If you are looking to install a new hot water heater, you’ve probably heard about heat pump water heaters and tankless water heaters. However, you may not know what differentiates these two types of hot water heaters. Therefore, we want to break down the differences and give you the pros and cons of each. By the end of this article, you’ll know what makes each heater unique, and hopefully you’ll have an idea of which one is best for your home.
Heat Pump Water Heater vs Tankless—Functional Differences
So, let’s start with a basic question: what is the functional difference between a heat pump water heater and a tankless water heater?
A heat pump water heater uses a fan to suck in air from your home. The air then goes through an evaporator, where it is compressed. The compression raises the temperature and pressure of the air. In turn, this process raises the temperature of the water in the tank, which the heat pump then sends throughout your home. This process repeats throughout the day to ensure that your home constantly has access to hot water.
Meanwhile, a tankless water heater function differently. Tankless water heaters do not turn on until you activate a water source in your home. Once you turn on your faucet, for example, a tankless water heater will ignite a burner that heats the water being sent to your faucet. The tankless water heater will continue to stay active until you turn the water source off, ensuring that you have a consistent stream of hot water.
Heat Pump Water Heater vs Tankless—Size Difference
Heat Pump Water Heaters
Okay, so let’s talk about size for a moment. Heat pump water heaters come in four different sizes: 40-gallon, 50-gallon, 65-gallon, and 80-gallon. The size of the heater you choose will depend on the size of your home. A 50-gallon tank is what is typically appropriate for a standard 3-bedroom home. Of course, always be sure to consult with a professional to determine which size tank is best for you.
Tankless Water Heaters
Similarly, tankless water heaters come in a variety of different sizes. However, figuring out what type of tankless water heater you need is a bit more complicated. Tankless waters heaters have two important measurements that you will need to keep in mind: GPM Flow Rate and Temperature Rise.
GPM stands for gallons per minute, and it refers to how much water your tankless water heater can send around your house at any given moment. If you go online, you can find guides to help you calculate your GPM Flow such as this one. Of course, you can also consult with a professional and they will help you figure out the appropriate GPM Flow Rate. As a rule of thumb, if you live in a cold-weather state like New Hampshire, you should shoot for a GPM Flow rate of around 10. Alternatively, if you live in the southern United States, a GPM of around 7 is likely more appropriate.
After you have calculated your GPM, you also need to figure out your Temperature Rise. Temperature Rise is calculated by subtracting the average groundwater temperature in your area from your desired maximum hot water temperature. In other words, if you want the hot water in your home to reach 120 degrees Fahrenheit and the average groundwater temperature in your area is 50 degrees Fahrenheit, then your Temperature Rise is 70 degrees Fahrenheit. For reference, the average groundwater temperature in New Hampshire ranges between 51 and 57 degrees Fahrenheit. If you live in another state, and happen to be reading this blog, here is a chart you can use to figure out the average groundwater temperature where you live.
Heat Pump Water Heater vs Tankless—Price Difference
Of course, the exact cost of your heat pump water heater will vary, depending on the size you purchase. However, on average, you can expect to spend between $1,500 and $3,000, not including installation. That said, there are some state-sponsored rebates and federal tax credits available if you purchase an Energy Star-rated heat pump water heater, which could save you hundreds. Additionally, heat pump water heaters are efficient and will save you thousands of dollars compared to a traditional water heater over their life span.
Like heat pump water heaters, tankless water heaters vary widely in price. Electric tankless water heaters start in the high one hundreds and go up to roughly $800. Meanwhile, gas tankless water heaters start in the low two hundreds and can go up to over $2000. On average, people pay around $800 for a tankless water heater. Like heat pump water heaters, tankless water heaters will save you money compared to a traditional water heater over their life span. However, overall, heat pump water heaters are more efficient and will likely save you more money in the long run, despite their initial price.
Additionally, for both heat pump water heaters and tankless water heaters you will want to consider installation price. Again, pricing depends on the particular situation, but for a heat pump water heater you should expect to pay anywhere from $1200 to $3500 for an install. Meanwhile, tankless water heaters tend to be a little more expensive to install on average, but roughly fall within a similar range.
Heat Pump Water Heater vs Tankless—So Which Should I Choose?
This is the big question; which type of water pump is better for your home? The answer to this question depends on who you are, where you live, and what your needs are. Perhaps you don’t want a big, bulky heat pump water tank taking up a lot of space in your home. Or maybe you are someone who values energy efficiency and a heat pump water tank sounds perfect. There are many factors to take into consideration, so make sure you continue to do the appropriate research (like you are doing right now!) and consult with a professional. At Live Free, our experts know all about heat pump water heaters vs tankless, and they are always happy to break it down for you and make a suggestion for your home.
Need a Heat Pump Installed in Your Home?
Then call Live Free Heating Cooling Electric immediately! Live Free has proudly served New Hampshire residents since we opened our doors in 2014. Installation, maintenance, and repair for heat pumps is a core part of our business, and our experts can handle any problem you have. So, what are you waiting for—contact Live Free today!