Tankless water heaters

And now, the Rest of the Story: Radio legend Paul Harvey’s commercial endorsement of Rinnai‘s tankless water heater line appears to be heating up consumer interest in the devices.

How does a tankless waterheater work? The process:: 1. A hot water tap is turned on. 2. Water enters the heater. 3. The water flow sensor detects the water flow. 4. T12he computer automatically ignites the burner. 5. Water circulates throught the heat exchanger. 6. The heat exchanger heats the water temperature to the designated temperature. 7. When the tap is turned off, the unit shuts down. Illustration courtesy of Takagi Industrial Co. USA

Although the technology behind them has been popular in Europe and Japan for decades, tankless water heaters are just beginning to catch on in North America. A number of manufacturers are marketing the units, although exact domestic sales figures are elusive.

The tank-free devices are designed to provide an endless stream of steamy water while saving homeowners money on their fuel bills, an especially important consideration as energy prices gush higher and higher.

They don’t add big loads of propane, but tankless water heaters are a good customer service opportunity for propane marketers.

Hot water usage typically accounts for at least 20 percent of a household’s total annual energy cost, according to the U.S. Department of Energy. Showers use 37 percent of a home’s hot water supply; the washing machine consumes 26 percent; 14 percent is utilized by the dishwasher, with the remainder destined for tubs and sinks.

Traditional water heaters are subject to “standby losses” because they keep heating the tank’s contents even if no one is drawing from it. This, along with heat escaping through the piping and other loss-points, amounts to 10 to 20 percent of the operating expense. (A standard propane hot water tank burns 200 to 300 gallons a year; a tankless unit’s load is considerably less, depending entirely on the amount of hot water used.)

Tankless units run only when the hot water spigot is open, pouring out two to three gallons per minute. Research from the Lawrence Berkeley National Laboratory reveals that the average lifespan of a tankless model is 20 years, twice that of a standard unit.

Tankless heaters are much smaller than tank heaters. Sizes vary by manufacturer, but the average measures about 24 inches high, 18 inches wide and 9 inches deep.

The technology can be applied to just about any residential, commercial or industrial structure because the units can either stand-alone or be combined into a major system.

A commercial unit produced by Noritz features internal piping that’s 25 percent thicker than residential models. Up to 24 of them can be linked together to provide some 318 gallons per minute.

“With tankless models sized from as little as 30 pounds and 2.2 cubic feet, they certainly are ideal for condominiums or other compactly designed structures where garage and storage space are at a premium,” says Ted Kwak, vice president at California-based Takagi Industrial Co. USA, Inc.

“They also are perfect in a hotel, high-rise office or apartment building,” he adds.

“We know of one consumer who installed a tankless-powered hydronic heating system within his sidewalk for melting snow in the winter. Another, more common, application of hydronic heating – which has been in use for more than a century in other parts of the world – is providing residential space heating by running hot water through plastic tubes embedded in a cement floor.”

Although tankless water heaters are initially more expensive than traditional models, sales resistance is often mitigated by the reduced gas load. More importantly, parents with teenagers in the house delight in the notion of having enough hot water to serve the entire family’s needs.

The tankless aspect itself is particularly enticing as well. A unit installed in an earthquake zone won’t shower the home with scalding water should a trembler strike. Homeowners in other regions of the country also enjoy peace of mind, bearing in mind that a flood usually ensues when a traditional water heater fails.

At Glaser Gas Inc. of Colorado Springs, Colo., David Glaser says over the past year he’s sold an average of one to two tankless units per week; 60 percent propane compared to 70 percent natural gas.

While they don’t burn a lot of propane, the units allow a dealer access to the home and a chance to pitch their other LPG offerings.

“The Rinnai uses 70 percent less gas then a regular water heater, so it’s not really good for propane load,” he observes. “But that’s not the idea here – the idea is customer service. It’s a good deal for the customers.”

Glaser believes customers are hunting for one-stop shopping when building a new house. By selling and installing the device, he’s locking up appreciative customers by allowing them to save on their hot water costs.

“People want us to run a line to their propane tank and do business with them” on a regular basis, he says.

Cooperation with homebuilders, plumbers and heating, ventilation and air conditioning contractors is another marketing factor. “On a new construction up in the hills, someone will bid the heater and we’ll come in and do the piping.”

A tankless water heater can be 50 percent to 60 percent more expensive than a standard model, but buyers are attracted nonetheless. “They get more hot water! Most of the people we’re putting those in for have three or four kids. They’d do anything to get a hot shower,” Glaser notes.

Beyond hot water

Innovations continue to flow within the tankless water heater market. A controller available from Rinnai does everything but pour in the bubble bath and light the candles: A timer can be set to draw a bath while you’re still snuggled under the blanket.

Digital controllers allow users to precisely assign the water’s temperature. Households with small children can avoid scalding accidents, while a super-hot setting can be applied to anti-bacterial sanitizing purposes for a home or business – including car washes, greenhouses, drycleaners and other high-volume users.

“Restaurants really like them because of the space savings,” says Gordy Mitchell, a sales representative with the John Condon Co., a wholesale equipment distributor based in Seattle.

Wineries and dairies are other prime customers, according to Mitchell, who praises the longevity and reliability of the devices. “Everything on them is repairable, replaceable and recyclable,” he notes.

“This is a good opportunity for propane retailers,” Mitchell points out, noting that the company sells more LPG units than natural gas. “We have better luck in rural areas, where we don’t have competition from the home stores.”