tankless system is more economical if you have to replace the system due to a low budget or you do not plan to live in the house long enough to recover the expenses.
Which Water Heater Performs Better in Southern Ontario Winters?
Winter temperatures are important because the water that enters your house is cold. You have to put more effort into warming up the water heater.
Tank Water Heaters
The water is kept warm within the tank. Whenever the supply runs out, there will be some time to heat it again.
When incoming water is cold, it may extend the process of recovery, especially during the winter when everyone needs hot water at once.
Tankless Water Heaters
The tankless heater may work effectively for longer periods of time; however, cold water coming from the supply line can reduce the amount of water to be heated per minute by this device.
For instance, the unit will be able to supply less flow of water but with the same outlet temperature as before. When not installed properly, there could be problems with multiple fixture operations at once.
The best option to choose in the winter season is a well-sized tankless heater. The plumber must take into consideration not only the maximum output flow but also the temperature and peak load of the unit.
Which Water Heater Is Best for Your Household?
Your family’s daily routine can help narrow down the options.
| Household Need | Option to Consider | Reason |
| Lower initial replacement cost | Tank | A similar replacement may require fewer modifications |
| Long showers one after another | Tankless | Can supply hot water continuously within its capacity |
| Multiple showers running together | Either | The tank’s capacity or tankless unit’s flow rate must meet demand |
| Limited utility room space | Tankless | Compact, wall-mounted design |
| Long-term energy savings | Either, depending on usage | Efficiency and installation costs affect overall value |
| Quick replacement of a failing unit | Tank | A like-for-like installation may be simpler |
What Maintenance Does Each Water Heater Need?
Maintenance is necessary for both units to work properly and avoid unnecessary breakage.
- Tank water heaters: They need to be flushed from time to time in order to wash off the debris. Moreover, the anode rod, temperature relief valve, and other components have to be inspected as per the manufacturer’s manual.
- Tankless water heaters: These water heaters might also need to be descaled in order to get rid of mineral deposits from the heat exchanger.
Should You Switch From a Tank to a Tankless Water Heater?
Replacing a worn-out water heater is a perfect time to weigh both options, but changing isn’t necessarily the most cost-effective option.
A tankless replacement could be right for you if you often find yourself without hot water, if you’d like to free up some floor space, or if you plan to be living in your house long enough to reap the benefits of possible energy savings.
Sticking with a tank could be the more logical route if your existing system works for you, if you don’t have a lot of money to spend, or if a switch to tankless would be too costly to install.
It’s important that you consult a licensed plumber before making a decision in order to evaluate your hot water needs, gas or electricity, venting, drainage, and installation. Consider the total cost of both options.
Find the Right Water Heater for Your Vaughan Home
Both tank and tankless water heaters are not the perfect fit for all houses in Southern Ontario.
A tank heater would be an appropriate solution where cost is the major factor to consider. Tankless heaters will be a worthwhile expense if you are looking to save on space, minimize heat losses, and have more hot water.
It all boils down to what your home requires and its capacity to pay for it. If you need to evaluate your current system, we at Vaughan Plumbing & Sewer can assist you. We will find the most fitting solution and help you with your installation.
Frequently Asked Questions
- Which is better – a tankless water heater or a tank water heater in Ontario?
It depends on your home’s needs. It may be that a tankless model works great for you by saving space and reducing energy consumption, whereas a tank heater will prove more economically convenient.
- Does a tankless water heater work efficiently during Vaughan winters?
Yes, provided the proper calculation is done to select the right model for the cold conditions. The coldness of the water entering the water heater will affect the flow rate of the outgoing water.
- Is it possible for the tankless water heater to supply two showers at the same time?
It is possible if the water heater has enough capacity for their combined flow rate and the needed temperature increase. Otherwise, the undersized water heater will have difficulty maintaining the required temperature level.
- Do the tankless water heaters help save money on utilities?
Yes, they do. The ENERGY STAR certified tankless models use 30% less energy compared to the storage tank models, says Natural Resources Canada. However, the savings depend on the particular use and cost of energy.
- What is the lifetime of the tanks and tankless water heaters?
The regular tank usually serves for 8 to 12 years, while the tankless one serves up to 15-20 years.
