Propane Tankless Water Heater Problems And Reviews

Question: Was comparing a propane tankless water heater with an new electric model. which is more cost effective?

(Posted by: Jill S on 2008-11-09 12:47:49)

I was thinking of replacing my regular tank water heater (electric) with a tankless on demand model (propane). I thought it would save money on my electric bill but on my electic company's home analyzer calculator, it states that if I replace it with another electric model (newer as our tank is really old) I will save $60- 110 a year but if we replace it with a propane tankless model we would only save $2- 4 a year. How can a propane tankless heater use more electric than an electric tank water heater? Anyone have any experience or knowledge of these water heaters? Not sure how to figure out how much electric is because I am billed different amounts for different times of day or something. I have copied and pasted my bill below. Propane is $2.65 a gallon. My neighbor installs propane and was the one who is trying to talk us into it. Said he would do it for free. We just needed to pay for unit. He has one but his house is new and we have old well pump and hard water. We have a water softner but our water pressure isn't the best. 200 KWH at 2.85800000¢ per KWH 5.72 600 KWH at 2.59800000¢ per KWH 15.59 980 KWH at 2.44900000¢ per KWH 24.00 Transmission Charge: 1, 780 KWH at 0.73000000¢ per KWH 12.99 Transition Charge: 200 KWH at 1.21300000¢ per KWH 2.43 600 KWH at 1.07500000¢ per KWH 6.45 980 KWH at 0.99300000¢ per KWH 9.73 Generation Charge: Capacity and Energy 200 KWH at 5.81900000¢ per KWH 11.64 600 KWH at 5.11400000¢ per KWH 30.68 980 KWH at 4.69200000¢ per KWH 45.98

Posted by: Propane Guy on 2008-11-09, 13:57:21

It does depend on where you are geographically. I'm in southern Ontario Canada and sell propane and heating oil for a living. Right now for every dollar you spend heating water with electricity you would spend $0.87 to do the same job with propane...That is based on 99% efficient electric vs 74% efficient propane. Tankless water heaters do have their disadvantages you should be aware of... They demand very good water pressure and volume as well. They are basically a very small chamber with a very large burner underneath it. If the water supply is not adequate the heater will simply boil away the water and the heater will not function properly. Also they are basically a single use appliance. What I mean by that is, they can only supply one thing at a time. With a conventional water heater, you can run a shower, dishwasher and clothes washer at the same time. If you try and do that with a tankless unit, you will get warm water at all three locations and "hot " water at none! Lastly, they can be difficult to vent. Make sure you have a location that the heater can be installed properly in, before you run out and buy one... If you post the propane price and electricity cost per kilowatt hr I can tell you if you will save anything or not... Edit: Propane at $2.65 a gallon is equivalent to $0.133 per kWhr if we use those same efficiencies listed above. But you also have got to factor in the propane tank rental, and also any delivery charges or transmission fees you get from electric or propane suppliers... I would say your cost either way is going to be pretty close. In that case I would say stay with a conventional electric heater. It is quieter and you don't have of the above considerations I mentioned to worry about. I hope this helped!

Posted by: trapper1_CA T on 2008-11-09, 13:13:54

Well , for starters in my area the price of propane is high as compared to the price of electricity.In other words It is now cheaper to heat a home with electric heat rather then propane.Down the road though,who knows.Suggest you need to consider that for your area.I would assume though you will be heating less water with the on demand heater and there is a cost to storing heated water.My suggestion would be to contact the company that supplies the demand propane model and have them compare usage cost against the electric version you plan on purchasing.To me a saving of $60 to $120 seems almost to good to be true, just by changing out an Electric hot water tank and replacing it with a more efficient one.

Posted by: NMexican on 2008-11-09, 14:31:36

It really depends on your electric rates and propane rates. There are some really efficient electric water heaters on the market. Some can be adapted now or later to solar pre-heat or total solar with electric back up. Solar hot water is almost free. As long as the sun shines and pumps work. I would for sure stay away from electric on demand heaters, as they don't put out enough heat. Propane on demand heaters work well if: you are at a low altitude, you have good soft water and have one that modulates and is big enough for your needs.Also incoming water temperature is important. Some companies advertise heaters that really are only big enough for one shower at a time (no dishwasher, clothes washer, other shower). I hope this helps. Contact a trusted plumber in your area and get his opinions. Kind regards!.........................