How each one works

A tank heater keeps a fixed volume of water hot and ready, reheating it as you use it. When the stored hot water runs out, you wait for the tank to recover.

A tankless heater stores nothing. When a hot tap opens, it senses flow and fires a burner or elements to heat water as it passes through a heat exchanger. It does not run out the way a tank does, but it can only heat so many gallons per minute at once.

Side by side

Tank

  • Simple, familiar installation in a garage or closet
  • Usually fits the existing vent and gas connection on a like-for-like swap
  • Hot water limited by stored volume and recovery
  • Sediment settles in the tank and benefits from flushing
  • Must be seismically strapped in California

Tankless

  • Compact, often wall-mounted outside
  • Gas units often need different venting and more gas supply than a tank
  • Continuous hot water up to its flow limit
  • Scale builds in the heat exchanger and needs periodic descaling
  • Needs electrical power even on gas models

Questions that decide it

QuestionPoints toward tankPoints toward tankless
How much space do you have?An existing tank spot you are happy withYou want the garage or closet space back
How many showers run at once?Large simultaneous use and a big tankUse spread through the day, or a unit sized for peak flow
Can the gas line supply more?Existing line is modestA plumber confirms the line and meter can carry it
Will you keep up maintenance?Prefer occasional flushingWilling to descale on the manufacturer's schedule
Budget for the change itselfLowest disruptionAccepting venting, gas or electrical work

If you are considering a switch to tankless

  1. Have the gas supply checked.A plumber should confirm whether the existing gas line can carry the larger load, or whether it needs upsizing.
  2. Plan the venting.Many gas tankless units use dedicated venting different from a tank's vent pipe. The location affects how simple that is.
  3. Confirm power.Tankless units need an electrical outlet or circuit for controls, even when they burn gas.
  4. Size for your peak.Count the fixtures you run together and the temperature rise needed. Undersizing means lukewarm water at busy times.
  5. Ask about permits.Changing heater type is more than a swap. Check with the city about permit and inspection requirements.

Terms you will hear

First-hour rating
How much hot water a tank can deliver in an hour starting full. Printed on the label.
Flow rate (GPM)
Gallons per minute a tankless unit can heat at a given temperature rise.
Temperature rise
The difference between incoming water temperature and the temperature you want at the tap.
Recovery
How quickly a tank reheats after hot water has been used.

Common questions

Will a tankless heater fit where my tank was?
Sometimes, but many are mounted on an exterior wall instead. Location depends on venting, gas supply and where the water lines run.
Do tankless heaters really never run out?
They do not run out the way a tank does, but they have a flow limit. Ask too much at once and the water gets cooler.
Is switching to tankless a simple swap?
Usually not. Expect possible gas line, venting and electrical work, and check with the city about permits.

General information for Fullerton, not a quote or professional advice. In an emergency, call 911.