The Differences Between Traditional and Tankless Water Heaters in MN

When it’s time to install a new water heater in your home, you’ll have no shortage of options. At Neighborhood Plumbing & heating, our professional Minnesota plumbers can help you determine which model of water heater would be best form your home when we provide you with an installation or replacement. We can also help you decide between the two main categories of water heaters: traditional and tankless.

There are pros and cons to both of these types of water heaters, and in the end, the best decision will depend on your home and your preferences. The best way to begin making a decision is to understand the differences between tankless water heaters and traditional water heaters.

Traditional vs. Tankless

  • traditional water heater works by storing about 30-50 gallons of water in a tank and keeping it heated at all times. That preheated water is used anytime someone showers, does laundry, washes dishes, or uses hot water for anything else in your St. Cloud home. After the water has been emptied from the tank, it refills and begins heating again.
  • tankless water heater, on the other hand, uses either an electric or gas heat source to heat cool water on-demand when you’re ready to use it. Tankless water heaters are also referred to as on-demand water heaters.

Pros and Cons of Traditional Water Heaters

  • Pros:
  • Lower initial cost. Traditional water heaters can be purchased and installed for as little as half of the price of installing new tankless water heaters in your St. Cloud home.
  • Relatively inexpensive to replace. Fewer installation complications means there’s less that can go wrong and a low cost of labor when it’s time to replace your water heater.
  • Cons:
  • Higher utility costs.
  • They occupy more space.
  • Will run out of hot water.
  • Shoter life span. Traditional water heaters typically last for 10-15 years before they need to be replaced.

Pros and Cons of Tankless Water Heaters


  • Save money in the long run. Although the initial costs of installation may be higher, tankless water heaters can be 24-34% more energy efficient that traditional storage tank water heaters, which saves you a significant amount of money on your St. Cloud home’s utility costs.
  • Lasts longer. Tankless water heaters can last for twenty years or longer.
  • Delivers hot water whenever you need it. Because water is heated on-demand, it never runs out.


  • Higher initial costs.
  • Retrofitting can add to upfront cost. Replacing a traditional water heater with a tankless system is more complicated, and that may increase the initial cost.

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