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Tankless Water Heaters vs. Hybrid Water Heaters

Are you tired of fifty-gallon tanks taking up all your space? Even smaller twenty-gallon water heaters can fill up a room, leaving little to no space for anything else. Let’s not start on their maintenance, operating costs, and repairs.

Fortunately, there are many alternatives to traditional water heaters. Still, not all make a good fit, with some more efficient than others.

Let’s discuss your more energy-efficient options to gauge which is more suitable for your home.

Tankless Water Heater VS Hybrid Water Heater: Key Differences

Tankless and hybrid water heaters have gained recent popularity. Its innovative heating can account for its high demand, but there are differences between the two.

While both outweigh traditional water heaters in terms of efficiency and operational costs, different components are unique to each innovation. Let’s get to know them individually before we go for a side-by-side comparison.

Tankless Water Heater

Storage tank water heaters operate with at least one large tank linked through piping and other elements used for distribution. A tankless water heater doesn’t hold its resources in a storage tank. Tankless water heaters are also called “on-demand” water heaters because they heat water as needed instead of collecting any like storage tank water heaters.

A tankless water heater comes in various models:

  1. Electric Model
  2. Natural Gas Model

While their utility varies, tankless water heaters are typically small installations. They rarely come in larger sizes and are often smaller than your average carry-on suitcase or adult backpack.

Tankless water heaters tap into your water source and streamline its distribution for your heating needs. Tankless water heater units are space efficient, taking less room than storage bins, but unit prices vary according to capacity, model, and brand.

Unit Costs

An electric tankless water heater typically heats five to ten gallons of water at a time, helping you save money and resources. However, it comes with a price. Electric water heaters are at least twice as expensive as classic water heaters but are cheaper than gas models.

A natural gas tankless water heater costs thrice more than traditional storage tank water heaters. Initial costs may intimidate you, but don’t let them ward you off completely.

Installation Costs

Integrating a tankless water heater into your home comes at equally high prices. There are also many aspects to consider in integrating one into your home, such as what size or model suits your entire home best. A natural gas model will also require a larger gas line due to higher and more efficient thermal units.

Your district’s water supply comes at various flow rates, and the level your house posses is critical in deciding which tankless water heater fits your system best. Depending on your home’s flow rate, you might need larger or smaller units, and their installation costs will depend on your home’s internal supply lines.

To keep it short, installing versatile systems to fit various contributing factors will cost you more than primary storage tank water heaters. If the upfront costs turn you off, remember that you get what you pay for, and the return on investment on these sustainable alternatives is worth it.

Hybrid Water Heater

Speaking of worthy sustainable alternatives, you can’t go wrong investing in hybrid water heaters. A hybrid water heater comes with a storage tank, don’t be confused! Yes, they have storage tanks, heat water, and create a hot water supply for your home to tap.

The reason behind its name is it’s half conventional, but its heating system is entirely innovative. Instead of relying on a combustion process, a hybrid water heater utilizes surrounding air temperatures for heat production.

Most water heaters use typical heating through combustion with fuel ignition. However, a hybrid water heater has a heat pump system and takes a more natural approach.

  1. The hybrid water heater absorbs the air surrounding your home.
  2. The heat pump transmits natural heat particles from the surrounding air into its storage tank through the evaporator coil.
  3. The stored water supply absorbs heat particles until it collectively reaches your desired temperature.

Its natural process is entirely powered by electricity, eradicating any fuel consumption. The electric water heater relies heavily on standard resources readily available to your home.

The energy-efficient hybrid heat pump water heater isn’t as much a space-saver as a tankless heater, but it does cost nearly the same.

Unit Costs

Like a tankless heater, a hybrid heat pump water heater costs more than conventional water heaters and at least twice as much as storage tank water heaters. Hybrid heat pump water heaters offer higher capacity storage of up to eighty gallons compared to traditional storage tank heaters, with only very few units exceeding a fifty-gallon capacity.

A heat-pump hybrid water heater might cost you more than other water heaters, but it is worth it. It can save you more, especially if you live in a warmer climate with abundant natural heat.

Installation Costs

The installation costs of a heat-pump hybrid water heater will result in the same amount as storage tank water heaters. While the materials and process will vary, they will typically cost the same to integrate into any home.

If upgrading from a traditional storage tank into a hybrid water heater, you may use some fixtures for the new water heater. You won’t have to rip up old pipes to lay down new ones, but you might have to if they can’t be linked.

The Tankless Water Heater Difference

Tankless water heaters are more fuel efficient and use fewer resources to operate. Lower operating costs lead to less utility and energy consumption, making tankless water heaters more practical and sustainable.

Energy Efficiency

Storing water doesn’t translate to keeping its temperature with it. A storage tank retains water, but heat retention is different. Heat may eventually dissipate, leading to heat loss and requiring additional heating to maintain temperatures. Any on and off heating leads to higher energy costs, which isn’t a problem for tankless water heaters.

