Because hot water heating can be so costly, efficiency is of the utmost importance, which is why tankless solutions are superior to their tank equivalents.

When it comes to improving your facility's energy efficiency, it is important to examine all of your available options. Hot water heating is the second largest utility expense, according to the Department of Energy, meaning that you could stand to see impressive savings from replacing your aging hot water heater.

But when it comes to making this replacement, you should make sure to look at all the ways that you can improve efficiency. For instance, there is the initial sticker price of a hot water heater, but this is barely half the story. If a cheaper water heater is only going to last half as long as the more expensive model, this could lead to a higher overall price due to replacement costs. The following are a series of factors you should consider when looking to optimize the efficiency of your buildings's hot water heating capacities.

Performance
The first and probably most important factor to consider when looking at water heater efficiency is performance – that is, how much energy it needs to meet your hot water needs. Electric tankless water heaters are able to achieve 99 percent thermal energy efficiency, compared to just 65 percent in water heater tanks. This means that tankless solutions need less energy to achieve the same water temperatures. This can translate into savings of up to 50 percent. 

Also, tankless water heaters work only when they are needed. Water tanks, on the other hand, need to constantly use energy in the form of stand by heat in order to make sure that water is always at the ideal temperature.

Water
Another place where hot water heaters can improve efficiency is in the amount of water that is used at any one time. Because they can be installed at the point of use, they are able to provide hot water on demand, rather than having to wait for the hot water from the tank to reach the faucet. If the hot water in a tank runs out, one has to wait for it to refill, which means that you will be using more, less hot water.

Space
Regardless of where you work, be it a commercial office building or industrial production floor, space comes at a premium. Water tanks can be quite large depending on the demands of the facility they serve, as a result, they can sometimes require their own room. Tankless water heaters are roughly 90 percent smaller than their tank equivalents, meaning they can be mounted on a wall or even underneath a sink.

Long-term savings
We've already established that tankless water heaters can generate immediate savings just in their energy efficiency. However, you might be deterred from purchasing one based on its initial asking price. While it is true that water tanks tend to cost less in their initial asking price compared to tankless water heaters, they do no last nearly as long. The Department of Energy pointed out that a tank water heater lasts 10 to 15 years, while a tankless one lasts over 20 years.

Not only does a tankless water heater eliminate costly replacement expenses, it guarantees longer lasting, high-efficiency performance. This means that you will be able to garner more utility savings, for longer, further adding value to your purchase.

With the emergence of green facilities becoming more prominent, and companies looking to limit their business overhead, tankless water heaters continue to become a popular choice. Through these efficiency improvements, you can employ this equipment as a part of larger efforts to improve building performance.