When my wife and I were in Europe last summer, we saw quite a few on-demand electric water heaters in use.
This was interesting to me since I am used to the traditional water heaters we have in the US. You know, the big round water tank that most of us have in our bases or garages.
But seeing those commonly used point-of-use water heaters got me thinking. Why would Europeans use this type of water heating system so much? What are the benefits? And are there drawbacks?
On-demand electric water heaters provide water when you need it
The traditional method of heating water is to have a large tank that stores the water and keeps it hot until you need it. When you turn on the tap, the hot water begins to move through the pipes until it reaches where you asked for it, be it the kitchen sink, the shower, the washing machine, etc.
However, even when you don’t need hot water, your tank heater continues to keep hot water for you, should you need it. When you sleep at night, the water stays warm. When you’re at work, the water stays hot.
This translates to a loss of money as you pay your energy bills. Whether it’s electric, natural gas, or propane, you’re still paying to keep your water hot, even when you don’t need it.
To add insult to injury, the heat seeps in while it sits in your water tank waiting for you. There is more money coming out of your wallet!
On-demand electric heaters, or tankless water heaters, provide hot water when you ask for it.
There is a small briefcase-sized unit located near your faucet that begins to heat the water you have ordered. There is no sitting tank. The water heats up the moment you turn on the tap.
The small unit contains heating elements, either natural gas, propane, or electric, that will instantly heat your water.
Think of it as a little “instant hot water” machine, like you may have used to make coffee or tea!
So what are the benefits of an on-demand electric heater?
There are several benefits, but the two that people like the most are the small size of the water heating unit and the energy savings.
A traditional hot water heating tank takes up a lot of space, perhaps 2-3 feet square and perhaps 4-5 feet high.
By contrast, the largest electric-on-demand water heaters are wall-mounted and are typically around 2 feet tall and 18 inches wide, with about 4 inches protruding from the wall. Some are much smaller!
This is one of the reasons why the on-demand electric water heater is so popular in Europe.
Remember that in many cases the buildings in Europe are centuries old. Space is at a premium. It’s hard to find space for that traditional tank heater; Furthermore, this type of unit can be mounted anywhere near the required hot water, be it under a counter, next to a bathtub, near the washing machine, etc.
On-demand electric water heaters can be small units individually placed near each hot water faucet, or you can purchase a “whole house” unit that will provide hot water for the entire house. It just depends on your choice and your needs.
The other big benefit is simply that on-demand electric units save money.
With energy costs rising left and right, it makes sense to only pay for the energy you need. Water heating costs can be reduced by up to 50%, and no heat is lost by looking the other way while in the storage tank. There is no storage tank!
This is the second reason why on-demand electric heaters are so popular in Europe. Energy costs are very high there. It just makes sense to use energy wisely.
And you never run out of hot water!
Gasoline models vs. electric models
Yes, there are both gas and electric on-demand water heaters.
Both are energy efficient and beneficial to the environment.
Gas models have been shown to be slightly less efficient than their electric counterparts. Typically, gas point-of-use tankless heaters have a maximum efficiency of about 80-85%, while electric models reach a maximum efficiency of 98%.
The operating expenses of the gas model show up slightly better than its electric counterparts, with an additional saving of around 10-15% compared to the on-demand electric water heater.
However, gas prices tend to adjust more frequently than electricity prices, meaning this number could quickly get worse.
Initial costs for gas units can also be higher than their electric counterparts with electric models costing around $400 to $700 while the gas unit can cost $1000 or more. A gas model will also cost more to install than an electric one.
In my research, I found a couple of drawbacks, or rather, a couple of things that some people may consider drawbacks.
For one, a tankless water heater may not be able to handle two requests for hot water at the same time. That is, if he takes a shower and his wife runs the dishwasher, your on-demand electric heater may not be able to provide hot water for both of you at the same time.
Of course, maybe it’s not too difficult for you to take a shower first, and then wash the dishes?
The second thing to consider is that when hot water is requested, there is a large power consumption at that time. This could result in what’s called a “demand charge,” which can be expensive depending on your power company. You’ll want to check that out.
Finally, you’ll want to make sure your home’s electrical wiring is rated to handle heavy power draws. If you have an older home with outdated wiring, you’ll want to update that wiring before installing an on-demand electric water heater.
For me, I found that this technology made a lot of sense. I’m researching what kind of electric on-demand water heater to install in my house as you read this!
