Do you have a traditional water heater that’s near the end of its life, or has it started to leak? If so, it’s worth considering replacing it with a tankless water heater. While the upfront replacement cost is higher with a tankless unit, the long-term benefits — from energy savings to longer life expectancy — often outweigh the price difference. For many Texas families, tankless water heaters are one of the smartest upgrades you can make to your home.

Continuous Hot Water When You Need It

Tankless water heaters are also called on-demand water heaters, because they only turn on when you open a tap. Instead of storing hot water in a tank, they heat water instantly as it flows through the unit. With a traditional tank, once the hot water is used up, you’re stuck waiting for the tank to refill and reheat. With a tankless system, you won’t “run out” of hot water the same way.

The one limitation to be aware of is flow rate. Each unit has a maximum gallons-per-minute (GPM) output. If your family only needs to shower and run a sink at the same time, a 5 GPM unit is often sufficient. For larger households that want to run multiple showers, laundry, and the dishwasher simultaneously, you’ll need a more powerful model rated closer to 8–10 GPM.

In Texas, this capacity is easier to achieve than in colder climates. That’s because the incoming groundwater temperature is relatively warm — typically 60–70°F even in winter — which means the unit doesn’t have to work as hard to raise water to your desired temperature. That’s a big advantage compared to northern states where groundwater can dip below 40°F.

Energy Efficiency You Can Count On

Water heating makes up about 20% of the average household’s energy use, making it one of the biggest contributors after air conditioning in Texas homes. That’s why efficiency should always be a priority when replacing your water heater.

Traditional water heaters suffer from standby heat loss — the water in the tank cools throughout the day, requiring frequent reheating. Even if you’re not home, your tank may fire up several times to maintain its temperature. Gas-fired models also lose heat through their exhaust flues.

Tankless systems, by contrast, only consume energy when you actually use hot water. According to the U.S. Department of Energy, switching to a tankless system can save homeowners 8%–34% on water heating costs. Smaller households that use less than 40 gallons per day see the highest percentage savings, while larger households still benefit but at the lower end of the range.

It’s important to note that fuel type matters in Texas:
  • Gas tankless units are usually the most cost-effective, especially given local natural gas availability and pricing.
  • Electric tankless units are available, but because of higher electricity rates in many parts of Texas, they may not deliver the same dollar savings unless paired with solar panels or other energy strategies.

Longer System Life = Better Investment

Traditional water heaters generally last 8–12 years before the tank rusts or starts leaking. In contrast, tankless water heaters are designed to last 15–20 years with proper care. That’s nearly double the lifespan.

While the upfront cost of a tankless system is higher, you’ll typically buy one tankless unit in the time it would take to purchase and replace two traditional water heaters. That longer service life, combined with lower energy bills, often makes tankless the more cost-effective choice in the long run.

Maintenance: What Texas Homeowners Should Know

Tankless units are lower maintenance than tanks, but they are not maintenance-free. In hard-water regions like Dallas-Fort Worth, Houston, and Central Texas, annual flushing or descaling is strongly recommended. This helps prevent limescale buildup inside the heat exchanger that can reduce efficiency or even cause damage.

Some homeowners attempt to flush the system themselves using a vinegar solution and pump kit. However, many manufacturers require professional servicing to keep the warranty valid. A qualified plumber can also check filters, gas lines, and venting to ensure safe, efficient operation.

By comparison, traditional water heaters require both flushing and anode rod replacement every few years. If the anode rod isn’t replaced on time, the tank will corrode more quickly and shorten the heater’s lifespan.

Compact Size, Flexible Installation

One of the most visible benefits of a tankless water heater is its small footprint. Traditional tank units usually hold 40–80 gallons and can take up an entire corner of your garage or utility closet. Tankless units are wall-mounted and about the size of a suitcase. This frees up valuable floor space for storage or other uses.

Tankless systems can be installed in garages, basements, or utility rooms, and some models can even be placed outdoors in mild Texas climates (with proper freeze protection). If you live in a smaller home, condo, or townhome, the space savings alone may make tankless worth the upgrade.

Top Tankless Brands for Texas Homes

When choosing a tankless water heater, it’s best to focus on reputable brands with strong performance in warmer groundwater regions like Texas. Some of the most trusted names include:

  • Rinnai – Known for durability and high-capacity gas models, ideal for larger Texas households.
  • Navien – Offers condensing tankless units with excellent efficiency and built-in recirculation features.
  • Rheem – A popular, widely available brand with both gas and electric tankless options.
  • Noritz – Specializes in long-lasting, high-quality gas tankless systems.

Each of these manufacturers offers ENERGY STAR® certified models, which ensures higher efficiency and potential eligibility for rebates or tax credits.

Frequently Asked Questions About Tankless Water Heaters

Q: Do tankless water heaters provide “instant” hot water?
A: They provide continuous hot water, but not necessarily instant. You’ll still wait for water to travel through your pipes, though recirculation pumps can reduce that delay.
Q: How much do they cost to install in Texas?
A: Installed prices typically range from $3,000–$5,500, depending on the brand, fuel type, and whether new venting or gas lines are needed.
Q: Do I need a bigger gas line for tankless?
A: Possibly. Many gas tankless units require a larger gas supply line than traditional tanks. A licensed plumber will size and install it correctly.
Q: What about power outages?
A: Gas tankless heaters still require electricity for ignition and controls. In areas prone to outages, consider pairing with a generator or backup battery system.

Why Texas Homeowners Choose Tankless

Between the continuous hot water, smaller footprint, longer lifespan, and proven energy savings, tankless water heaters are an excellent fit for Texas households. The warmer climate makes them more efficient here than in many other parts of the country, and the availability of natural gas makes gas-fired units especially cost-effective.

Since 1981, On Time Experts has been the name homeowners in Garland and the Dallas-Fort Worth, TX area have trusted for all their plumbing and water heating needs. We’ll help you evaluate your hot water demand, compare models, and install the right system for your home. You can also turn to us for tankless maintenance, repairs, and recirculation upgrades.

Ready to enjoy endless hot water and lower energy bills? Contact On Time Experts today to schedule your tankless water heater consultation.

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