Tankless water heaters produce hot water as needed. The tankless systems, about the size of a backpack, do without storing any hot water and don’t require intermittent heating to maintain temperatures.


Supplying your home with hot water comes at lower energy costs with tankless heaters, which cover both financial and environmental factors.

The tankless water heater isn’t only economically more practical, but its environmental sustainability is undeniable. Less fuel and energy consumption make tankless water heaters cost fewer resources overall.

The Hybrid Water Heater Difference

A hybrid water heater is an entirely different innovation. While it won’t give you as much room as tankless units, a hybrid water heater is more eco-friendly and helps you save money in its own energy-efficient techniques.

Energy Efficiency

The heat pump water heater pulls heat, an endless supply in warmer climates, and doesn’t generate its own to provide your home with warm water. Using available resources like heat particles in the ambient air instead of generating heat directly consumes less energy to facilitate.

Heat pump water heaters are a safe bet during cold winters. Even when water pipes are linked to multiple showers running simultaneously, the energy factor doesn’t surge as high as heating systems generating their own heat. Even if hot water takes a little more time than it would during a warm climate, the amount you save on electricity bills is worth it.


A heat pump is a versatile heat exchange system. It is used for sustainable air conditioning and holds up equally well during cold weather. Hybrids cost more to purchase and install, sometimes more than tankless units, but more than operating costs; their environmental sustainability is unrivaled.

Its natural process leaves little to no fuel emissions, making it a “greener” option for any of your heating needs. Whether it’s hybrid hot water heaters or air conditioning systems, no other heat exchanger is more energy efficient and environmentally friendly than heat pump systems.

Regardless of what it’s up against, either cold water or freezing weather, heat pump water heaters hold up against both just fine.

What is a Heat Pump Water Heater?

You might confuse these with water-source heat pumps. A hybrid hot water heater isn’t the same as water-source heat pumps, drawing heat energy from natural bodies of water instead of the air surrounding heat exchangers.

While the former is exclusively a water heater, the latter is an energy-efficient system that provides versatile heating. Heat pump water heaters can be distributed through ductwork and floorboards for ambient air heating and can directly heat your water supply.

The Heat Pump Water Heater Difference

Warm climates don’t necessarily need hasty heating for water or indoor air, making heat pump water heaters a practical option. However, its stand-out sustainability makes it a choice that stands head and shoulders above the rest, with more homes and establishments even in colder climates opting for them.

Energy Efficiency

We already know a heat pump doesn’t generate its own heat, requiring less energy. Even when you think much smaller tankless hot water heaters take less power to operate, a heat pump consumes much less energy to convert heat than generated through combustion.


Pulling much of its resources to those readily available in nature without producing harmful waste emissions is another level of sustainability. A lot of its process involves recycling resources, such as storing heat during summer to disperse in winter.

Heat pump water heaters also last at least a decade, with routine maintenance further lengthening their lifespan.

Unit Costs

Heat pump water heaters cost nearly thrice as much as a regular storage tank. Even home heating heat pumps come at higher costs. Its higher costs can be attributed to its incredibly sophisticated systems, and its technology is more current than most heating and cooling systems.

Installation Costs

Heat pump water heaters require complex installation, requiring different outdoor and indoor units. However, its total installation costs won’t vastly differ from tankless units.

Important tankless water heaters pros include spacious allowance, but adding external integrations to help filter your water will take up extra space. Heat pumps come with built-in air filters.

An air filter helps keep particles and harmful contaminants out of your breathing air, but special filters are used in water installations.

A hot water heater can’t kill all the microbes in your water supply. A water heater needs special filtration systems to ensure potable and sanitary utility water.

Tankless Water Heater VS Hybrid Water Heater

A water heater is essential in any home, but you don’t have to spend so much on operating costs. A hybrid water heater might be better for you if you live in warmer climates such as Florida.

Your water heater pulling heat from the air surrounding your home instead of fuel ignition will save you heaps! Additionally, an electric water heater helps you cut back on utility costs altogether.

Any Water Heater VS Heat Pump Water Heater

One heating system to heat water and air? That’s a good deal. A heat pump system is the most costly installation, but its versatile heating applications will help you save on unit costs and monthly operating costs.

Who to Call for Professional HVAC Services in Florida

Remember, routine maintenance is the key to energy-efficient HVAC systems, including your water heater. Neglecting their upkeep, you can buy the most expensive heat pump water heaters and still pay out the nose for monthly bills.

Find professionals you can trust with your home heating systems.

Mac5 Plumbing, Cooling, Electric, Heating, Drains

Mac5 can help solves all your HVAC issues. Whether you need help installing your new tankless water heater or water heater repairwe’re there!

We’ll help keep all your systems clean, pristine, and in good working condition.

You don’t have to wait another day for hot water. We offer clients same-day consultation and repairs. Book your appointment online or call us now.

Call (321) 244-7500

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