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The Benefits of Tankless Water Heaters for Texas Homes

Published December 15, 2025 • by ABC Plumbing

Plumber fixing a leaky faucet

Tired of running out of hot water? Frustrated by high energy bills? A tankless water heater might be the upgrade your Texas home needs. Here's everything you need to know before making the switch.

How Tankless Water Heaters Work

Unlike traditional tank water heaters that constantly heat and store water, tankless units heat water on demand. When you turn on a hot water tap, cold water travels through a pipe into the unit, where a gas burner or electric element heats it instantly.

This means you never run out of hot water—and you're not paying to keep 40-50 gallons heated 24/7.

The Top Benefits

Lower Energy Bills

Tankless water heaters are 24-34% more energy efficient for homes that use less than 41 gallons of hot water daily. Even high-use households see 8-14% savings. That can add up to $100+ per year.

Endless Hot Water

No more cold showers because someone else used all the hot water. A properly sized tankless heater provides continuous hot water for as long as you need it.

Longer Lifespan

Tank water heaters last 10-15 years. Tankless units typically last 20+ years with proper maintenance. That's nearly double the lifespan.

Space Savings

Tankless units are about the size of a suitcase and mount on the wall. Free up valuable floor space in your garage, utility closet, or basement.

Reduced Flood Risk

No tank means no risk of a 40-gallon tank rupturing and flooding your home. This can also mean lower homeowner's insurance in some cases.

The Cost Breakdown

Let's be honest about costs—tankless water heaters have a higher upfront price:

Cost FactorTankTankless
Unit Cost$500-$1,500$1,000-$3,000
Installation$300-$500$1,000-$2,000
Annual Operating Cost$400-$600$300-$500
Lifespan10-15 years20+ years

While the upfront cost is higher, the longer lifespan and lower operating costs often make tankless the better long-term investment—especially if you plan to stay in your home for 10+ years.

Is Tankless Right for Your Home?

Tankless water heaters aren't perfect for every situation. Here's how to decide:

Good Candidates

  • • Households that frequently run out of hot water
  • • Homeowners planning to stay 10+ years
  • • Homes with natural gas available
  • • Those wanting to free up space
  • • Energy-conscious homeowners

Consider Carefully

  • • Very high simultaneous hot water demand
  • • Homes with only electric (no gas)
  • • Those on a tight budget
  • • Renters or those planning to move soon
  • • Homes with hard water (requires more maintenance)

Installation Considerations

Switching from tank to tankless isn't always straightforward. Your home may need:

  • Gas line upgrade: Tankless units often require a larger gas line
  • Venting changes: Different venting requirements than tank heaters
  • Electrical work: Some units need dedicated circuits
  • Water softener: Hard water areas may need treatment to prevent scale buildup

A professional assessment can tell you exactly what's needed for your home and provide an accurate quote.

Free Tankless Water Heater Consultation

Wondering if tankless is right for your home? ABC Plumbing offers free consultations. We'll assess your hot water needs, check your home's setup, and give you an honest recommendation—with no pressure to buy.