On Demand / Tankless Water Heaters
Why Consider an On Demand Water Heater?
On Demand, or Tankless water heaters, represent a different way to heat hot water in the home or business. Rather than maintain a tank of hot water, or a boiler, on demand water heaters provide hot water when you want it. As a result, they are much more efficient than either electric or oil boiler based systems.
The best way to understand the efficiency savings is to think of “thermal efficiency.” An oil boiler, running in the summer months just heat domestic hot water, is only operating at about 20% thermal efficiency. This is due to the fact that a 500 pound block of steel has to be heated to 180 degrees every 6 hours or so just to bump up the temperature of the tank by 6 six degrees, whether you’re using hot water or not. The heat from the boiler goes right up the chimney.

The typical home WASTES 3/4 of a gallon of oil a day up the chimney just maintaining the hot water tank. At $350 a gallon, an oil boiler is wasting $472 a summer. That number is even bigger for people who heat their house with a wood or pellet stove some part of the year.
If you’ve got an electric water tank, you’re paying $44 per Million BTU’s. Propane costs about the same but without any tank loss. The typical electric water heater loses 2 degrees per hour. At that rate, a 50 gallon tank costs $320 a year JUST TO KEEP HOT! Savings relative to an electric water heater will be from not maintaining a tank and from using a less expensive fuel.
What makes someone a good client for an On Demand Water Heater?
- If you have an electric water heater and have more than 2 people in the household, you will experience significant savings through on demand propane.
- If you have an oil boiler that is maintained only for hot water in the summer months
- If you have an oil boiler and a wood or pellet stove, and you are maintaining your boiler more than 6 months a year, you are an excellent candidate for on demand hot water
- If you have Propane on site already, you are an excellent candidate for on demand hot water
The economics of On Demand Hot Water
- Installed costs start at $2800
- Less :
- $300 federal tax credit
- $300 Efficiency Maine rebate
Many of our clients who consider On Demand Water Heaters as a way to save energy and money should also consider Heat Pump Water Heaters as well. Heat Pump Water Heaters are less expensive to operate, provide hot water without a wait, and dehumidify the basement while they’re making hot water.
Let our team of experts help you determine the best water heater solution for your home. Contact us for a free consultation or to learn more.


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