Tankless vs Tank Water Heater: Which is the Better Investment?

Picture this. You turn on the shower on a chilly Portland morning, expecting it to warm up, and instead you get a blast of cold water.

Your water heater has finally given up. Now you have a choice to make.

Do you replace it with another traditional tank, or do you switch to a tankless system? 

That is the classic tankless vs tank water heater question. The answer depends on your budget, your hot water needs, and the conditions we have here in Portland. 

Traditional Tank Water Heaters: Familiar and Reliable 

Most Portland homes have a tank water heater. It is the large metal cylinder in a basement, closet, or garage. A tank heats up 30 to 80 gallons of water and keeps it hot until you need it. 

Why people stick with tanks: they are less expensive to buy and install, plumbers know them well, and replacing one is usually straightforward. 

Where they fall short: tanks take up space, waste energy keeping water hot all day, and run out if too many people shower or use hot water at once. Most last 10 to 15 years before they need to be replaced. 

Tankless Water Heaters: Hot Water On Demand 

A tankless unit heats water instantly as it flows through the system. You turn on the tap, and it makes hot water as needed. 

Why they are appealing: no running out of hot water, they are more energy efficient, they take up very little space, and they last 20 years or more. 

The trade-off is cost. A tankless water heater costs more up front and depending on your house you may need electrical or gas upgrades to support it. 

What Makes Sense in Portland? 

Local details matter. Portland’s Bull Run water supply is considered soft, which is good for tankless systems. Hard water causes scale buildup inside a unit, but our water reduces that risk and helps tankless systems last longer. 

Winter here is mild, but the incoming groundwater is still cold. That means a tankless system has to work harder in colder months. If the unit is undersized, you will notice a drop in flow. The solution is choosing the right size for your household. 

Incentives also make a difference. Rebates are available through NW Natural and Energy Trust of Oregon for high-efficiency natural gas tankless systems.

Portland General Electric has efficiency programs that can apply as well. These programs can make a tankless system easier to afford. 

The Cost Breakdown 

In Portland, a tank water heater with installation usually costs between $1,200 and $2,000. A tankless system costs more, usually between $3,000 and $4,500 installed. 

So why would you pay more? Because of operating costs. A tank heater burns energy all day to keep water hot. A tankless unit only turns on when you need hot water. That efficiency can save households $100 or more each year in utility bills. 

Over 20 years, those savings add up. Add in the fact that a tankless system lasts almost twice as long, and the investment often pays itself back. 

So, Which One Is Right for You? 

Here is the simple comparison. 

• Choose a tank if you want a lower upfront cost and a system that is easy to replace. 

• Choose a tankless if you want efficiency, more space, and unlimited hot water, and you are comfortable with a higher upfront investment. 

At Roth, we have been helping families in Portland and Central Oregon choose and install water heaters since 1976. Every household is different. Some care most about price, some about efficiency, and others just want hot water that never runs out. 

If you are trying to decide between a tankless vs tank water heater, call Roth. We will look at your home, talk through your needs, and help you pick the water heater that fits your family best.