In the summertime in Texas, triple-digit temperatures aren’t uncommon. That typically drives up household energy use as ACs work overtime to beat the heat. As a result, homeowners look for ways to trim energy use elsewhere to lower their monthly bills. One common target is water-heating costs. Water heating is one of the largest energy expenses in many homes, making it a logical place to look for savings.
Choosing an efficient water heater is one of the most effective ways to reduce water-heating costs. Here’s how storage tank water heater efficiency compares with tankless models in Texas summers. You’ll see why tankless water heaters can offer efficiency advantages over storage-tank models, making them worth considering for many Texas households.
The Effects of Texas Summers on Water Heating Costs
Many people assume that the changing of the seasons does not affect a water heater. However, it can matter more than you think. During Texas summers, incoming water is often warmer than it is in winter, which means your water heater may not need as much energy to reach the set temperature. Since many water heaters are set around 120°F, warmer incoming water can help reduce the temperature rise your system has to provide.
Unfortunately, summer also tends to drive up household water demand. You and your family may shower and bathe more often, do more loads of laundry each week, or host more guests while kids are out of school or during summer gatherings.
Energy price fluctuations in the Texas market can also play a role in summertime water-heating costs. When temperatures rise, electricity prices may increase as demand grows. Natural gas demand does not always rise in the same way during summer, but prices can still vary. Whether you have a gas or electric water heater will affect your water-heating costs, along with your household usage, equipment efficiency, and local utility rates.
How Storage Tank Water Heaters Work in the Texas Summer
A storage tank water heater is a simple device. It heats incoming water to a preset temperature and stores it for future use. Efficiency-wise, that heating process can be similar to a tankless heater using the same fuel source. However, as the stored water sits in the tank waiting for demand, it gradually cools. That’s a phenomenon called standby loss. The water heater will periodically turn its heating element or burner back on to reheat the stored water.
The standby losses you can expect from a storage tank water heater can vary. For example, if yours is a high-demand household for hot water, losses may be lower because hot water does not sit unused for as long. Your water heater’s installation location also plays a role. If it’s in an air-conditioned space, standby losses may increase. If not, the higher ambient temperature around the tank may reduce some standby loss during summer. However, you may experience the opposite effect during periods of cold weather.
Here in Texas, a gas-fired storage tank water heater may cost less to operate than a standard electric resistance model in some homes, depending on local utility rates, equipment efficiency, and household usage. However, every home is different, so it is important to compare both upfront and long-term operating costs before choosing a replacement.
How Tankless Water Heaters Work in the Texas Summer
Tankless water heaters sense demand for hot water and produce it on the fly. As a result, they avoid the standby heat loss associated with storing a full tank of hot water. They use very little energy while standing by, which is one reason tankless water heaters are often cheaper to operate when they are properly sized and installed. In the Texas summer, warmer incoming water may also help a tankless water heater deliver a stronger flow rate than it would during colder months.
The operating cost difference between a storage tank and tankless system may be smaller in high-use households because frequent hot water use can reduce standby losses from a tank. However, tankless water heaters have flow-rate limitations. If you try to use hot water in too many places at once, a tankless unit can struggle. To mitigate that issue, you may need a larger tankless water heater or even multiple units to meet demand.
You should also know that many whole-home tankless installations rely on natural gas. Whole-home electric tankless models may require significant electrical capacity and may not be the best fit for every household. You can install multiple electric tankless heaters or use smaller point-of-use versions in certain situations. However, installation requirements, utility rates, and hot water demand should all be evaluated before choosing between gas and electric equipment.
Storage Tank vs. Tankless: Direct Cost Comparison
When comparing costs between storage tank and tankless water heaters, operating expenses aren’t the only thing to consider. Here’s a comparison of expected lifetime costs:
Upfront Costs
Storage tank water heaters are usually less expensive upfront. In some cases, a tankless water heater may cost two to three times as much to purchase and install, especially if gas line, venting, or electrical upgrades are needed. Standard electric storage tank models are often less expensive upfront than gas-fired models, although operating costs may differ.
Longevity
It’s important to remember that your water heater’s lifespan affects the total cost of ownership, too. Many storage tank water heaters last around 10 to 15 years with proper maintenance, while many tankless systems can last 20 years or more when maintained properly. That longer service life can help offset the higher upfront cost of a tankless system over time.
Summer Operating Costs
When comparing the operating costs of storage tank and tankless water heaters that use the same energy source, tankless heaters often come out ahead on operating efficiency because they avoid standby heat loss. Even so, your actual savings will depend on household hot water use, fuel type, utility rates, equipment efficiency, and proper sizing.
Lifetime Repair and Maintenance Costs
Maintenance costs can vary by system type, water quality, and usage. Storage tank water heaters may need periodic tank flushing, anode rod checks, and valve inspections. Tankless water heaters may need descaling, filter cleaning, and professional service, especially in areas with hard water.
Tankless water heaters can last longer with proper maintenance, but they are not maintenance-free. Their repairs may also be more specialized than repairs on a standard storage tank model. The best choice depends on whether the potential energy savings and longer lifespan outweigh the higher installation and service requirements for your home.
The Bottom Line
All things considered, tankless water heaters are often the more energy-efficient option during Texas summers because they avoid standby heat loss and can benefit from warmer incoming water. They may also provide long-term savings for many households when properly sized, installed, and maintained. However, the money-saving potential depends on your household usage, fuel type, installation costs, utility rates, and hot water needs.
If you’re interested in upgrading to a tankless water heater in your Dallas-Fort Worth-area home, Benjamin Franklin Plumbing® can help. We sell and install quality tankless water heaters, and if you still want a storage-tank model, we carry and support those, too. Plus, you can count on us for water heater maintenance and repair for the life of your unit. Contact Benjamin Franklin Plumbing® today, and we’ll be happy to discuss water heater options for your Dallas-Fort Worth home.
