Heat Pump Water Heater Vs Tankless: Which One Will Suit Me?

Heat Pump Water Heater Vs Tankless

The latest inventions in water heating technologies have revolutionized how water heaters are bought and used. These new methods have made new-age water heaters more economical and environment-friendly.

One can easily get caught in the dilemma of choosing the right water heater that is perfect for their requirement among the myriad of options available.

This article will ease things for you and help you choose between Heat Pumps and Tankless water heaters. Keep reading to know both sides of the story and make an informed decision on which heater will suit you best.

Why Pick Heat Pump Water Heaters?

A heat pump water heater, commonly known as the hybrid water heater, draws heat from the air inside the tank to heat the water, using the pump and coil mechanism and supplies it to your water faucets. Here are some benefits of choosing heat pump water heaters:-

Energy efficient

Since heat pump water heaters use electricity to move heat from one place to another instead of directly generating heat, they cut energy usage and hence contribute much less to your electricity bill. This technology also makes the heater environmentally safe.

If you are living in a place with a warmer climate, that is even better for the working of this heater since it will use the warm air surrounding the system to heat the water. This will further cut down energy consumption.

Tempting Rebates and Return on Investment

Hybrid water heaters, depending on the type of unit you choose, offer exciting rebates and incentives on tax. Hence, installation and setup costs are significantly covered, thus making the heater more economical and accessible with added monetary benefits.

The comparably sooner ROI that the heat pump water heater provides is a cherry on the cake. The consumer can get the ROI after just four years of installation. This will be helpful for the consumer in saving a lot of expenditure for most of the appliance’s life.

Long Life

Another plus point of these hybrid water heaters is their long life. The product offers to stay at your service for 10-15 years which is a pretty appreciable time, making the appliance user friendly and durable.

What makes the heat pump water heater a failure?

Made for the warmer climate

The heat pump water heater works best in warmer areas since the warmer the air, the better heated the water will be due to the technology used in its making.

Although the hybrid works well enough in cooler climates, it functions more smoothly and efficiently in a warmer setting, limiting its functioning and does not provide an all-round performance for all its consumers.

High initial costs

Irrespective of the tax incentives and refunds, the actual price of the heat pump water heater is relatively high, including the installation costs, which aren’t too low as well.

Thus, even after all the advantages offered, which may benefit in the times to come, the initial cost that the consumer needs to bear is inflated.

Space Seeker

The hybrid or heat pump water heater requires a good 1000 cubic feet of space to set itself up and operate, which may sometimes pose a problem due to lack of adequate space, making the heater a downside of consumer accessibility. It may even affect the presentation and organization of your abode.

Why consider a tankless water heater?

As is clear from the name, these water heaters do not have tanks; they provide hot water as and when demanded. They consume electricity and even gas to function. Tankless water heaters are energy efficient as well. Here’s why a tankless water heater should be on your list:

Heats Rapidly

One of the best things that this heater offers is the incredible speed with which it heats the water. You get hot water instantly and don’t have to wait for hours for the unit to heat water and fill the tank since it’s tankless.

This also implies that the tankless water heater never runs out of hot water since it warms water on user demand, and that too swiftly.

Occupies less space

The tankless water heater does not eat up much of your space. It is mounted on the wall and nowhere near the floor, which further helps resolve the space issue. This is a massive bonus for those who have less spacious homes, for you can dock the heater on the ceiling with ease.


The product can serve you for as long as 20 years, which is comparably higher than any other water heater, giving the tankless water heater user an edge and head-on over other products. The extended warranty period adds to the number of advantages this heater offers.

Why you shouldn’t go for tankless heaters

More heating time is needed.

The consumer experiences a lag of 3 to 8 seconds to obtain hot water since the machine needs to start its system up to function correctly. This time duration is slightly more significant as compared to some other units.


The initial expenses of buying and setting up the tankless water heaters are higher, serving as a huge bummer to the customers.

Also, since this heater goes on the wall, you might want to change the house’s plumbing to get the proper connection with the heater, which may elevate the costs even further.

Temperature fluctuation

The water temperature from the heater may not remain uniform if numerous appliances are connected to it. This may even hamper the speed with which the water is being warmed. Not having a tank proves to be a disadvantage in this case since there is no reservoir to take out water from.


Therefore, while both the tankless and the heat pump water heaters are energy-efficient and environmentally conscious, there are some benefits that they have over each other, as summed up below:

1. The tankless heater occupies less space than the hybrid water heater.

2. The tankless water heater has higher durability (20 years ) than heat pump water heaters(10-15 years)

3. The tankless water heater heats water faster than a heat pump water heater.

4. The heat pump water heater has a tanker that helps draw out water of a consistent temperature, which is not the case in tankless water heaters.

5. Hybrid water heaters have low installation expenses as compared to tankless water heaters.

6. Hybrid water heaters work better in warmer climates, whereas tankless water heaters function phenomenally in hot and cold climates.

Hence, both the heater have their pros and cons, and the requirement of the consumer determines which one to go for.

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